Pensam Funding Acquires Another “B-Piece” Security Through Freddie Mac K-Deal Program

Miami, FL – October 11, 2017 — Pensam Funding, Inc. is pleased to announce that it recently acquired another ‘B-Piece’ from Freddie Mac through their K-Deal Program.  The issuance, K-67, is supported by a pool of 67 multifamily mortgage loans. This is the second B-Piece acquired by Pensam within the last 12 months, following the K-60 acquisition in December 2016.

The total loan balance represented by the K-67 Multifamily Mortgage Pass-Through Certificates at closing was approximately $1.4 billion and the B-Piece that Pensam acquired had a face amount of approximately $107 million.  K-67 is represented by a highly diversified group of real properties located across 25 states including: California, Virginia, Texas, Colorado, Georgia and New York (in order of geographic concentration) among other States.  Pensam Funding viewed the loan metrics underlying the Pass-Through Certificates as quite compelling with the average weighted: LTV of 67.8% at closing (and this is anticipated to amortize down to 61.9% by maturity); occupancy at +95%; and a debt yield of 8.0% compared to the average cap rate of 5.4%.

As is characteristic of the K-Deal program, Pensam Funding, as the B-Piece buyer, will act as the initial Directing Certificateholder for the entire K-67 loan pool. In this capacity Pensam Funding will have extensive rights including: directing the master servicer or special servicer with respect to various matters regarding the underlying mortgage loans; have approval rights with respect to loan assumptions, loan consents and changes in property management; retains an option to purchase defaulted loans; and access rights to operating and performance information and reports on the underlying assets.

Since the commencement of the K-Deal program in 2009, Freddie Mac has issued over $200 billion of multifamily mortgage pass-through certificates.