Freddie Mac plans to issue its second multi-family CMBS of 2013, a $1.3 billion transaction called FREMF 2013-K25.
Kroll Bond Rating Agency (KBRA) and Moody's Investors Service assigned preliminary ‘AAA’/ ‘Aaa’ ratings to the deal’s senior classes. Kroll said in a presale report that it also rated the class B notes, ‘A+’ and the class C notes,‘BBB+’.
The transaction is collateralized by 83 fixed rate multifamily mortgage loans. The loans have principal balances that range from $1.5 million to $91.7 million for the largest loan, which is secured by the fee simple interest in The Colorado (6.0%), a 256-unit high-rise apartment complex located in New York, NY.
The top five loans represent 19.6% of the pool cut-off balance, and include Saybrook Pointe Apartments in San Jose, CA (4.2%), Falls of Pembroke Apartments in Pembroke Pines, FL (3.2%), Abbey At Eldridge in Houston, TX (3.2%) and Grosvenor Towers in Bethesda, MD (3.0%). The properties are located in 25 states, with the three largest concentrations in Texas (14.2%), Florida (11.6%) and Maryland (9.6%).
The K-025 Certificates will be offered to the market by a syndicate of dealers led by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley as co-lead managers and joint bookrunners. Barclays Capital, Credit Suisse Securities, Guggenheim Securities, and J.P. Morgan Securities will serve as co-managers.
David Brickman senior vice president of Freddie Mac Multifamily said in a press release today that Freddie Mac in the four years since the multifamily CMBS program's inception, Freddie Mac has securitized $44 billion in mortgages backed by 5-, 7- and 10-year collateral, as well as floating rate mortgages.
“We are now in the securitization market every day with new issuances every two to three weeks,” he said. “We anticipate an increase in securitizations this year with 10-year mortgage loans being the predominant loan type as borrowers lock-in the low interest rates."