Fitch Affirms FREMF 2011-K704 and Freddie Mac Structured Pass-Through Certificates, Series K-704

  Fitch Affirms FREMF 2011-K704 and Freddie Mac Structured Pass-Through
  Certificates, Series K-704

Business Wire

CHICAGO -- November 08, 2012

Fitch Ratings has affirmed all four classes of FREMF 2011-K704 multifamily
mortgage pass-through certificates and three classes of Freddie Mac structured
pass-through certificates, series K-704. A detailed list of rating actions
follows at the end of this release.

The affirmations are based on the stable performance of the underlying
collateral pool. As of the October 2012 remittance, the pool has had no
delinquent or specially serviced loans. Fitch has designated one loan as Fitch
Loan of Concern. The pool's aggregate principal balance has been paid down by
0.2% to $1.2 billion from $1.2 billion at issuance. 64 of the remaining loans
(98% of the pool) reported year end 2011 financials. The pool's overall net
operating income has been stable with a 5% increase since issuance. There are
no loans in the pool that are located in areas affected by Hurricane Sandy.

The largest loan of the pool (19.00%) is secured by, Rosslyn Heights, a
366-unit four building apartment complex located in Arlington, VA. The
apartment complex amenities include two outdoor pools, a picnic area with
grills, a fitness center, a hospitality suite, and parking for residents.
Rosslyn is a stable market within the D.C. area due to the presence of major
employers, Price Waterhouse Coopers, The Boeing Company, and the Corporate
Executive Board's national headquarters being located in the vicinity.

The second largest loan (7.86%) is secured by, Farms at Cool Springs, a
474-unit garden-style apartment complex situated on 32 acres approximately 15
miles south of the Nashville CBD. The property is of superior quality to the
neighboring competing assets in the Brentwood/Williamson County submarket. The
complex amenities include a car care center, clubhouse, fitness center,
swimming pool with heated spa, and tennis courts. The subject benefits from
its close proximity to I-65 which provides direct access to the Nashville CBD
located 15 miles to the north.

The third largest loan (7.47%) is secured by a 292-unit apartment complex
located in Smyrna, GA. The property is comprised of nine apartment buildings,
26 retail spaces, three parking decks, and one clubhouse. The amenities
offered include a fitness center, cyber bar, swimming pool, and picnic area.
Located in the Vinings area of Atlanta, the subject is 10 miles northwest of
the Atlanta CBD with access to interstates 285 and 75. The area benefits from
the multiple retail destinations, corporate employment centers and the demand
generator of Dobbins Air Force base. The property was built in 2006 and is
part of the West Village project which is the redevelopment of a former
industrial and residential tract.

Fitch has affirmed the following classes as indicated:

FREMF 2011-K704 Multifamily Mortgage Pass-Through Certificates

--$77 million class A-1 at 'AAAsf'; Outlook Stable;

--$929.4 million class A-2 at 'AAAsf'; Outlook Stable;

--$1 billion class X1 at 'AAAsf'; Outlook Stable;

--103.8 million class B 'BBB+sf'; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series K-704

--$77 million class A-1 at 'AAAsf'; Outlook Stable;

--$929.4 million class A-2 at 'AAAsf'; Outlook Stable;

--$1 billion class X1 at 'AAAsf'; Outlook Stable.

*Notional amount and interest only

Of FREMF 2011-K704, Fitch does not rate the $1,202.9 million interest-only
class X2, the $194 million interest-only class X3, the $84.1 million class C-1
or the $6.0 million class C-2. Of the Freddie Mac Structured Pass-Through
Certificates, Series K-704, Fitch does not rate the $194 million interest-only
class X3.

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21,
2011).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869

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Contact:

Fitch Ratings
Primary Analyst
Jay Bullie
Associate Director
+1-312-368-2079
Fitch, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson
Senior Director
+1-312-606-3241
or
Media Relations
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com