Freddie Mac Multifamily recently closed the latest M-Deal®, M074, with its newly revamped M-Deal structure, making M-Deals more consistent with other Freddie Mac Multifamily securitizations as they relate to trust structure, disclosure, reporting, and more.

Structuring the Transaction

We partnered with Cedar Rapids Bank and Trust Company (CRBT) for the fifth time to complete this structured transaction, totaling $284.1 million for 3,008 units across 19 multifamily properties, including 1,245 subsidized rental housing units.

As part of M074, CRBT deposited 21 tax-exempt bonds into a tax-exempt securitization backing senior, guaranteed Class A and subordinate, unguaranteed Class B certificates. Freddie Mac will guarantee the timely payment of interest, payment of principal on the distribution date immediately following the mandatory prepayment date, if any, or the scheduled maturity date of each tax-exempt bond and the ultimate payment of principal on the Class A Certificates. 

The deal is structured under Freddie Mac's M series shelf, featuring an A/B structure with a 10% subordinate Class B for first-loss support. CRBT retained the Class B Certificates, and the Class A Certificates were offered publicly to third-party investors.

“M074 reflects Freddie Mac Multifamily’s continued commitment to expanding access to affordable housing while delivering a more consistent, transparent and investor-friendly M-Deal structure,” says Christina House, Freddie Mac’s structured production manager. “Through our ongoing collaboration with CRBT, we are able to support high-quality affordable housing properties nationwide and bring a transaction to market that combines strong credit fundamentals with meaningful housing impact.”

Supporting Affordable Housing Nationwide

M074 is backed by properties across 11 states, with the three largest properties in Seattle; Albuquerque, New Mexico; and Baton Rouge, Louisiana. All properties are affordable, with seven benefiting from project-based subsidies and all benefiting from new 4% Low-Income Housing Tax Credit equity. The assets are stabilized, with an average year built of 2001, and nine properties are new constructions completed in 2020 or later. 

“What makes M074 particularly rewarding is that it demonstrates how thoughtful capital markets execution can create real-world impact,” says John Hammar, vice president of capital markets and derivatives at CRBT. “Our continued partnership with Freddie Mac allows us to bring institutional investment into affordable housing while supporting developers and communities that provide stable housing opportunities for thousands of residents. We're proud to be part of a transaction that serves both investors and the broader affordable housing mission.”

The M074 deal underscores Freddie Mac's ongoing efforts to support affordable housing initiatives while offering attractive investment opportunities through its structured financing products.