Fitch Affirms FREMF 2013-K29 & Freddie Mac Structured Pass-Through Ctfs, Series K-029

NEW YORK--()--Fitch Ratings has affirmed six classes of FREMF 2013-K29 multifamily mortgage pass-through certificates and three classes of Freddie Mac structured pass-through certificates, series K-029. 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. As of the May 2014 distribution date, the pool's aggregate principal balance has been reduced by 0.3% to $1.63 billion from $1.64 billion at issuance. Fitch has designated one Fitch Loan of Concern (2%); no loans are in special servicing.

The affirmations of the Freddie Mac series K-029 certificates are the result of the pass-through nature of the certificates, as they are dependent on the underlying ratings of the corresponding classes of FREMF 2013-K29.

The largest loan, Crystal Towers (14.7% of the pool), is secured by a 912-unit high-rise apartment complex located in Arlington, VA. The property is within walking distance of the Crystal City Metro rail station and the Crystal City Shops. Amenities include a swimming pool, barbeque and picnic areas, a rooftop sundeck, lounges, a cafe and meeting rooms. As per the property's rent roll, the occupancy declined slightly to 92.8% as of year-end 2013 from 97.6% as of February 2013.

The second largest loan, Skye at Belltown (3.2%), is secured by a 360-unit high-rise apartment complex located in Seattle, WA. The property was built in 1949 and is 18-stories with an attached two-story parking garage. Common amenities include a laundry room, fitness center, game room, library, business center, barbeque grills, entertainment kitchen, conference room, tanning bed and a third-floor garden area. As per the property's rent roll, occupancy declined slightly to 92.8% as of the third-quarter 2013 from 96.4% as of the first-quarter 2013.

The Fitch Loan of Concern and eighth largest loan, University House at the Retreat (2%), is secured by a 178-unit, 710-bed student housing apartment complex located in Tallahassee, FL. The property serves Florida State University (FSU), which is approximately 2 miles away. The complex includes 109 two- and three-story buildings and amenities that include a lounge area, game room, swimming pool, study area, a movie theater, fitness center, a virtual driving range, volleyball and basketball courts and a shuttle service to FSU's campus. The servicer-reported occupancy was at 71% as of the third-quarter 2013 from 98.2% as of the first-quarter 2013. In Fitch's presale report, Fitch had cited new student housing supply coming to market in its presale report as a concern.

RATING SENSITIVITY

The Rating Outlooks for all classes 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. Initial Key Rating Drivers and Rating Sensitivity are further described in the New Issue report 'FREMF 2013-K29 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-029' published on Nov. 19, 2013 and available at www.fitchratings.com.

Fitch affirms the following classes:

FREMF 2013-K29 Multifamily Mortgage Pass-Through Certificates

--$232.6 million class A-1 at 'AAAsf', Outlook Stable;

--$1.1 billion class A-2 at 'AAAsf', Outlook Stable;

--$104.4 million class B at 'A-sf', Outlook Stable;

--$40.9 million class C at 'BBB-sf', Outlook Stable;

--$1.4* billion class X1 at 'AAAsf', Outlook Stable;

--$1.4* billion class X2-A at 'AAAsf', Outlook Stable.

Fitch does not rate the class D and X3 certificates.

Freddie Mac Structured Pass-Through Certificates, Series K-029

--$232.6 million class A-1 at 'AAAsf', Outlook Stable;

--$1.1 billion class A-2 at 'AAAsf', Outlook Stable;

--$1.4* billion class X1 at 'AAAsf', Outlook Stable.

Fitch does not rate the class X3 certificates.

*Notional and interest-only.

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-K29 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-029 -- Appendix' (Jan. 16, 2014).

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=835481

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.

Contacts

Fitch Ratings
Primary Analyst:
Sean Gibbs, +1-212-908-0311
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst:
Sean Gibbs, +1-212-908-0311
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com