News Column

Fitch Affirms FREMF 2011-K14

June 18, 2014

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed Freddie Mac's FREMF Mortgage Trust, series 2011-K14 multifamily mortgage pass-through certificates as follows:

--$53.6 million class B at 'Asf', Outlook Stable.

Fitch does not rate the class X-2, X-3 or C certificates.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. There are currently no Fitch loans of concern. The pool's aggregate principal balance has been paid down by 2.85% to $1.16 billion from $1.19 billion at issuance.

As of Fitch's previous review in July 2013, there was one specially-serviced loan (0.4% of the pool) secured by a 20-unit apartment complex located in Palo Alto, CA. The loan transferred to special servicing in May 2013 due to delinquent loan payments. However, the loan returned to the master servicer in March 2014 after the borrower and special servicer came to an agreement regarding payment for outstanding default interest. The September 2013 NOI DSCR and occupancy were 1.55x and 95%, respectively. There are no delinquent loans in the pool as of the May 2014 distribution date.

The largest loan of the pool (7.3% of the pool) is secured by Ocean Towers, a 317-unit high rise cooperative building located in Santa Monica, CA (Los Angeles MSA). The property was built in 1971 and renovated in 2001, and features ocean views. The property was 100% occupied as of October 2013 and has been since 2008.

The second largest loan (3.8% of the pool) is secured by The Villas at Pine Hills, a 700-unit, 35-building, garden-style apartment complex situated on 100 acres in Manorville, NY. The property was built in 1976. As of year-end (YE) 2013, occupancy and NOI DSCR were 96.2% and 1.67x, respectively.

The third largest loan (3.6% of the pool) is secured by Hamilton House, a 304-unit, nine-story apartment building located in downtown Washington, D.C. The property was built in 1966 and renovated in 1998. As of YE 2013, occupancy and NOI DSCR were 95.4% and 1.56x, respectively.

RATING SENSITIVITY

The Rating Outlook on class B remains Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's overall portfolio-level metrics. Additional information on rating sensitivity is available in the 'FREMF 2011-K14 Multifamily Mortgage Pass-Through Certificates' (September 2, 2011) new issue report, available at www.fitchratings.com.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=835247

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

Martin Nunnally

Associate Director

+1-212-908-0871

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Committee Chairperson

Britt Johnson

Senior Director

+1-312-606-2341

or

Media Relations

Sandro Scenga, New York, +1 212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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