Garden-style apartments are the core collateral of the Freddie Mac K-Deal program. Across 25 securitizations closed from January through August 2026, garden loans are 65 percent of the balance in the tape. They price only about 4 basis points over mid- and high-rise loans of the same term, appraisers cap them 34 basis points wider, and value per unit runs about 44 percent below vertical product.
- Loans tracked 561 · 123,466 units
- Cut-off loan balance $15.49B
- Appraised value per unit $196K
- Weighted cap rate 5.51%
How the loans are priced.
The weighted coupon is 5.16 percent. Leverage is 65.2 percent against 63.1 percent for mid- and high-rise loans in the same deals, and coverage is 1.37x against 1.40x. The capitalization rate is 5.51 percent against 5.17 percent. Appraised value is $196,000 per unit against $351,000, and the loan is $126,000 per unit against $219,000. Forty-nine percent of the balance chose a 5-year term. Full-term interest-only is 23 percent of balance, against 35 percent for vertical product.
The buildings.
The median year built is 1989. Half of the fixed-rate loans finance pre-1990 buildings, and 62 percent report a renovation, against 37 percent for vertical product. Texas and California lead, and Sun Belt states hold 44 percent of garden balance against 18 percent for mid- and high-rise, which is where new supply has weighed on rents. Communities built since 2010 were capped at a median 5.35 percent and appraised at $241,000 per unit, against 5.68 percent and $164,000 for older stock. Effective income is about $18,600 per unit against $29,800 for mid- and high-rise, the expense ratio is 42.2 percent against 39.6 percent, and net operating income is about $10,700 per unit against $18,000.
What that means for debt.
An illustrative coupon, marked to Treasuries at the end of September 2026, is about 6.29 percent — roughly 113 basis points above the first-half pricing in the tape. Sized to 1.25x coverage on a 30-year amortization, the loan is about $113,000 per unit, 11 percent below the $126,000 in the tape. With about half the collateral built before 1990, roof and system age and the remaining capital plan drive proceeds. Where deliveries have pressured rents, in-place collections matter more than trended rents. National occupancy was 95.5 percent in August 2026, and deliveries were running well below the 2024 peak.
Loans are identified by market only. Debt figures are illustrative, marked to Treasuries as of 28 September 2026. For discussion only; not a valuation opinion, investment advice, or an offer to lend.