Fitch Affirms FREMF 2013-K713 and Freddie Mac Pass-Through Certificates, Series K-713

NEW YORK--()--Fitch Ratings has affirmed six classes of FREMF 2013-K713 multifamily mortgage pass-through certificates and three classes of Freddie Mac structured pass-through certificates, series K-713. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. The pool has had no delinquent or specially serviced loans since issuance. The pool's aggregate principal balance has been paid down by 0.53% to $1.59 billion from $1.60 billion at issuance.

The largest loan of the pool (11.2% of the pool) is secured by the Riata Portfolio, a portfolio of eight garden-style multifamily communities totaling 2,044 units located in Austin, TX, approximately 15 miles northwest of the downtown CBD. The buildings were built between 1997 and 2001 and renovated in 2012. The portfolio is supported by approximately 7 million square feet (sf) of office space within a two-mile radius. Occupancy and NOI DSCR were 94% and 2.44x, respectively, as of September 2013.

The second largest loan (4.4% of the pool) is secured by Fairway Palms and Ironwood Apartments, a 496-unit garden-style apartment community located in Rancho Cucamonga, CA approximately 40 miles east of the Los Angeles CBD within the Riverside-San Bernardino MSA. Built in 2002, the subject was initially developed as two individual properties, but both the previous and current ownership operate the communities as one combined property. Occupancy was 95% and NOI DSCR was 1.40x as of September 2013.

The third largest loan (3.8% of the pool) is secured by Avana Skyway, a 348-unit garden-style apartment community located in San Jose, CA approximately six miles south of the downtown area. Built in 1991, the subject is situated near retail including the Westfield Oakridge Mall, and also offers nearby access to major thoroughfares and public railway transit. Occupancy was 92% and NOI DSCR was 1.35x as of December 2013.

RATING SENSITIVITY

Rating Outlooks on all Fitch-rated classes remain 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 2013-K713 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-713' (May 28, 2013) presale report, available at www.fitchratings.com.

Fitch affirms the following classes:

FREMF 2013-K713 Multifamily Mortgage Pass-Through Certificates

--$124.27 million class A-1 at 'AAAsf'; Outlook Stable;

--$1.21 billion class A-2 at 'AAAsf'; Outlook Stable;

--$1.32 billion* class X1 at 'AAAsf'; Outlook Stable;

--$1.32 billion* class X2-A at 'AAAsf'; Outlook Stable;

--$100.1 million class B at 'A-sf'; Outlook Stable;

--$40 million class C at 'BBBsf'; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series K-713

--$124.27 million class A-1 at 'AAAsf'; Outlook Stable;

--$1.21 billion class A-2 at 'AAAsf'; Outlook Stable;

--$1.32 billion* class X1 at 'AAAsf'; Outlook Stable.

*Notional amount and interest only.

Of FREMF 2013-K713, Fitch does not rate the $260.1 million interest-only class X2-B, the $260.1 million interest-only class X3, or the $120.1 million class D. Of the Freddie Mac Structured Pass-Through Certificates, Series K-713, Fitch does not rate the $260.1 million interest-only class X3.

A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:

--'FREMF 2013-K713 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-713 --Appendix' (May 28, 2013).

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 then CMBS then 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

FREMF 2013-K713 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K713 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709497

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=832197

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Contacts

Fitch Ratings
Primary Analyst
Martin Nunnally, +1 212-908-0871
Associate Director
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1 212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Martin Nunnally, +1 212-908-0871
Associate Director
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1 212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com