Freddie Mac's third "K" multifamily mortgage deal backed by seven-year mortgages has come to market.

“We are finding that there is good investor appetite for the seven-year product,” Victor Pa, vice president, portfolio management and securitization at Freddie Mac, told ASR sister publication National Mortgage News yesterday.

The company has a little over $1 billion in K certificates that sold this morning, according to a report from Bloomberg. The report said that the deal's A-1, 3.87-year tranche worth $84.1 million had a yield of 1.57737 and the A-2, 6.62-year portion worth $963.277 million sold at yield 2.51908.

Both tranches were rated triple-A by Moody's Investors Service and Fitch Ratings.

Wells Fargo Securities and Credit Suisse are the offering's joint bookrunners. Co-managers on the transaction are Bank of America, Barclays Capital, Jefferies and JPMorgan Securities.

The K-703 certificates are backed by 71 recently originated multifamily mortgages guaranteed by Freddie Mac.

K deals have Freddie Mac guaranteed senior and interest only classes and related private-label underlying trusts.

The trusts include mezzanine, subordinate and IO bonds that are not guaranteed. The GSE also has prepayment restrictions on the underlying loans in these deals aimed at reducing their interest rate sensitivity.

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