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Freddie Mac Completes K-AIV $538 Million Single Sponsor Offering with AIMCO

June 27, 2011

Earlier this month, Freddie Mac Multifamily completed its issuance of Structured Pass-Through Certificates (K Certificates), multifamily mortgage-backed securities for $538 million in K-AIV Certificates, which are secured by 19 multifamily properties owned by Apartment Investment & Management Company (AIMCO) affiliates. AIMCO purchased the B-piece and mezzanine bonds for these securities, resulting in greater flexibility at the loan level.

"We were very pleased to offer the first K deal backed by multiple loans from a single sponsor. We expect to periodically issue these types of deals and others with loans from a single property and/or single sponsor. It's the continuing evolution of K deals, which includes loans on conventional, student, senior and targeted affordable multifamily properties," said David Brickman, senior vice president, Multifamily Division. The first single loan K Certificate from a single borrower was the March 2010 K-SCT transaction backed by the Starrett City property in Brooklyn, NY.

Freddie Mac K-deals feature a wide range of investor options with stable cash flows and a structured credit enhancement. The mortgages, originated by Key Bank Real Estate Capital and Wells Fargo Multifamily Capital, are secured by properties located in all four of our regions. The Conventional Structured Transactions group executed this transaction, working with all four regions and home office underwriting.

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