Multifamily Credit Fund
High yield debt investments for qualified purchasers.
An Exclusive Investment
This private credit fund invests in conservatively leveraged Freddie Mac bonds that are backed by cash flowing and geographically diversified multifamily loans.
Floating Rate
K-Deal B-Pieces
Fixed Rate
K-Deal B-Pieces
SBL
B-Pieces
Interest
Only Strips
Fund Benefits
Higher Net Yield
The Origin Multifamily Credit Fund's current net yield is 7.10%, offering a substantially higher stream of passive income than traditional fixed income investments.
Sample Capital Structure
Downside Protection
B-Piece bond certificates are senior to common equity property owners and subordinate to the A-Piece certificates. In turn, B-Piece investors are compensated with higher risk-adjusted returns while still being protected by up to a 30% cushion-to-loss.
REIT Structure
The Fund was designed with a REIT structure to provide tax efficiencies, including a 20% tax deduction on all taxable distributions, converting of interest income into ordinary REIT distributions, blocking all Unrelated Business Taxable Income and Effectively Connected Income.
How the Fund Works
Freddie Mac approved us to bid on their bonds at exclusive purchase auctions because we’re an expert operator of multifamily investments, have been actively borrowing from Freddie Mac for 10+ years and meet their high capital requirements.
We bid on only the B-Piece tranche of Freddie Mac K-Deal and SBL bonds because we are compensated with higher risk-adjusted returns while still being protected by the borrower equity position, which shields our investments from potential loss.
We leverage our boots-on-the-ground market experience to identify all the potential merits and risks of each B-Piece prior to purchasing and then acquire selected bonds to build a strategic and well-diversified portfolio for our investors.
Egan-Jones Fund Rating
Based on a qualitative and quantitative analysis performed by Egan-Jones—a market leader in private placement ratings—the Multifamily Credit Fund has been given an A- rating. This rating means that the Fund is expected to have a high level of creditworthiness with low sensitivity to evolving credit conditions.
Why Origin
Exclusive Access
We’ve met Freddie Mac’s stringent requirements to become an approved B-Piece purchaser.
Due Diligence Process
We thoroughly vet each B-Piece using our proprietary underwriting and due diligence process.
Fund Leadership
Our team has executed billions of dollars of real estate transactions, with decades of experience in investment and risk management.
1) Multifamily Credit Fund current net yield as of August 31, 2022. 2) Egan-Jones, a market leader in private placement ratings, performed a qualitative and quantitative analysis on the Fund in February 2022. The Fund’s rating means that it is expected to have a high level of creditworthiness with low sensitivity to evolving credit conditions. 3) The average historical credit loss rate for Freddie Mac loans is only 0.041%. Request fund documents for more information.
A qualified purchaser is an individual or a family-owned business that owns $5 million or more in investments, not including a primary residence or any property used for business.
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