OREANDA-NEWS. September 15, 2015. Fitch Ratings has affirmed nine classes of FREMF 2012-K21 multifamily commercial mortgage pass-through certificates series (FREMF 2012-K21) and Freddie Mac structured pass-through certificates, series K-021. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
The affirmations reflect the stable performance of the pool since issuance. There are no specially-serviced or delinquent loans in the pool. Multifamily properties represent 88.2% of the pool, student housing properties represent 10.5% of the pool, and one co-op property in the Murray Hill Section of Manhattan represents the remaining 1.3% of the pool.

The certificates represent the beneficial interests in a pool of 79 commercial mortgages secured by 79 properties. The Freddie Mac structured pass-through certificates, series K-021 (Freddie Mac SPC K-021) represents a pass-through interest in the corresponding class of the securities issued by FREMF 2012-K21 Mortgage Trust. Each Freddie Mac SPC K-021 security has the same designation as its underlying FREMF 2012-K21 class. All loans were originated by various seller/servicers according to the guidelines of the Freddie Mac Capital Markets Execution (CME) product. The certificates follow a sequential-pay structure. The affirmations of the Freddie Mac structured pass-through certificates, series K-021 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 2012-K21.

The largest loan in the pool (4.9%) is secured by a 684-unit garden-style multifamily community located in Oakland Gardens, NY, approximately 16 miles east of the Manhattan CBD. The property was built in 1949 with unit renovations being completed on an ongoing basis as the units turn over. The property benefits from a J-51 real estate tax exemption with the majority of the units subject to New York City's rent stabilization guidelines. The servicer-reported occupancy and debt service coverage ratio (DSCR) were 99% and 2.83x, respectively, as of year-end 2014. Notably, this loan is the only full-term interest-only loan in the pool.

The second largest loan (3.7%) is secured by a 422-unit mid-rise apartment complex located in Tampa, FL on 6.75 acres of land. The property is situated within the Channelside District, south of the Crosstown Expressway and the Tampa CBD, and west of the Port of Tampa. The year-end 2014 occupancy and DSCR were reported to be 93% and 1.71x, respectively. DSCR is down from 2.27x at year-end 2013, but this is largely the result of the commencement of amortization. Net Operating Income (NOI) decreased 6% year over year but is still above the underwritten scenario.

At last review Fitch noted one Loan of Concern, The Towers at Four Lakes. This property was previously designated as a Fitch Loan of Concern due to serious flood damage, necessitating a rehabilitation project with a total cost of \\$4 million, which was paid for with insurance proceeds. All renovations have been completed and the property has stabilized with year-end 2014 occupancy of 95%. Year-end 2014 DSCR was 1.52x which represents an NOI roughly consistent with initial underwriting. Fitch no longer designates this loan as a Loan of Concern.

RATING SENSITIVITY
The Rating Outlook remains Stable for the rated class. Due to 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 report 'FREMF 2012-K21 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-021' (Sept. 6, 2012), available at www.fitchratings.com.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

Fitch affirms the following classes:

FREMF 2012-K21 Multifamily Mortgage Pass-Through Certificates
--\\$164.4 million class A-1 at 'AAAsf'; Outlook Stable;
--\\$968.2 million class A-2 at 'AAAsf'; Outlook Stable;
--Interest-only class X-1 at 'AAAsf', Outlook Stable;
--interest-only class X2-A at 'AAAsf' Outlook Stable;
--\\$68.4 million class B at 'Asf'; Outlook Stable;
--\\$34.2 million class C at 'BBB+sf'; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series K-021
--\\$164.4 million class A-1 at 'AAAsf', Outlook Stable;
--\\$968.2 million class A-2 at 'AAAsf', Outlook Stable;
--\\$1.1 billion* class X-1 at 'AAAsf', Outlook Stable.

Of the FREMF 2012-K21 Multifamily Mortgage Pass-Through Certificates, Fitch does not rate the interest-only X2-B, interest only class X3 or the class D certificates.

Of the Freddie Mac Structured Pass-Through Certificates, Series K-021, Fitch does not rate the 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 2012-K21 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-021 - Appendix' (Dec. 20, 2012).

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers: