Freddie Mac has priced an approximately $263 million offering of SB40 certificates, backed by small-balance multifamily mortgages.
Freddie Mac's small-balance loans are generally $1 million to $6 million in size and backed by properties with five or more units. CBRE Capital Markets Inc., Greystone Servicing Corp. Inc., RED Mortgage Capital LLC and The Community Preservation Corp. originated 119 of the mortgages. The mortgages were underwritten by Freddie Mac and issued by a third-party trust.
The certificates are expected to settle on or about Oct. 25. Included in the offering are $101.4 million of class A-5H securities, $22.8 million of class A-7H securities, $101.1 million of class A-10F securities and $38.5 million of class A-10H securities. Four senior principal and interest classes and an interest-only class of the securities issued by the FRESB 2017-SB40 Mortgage Trust are guaranteed by Freddie Mac, which also acts as the trust's mortgage loan seller and master servicer.
The trust will also issue classes of certificates that are not Freddie Mac-guaranteed and which will be sold to private investors.
Wells Fargo Securities LLC serves as the offering's sole lead manager and book runner. Co-managers are Amherst Pierpont Securities LLC, J.P. Morgan Securities LLC, Samuel A. Ramirez & Co. Inc. and SunTrust Robinson Humphrey.