This real estate credit fund invests in conservatively leveraged Freddie Mac bonds that are backed by cash flowing and geographically diversified multifamily loans.
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.
Higher Net Yield
The Origin Multifamily Credit Fund will target a net distribution yield of 6–8%, offering a substantially higher stream of passive income than traditional fixed income investments.*
Origin Multifamily Credit Fund Target Yield-7%
A-Rated Corporate Bonds Yield-4.41%
A-Rated Municipal Bonds Yield-3.28%
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.
The Fund was designed with a REIT structure to provide tax efficiencies, including a 20% tax deduction on all taxable distributions, converting of rental income into ordinary REIT distributions, blocking all Unrelated Business Taxable Income and Effectively Connected Income.
20%Tax Deduction on Distributions
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.