Freddie Mac (OTCQB: FMCC) is expanding its senior housing products by offering the first Structured Pass Through Certificates (K certificates). Backed exclusively by mortgages on multifamily senior housing properties, the company said it expects to offer approximately $369 million in K Certificates.
The certificates are backed by 27 multifamily mortgages and are guaranteed by Freddie Mac. They include two senior principal and interest classes and a senior interest only class, and will not be rated.
“We are very proud to announce our first K-Deal backed entirely by Seniors Housing loans,” said Mitchell Resnick, vice president of Freddie Mac Multifamily Loan Pricing and Securitization. “Freddie Mac Multifamily is expanding our securitization series while bringing liquidity to the Seniors Housing market and selling a substantial portion of the risk to private investors through the K-Deal structure.”
The sponsors of the loans include Berkadia Commercial Mortgage LLC, CBRE Capital Markets, Inc., Grandbridge Real Estate Capital LLC, KeyCorp Real Estate Capital Markets, Inc., Oak Grove Commercial Mortgage, LLC, PNC Bank and more.
“The sponsors behind these loans are experienced property owners, operators and managers who understand the unique housing needs of this rental segment,” said Resnick. “The Freddie Mac seniors program has historically maintained strong credit metrics and performance throughout various commercial real estate cycles all while serving a very important sector of the multifamily market.”
Freddie Mac purchased $650 million in senior housing loans during 2012.
Written by John Yedinak