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Wednesday, 27 February 2019

Freddie Mac Student-Housing Loan Transfers to Special Servicing

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Commercial Real Estate Direct Staff Report

Here's something you don't see too often: a Freddie Mac loan has transferred to special servicing.

The loan, with a balance of $21.1 million, is securitized through FREMF 2011-K16. It's backed by the Apex at Kutztown, a 184-unit student-housing complex, with a 552-bed capacity near the campus of Kutztown University in Kutztown, Pa., which is roughly 20 miles west of Allentown, Pa.

It's only the 11th loan in the $353.5 billion universe of securitized Freddie Mac loans to be in special servicing, according to Trepp LLC. They amount to only 0.02 percent of that universe. And it's only the third student-housing loan among the 567 student-housing loans, with a total balance of $9.9 billion, in Freddie's securitized portfolio.

The loan transferred to special servicer KeyBank last month because it was expected to default. It's now classified as being in foreclosure.

The Apex property had faced a double whammy.

Enrollment at Kutztown University, a public college, has drop sharply over the last nine years. Last...


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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Allentown
  • States: Pennsylvania
  • Sector: Multifamily
  • Subject: Commercial MBS (CMBS)
  • Deal Name: FREMF, 2011-K16
  • Company: Freddie Mac
  • Private: Yes
  • bloombergDealName: FREMF 2011-K16
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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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