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Real Estate - OCTOBER 13, 2021

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Origin Investments launches $350m multifamily credit fund

by Andrea Zander

Origin Investments, a private real estate manager, has launched a $350 million Multifamily Credit Fund designed to give qualified purchasers a passive income stream substantially higher than most other fixed-income investments such as ETFs, corporate bonds and certificates of deposit.

The fund’s low-risk passive income stream comes from conservatively leveraged Freddie Mac K-Deal and SBL B-Piece certificates backed by cash-flowing and geographically diversified multifamily mortgage loans.

The primary benefits of Origin’s Multifamily Credit Fund are:

Downside protection. Freddie Mac has a low historical loss rate (.076 percent) and the B-piece certificate position is senior to common equity owners and provides a 30 percent cushion. Monthly income. A net distribution yield of 6 percent to 8 percent is targeted. Built-in inflation hedge. The yield on the fund’s floating rate bonds rise
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