Freddie Mac is initiating its first offering of structured pass-through certificates (K certificates) backed exclusively by multifamily mortgages on seniors housing properties. About $369 million in K certificates are planned to be issued, the company says.
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,’ says Freddie Mac's Mitchell Resnick. ‘Freddie Mac multifamily is expanding our securitization series while bringing liquidity to the seniors housing market.’
The certificates will be offered to the market by Wells Fargo Securities LLC as lead manager and sole bookrunner. Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Inc. and J. P. Morgan Securities LLC will be co-managers.
‘The sponsors behind these loans are experienced property owners, operators and managers who understand the unique housing needs of this rental segment,’ Resnick notes. ‘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.’