Presale Report FREMF 2021-K741 Mortgage Trust and Freddie Mac Structured Pass-Through Certificates, Series K-741

DBRS Morningstar Capital Structure February 22, 2021 Description Rating Action Balance ($) Subordination (%) DBRS Morningstar Rating Trend A-1 New Rating - Provisional 26,168,000 17.000 AAA (sf) Stable

A-2 New Rating - Provisional 914,820,000 17.000 AAA (sf) Stable Audrey Chew-Pei Lee A-M NR 107,703,000 7.500 NR n/a Vice President X1 New Rating - Provisional 940,988,000 - AAA (sf) Stable +1 646 560-4522 XAM NR 107,703,000 - NR n/a [email protected] X3 NR 85,029,738 - NR n/a Edward Dittmer X2-A New Rating - Provisional 940,988,000 - AAA (sf) Stable Senior Vice President X2-B NR 192,732,738 - NR n/a +1 212 806-3285 D NR 85,029,738 0.000 NR n/a [email protected] 1. NR = not rated. 2. Classes A-1, A-2, A-M, X1, XAM, and X3 were conveyed by Freddie Mac into the SPC Trust to issue corresponding classes of SPC certificates guaranteed by Freddie Mac. Kurt Pollem 3. The Class X1, XAM, X-3, X2-A, and X2-B balances are notional. Class X1, XAM, X-3, X2-A, X2-B are interest-only (IO) certificates that reference a Managing Director single rated tranche or multiple rated tranches. Class X1 and Class X2-A are equal to the sum of the Class A-1 and Class A-2 balances. Class XAM is +1 212 548-6394 equal to the sum of Class A-M. Class X2-B is equal to the sum of the Class A-M and Class D balances. Class X3 is equal to the sum of the Class D [email protected] balances.

Kevin Mammoser Description Rating Action Balance ($) Subordination (%) DBRS Morningstar Rating Trend Managing Director A-1 New Rating - Provisional 26,168,000 17.000 AAA (sf) Stable +1 312 332-0136 A-2 New Rating - Provisional 914,820,000 17.000 AAA (sf) Stable [email protected] A-M NR 107,703,000 7.500 NR n/a Erin Stafford X1 New Rating - Provisional 940,988,000 - AAA (sf) Stable Managing Director XAM NR 107,703,000 - NR n/a +1 312 332-3291 X3 NR 85,029,738 - NR n/a [email protected] 1. NR = not rated.

2. Classes A-1, A-2 and X1 are rated without giving effect to the Freddie Mac guarantee.

3. The Class X1, XAM and X3 balances are notional. Classes X1, XAM and X3 are interest-only (IO) certificates that reference a single rated tranche or

multiple rated tranches. DBRS Viewpoint Click here to see this deal.

DBRS Viewpoint is an interactive, data- driven, loan and property level platform that provides users with access to DBRS Morningstar presale reports, surveillance updates, transaction information, and contextual comparable data in a user-friendly manner. Complimentary registration and access to the transaction is available.

Page 2 of 99 FREMF 2021-K741 | February 22, 2021

Page 2 of 99

Table of Contents Page 2 of 99

Page 2 of 99 Capital Structure ...... 1 Transaction Summary ...... 3 Page 2 of 99 Ratings Considerations ...... 3

Page 2 of 99 Coronavirus Forbearance Program ...... 7 DBRS Morningstar Credit Characteristics ...... 10 Largest Loan Summary ...... 11 DBRS Morningstar Sample ...... 12 Transaction Concentrations...... 15 Loan Structural Features ...... 16 Bell Summit at Flatiron ...... 19 The Alexander at Rego Center ...... 24 One East River Place (A-2) ...... 29 Moontower ...... 35 Arcadia Apartment Homes ...... 40 IMT Ballantyne ...... 45 Ashford 75 ...... 49 Calloway at Las Colinas ...... 54 Linq Midtown ...... 60 Verdant Apartment Homes ...... 65 Palo Alto Commons ...... 70 Coles Crossing Apartment Homes ...... 75 Carmel Center Apartments ...... 81 Lakeside Retreat at Peachtree ...... 86 Markana Modern Living ...... 91 Transaction Structural Features ...... 95 Methodologies ...... 96 Surveillance ...... 96 Glossary ...... 97 Definitions ...... 98

Page 3 of 99 FREMF 2021-K741 | February 22, 2021

Page 3 of 99

Transaction Summary Page 3 of 99 Pool Characteristics Trust Amount ($) 1,133,720,738 Wtd. Avg. Interest Rate (%) 2.671 Page 3 of 99 Number of Loans 33 Wtd. Avg. Remaining Term 80 Number of Properties 33 Wtd. Avg. Remaining Amortization 359.6 Page 3 of 99 Average Loan Size ($) 34,355,174 Total DBRS Morningstar Expected 2.5 Amortization Page 3 of 99 1 1 DBRS Morningstar LTV (%) 66.4 / 66.4 DBRS Morningstar Balloon LTV (%) 64.6 / 64.6 Appraised LTV (%)1 61.9 / 61.9 Appraised Balloon LTV (%)1 60.1 / 60.1

Wtd. Avg. DBRS Morningstar DSCR1 2.16 / 2.16 Wtd. Avg. Issuer Term DSCR1 2.41 / 2.41 Top 10 Loan Concentration (%) 59.3 Avg. DBRS Morningstar NCF Variance (%) -9.8 1. The second metric excludes shadow-rated and co-op loans.

Participants Issuer FREMF 2021-K741 Mortgage Trust Depositor Wells Fargo Commercial Mortgage Securities, Inc. Mortgage Loan Seller Federal Home Loan Mortgage Corporation Trustee U.S. Bank National Association Master Servicer Midland Loan Services Special Servicer CWCapital Asset Management LLC Certificate Administrator and Custodian U.S. Bank National Association

Ratings Considerations The collateral consists of 33 fixed-rate loans secured by 22 garden-style, three mid-rise, three high-rise, and one townhome multifamily properties. The collateral also include two student housing properties and two assisted-living facilities. Three loans (Arcadia Apartment Homes, Calloway At Las Colinas, and Verdant Apartment Homes), representing 13.8% of the trust balance, are associated with the same sponsorship group. However, these loans are neither cross-collateralized nor cross-defaulted and are in different metropolitan areas. All 33 loans in the trust have seven-year loan terms. The transaction is a sequential-pay pass-through structure. DBRS Morningstar analyzed the pool to determine the provisional ratings, reflecting the long-term risk that the Issuer will default and fail to satisfy its financial obligations in accordance with the terms of the transaction. When the cut-off loan balances were measured against DBRS Morningstar’s NCF and their respective actual constants, 19 loans, representing 76.9% of the pool balance, had a DBRS Morningstar Term DSCR at or above 1.75x, a threshold indicative of a lower likelihood of midterm default.

Classes A-1, A-2, A-M, X1, XAM, and X3 of the FREMF 2021-K741 Mortgage Trust, Series 2021-K741 (FREMF 2021-K741) transaction have been conveyed into a trust by Freddie Mac to issue corresponding classes of Structured Pass-Through Certificates (SPCs) guaranteed by Freddie Mac (see the Transaction Structural Features section for more information). All DBRS Morningstar-rated classes will be subject to ongoing surveillance, confirmations, upgrades, or downgrades by DBRS Morningstar after the date of issuance. DBRS Morningstar assigns its initial ratings of the FREMF 2021-K741 Certificates and the Freddie Mac Structured Pass-Through Certificates, Series K-741 (Freddie Mac SPCs K-741) without giving effect to the Freddie Mac guarantee. Please see the FREMF 2021-K741 Structural and Collateral Term Sheet for more information about the structure of the Freddie Mac SPCs K-741.

Page 4 of 99 FREMF 2021-K741 | February 22, 2021

Page 4 of 99

Strengths Page 4 of 99 1. The loans benefit from strong origination practices and strong historical loan performance.

Page 4 of 99 • Loans on Freddie Mac's balance sheet, which it originates according to the same policies as those for securitization, have an extremely low delinquency rate of 0.01% as of December Page 4 of 99 2020. This compares favorably with the delinquency rate for CMBS multifamily loans of

Page 4 of 99 approximately 3.89%.

• Since the inception of the K-Program through July 2020, Freddie Mac has securitized 20,359 loans, totaling approximately $414.17 billion in guaranteed issuance balance. To date, Freddie Mac has not realized any credit losses on its guaranteed issuances, although B-piece investors have realized a combined $18.8 million in total losses, representing fewer than 1.0 basis points (bps) of total issuance. • The loans in the transaction benefit from experienced and financially strong borrowers compared with typical CMBS multifamily loans, with 30 of the 33 loans, representing 82.0% of the cut-off pool balance, receiving Strong DBRS Morningstar sponsor strength scores. Additionally, many of the borrowers are repeat clients of Freddie Mac that have performed as agreed.

2. Two of the top three loans, The Alexander at Rego Center and One East River Place, which combined represent 16.5% of the trust balance, are in areas identified as DBRS Morningstar Market Ranks 7 or 8, which are generally characterized as highly dense urbanized areas that benefit from increased liquidity driven by consistently strong investor demand, even during times of economic stress. Markets ranked seven and eight benefit from lower default frequencies than less dense suburban, tertiary, and rural markets. Both loans are in New York City. When compared with Freddie Mac’s K-700 series transaction recently rated by DBRS Morningstar, the 16.5% of the pool in DBRS Morningstar Market Ranks 7 or 8 is lower than the 28.8% in the FREMF 2020-K739 transaction. However, it is higher than the 0.0% in the FREMF 2020-K738 transaction. When compared with the Freddie Mac’s K-100 series transactions recently rated by DBRS Morningstar, FREMF 2021-K741 is more favorable than FREMF 2021-K123, FREMF 2020-K122, and FREMF 2020- K118, which exhibited 11.6%, 0.7%, and 3.8%, respectively, in terms of DBRS Morningstar Market Rank 7 or 8 concentrations.

3. The transaction exhibits favorable credit metrics as evidenced by a WA DBRS Morningstar Issuance and Balloon LTV of 66.4% and 64.6%, respectively. These metrics are more favorable than the same series FREMF 2020-K739 and FREMF 2020-K738 rated by DBRS Morningstar. FREMF 2020-K739 has a WA DBRS Morningstar Issuance and Balloon LTV of 68.5% and 65.0%, respectively, and FREMF 2020-K738 has a WA DBRS Morningstar Issuance and Balloon LTV of 67.1% and 64.7%, respectively. These metrics are also comparable or better when compared with the three K-100 series recently rated by DBRS Morningstar, the FREMF 2021-K123, FREMF 2020-K122, and FREMF 2020-K118, which demonstrated a WA DBRS Morningstar Issuance and Balloon LTV of 70.3% and 63.8%, respectively. Further, the WA DBRS Morningstar Term DSCR of 2.16x is substantially higher than that of FREMF 2020-K739 at 1.89x and FREMF 2020-K738 at 1.86x.

Page 5 of 99 FREMF 2021-K741 | February 22, 2021

Page 5 of 99

4. While the WA expected loss of 2.20% is higher than the 1.81% expected loss in FREMF 2020-K739, Page 5 of 99 it is lower than the 2.38% in FREMF 2020-K738. This expected loss is also lower than the Freddie

Page 5 of 99 Mac’s K-100 series recently rated by DBRS Morningstar, including FREMF 2021-K123, FREMF 2020- K122, and FREMF 2020-K118, which demonstrated an average expected loss of 2.35%. Page 5 of 99

Page 5 of 99 5. Twenty-seven loans, representing 88.2% of the pool by balance, have an upfront debt service reserve (DSR) designed to mitigate any potential impact of the ongoing Coronavirus Disease (COVID-19) pandemic. Freddie Mac is generally requiring coronavirus-related reserves, based on the property subtype and loan metrics at origination, which can be released back to the borrower if certain conditions are met.

Challenges and Stabilizing Factors 1. In response to the ongoing pandemic, Freddie Mac made changes to its standard servicing practices to permit a temporary deferral of loan payments and forbearance of various remedies, which could, among other things, adversely affect cash flow. While DBRS Morningstar views the inclusion of coronavirus-related upfront DSRs for a portion of the loans as a positive mitigant of some of the potential coronavirus-related disruptions, the economic fallout from the ongoing pandemic continues to evolve. While DBRS Morningstar generally expects multifamily properties to fare better than hospitality and retail, short- and medium-term challenges still exist in this sector. In addition to imposing various containment-related restrictions, certain jurisdictions have also placed temporary moratoriums on evicting tenants that may be continued, extended, or expanded. Furthermore, government programs such as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provided, among other things, supplemental unemployment benefits to displaced employees, will eventually expire, and terms continue to be flux. This could result in additional stress on properties whose residents have been disproportionately affected by furloughs and layoffs. In addition, the resurgence of coronavirus cases has created additional uncertainty and increased stress on the planned reopening of businesses. Also, in its Global Macroeconomic Scenarios: January 2021 Update, DBRS Morningstar projected generalized commercial real estate asset value declines of approximately 15% under its moderate scenario and 30% under its adverse scenario for the U.S.

2. Six loans, representing 11.8% of the pool, did not have a coronavirus DSR. None of these loans were originated before the start of the pandemic. The six loans are: Linq Midtown, Carmel Center Apartments, Four Seasons at Southtowne, City Views Apartments, The Portland, and White Laurel. The Linq Midtown and Carmel Center Apartments loans are among the 15 largest in the pool. • The WA DBRS Morningstar Term DSCR for these six loans was healthy at 2.15x. In addition, all six loans show strong occupancy levels, ranging from 89.2% to 97.6%, with a WA average occupancy of 94.5% as of December 2020 and January 2021.

3. Eighteen loans, representing 76.4% of the pool balance and including 13 of the top 15 loans, have full-term IO periods, which is comparatively high relative to FREMF 2020-K739 at 52.8% and FREMF

Page 6 of 99 FREMF 2021-K741 | February 22, 2021

Page 6 of 99

2020-K738 at 59.8%. An additional 13 loans, representing 21.5% of the pool balance, are structured Page 6 of 99 with partial-IO periods ranging from 12 months to 60 months.

Page 6 of 99 • For partial IO loans, DBRS Morningstar calculates the POD using a DSCR that includes amortizing debt service. Furthermore, the DBRS Morningstar POD factors in loan balloon Page 6 of 99 LTVs and, in cases where the loan lacks amortization, the balloon LTV will be penalized with

Page 6 of 99 a higher POD.

4. The pool is concentrated by property type as conventional multifamily properties represent 87.3% of the collateral; the remaining assets in the pool are nontraditional multifamily property types including two student housing properties (7.7% of the pool) and two assisted-living facilities (5.0% of the pool). • Compared with other property types, multifamily assets generally benefit from staggered lease rollover and lower expense ratios. While revenue is quick to decline in a downturn because of the short-term nature of the leases, it is also quick to respond when the market improves. • The DBRS Morningstar model treats student housing and assisted-living properties with higher PODs and/or LGD than traditional multifamily properties.

5. According to the Exceptions to the Representation and Warranties - 6 (Condition of Mortgage Property), the mortgage loan seller did not perform, or cause to perform, certain customary due diligence for 12 loans regarding the condition of the mortgaged property when originating the loans. DBRS Morningstar did not obtain a complete property condition report or physical risk report, as applicable, and/or an in-person inspection of the mortgaged property was not conducted at origination of the loans. • Of these 12 loans, seven loans, accounting for a combined 8.9% of the pool, were either not included in the DBRS Morningstar sample, not inspected by DBRS Morningstar, or generally appeared to be of lower property quality per third-party reports. To mitigate against any issues resulting from the absence of the customary due diligence, DBRS Morningstar applied a POD penalty to these seven loans: Four Seasons At Southtowne, Saint Andrews At Palm Aire, Greystone Place Apartments, Juniper Canyon, Ten50 Apartments, The Portland, and White Laurel.

6. New York City’s multifamily market has seen a decline in occupancy rates since the inception of the coronavirus pandemic as residents opt to leave the city for the suburbs because of extended remote working capability and shutdowns that have reduced the quality of life. Concessions have also picked up noticeably in general, with properties offering two to three months of free rent over the past few months. Two of the top three loans, The Alexander at Rego Center and One East River Place, which combined represent 16.5% of the trust balance, are in Queens and Manhattan, respectively. The occupancy rate at The Alexander at Rego Center has dropped substantially to 82.1% in December 2020 from 91.4% in July 2020. Similarly, the occupancy rate at One East River Place has declined to 87.0% in December 2020 from 94.5% in April 2020. For more information and detailed analysis, please refer to the individual loan summaries contained in this document.

Page 7 of 99 FREMF 2021-K741 | February 22, 2021

Page 7 of 99

• DBRS Morningstar reviewed occupancy statistics over time for the two properties and found Page 7 of 99 that there has been a general decline, rather than simply reflecting a point in time.

Page 7 of 99 Consequently, DBRS Morningstar in its analysis applied the in-place vacancy loss to both properties, which reflects the lowest occupancy points throughout the operating history for Page 7 of 99 The Alexander at Rego Center since July 2019, and One East River Place since January 2018.

Page 7 of 99 The vacancy rates applied were also substantially higher than the 4.6% and 3.9% Reis submarket vacancy rates for Queens and Manhattan, respectively.

• Reis is forecasting a recovery in occupancy over the next several years, with vacancy rates falling back to below 5.0% for the New York metropolitan area.

• Both properties are in areas identified as DBRS Morningstar Market Ranks 7 or 8, which are generally characterized as highly dense urbanized areas that benefit from increased liquidity driven by consistently strong investor demand, even during times of economic stress.

7. Individual loan information provided generally included monthly collection reports through October 31, 2020, which may not fully reflect any reductions to income as a result of coronavirus-related economic conditions. • The DBRS Morningstar NCF analysis generally applied a vacancy loss that reflected projected submarket vacancy rates through 2026. These rates were either in line with or higher than current submarket vacancy rates, adding a marginal amount of conservatism to the NCFs. • For loans that DBRS Morningstar did not sample, DBRS Morningstar applied a 10.0% reduction to the Issuer’s cash flow as applied. This reduction was consistent with the sample average NCF variance of -9.9%. • Twenty-seven loans, representing 88.2% of the pool by balance, have an upfront coronavirus DSR designed to mitigate any potential impact of the ongoing coronavirus pandemic.

Coronavirus Forbearance Program Overview Under Freddie Mac’s coronavirus forbearance program, borrowers whose properties are financed with a Freddie Mac Multifamily loan that is performing as agreed can defer their loan payments for up to 90 days by showing hardship as a consequence of the pandemic and by gaining lender approval. Freddie Mac subsequently announced an expansion of its relief offerings to borrowers on June 28, 2020, including the option to delay the start of the repayment period following forbearance, an extension of the repayment period, and/or an extension of the forbearance period with an optional extended repayment period.

In return for such relief, borrowers must agree not to evict any tenants solely for nonpayment of rent during the forbearance period, may not charge their tenants late fees or penalties solely because of the nonpayment of rent during the forbearance period (or the borrowers’ repayment period), and are required to provide tenants with repayment flexibility by allowing the payment of back rent over time and not in a lump sum.

Page 8 of 99 FREMF 2021-K741 | February 22, 2021

Page 8 of 99

Coronavirus DSRs Page 8 of 99 Twenty-seven loans, representing 88.2% of the pool by balance, established DSRs at origination to

Page 8 of 99 ensure that adequate funds are available to pay any deficit on the monthly debt service. Pursuant to the related loan agreement, if the borrower fails to collect a predetermined amount of rent in a given month, Page 8 of 99 the borrower may request a disbursement from the coronavirus DSR, and the disbursement will be

Page 8 of 99 applied to the deficit in the monthly debt service payment due on the related underlying mortgage loan.

Importantly, as set forth in the applicable loan agreement, for so long as there are enough funds in the DSR to pay the next monthly debt service payment in full, the borrower may not assert or establish a hardship in an attempt to qualify for any forbearance option offered by Freddie Mac or otherwise available under federal law. In addition, upon an event of default, the lender may make additional disbursements from the DSR at the lender’s discretion, including applying amounts to prepay the outstanding principal balance of the related underlying mortgage loan. The loan agreements generally preclude disbursements from the DSR during any forbearance period, and following the forbearance period, disbursements from the DSR may only be used for the payment of the then-current monthly payment.

The DSR can be terminated and the funds can be released back to the borrower upon the written request of the borrower and the satisfaction of certain conditions. These conditions include, among others, that it has been at least 90 days following the lifting of all federal, state, or local state of emergency declarations, shelter-in-place orders, or similar governmental actions related to the coronavirus pandemic affecting the jurisdiction in which the related mortgaged real property is located or a period of at least 12 months after the origination date of the underlying mortgage loan has passed. Generally, the lender must also receive, in accordance with the related loan agreement, rent schedules, operating statements, and/or other evidence satisfactory to the lender that demonstrates that the property has achieved an average collection of rent equal to or greater than a predetermined threshold, and no event of default has occurred or is continuing.

Pool-Specific Updates No loans in the pool have requested, or are currently subject to, a forbearance agreement, and, as noted above, the pool’s WA occupancy rate is 91.8%. For more asset-level information, please refer to the individual loan summaries contained in this document.

With regard to the coronavirus, the magnitude and extent of performance stress posed to global structured finance transactions remain highly uncertain. This considers the fiscal and monetary policy measures and statutory law changes that have already been implemented or will be implemented to soften the impact of the crisis on global economies. Some regions, jurisdictions, and asset classes are, however, affected more immediately. Accordingly, DBRS Morningstar may apply additional short-term stresses to its rating analysis, for example by front-loading default expectations and/or assessing the liquidity position of a structured finance transaction with more stressful operational risk and/or cash flow timing considerations.

Page 9 of 99 FREMF 2021-K741 | February 22, 2021

Page 9 of 99

For more information regarding rating methodologies and the coronavirus pandemic, please see the Page 9 of 99 following DBRS Morningstar press releases: https://www.dbrsmorningstar.com/research/357883 and

Page 9 of 99 https://www.dbrsmorningstar.com/research/358308.

Page 9 of 99 Capitalization Rate and Model Adjustments

Page 9 of 99 DBRS Morningstar made capitalization rate (cap rate) adjustments to 11 loans, totaling 37.4% of the pool, to bring the implied cap rate for the underlying properties to a level that is consistent with similar properties within the market or an adjustment to bring the value of the property to a level consistent with a recent purchase price. This resulted in adjusted DBRS Morningstar Issuance and Balloon LTVs for these loans, which then were applied to the DBRS Morningstar POD and LGD calculations. In addition, DBRS Morningstar applied POD adjustments to seven loans: Four Seasons At Southtowne, Saint Andrews At Palm Aire, Greystone Place Apartments, Juniper Canyon, Ten50 Apartments, The Portland, and White Laurel, representing a combined 8.9% of the pool balance, to account for the lack of certain due diligence customarily performed, or caused to be performed, by the mortgage loan seller with respect to the condition of the mortgaged property.

For more information on cap-rate adjustments, please refer to the table below.

Cap Rate Adjustments Property Name Issuer's Adjusted Issuance Adjusted Balloon Adjusted Implied Cap Cap Rate LTV (%) Issuance LTV (%) Balloon Rate (%) (%) LTV (%) LTV (%) One East River Place (A-2) 2.78 4.00 45.27 65.20 45.27 65.20 Moontower 4.37 5.00 58.51 66.88 58.51 66.88 Arcadia Apartment Homes 4.21 4.50 65.00 69.41 65.00 69.41 Calloway At Las Colinas 4.28 4.75 65.00 72.20 65.00 72.20 Verdant Apartment Homes 3.76 4.50 58.20 69.66 58.20 69.66 Palo Alto Commons 4.27 6.00 38.01 53.47 38.01 53.47 Luxe Belle 4.50 5.25 64.56 75.31 54.85 63.99 B Street Lohi 4.20 4.50 63.36 67.95 63.36 67.95 Pointe Sienna 4.47 5.00 63.03 70.49 54.79 61.27 The Rutherford Assisted Living And Memory Care 4.40 6.75 60.29 92.59 53.91 82.79 White Laurel 4.21 6.25 55.91 82.98 47.64 70.70

Page 10 of 99 FREMF 2021-K741 | February 22, 2021

Page 10 of 99

DBRS Morningstar Credit Characteristics Page 10 of 99 DBRS Morningstar DSCR DSCR % of the Pool (Trust Balance) % of the Pool (Trust Balance)1 Page 10 of 99 0.00-0.90 0.0 0.0 0.90-1.00 0.0 0.0 Page 10 of 99 1.00-1.15 5.9 5.9 1.15-1.30 11.7 11.7 Page 10 of 99 1.30-1.45 5.4 5.4 1.45-1.60 0.0 0.0 1.60-1.75 0.0 0.0 >1.75 76.9 76.9 Wtd. Avg. (x) 2.16 2.16 Note: Includes pari passu debt, but excludes subordinate debt. 1. Excludes shadow-rated and co-op loans.

DBRS Morningstar LTV (%) LTV (%) % of the Pool (Trust Balance) % of the Pool (Trust Balance)1 0.0-50.0 0.5 0.5 50.0-55.0 8.4 8.4 55.0-60.0 3.1 3.1 60.0-65.0 22.7 22.7 65.0-70.0 37.9 37.9 70.0-75.0 18.7 18.7 >75.0 8.6 8.6 Wtd. Avg. (%) 66.4 66.4 Note: Includes pari passu debt, but excludes subordinate debt. 1. Excludes shadow-rated and co-op loans.

DBRS Morningstar Balloon LTV (%) Balloon LTV (%) % of the Pool (Trust Balance) % of the Pool (Trust Balance)1 0.0-50.0 0.5 0.5 50.0-55.0 8.4 8.4 55.0-60.0 3.7 3.7 60.0-65.0 133.4 133.4 65.0-70.0 40.1 40.1 70.0-75.0 12.8 12.8 >75.0 1.1 1.1 Wtd. Avg. (%) 64.6 64.6 Note: Includes pari passu debt, but excludes subordinate debt. 1. Excludes shadow-rated and co-op loans.

Page 11 of 99 FREMF 2021-K741 | February 22, 2021

Page 11 of 99

Largest Loan Summary Page 11 of 99 Loan Detail Loan Name Trust Balance % of DBRS DBRS DBRS DBRS Page 11 of 99 ($) Pool Morningstar Morningstar Morningstar Morningstar Shadow LTV (%) Balloon LTV DSCR (x) Rating (%) Page 11 of 99 Bell Summit At Flatirons 103,047,000 9.1 n/a 66.9 66.9 2.45

Page 11 of 99 The Alexander At Rego Center 94,000,000 8.3 n/a 61.4 61.4 2.29 One East River Place (A-2) 93,250,000 8.2 n/a 65.2 65.2 2.18 Moontower 65,530,000 5.8 n/a 66.9 66.9 2.15 Arcadia Apartment Homes 56,810,000 5.0 n/a 69.4 69.4 2.42 IMT Ballantyne 56,108,000 4.9 n/a 62.3 62.3 2.28

Ashford 75 55,000,000 4.9 n/a 79.7 70.7 1.09 Calloway At Las Colinas 51,935,000 4.6 n/a 72.2 72.2 2.20 Linq Midtown 50,000,000 4.4 n/a 51.9 51.9 2.92 Verdant Apartment Homes 47,146,000 4.2 n/a 69.7 69.7 2.28 Palo Alto Commons 45,000,000 4.0 n/a 53.5 53.5 3.37 Coles Crossing Apartment Homes 42,210,000 3.7 n/a 70.0 63.6 1.43 Carmel Center Apartments 36,000,000 3.2 n/a 63.9 63.9 2.56 Lakeside Retreat At Peachtree Corners 35,775,000 3.2 n/a 73.6 73.6 2.22 Markana Modern Living Apartments 35,483,000 3.1 n/a 64.3 64.3 2.76

Property Detail Loan Name DBRS City State Year SF/Units Loan per Maturity Morningstar Built SF/Units ($) Balance per Property Type SF/Units ($) Bell Summit At Flatirons Multifamily Broomfield CO 2004 500 206,094 206,094 The Alexander At Rego Center Multifamily Rego Park NY 2015 312 301,282 301,282 One East River Place (A-2) Multifamily New York NY 1986 415 449,398 449,398 Moontower Student Austin TX 2020 567 115,573 115,573 Housing Arcadia Apartment Homes Multifamily Centennial CO 1984 300 189,367 189,367 IMT Ballantyne Multifamily Charlotte NC 2018 397 141,330 141,330 Ashford 75 Multifamily Smyrna GA 1972 416 132,212 117,221 Calloway At Las Colinas Multifamily Irving TX 1984 536 96,894 96,894 Linq Midtown Multifamily Sacramento CA 2011 275 181,818 181,818 Verdant Apartment Homes Multifamily Boulder CO 1991 216 218,269 218,269 Palo Alto Commons Multifamily Palo Alto CA 1989 181 248,619 248,619 Coles Crossing Apartment Multifamily Cypress TX 2003 394 107,132 97,323 Homes Carmel Center Apartments Multifamily Carmel IN 2002 322 111,801 111,801 Lakeside Retreat At Peachtree Multifamily Peachtree GA 1982 328 109,070 109,070 Corners Corners Markana Modern Living Multifamily Albuquerque NM 2018 232 152,944 152,944 Apartments

Page 12 of 99 FREMF 2021-K741 | February 22, 2021

Page 12 of 99

DBRS Morningstar Sample Page 12 of 99 DBRS Morningstar Sample Results Prospectus Loan Name % of DBRS Morningstar DBRS Morningstar DBRS Morningstar DBRS Page 12 of 99 ID Pool NCF ($) NCF Variance (%) Major Variance Drivers Morningstar Property Quality Page 12 of 99 1 Bell Summit At 9.1 6,468,823 -3.8 Vacancy, Average + Flatirons Management Fee,

Page 12 of 99 Operating Expenses 2 The Alexander At 8.3 5,747,623 -21.0 Vacancy, Operating Average + Rego Center Expenses, Replacement Reserves 3 One East River 8.2 10,076,397 -11.9 Vacancy , Average + Place (A-2) Management Fee, Operating Expenses 4 Moontower 5.8 4,163,344 -15.0 Vacancy, Average + Replacement Reserve, Other Income 5 Arcadia Apartment 5.0 3,580,234 -2.8 Vacancy, Bad Debt, Average Homes Management Fee 6 IMT Ballantyne 4.9 3,320,730 -8.4 Concessions , Average + Management Fee, Replacement Reserves 7 Ashford 75 4.9 2,931,507 -13.5 Vacancy , Bad debt, Average + Operating Expenses 8 Calloway At Las 4.6 2,979,388 -12.8 Vacancy , Operating Average Colinas Expenses, Replacement Reserve 9 Linq Midtown 4.4 4,263,172 -4.6 Vacancy, Operating Average + Expenses 10 Verdant Apartment 4.2 2,804,098 -7.9 Vacancy, Average Homes Concession, Operating Expenses 11 Palo Alto 4.0 4,540,109 -10.1 Senior Housing Average Commons Income based, Operating Expenses 12 Coles Crossing 3.7 2,897,111 -2.3 Management Fee Average Apartment Homes 13 Carmel Center 3.2 2,562,455 -8.1 Vacancy, Operating Average Apartments Expenses 14 Lakeside Retreat 3.2 2,100,567 -11.6 Management Fee, Average At Peachtree Operating Expenses Corners 15 Markana Modern 3.1 2,773,673 -6.8 Operating Expenses Average + Living Apartments 19 Luxe Belle 1.9 1,409,169 -5.1 Vacancy, Average Management Fee 25 The Rutherford 1.1 681,571 -24.0 Vacancy Average Assisted Living And Memory Care 30 Arcadia Lofts 0.6 432,407 -6.4 Vacancy, Other Average Income

Page 13 of 99 FREMF 2021-K741 | February 22, 2021

Page 13 of 99

DBRS Morningstar Site Inspections Page 13 of 99 The DBRS Morningstar sample included 18 of the 33 loans in the pool. DBRS Morningstar performed site

Page 13 of 99 inspections on the top 15 properties, representing 76.5% of the pool by allocated loan balance. DBRS Morningstar or its representatives conducted meetings with the on-site property manager, leasing Page 13 of 99 agent, or a representative of the borrowing entity when it was practical to do so. The resulting DBRS

Page 13 of 99 Morningstar property quality scores are highlighted in the following charts:

DBRS Morningstar Sampled Property Quality

Excellent 39.1 Above Average Average + Average Average - Below Average 60.9 Poor

Source: DBRS Morningstar.

DBRS Morningstar Cash Flow Analysis DBRS Morningstar completed a cash flow analysis review and a structural review on 18 of the 33 loans, representing 80.1% of the pool by loan balance. For the loans not subject to cash flow review, DBRS Morningstar applied a -10.0% NCF variance. DBRS Morningstar generally adjusted revenue to be no higher than the most recent T-12 level. In some instances, DBRS Morningstar applied additional vacancy or concession adjustments to account for new supply coming to the market, the lack of operating history, or the lack of stabilization. Generally, most expenses were recognized, based on the higher of the T-12 historical figure plus an inflation factor or the borrower’s budgeted figures. Real estate taxes and insurance premiums were inflated if a current bill was not provided. Capex was deducted, based on the greater of the engineer’s inflated estimates or the DBRS Morningstar minimum of $250 per unit for multifamily properties. If a significant upfront capex reserve was established at closing, DBRS Morningstar reduced its recognized costs. DBRS Morningstar did not recognize any upside potential, such as anticipated rental increases or prospective tenant rent. The DBRS Morningstar sample had an average NCF variance of -9.8% and ranged from -2.3% (Coles Crossing Apartment Homes) to -24.0% (The Rutherford Assisted Living and Memory Care).

Page 14 of 99 FREMF 2021-K741 | February 22, 2021

Page 14 of 99

DBRS Morningstar Sampled Property Type Page 14 of 99 Excellent Above Average Average + Average Average - Below Average Poor Pool (%)

Page 14 of 99 100.0% 100.0

90.0% 90.0 Page 14 of 99 80.0% 80.0

Page 14 of 99 70.0% 70.0 60.0% 60.0

50.0% 50.0

40.0% 40.0 30.0% 30.0 20.0% 20.0 10.0% 10.0

0.0% 0.0 Full-Service Industrial Limited-Service Multifamily Office Self-Storage Student Retail Unanchored Mixed Use Other Hotel Hotel Housing Retail

Source: DBRS Morningstar.

Page 15 of 99 FREMF 2021-K741 | February 22, 2021

Page 15 of 99

Transaction Concentrations Page 15 of 99

Page 15 of 99 DBRS Morningstar Property Type Geography

Page 15 of 99

CO Page 15 of 99 Office 7.7 Retail NY 21.9 20.6 Multifamily TX Mixed Use GA Industrial CA Full-Service Hotel 5.2 NC Self-Storage 16.5 All Others Unanchored Retail 9.3 Limited-Service Hotel Manufactured Housing 92.3 10.9 Student Housing 15.7

Loan Size DBRS Morningstar Market Types

2.5 0.6 1.4 8.2 5.4 9.6 1 8.3 2 Very Large (>$20.0 million) 3 26.0 Large ($10.0-$20.0 million) 4 10.2

Medium ($5.0-$10.0 million) 5 6 Small ($2.0-$5.0 million) 8.6 7 Very Small (<$2.0 million) 87.2 8 31.8

Largest Property Location Property Name City State Bell Summit at Flatirons Broomfield CO The Alexander at Rego Center Rego Park NY One East River Place (A-2) New York NY Moontower Austin TX Arcadia Apartment Homes Centennial CO IMT Ballantyne Charlotte NC Ashford 75 Smyrna GA Calloway at Las Colinas Irving TX Linq Midtown Sacramento CA Verdant Apartment Homes Boulder CO Palo Alto Commons Palo Alto CA Coles Crossing Apartment Homes Cypress TX Carmel Center Apartments Carmel IN Lakeside Retreat at Peachtree Corners Peachtree Corners GA Markana Modern Living Apartments Albuquerque NM

Source: DBRS Morningstar.

Page 16 of 99 FREMF 2021-K741 | February 22, 2021

Page 16 of 99

Loan Structural Features Page 16 of 99 Pari Passu Notes: One East River Place (Note A-2), the third-largest loan in the pool (8.2% of pool

Page 16 of 99 balance), is part of a whole loan combination evidenced by two pari passu promissory notes, One East River Place (Note A-1) and One East River Place (Note A-2), with an aggregate original principal balance Page 16 of 99 of $186,500,000. One East River Place (Note A-1) was securitized in FREMF 2020-K740. The One East

Page 16 of 99 River Place whole loan will be serviced under the terms of the Series 2020-K740 Pooling and Servicing Agreement, subject to the terms of related co-lender agreement.

Pari Passu Notes Property Name Balance ($) % of Pool Deal ID % of Total Pari Passu Controlling Loan Piece (Y/N)

One East River Place (Note A-2) $93,250,000 8.2% FREMF 2021-K741 50.0% N One East River Place (Note A-1) $93,250,000 7.3% FREMF 2020-K740 50.0% Y

$186,500,000 n/a n/a 100.0% n/a

Additional Debt: All loans are permitted to obtain additional secured debt, provided exclusively at Freddie Mac’s option, beginning one year after origination. Conditions for providing additional debt generally include a combined LTV equal to the lower of a preset LTV ceiling (with LTV caps generally ranging from 50.0% to 80.0% across the pool) or the original LTV and a combined amortizing DSCR of at least 1.25x. In each instance, the additional debt would be subordinate in right of payment to the trust balance and would be subject to a standard intercreditor agreement reviewed by DBRS Morningstar.

Subordinate Debt: One loan, The Portland, representing 0.4% of the pool, has existing subordinate debt. In addition to the first mortgage, the underlying property also secures (1) a $6,580,904 subordinate mortgage loan in favor of the Florida Housing Finance Corporation, (2) a $477,159 subordinate mortgage loan in favor of the City of St. Petersburg, and (3) a $524,560 subordinate mortgage loan in favor of the City of St. Petersburg. The subordinate loan with the Florida Housing Finance Corporation does not require payments until maturity and does not accrue interest subject to compliance with the regulatory agreement. The loan is scheduled to mature in July 30, 2060. The other two subordinate loans accrue interest at a rate of 1.0% per year and require annual payments of principal and interest and are scheduled to mature on August 1, 2045.

Subordinate Debt Loan Name Trust Balance Pari Passu B-Note Mezz/Unsecured Future Total Debt ($) Balance ($) Balance ($) Debt Balance ($) Mezz/Unsecured Balance ($) Debt (Y/N) ($) One East River Place $93,250,000 $93,250,000 $0 $0 N $186,500,000 The Portland $4,550,000 $0 $0 $7,582,623 N $12,132,623

Page 17 of 99 FREMF 2021-K741 | February 22, 2021

Page 17 of 99

Interest Only DBRS Morningstar Expected Amortization Page 17 of 99

1.9 Page 17 of 99 2.1

14.1 Page 17 of 99 21.5 0.0 0.0-5.0 4.1 Page 17 of 99 Full IO 5.0-10.0 3.5 Partial IO 10.0-15.0 Amortizing 15.0-20.0 20.0-25.0 76.4 >25.0 76.4

Note: For certain ARD loans, expected amortization may include amortization expected to occur after the ARD but prior to single/major tenant expiry.

Reserve Requirement Borrower Structure Type # of Loans % of Pool Type # of Loans % of Pool Tax Ongoing 30 92.3 SPE with Independent Director and 0 0.0 Nonconsolidation Opinion Insurance Ongoing 17 29.6 SPE with Independent Director Only 0 0.0 Capex Ongoing 27 70.3 SPE with Nonconsolidation Opinion Only 10 58.7 Leasing Costs Ongoing1 0 0.0 SPE Only 23 41.3 1. Percent of office, retail, industrial, and mixed-use assets based on DBRS Morningstar property types.

Sponsor Strength: DBRS Morningstar considers the sponsorship for 30 loans, totaling 82.0% of the pool, to be Strong because of their extensive experience in the commercial real estate sector and significant financial wherewithal. DBRS Morningstar identified the other three loans as having Average and Weak sponsors because of their negative credit history, lack of warm body guarantors, or net worth and liquidity levels below DBRS Morningstar’s standards.

DBRS Morningstar Sponsor Strength

3.1 14.9 Strong Average Weak Bad/Litigious

82.0

Source: DBRS Morningstar.

Page 18 of 99 FREMF 2021-K741 | February 22, 2021

Page 18 of 99

Property Release: No loans in the trust contain property release provisions. Page 18 of 99

Page 18 of 99 Property Substitution: No loans in the trust contain substitution conditions.

Page 18 of 99 Terrorism Insurance: Terrorism insurance is required and in place for all loans.

Page 18 of 99 Nonconsolidation Opinion: Two loans above $40.0 million, Linq Midtown ($50 million cut-off balance) and Palo Alto Commons ($45 million cut-off balance), do not have nonconsolidation opinions.

Page 19 of 99 FREMF 2021-K741 | February 22, 2021

Page 19 of 99

Page 19 of 99 Bell Summit at Flatiron

Page 19 of 99

Page 19 of 99 Loan Snapshot

Page 19 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 103.0 Loan PSF/Unit ($) 206,094 Percentage of the Pool 9.1% Loan Maturity/ARD December 2027 Amortization n/a Collateral Summary DBRS Morningstar DSCR (x) DBRS Morningstar Property Type Multifamily Year Built/Renovated 2004/2017 2.45 City, State Broomfield, CO Physical Occupancy (%) 92.4 DBRS Morningstar LTV (%) Units/SF 500 Physical Occupancy Date October 2020 66.9 DBRS Morningstar Balloon LTV (%) The loan is secured by the borrower’s fee-simple interest in Bell Summit at Flatirons, a 500-unit mid-rise 66.9 DBRS Morningstar Property Type apartment complex in Broomfield, Colorado, 11 miles southeast of the Boulder CBD and 20 miles Multifamily northwest of the Denver CBD. The collateral was constructed in 2004 with $12.8 million of capital DBRS Morningstar Property Quality improvements taking place in 2017. The capital improvements included exterior improvements, along Average + with HVAC replacements and full interior renovations. The sponsor plans to invest $150,000 in capital improvements for new signage and repairs to the asphalt, roof, garage, and exterior facade. Loan Debt Stack ($ millions) proceeds of $103.0 million, in addition to the borrower’s $51.0 million of cash equity, will fund the

acquisition of the subject for a purchase price of $154.1 million. The loan is a seven-year, IO, fixed-rate Trust Balance 103.0 loan. The loan required the borrower to deposit an amount equal to nine months of IO debt service Pari Passu payments into a coronavirus debt service reserve to cover principal and interest payment shortfalls that 0.0 may occur because of the coronavirus pandemic. Additionally, the borrower made an upfront deposit of B-Note 0.0 $346,993 to reduce the ongoing capex reserve to $150 per unit annually from the property condition Mezz assessment’s annual recommendation of $249 per unit, according to the engineer’s inflated assumption. 0.0 The loan represents a loan-to-purchase price (LTPP) ratio of 66.9% based on the sponsor’s November Total Debt 103.0 2020 purchase price. Loan Purpose Acquisition The collateral consists of two four-story buildings with 500 multifamily units and 872 parking spaces. The Equity Contribution/(Distribution) property relies on an access and maintenance easement agreement through Summit Boulevard, and this ($ millions) $51.0 agreement is perpetual. The subject’s unit mix includes 264 one-bedroom units and 236 two-bedroom units, averaging 701 sf and 1,251 sf, respectively. As of the October 2020 rent roll, the subject’s one- and two-bedroom units achieved average monthly rents of $1,451 and $1,837 per unit, respectively. As part of the previous owner’s 2017 capital improvements, the units received full renovation of $25,544 per

Page 20 of 99 FREMF 2021-K741 | February 22, 2021

Page 20 of 99

unit. Property amenities include a clubhouse with a fitness and business center, a coffee bar, a lounge, a Page 20 of 99 media area, a pool, a spa, outdoor fireplaces, a barbecue area, a courtyard, and a dog park. Units include

Page 20 of 99 a washer/dryer, a dishwasher, and a private patio/balcony.

Page 20 of 99 Competitive Set Property Location Distance from Units Year Built/ Occupancy Avg. Avg. Page 20 of 99 Subject (Miles) Renovated (%) Rental Unit Rate Size Per (SF) Unit ($) Green Leaf RockVue Broomfield, CO 0.3 220 2014 96.0 1,615 974 8000 Uptown Broomfield, CO 4.5 360 2015 96.0 1,657 911 Camden Flatirons Broomfield, CO 2.8 424 2014 96.0 1,659 984

Retreat at Flatirons Broomfield, CO 2.8 374 2014 95.0 1,701 1,052 Cortland Broomfield Broomfield, CO 4.1 240 2016 96.0 1,911 1,060 AMLI at Interlocken Broomfield, CO 2.1 343 2013 98.0 - 900 Total/WA Comp. Set Broomfield, CO Various 1,961 Various 96.2 1,700 977 Bell Summit at Flatirons Broomfield, CO n/a 500 2004/2017 92.4 1,633 961 Source: Appraisal, except the subject figures are based on the rent roll dated October 27, 2020.

The appraisal identified six competitive multifamily properties with occupancy rates ranging from 95.0% to 98.0% and vintages ranging from 2013 to 2016. The property’s occupancy of 92.4% is lower than the competitive set’s WA occupancy of 96.2%. The collateral’s average rent of $1,633 per unit indicates the property achieves slightly lower rents compared with the competitor’s average rent of $1,700 per unit.

Sponsorship The sponsor is an investment fund operated by a privately held real estate investment management firm created in 2019. The sponsor has ownership interest in two multifamily properties in Colorado and Texas. There are three entities acting as guarantors, with a total ownership interest in five multifamily properties in Colorado and Texas.

The property manager is a third-party company for a contractual rate of 2.25% of the EGI. The management company has operated for approximately eight years and has 108 multifamily properties with a total of 19,000 units in 16 states, 8,200 of which are in the local area.

Page 21 of 99 FREMF 2021-K741 | February 22, 2021

Page 21 of 99

DBRS Morningstar Analysis Page 21 of 99 Site Inspection Summary

Page 21 of 99 DBRS Morningstar toured the property on Friday, February 5, 2021. Based on the site Page 21 of 99 inspection, DBRS Morningstar found the

Page 21 of 99 property to be Average +.

The collateral is a garden-style apartment complex on 14.3 acres in Broomfield, a city 20 miles north of downtown Denver, and part of the Denver-Aurora-Lakewood MSA. The property is in the western portion of Brookfield and is part of a larger multifamily development on the south side of Coalton Road, a primary east/west median divided arterial. The multifamily development sits behind retail properties that front Coalton Road. The area to the west and northwest of the subject consists of multifamily properties and large residential subdivisions. An office park and golf course are to the south, with a large multifamily development and reservoir on the north side of Coalton Road. Small retail properties (shops, branch banks, services, and eateries) line Coalton Road through the immediate area. To the east, about 0.5 miles, is a Walmart Supercenter and Flatiron Crossing, an enclosed shopping mall anchored by Macy’s, Dillard’s, Dick’s Sporting Goods, and AMC Theatres, with approximately 200 national, regional, and local retailer stores and eateries. Roughly two miles east of Flatiron Crossing sits Interlocken Technology Park, a business campus with more than 14 million sf of office space including companies like Oracle, Proofpoint, Inc, SAIC INC. Access to the Denver Boulder Turnpike (U.S. Hwy. 36) is approximately one mile to the northeast. The greater area to the west comprises foothills and mountain ranges, with preserves, protected lands, residential subdivisions, and supporting commercial to the north, west, and south.

The four four-story buildings were constructed in 2004, with renovations in 2017, and are of wood frame construction with stucco exterior walls and pitched composite roofs. The property provides 872 surface and garage parking spaces. The clubhouse, leasing office, and amenities are well appointed, with modern and upscale finishes, surfaces, fixtures, and furnishings.

The property has 500 one- and two-bedroom units, with average floorplans of 701 sf and 1,251 sf, respectively. Unit finishes and amenities include nine-foot ceilings; a full set of stainless-steel appliances including a stove, built-in microwave, refrigerator, and dishwasher; white cabinetry with brushed nickel hardware; and white quartz countertops with gray ceramic tiled backsplashes. Bathrooms have garden tubs (some with step-in showers) with rainfall showerheads and white wood vanity cabinets with granite countertops. All apartments have in-unit washers/dryers. Select units have private balconies/patios, fireplaces, and mountain, golf course, or courtyard views.

Page 22 of 99 FREMF 2021-K741 | February 22, 2021

Page 22 of 99

DBRS Morningstar NCF Summary Page 22 of 99 NCF Analysis 2019 T-12 Budget Appraisal Issuer NCF DBRS NCF Page 22 of 99 October Morningstar Variance 2020 NCF ($) (%)

GPR ($) 9,539,407 9,763,941 9,980,048 9,818,604 9,800,520 9,800,520 0.0 Page 22 of 99 Other Income ($) 926,422 908,408 919,264 925,000 908,408 908,408 0.0

Page 22 of 99 Vacancy & -684,466 -721,349 -599,400 -490,930 -724,068 -821,609 13.5 Concessions ($) EGI ($) 9,781,363 9,951,000 10,299,912 10,252,674 9,984,860 9,887,319 -1.0

Expenses ($) 3,178,469 3,353,654 3,253,962 3,175,474 3,184,542 3,343,496 5.0 NOI ($) 6,602,894 6,597,346 7,045,950 7,077,200 6,800,318 6,543,823 -3.8 Capex ($) 0 0 137,500 125,000 75,000 75,000 0.0 NCF ($) 6,602,894 6,597,346 6,908,450 6,952,200 6,725,318 6,468,823 -3.8

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $6,468,823, representing a -3.81% variance from the Issuer’s NCF of $6,725,318. The primary drivers of the variance were vacancy, management fees, and G&A expenses. DBRS Morningstar used a vacancy plug of 7.79% to match the trailing six months ended October 2020 NRI as the YE2020 collections showed a decreasing GPR and increase in vacancy. The Issuer assumed a value of 6.82%, which is in between the current vacancy rate and the submarket’s vacancy rate of 6.60%. DBRS Morningstar assumed a management fee equal to 3.00% of the EGI, while the Issuer assumed the current in-place agreement of 2.25% of the EGI. DBRS Morningstar assumed a G&A expense equal to the October 2020 T-12 figure, inflated by 3.0%. The Issuer assumed a value equal to the borrower’s budget.

DBRS Morningstar Viewpoint The property is well located within one mile of U.S. Hwy. 36 and Colorado State Route 128. The property is less than five miles from the Interlocken Technology Park, a business campus with more than 14 million sf of office space. Major tenants at the park include Oracle, Geneva Pharmaceuticals, and Hunter Douglas. In addition, Flatiron Crossing mall is a short distance away as is the 1stBANK Center, a concert and entertainment venue. According to the appraisal, the median household income is $109,924 within a one-mile radius. The two largest occupational categories are professional/scientific/technology services and educational services accounting for 25.2% and 10.9% of the submarket, respectively. The appraisal expects the population to grow to 12,207 from 10,676 between 2020 and 2025. The immediate area of the property is a mixture of commercial and residential spaces with open space for additional use.

Despite the challenges presented by the coronavirus, the property has maintained occupancy above 91% throughout 2020 and improved slightly from 2019. The property’s NRI increased over the T-12 ended October 2020. There is ongoing development in the Interlocken area with a developer planning another 600,000 sf on 81 acres that will bring additional demand to the Broomfield area. According to Reis, properties built between 2000 and 2009 make up 16.0% of the submarket’s inventory and have an average rent of $1,506 per unit and a vacancy rate of 4.9%. Properties built between 2010 and 2019 account for 37.0% of the submarket’s inventory. The submarket has an annualized supply

Page 23 of 99 FREMF 2021-K741 | February 22, 2021

Page 23 of 99

growth rate of 4.2%, exceeding the metropolitan area’s growth rate of 3.0%. The three-year historical Page 23 of 99 construction-to-absorption ratio as of YE2020 is 1.3x, and Reis’ five-year forecast through YE2025 will

Page 23 of 99 maintain the 1.3x. There will be 1,763 units completed through 2026 and 1,539 units absorbed. Reis forecasts that this could push vacancy above 8.0% by 2024, which could pressure effective rents. Page 23 of 99 Indeed, Reis shows a potential drop in rent through 2021. However, demand growth could begin

Page 23 of 99 pushing rents higher in 2023.

Downside Risk • The market is experiencing heavy growth in supply and may see a near-term decrease in rents and occupancy. The property could see lower effective rent in 2021 as the market absorbs those new units.

Stabilizing Factor • Although the market exhibited higher vacancy in 2020, the property’s occupancy level remained steady and rents showed a slight improvement over the year. The property’s current occupancy rate is 92.4%, providing a significant cushion from its breakeven occupancy of 74.1%. The Broomfield area continues to show employment and population growth. Total employment increased by 86,740 from 2015 to 2020, which includes a drop as a result of the coronavirus. Over the same period, the population increased by 181,260, or 6.4%, which demonstrates the ongoing growth in demand for housing in the area.

Page 24 of 99 FREMF 2021-K741 | February 22, 2021

Page 24 of 99

Page 24 of 99 The Alexander at Rego Center

Page 24 of 99

Page 24 of 99 Loan Snapshot

Page 24 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 94.0 Loan PSF/Unit ($) 301,282 Percentage of the Pool 8.3% Loan Maturity/ARD November 2027 Amortization n/a Collateral Summary DBRS Morningstar Property Type Multifamily Year Built/Renovated 2015 DBRS Morningstar DSCR (x) City, State Queens, NY Physical Occupancy (%) 82.1 2.29 Units/SF 312 Physical Occupancy Date December 2020 DBRS Morningstar LTV (%) 61.4 DBRS Morningstar Balloon LTV (%) The loan is secured by the borrower’s fee-simple interest in The Alexander at Rego Center, a 312-unit, 61.4 24-story high-rise apartment complex in Queens, New York. The borrower developed this property on top DBRS Morningstar Property Type Multifamily of a nonaffiliated commercial shopping center and three-story parking garage for $119.7 million in 2015. DBRS Morningstar Property Quality The loan is a seven-year, IO, fixed-rate loan. The property had no existing debt but the recapitalization Average + will cash out $91.0 million and leave $25.7 million, or 21.5% of the total cost basis, in the transaction.

The borrower made an initial deposit into a coronavirus debt service reserve in an amount equal to six Debt Stack ($ millions) months of IO debt service payments. The lender was unable to complete a full in-person site inspection.

Trust Balance The property is a partial condominium; with 0.5% interest, the borrower does not own a majority of the 94.0 Pari Passu voting rights in the association and common elements. The property has an easement to use sidewalks, 0.0 ramps, stairways, entrances, and exits. Additional perpetual easements include use of and access to B-Note facilities in the electrical room and utility facility for maintenance purposes as well as connection to the 0.0 sewer distribution system, 87 loading docks, and use of 133 parking spaces. The subject owns its Mezz 0.0 mechanicals, which are accessible through an easement through the lower condominium (a Total Debt noncompeting retail space). The condominium plan was used to not interrupt the Industrial Commercial 94.0 Incentive Program (ICIP) tax exemption and to obtain separate tax lots, obtaining 421-a tax exemptions. Loan Purpose Refinance The 421-a exemptions took place in July 2017 and expire in June 2032. The current tax amount will not Equity Contribution/(Distribution) increase until the 2027–28 tax year. ($ millions) ($91.0) The collateral consists of one 24-story high-rise apartment with 312 units. The subject’s unit mix includes 58 studios, 135 one-bedroom units, and 119 two-bedroom units averaging 529 sf, 720 sf, and 1,064 sf, respectively. As of the July 2020 rent roll, the subject’s studios, one-, and two-bedroom units achieved

Page 25 of 99 FREMF 2021-K741 | February 22, 2021

Page 25 of 99

average monthly rents of $2,395, $2,952, and $3,786 per unit, respectively. All units are rent stabilized Page 25 of 99 through the 42-a tax abatement. Common area amenities consist of an attended lobby, 24-hour

Page 25 of 99 concierge, resident lounge, indoor and outdoor play area, fitness center, laundry facility, storage units, bicycle storage, and an outdoor terrace with grills. Unit amenities include stainless-steel appliances and Page 25 of 99 hardwood flooring. The one- and two-bedroom units have private outdoor spaces and in unit

Page 25 of 99 washer/dryers.

Competitive Set Property Location Distance from Units Year Built/ Occupancy Avg. One- Avg. Subject (Miles) Renovated (%) Bed Rental One- Rate ($) Bed Unit Size (SF)

The Drake Queens, NY 0.6 416 1960 93.0 2,320 571 The Elm East Elmhurst, NY 1 83 2012 98.8 2,249 632 Classic at Kew Jamaica, NY 2.8 52 2008 100.0 3,148 805 Gardens Icon 52 Woodside, NY 2.8 70 2014 100.0 1,927 545 Parker Towers Forest Hills, NY 1.3 1308 1960 96.7 2,449 831 Roosevelt Parc Jackson Heights, NY 2.4 139 2019 76.3 2,695 - Total/WA Comp. Set Various Various 2,068 Various 89.7 2,431 755 The Alexander at Queens, NY n/a 312 2015 82.1 2,952 720 Rego Center Source: Appraisal, except the subject figures are based on the rent roll dated December 31, 2020.

The appraisal identified six competitive multifamily properties with occupancy rates ranging from 76.3% to 100.0% and vintages ranging from 1960 to 2019. The property’s occupancy of 82.1% is lower than the competitive set’s WA occupancy of 89.7%. The collateral’s average rent for a one-bedroom indicates the property achieves slightly higher rents compared to the competitor’s average rent of $2,431.

Sponsorship The sponsor and guarantor is a real estate investment trust which focuses on leasing, managing, and developing properties. The guarantor has seven properties in the greater New York City metro including one multifamily, one mixed-use, three shopping centers, and one vacant land parcel.

The management company is a third party management company which manages all of the guarantor’s properties. The management company is a publicly traded real estate investment trust. The majority of its portfolio is in New York City, Chicago, and San Francisco. It manages over 26 million sf of LEED- certified buildings and owns 35 properties equal to 19.1 million sf of Manhattan office space, 70 Manhattan street retail spaces equal to 2.3 million sf, and 10 residential towers accounting for 1,991 units, along with the Hotel Pennsylvania on 33rd Street at Seventh Avenue.

Page 26 of 99 FREMF 2021-K741 | February 22, 2021

Page 26 of 99

DBRS Morningstar Analysis Page 26 of 99 Site Inspection Summary

Page 26 of 99 DBRS Morningstar toured the property Monday, February 8, 2021. Based on the site inspection, DBRS Morningstar found the property to be Average +. Page 26 of 99

Page 26 of 99

The collateral is a multifamily tower located in Rego Park, a residential and commercial neighborhood in Queens bordered by I-495 (Long Island Expressway) to the north, Yellowstone Boulevard to the east, and Woodhaven Boulevard to the west. Queens Boulevard runs northwest to southeast through the neighborhood. The property is a five minute walk to the R and M subway lines, which commuters can use to reach Manhattan in 40 minutes. The neighborhood features numerous high-rise apartment buildings, midrise buildings, and detached houses, with a large commercial zone inside the interchange of Queens Boulevard and Long Island Expressway. The subject property is at the center of the commercial zone, known as Rego Center and Rego Park Center I, with major retailers including IKEA, AT Home, and Costco; national supporting tenants including TJ Maxx, Bed Bath and Beyond, Old Navy, Marshall’s, and Burlington; branded eateries; and other national, regional, and local retailers. The subject property is attached to the Rego Center and sits directly at the corner of Junction Boulevard and 62nd Drive, with Rego Park Center I across 62nd Drive. Development to the north and east consists mostly of high-rise apartment buildings, with midrise apartments and detached single-family homes to the southwest across Queens Boulevard.

The improvements were built in 2015 and consist of a 24-story building of steel frame construction with masonry exterior walls and a flat roof. There is access to garage parking with 210 spaces provided. Additional amenities include a 24-hour concierge service, a resident lounge with a kitchen and fireplace, a fitness center, both indoor and outdoor children's play areas, bicycle storage and an outdoor landscaped terrace with seating, cabanas, and a grill area. The lobby area is spacious and inviting, with raised ceilings, pendant and suspended lighting, floor-to-ceiling windows, wood-paneled and texture masonry walls, and attractive functional furnishings. The elevator lobby has wood-paneled walls and a tray ceiling with recessed lighting. The fitness center has large windows with double glass doors that lead onto a patio area, open ceiling with exposed ductwork, suspended lighting and ceiling fans, and vinyl flooring. The resident lounge is spacious with tiled, carpeted, and hardwood flooring, baffle ceiling with recessed and pendant lighting, large windows with glass double doors leading onto a patio area,

Page 27 of 99 FREMF 2021-K741 | February 22, 2021

Page 27 of 99

and modern furnishings and decor. The children’s playroom is bright and cheerful with ample lighting Page 27 of 99 and appropriate furnishings. Due to snow coverage, outdoor amenities were not inspected.

Page 27 of 99 The property has 312 studio, one-, and two-bedroom units, with average floorplans of 529 sf, 720 sf, and Page 27 of 99 1,064 sf, respectively. Unit amenities and features include hardwood flooring in living areas and

Page 27 of 99 bedrooms; stainless-steel appliances with gas stoves, built-in microwaves, refrigerators, and dishwashers; tiled flooring; stained wood cabinetry; and white quartz countertops. Bathrooms have tiled flooring, porcelain fixtures, tiled shower surrounds, and wood vanity cabinets with quartz countertops. Select units have in-home washers/dryers and private balconies.

DBRS Morningstar NCF Summary NCF Analysis 2019 T-12 October Borrower's Appraisal Issuer NCF DBRS NCF 2020 Budget Morningstar Variance NCF ($) (%) GPR ($) 11,594,607 11,696,467 11,785,435 11,770,539 11,855,425 11,855,425 0.0 Other Income ($) 946,239 910,786 873,592 864,000 885,299 845,461 -4.5 Vacancy & 476,921 621,185 827,807 396,316 1,225,990 2,331,329 90.2 Concessions ($) EGI ($) 12,063,925 11,986,068 11,831,220 12,238,223 11,514,733 10,369,556 -9.9 Expenses ($) 3,880,098 4,096,520 4,643,062 6,599,437 4,181,463 4,543,826 8.7 NOI ($) 8,183,827 7,889,548 7,188,158 5,638,786 7,333,270 5,825,730 -20.6 Capex ($) 62,400 62,400 78,000 107,993 62,400 78,000 25.0 NCF ($) 8,121,427 7,827,148 7,110,158 5,530,793 7,270,870 5,747,730 -20.9

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $5,747,730, representing a -20.95% variance form the Issuer’s NCF of $7,270,870. The primary drivers of the variance were vacancy, repairs, and maintenance, and general and administrative expenses. has seen a significant occupancy decline since July 2020, decreasing from 91.4% to 82.1% occupancy. The issuer assumed a value of 8.65%, equal to the July 2020 rent roll. DBRS Morningstar assumed a vacancy rate of 17.90%, equal to the current in place rate. The property DBRS Morningstar assumed a value equal to the Appraisal’s assumption while the issuer assumed a value equal to the YE2019 value. DBRS Morningstar assumed a value equal to the borrower’s budget for other R&M and G&A expenses, and the Issuer assumed a value equal to the July 2020 T-12 figure.

DBRS Morningstar Viewpoint The property is expected to perform as its historical occupancy rate remained above 94.0% annually from 2017 to 2019. However, in recent months, the property has seen a significant decrease in occupancy. Since July 2020, the property has decreased from 91.4% to 82.1%. The property still has a large cushion between its current occupancy rate of 82.1% to its amortizing breakeven occupancy of 67.4%. Management is reportedly trying to increase foot traffic and is has been offering two months free rent to increase the occupancy.

Page 28 of 99 FREMF 2021-K741 | February 22, 2021

Page 28 of 99

The property is located on top of a very popular shopping center in Queens driving a significant amount Page 28 of 99 of foot traffic to the property and providing convenience for current tenants. The shopping center

Page 28 of 99 includes Costco, TJ Maxx, Aldi, and Petco. The retail shopping center is anchored by a Macy’s Furniture store and a Target. The property is 0.2 miles from the Long Island Expressway and Horace Harding Page 28 of 99 Expressway with subway access to Manhattan five minutes away; from the 63rd Drive – Rego Park

Page 28 of 99 subway station it takes 40 minutes to get to Manhattan.

According to Reis, Queens County accounts for 16.1% of the total metro inventory with 36,500 units. The current vacancy rate is 4.5% for the submarket with an average asking rent of $2,410 per unit. Currently the submarket is offering 0.75 months free with an effective rent of $2,261, lower than the property’s average rent of $3,167. In 2020, the vacancy rate increased from 4.0% possibly owing to some disruption from the coronavirus-related lockdowns; however, average asking and effective rents dropped by 7.5% and 8.0%, respectively. DBRS Morningstar forecasts the downturn in rents to persist into 2021 as lingering effect of the recession and the projected delivery of more than 4,200 units pressures area landlords.

The Rego Park area remains strong as a more affordable alternative to Manhattan, Brooklyn, and Long Island City and should remain so in the future. The property is one of the newest in the submarket and offers a strong amenity package. However, due to the vintage and amenities, its asking rents are higher than the submarket’s, this may attribute to the current decrease in occupancy and create near term challenges. To mitigate this issue, management is now offering two months free to increase interest. The negative absorption in 2020 is unusual; the last time Queens County had negative units absorbed was 2006, and Reis assumes a five-year forecasted construction to absorption rate of 1.1 as of the YE 2025. Going forward, the five-year forecasted rent is forecast to increase to $2,713/unit, greater than at the start of 2020, and the vacancy rate is forecast to decrease to 4.1%. The property’s 421a tax abatement will also lower expenses over the loan term while the property continues to stabilize.

Downside Risks • The property is operating at a higher vacancy rate of 17.9% compared with the submarket rate of 4.6%. The submarket vacancy rate is forecast to increase over the next year. • This is a cash-out recapitalization of $91.0 million.

Stabilizing Factors • From 2017 through the July 2020 T-12, the property’s occupancy ranged from 94.5% to 96.3%. The 2020 weakness is likely a function of the coronavirus-related lockdowns and disruption. Reis is forecasting a recovery in occupancy over the next several years with vacancy rates falling back to 3.4%. The property’ area has a DBRS Morningstar Market Rank of 7, and exhibits the second lowest expected loss in the pool. • The equity cash out was the result of the borrower having no debt on the property. The borrower retains $25.7 million, or 21.5% of the total cost basis in the transaction.

Page 29 of 99 FREMF 2021-K741 | February 22, 2021

Page 29 of 99

Page 29 of 99 One East River Place (A-2)

Page 29 of 99

Page 29 of 99 Loan Snapshot

Page 29 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 93.3 Loan PSF/Unit ($) 449,398 Percentage of the Pool 8.2 Loan Maturity/ARD September 2027 Amortization n/a Collateral Summary DBRS Morningstar Property Type Multifamily Year Built/Renovated 1986/2019 DBRS Morningstar DSCR (x) 2.18 City, State New York, NY Physical Occupancy (%) 87.0 Units/SF 415 Physical Occupancy Date December 2020 DBRS Morningstar LTV (%) 65.2 DBRS Morningstar Balloon LTV (%) The loan is secured by the borrower’s fee-simple interest in One East River Place, a 415-unit high-rise 65.2 apartment complex in New York City’s Upper East Side neighborhood. The property was 87.0% occupied DBRS Morningstar Property Type Multifamily as of December 2020. The seven-year loan is fully IO. Loan proceeds of $186.5 million refinanced DBRS Morningstar Property Quality approximately $168.5 million of existing debt and returned approximately $14.0 million of cash equity to Average + the borrower. The loan has an upfront coronavirus debt service reserve of $2.3 million, or equal to six

month of IO debt service payments. A $93.25 million pari passu piece, referred to as Note A-2, is being Debt Stack ($ millions) contributed as part of the FREMF 2021-K741 transaction. The remaining $93.25 million pari passu proceeds, referred to as Note A-1, were contributed to the FREMF 2020-K740 transaction. The whole Trust Balance loan exhibits a significantly low leverage through the loan term of 45.3%. 93.3 Pari Passu 93.3 Originally built in 1986 by the sponsor, the property consists of 415 units and 27,275 sf of office space B Note that is 100% leased. The subject’s unit mix includes 46 studio units averaging 535 sf, 230 one-bedroom 0.0 Mezz units averaging 833 sf, and 139 two-bedroom units averaging 1,301 sf. Per the September 30, 2020, rent 0.0 roll provided, the subject’s studio, one-, and two-bedroom units average monthly rents of $3,898, $3,996, Total Debt and $7,043, respectively. The borrower has invested approximately $5.95 million in capital improvements 186.5 since 2016, including new appliances, apartment renovations, and flooring and kitchen renovations Loan Purpose Refinance totaling more than $2.1 million. The remaining capital improvement costs were related to mechanical Equity Contribution/(Distribution) and other non-unit interior items such as HVAC, cooling tower, and electrical work. Additionally, the ($ millions) borrower plans to invest approximately $3.0 million to repave the driveway and install new flooring and (14.0) a new sump pump. Unit amenities at the subject include fully equipped kitchens with standard stainless-steel appliances, granite countertops, tile and oak flooring, and central air conditioning. Additionally, select units feature balconies or patios, washers/dryers, and wood-burning fireplaces.

Page 30 of 99 FREMF 2021-K741 | February 22, 2021

Page 30 of 99

Common area amenities include a doorman, a fitness center, a swimming pool, a sun deck, a sauna, Page 30 of 99 laundry facilities, and shuttle service to the subway.

Page 30 of 99 The property’s commercial component comprises 27,275 sf of office space that is occupied by the Page 30 of 99 Hospital for Special Surgery. The tenant utilizes the space as traditional office space for the accounting,

Page 30 of 99 finance, and human resources personnel, and it does not feature any lab or surgical space. The tenant has occupied the space since 1991, and the current lease expires in August 2035, which is well beyond the current loan maturity in September 2027.

The property’s recent performance is worse than the competitive properties in Reis’ Upper East Side submarket. Over the course of 2019, the property achieved an occupancy rate of approximately 95.7%. However, per the rent roll dated December 31, 2020, the property exhibited an occupancy of approximately 87.0%, which is far below the submarket’s average vacancy of 97.5% as estimated by Reis during Q4 2020. Although the property has an occupancy that is weaker than the rest of the Upper East Side submarket, it has been able to achieve a higher average rental rate. The property’s average rental rate over the T-12 ended September 2020 was approximately $4,860, which is well above the submarket’s average rental rate of approximately $3,839. The appraiser identified eight properties within the Upper East Side submarket that compete directly with the collateral. Each property exhibits a stronger occupancy rate than the collateral and collectively exhibit a WA occupancy of 98.1%. Please see the table below for more information on the competitive properties as outlined by the appraiser.

Competitive Set Property Location Distance Units Year Built/ Occupancy (%) from Renovated Subject (Miles) 47-51 East 64th Street New York, NY 1.1 40 1929 100.0 The Strathmore New York, NY 0.8 180 1994 95.0 The Fairfax New York, NY 0.6 313 1927 99.0 215 East 68th Street New York, NY 0.6 608 1916 100.0 177 East 75th Street New York, NY 0.7 110 1962 99.1 254-260 East 68th Street New York, NY 0.6 174 1973 91.4 The Easton New York, NY 1.5 240 2016 98.3

The Lucerne New York, NY 0.6 220 1989 98.6 Total/Wtd. Avg. Comp. Set New York, NY Various 1,885 Various 98.1 One East River Place - Subject New York, NY n/a 415 1986/2019 87.0 Source: Appraisal, except the subject figures are based on the rent roll dated December 31, 2020.

Sponsorship The sponsor for this transaction is a New York-based real estate organization that has more than 40 years of experience owning and operating high-value assets in New York City. Furthermore, the sponsor owns eight luxury multifamily properties in the city similar to the subject. Although the sponsorship has high net worth and significant experience, the organization has reported several significant credit issues including two high-profile litigations with two of the largest banks in the United States. Both cases have since been resolved.

Page 31 of 99 FREMF 2021-K741 | February 22, 2021

Page 31 of 99

The property manager is a borrower-related entity that operates for a contractual rate of 5.0% of the EGI. Page 31 of 99 The management firm has extensive experience in the New York City area and manages approximately

Page 31 of 99 1,500 units in the local area.

Page 31 of 99 DBRS Morningstar Analysis

Page 31 of 99 Site Inspection Summary

DBRS Morningstar toured the property Wednesday, December 9, 2020. Based on the site inspection, DBRS Morningstar found the property to be Average +.

The collateral, known as One East River Place, is a high-rise residential tower on 0.8 acres in the Upper East Side neighborhood of Manhattan, an affluent, mostly residential neighborhood bounded by 96th Street to the north, the East River to the east, 59th Street to the south, and Central Park and Fifth Avenue to the west, encompassing several smaller elite neighborhoods. Neighborhood structures range from mansions and townhouses built in the 19th century, prewar mid-rise apartments and brownstones, mid-20tht century mid- and high-rise apartment buildings, to recently constructed residential towers. The neighborhood is home to Manhattan’s upscale retail corridors, parks, museums, dining, and entertainment venues and has excellent access to transportation. The subject is between East 72nd Street and East 73rd Street and sits directly along the Franklin D. Roosevelt East River Drive, a limited access parkway that runs along the East River. The subject is in the Lenox Hill enclave east of Park Avenue, in the lower section of the neighborhood, most of which is in the Upper East Side Historic District.

The property was built in 1986, with renovations in 2019, and consists of a 50-story building of steel and reinforced concrete construction with a glass facade and a flat roof. The building features a public plaza, a private garden, a doorman and concierge, a two-floor (49th and 50th) health club, a rooftop indoor pool and outdoor sundeck, saunas, laundry facilities, and a children’s playroom. The fitness center was adequately sized and the equipment was well maintained. The indoor swimming pool, while well maintained, did not appear to have a significant amount of poolside furniture given the relatively high- unit count for a multifamily property in New York City. The lobby is fully glass enclosed, allowing for views of the river through the building. Lobby finishes include granite/marble tiled and carpeted

Page 32 of 99 FREMF 2021-K741 | February 22, 2021

Page 32 of 99

flooring, a marble security desk, and wood paneled walls. The lobby showed very well as it was well Page 32 of 99 maintained and appeared inviting to any potential tenant, current residents, and their guests.

Page 32 of 99 The building has 415 studio, one-, and two-bedroom units with average floorplans of 535 sf, 833 sf, and Page 32 of 99 1,301 sf, respectively. Unit features and amenities include nine-foot ceilings; hardwood and parquet

Page 32 of 99 flooring in living areas and bedrooms; granite tiled flooring in kitchens; stainless-steel appliances including a stove, built-in microwave, refrigerator, and dishwasher; and white laminate cabinetry with black granite countertops. The living spaces appeared to be adequately sized given the typical size of an apartment unit in Manhattan. Additionally, the kitchens, although small, showed well as the stainless- steel kitchen appliances appeared well maintained. Bathrooms have marble flooring and porcelain fixtures, including a tub with ceramic tiled shower surround, and pedestal sink. All units have floor-to- ceiling windows, most with views of the river, which complimented the relatively well-size living rooms and bedrooms.

DBRS Morningstar NCF Summary NCF Analysis 2018 2019 T-12 Sept 2020 Issuer NCF DBRS NCF Variance Morningstar (%) NCF ($) GPR ($) 24,177,232 24,486,950 24,204,844 24,927,900 24,927,900 0.0 Other Income ($) 3,946,748 3,808,762 3,795,533 3,840,345 3,944,516 2.7 Vacancy & 1,814,572 1,784,705 1,871,224 2,476,978 3,419,034 38.0 Concessions ($) EGI ($) 26,309,408 26,511,007 26,129,153 26,291,267 25,453,382 -3.2 Expenses ($) 14,804,666 15,082,312 14,918,226 14,740,250 15,197,720 3.1 NOI ($) 11,504,742 11,428,695 11,210,927 11,551,017 10,255,662 -11.2 Capex ($) 0 0 0 109,667 178,863 63.1 NCF ($) 11,504,742 11,428,695 11,210,927 11,441,351 10,076,800 -11.9

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $10,076,799, representing a -11.9% variance from the Issuer’s NCF of $11,441,351. The primary drivers of the variance included economic vacancy, the management fee, and commercial vacancy.

The property has experienced a drop in occupancy since the July 2020 rent roll. Consequently, DBRS Morningstar assumed a physical vacancy factor of 10.7% and set concessions to the T-12 ended September 2020 to achieve an economic vacancy factor of 13.0%. This contrasts with the Issuer's estimated economic vacancy factor of approximately 9.8%. DBRS Morningstar estimated a management fee of 3.0% of the EGI, while the Issuer assumed a management fee of 1.6% of the EGI, both of which are lower than the contractual rate of 5.0% of the EGI to a borrower-related entity. DBRS Morningstar assumed a commercial vacancy rate of 7.5% on the office space, which was slightly higher than the Issuer’s assumed commercial vacancy rate of 3.3%.

Page 33 of 99 FREMF 2021-K741 | February 22, 2021

Page 33 of 99

DBRS Morningstar Viewpoint Page 33 of 99 The collateral is in Lenox Hill of Manhattan’s Upper East Side. Lenox Hill and the Upper East Side are

Page 33 of 99 affluent neighborhoods of Manhattan and are more residential than other areas of the city. The neighborhood is characterized by both older and newer multifamily supply, with retail locations along Page 33 of 99 the intersections of more prominent streets and avenues. The neighborhood, with its views of the East

Page 33 of 99 River, remains popular with residents. Central Park is nearby, and the 72nd Street station, on the subway Q line, opened in 2017, providing the area with better access to transit than was historically available. The property’s lower occupancy during the pandemic reflects the general downturn in the market as residents have surrendered apartments in favor of more suburban areas. As New Yorkers begin returning to work, DBRS Morningstar expects some improvement in occupancy.

Manhattan’s Upper East Side commands very high rental rates and generally operates at a very low vacancy rate. Specifically, since the global financial crisis the Upper East Side has exhibited annual vacancy rates below 3.0% according to Reis. However, the pandemic has caused residents of super- dense cities to reconsider their living situation, and this has hit New York City harder than others. This is supported by Reis’ vacancy estimates of 3.9% and 5.7% for the Upper East Side and the New York Metro, respectively, in 2021. However, there are reasons to believe that New York City will rebound once the health situation related to the coronavirus is resolved given the strong economic trends and demand drivers of the city. This is evidenced by the Reis estimate that the Upper East Side submarket vacancy rate will fall to 1.9% by 2025. Since 2018, the property has operated at a vacancy below 5.6% on an annual basis. However, this property in particular has seen particularly steep occupancy declines over the past several months as exhibited by collections. Specifically, the property’s occupancy steadily declined to 87.0% in December 2020 from 94.5% in April 2020. The steep drop in occupancy can be partially explained by the property’s particularly high average rental rate of $4,860, which is well above the Upper East Side submarket average of $3,839. The occupancy variance between the subject and the submarket may also be explained by the high rent. Lower priced units may still be subject to rent stabilization, and tenants will be less willing to vacate and lose that preferential rent. Residents of higher-priced units may be more willing to vacate units now and test the market rents upon their return to the city. Until the public health situation improves, residents’ desire to be in mass population centers like Manhattan remains low as they cannot reap the benefits the city offers.

The property also features a fairly large commercial component, which is occupied by the Hospital for Special Surgery, who has been in occupancy of the office space since 1991. The rental revenue generated from the commercial component made up approximately 8.5% of the total EGI during the T-12 ended September 2020. DBRS Morningstar expects the commercial revenue generated at the property to be stable over the loan term as the tenant recently resigned a lease that expires in August 2035, well beyond loan maturity.

Page 34 of 99 FREMF 2021-K741 | February 22, 2021

Page 34 of 99

Downside Risks Page 34 of 99 • The loan represents a cash-out refinancing and returns approximately $14.0 million of cash equity back

Page 34 of 99 to the borrower. • The loan’s implied cap rate based on the Issuer NCF and appraised value is extremely low at 2.8%. Low Page 34 of 99 cap rates indicate that a property’s value may be too high relative to the cash flow generated.

Page 34 of 99 Additionally, the loan is fully IO and does not amortize at all over the loan term.

Stabilizing Factors • The sponsor developed the property in 1986 and has owned and operated the property since its development. Additionally, the borrower invested approximately $6.0 million in capital improvements since 2016. These improvements included appliance upgrades, kitchen renovations, and flooring upgrades and complimented the borrower’s long-term ownership as evidence of the sponsor’s commitment to the property. • DBRS Morningstar adjusted the valuation to achieve a cap rate of 4.0% to help mitigate against potential over-valuation and future value declines. Additionally, the loan represents very low leverage at a 45.3% LTV.

Page 35 of 99 FREMF 2021-K741 | February 22, 2021

Page 35 of 99

Page 35 of 99 Moontower

Page 35 of 99

Page 35 of 99 Loan Snapshot

Page 35 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 65.5 Loan PSF/Unit ($) 115,573 Percentage of the Pool 5.8% Loan Maturity/ARD November 2027 Amortization n/a Collateral Summary DBRS Morningstar Property Type Student Housing Year Built/Renovated 2020 DBRS Morningstar DSCR (x) 2.15 City, State Austin, TX Physical Occupancy (%) 98.4 Beds 567 Physical Occupancy Date January 2021 DBRS Morningstar LTV (%) 66.9 DBRS Morningstar Balloon LTV (%) This loan is secured by the borrower’s fee-simple interest in Moontower, a 567-bed high-rise student 66.9 DBRS Morningstar Property Type housing property in the West Campus area of Austin, Texas near the University of Texas at Austin (UT Student Housing Austin). Built in 2020, the 18-story student housing property was 99.1% occupied as of September 15, DBRS Morningstar Property Quality 2020. The borrower used the loan proceeds of $65.5 million and contributed $46.4 million of cash equity Average + to facilitate the acquisition of the property in September 2020 for $112.0 million. The seven-year acquisition loan, which was funded in October 2020, is IO for the full term. Debt Stack ($ millions) The subject property was completed in August 2020 and is considered in excellent physical condition Trust Balance 65.5 with the property condition assessment noting no priority repairs or deferred maintenance. The units are Pari Passu fully furnished and feature granite countertops, stainless steel appliances, microwaves, in-unit washers 0.0 and dryers, and a 65” smart TV in each living room. Shared resident amenities include a state of the art B-Note fitness center, 24-hour package concierge center, coffee bar, business center, study rooms, and a 0.0 Mezz rooftop pool and lounge with panoramic views of Austin. 0.0 Total Debt As of the fall 2020 school year, UT Austin reported enrollment of over 52,000 students, ranking it as one 65.5 Loan Purpose of the largest universities in the country. The subject is located two blocks from the UT Austin campus in Acquisition the West Campus/East of San Gabriel submarket, which is considered one of the campus’s best located Equity Contribution/(Distribution) and most desirable areas due to its proximity to most campus buildings. The spring semester began on ($ millions) $46.4 January 19, 2021, with an email sent to all students confirming that all classes would be online-only for the rest of January 2021 because of the coronavirus pandemic.

Page 36 of 99 FREMF 2021-K741 | February 22, 2021

Page 36 of 99

The unit mix features 17 studio units, 34 two-bedroom units, 75 three-bedroom units, 376 four-bedroom Page 36 of 99 units, and 65 five-bedroom units with a total of 510 beds considered market rate beds and 57 beds that

Page 36 of 99 participate in the S.M.A.R.T. Austin housing program—which allowed the developer to fast track development and maximize density and height restrictions in return for allocating these beds at below- Page 36 of 99 market rates tied to student income needs. All beds require parental guarantees and most are on 12-

Page 36 of 99 month leases. As of September 2020, all but two of the S.M.A.R.T. beds were occupied for the 2020–21 school year. The 567 total beds average $1,201 in monthly rent, per the September 2020 rent roll, and 1,339 sf, which is considered more spacious than the appraiser’s identified competitive set outlined in the table below:

Competitive Set Property Location Distance from Beds Year Built/ Occupancy Avg. Rental Avg. Subject (Miles) Renovated (%) Rate Per Unit Size Unit ($) (SF) Ion Austin Austin, TX 0.1 miles 504 2016 100.0 1,270 n/a SkyLoft Austin, TX 0.1 miles 674 2018 98.0 1,189 1,022 Signature 1909 Austin, TX 0.3 miles 464 2018 96.0 1,213 999 The Lark fka Muze Austin, TX 0.2 miles 450 2019 97.0 1,179 1,002 Inspire on 22nd Austin, TX 0.1 miles 439 2019 99.0 1,178 1,138 The Nine at Rio Austin, TX 0.2 miles 347 2019 99.0 1,070 1,109 Total/Wtd. Avg. Comp. Set Austin, TX Various 2,878 Various 98.1 1,189 1,048 Moontower-Subject Austin, TX n/a 567 2020 98.4 1,201 1,339 Source: Appraisal, except the Subject figures are based on the rent roll dated January 12, 2020

Coronavirus Update Due to the pandemic, the lender was unable to complete a full in-person site inspection of this asset. However, the lender conducted a virtual inspection property tour and evaluation of bank deposits and the borrower provided a Borrower Certification of Property Condition. A coronavirus debt service reserve was required in an escrow account amounting to 12 months of IO debt service payments. In case the funds in the deferred maintenance or replacement reserve escrows prove insufficient, the sponsor has guaranteed sufficient deposits are made to those escrows as part of an additional coronavirus limited guaranty.

Sponsorship Sponsorship for this transaction is provided by a single-purpose Delaware LLC controlled by four individuals and a large foreign investment securities firm. The key sponsor is a large fully integrated real estate firm specializing in student housing construction, management, consulting, and development. The firm’s key sponsors are repeat Freddie Mac borrowers that have completed four transactions since 2019 for more than $170 million in UPB, with all loans performing as agreed.

Property management is provided by a borrower-controlled management company with a portfolio of over 44,000 beds, with 1,259 additional beds under management in the University of Texas student housing market. The company has extensive experience managing student housing assets throughout the United States at institutions ranging from 1,000 to 50,000+ students.

Page 37 of 99 FREMF 2021-K741 | February 22, 2021

Page 37 of 99

DBRS Morningstar Analysis Page 37 of 99 Site Inspection Summary

Page 37 of 99

DBRS Morningstar toured the property on Monday, February 1, 2021. Based on the site inspection, DBRS Morningstar found the property quality to be Average +.

The collateral is an upscale high-rise student rental property located along Guadalupe Street the two blocks west of the UT Austin campus. Numerous retail shops, restaurants, bars, entertainment venues, and transportation options line the west side of The Drag. Blocks to the west are heavily developed with low-, mid-, and high-rise student rentals; and university and office buildings. Downtown Austin is two miles to the south. Access to I-35, bordering the east side of the campus, is about one mile to the southwest. The Frank Irwin Center and Medical District are along the west side of the interstate.

The improvements were built in 2020 and consist of an 18-story building of steel frame construction with a metal and glass exterior and a flat roof with rooftop deck, lounge, and pool. Extensive amenities are geared toward the student resident profile and include underground parking with 183 spaces; rooftop pool and lounge; grills; private study lounges; 24-hour fitness, yoga and spin studio; coffee bar and package concierge. Common area finishes are upscale and modern, with open ceilings, floor to ceiling windows, open metal staircases, brightly colored wallpaper and floor coverings, specialty lighting, and ultra-modern furnishings and decor.

The property has 166 units with 567 beds. Units include studio, one-, two-, three-, four-, and five- bedroom floorplans. Units finishes and amenities include vinyl plank and tiled flooring; a full kitchen appliance package with stainless teel appliances including stove, microwave, refrigerator, and dishwasher; gray European-style cabinetry; quartz countertops; and ceramic tiled backsplashes. Bathrooms have tiled flooring, porcelain fixtures, tubs with tiled shower surrounds, and wood vanity cabinets with quartz countertops. Some units have glass-enclosed, step-in showers. All apartments have in-unit washers/dryers. Some units have floor to ceiling windows, and all units have ample natural lighting. As the building was delivered in 2020, there was no deferred maintenance.

Page 38 of 99 FREMF 2021-K741 | February 22, 2021

Page 38 of 99

DBRS Morningstar NCF Summary Page 38 of 99 NCF Analysis T-12 Aug 2020 Budget 2020 Appraisal Issuer NCF DBRS NCF Variance Page 38 of 99 Morningstar (%) NCF ($)

GPR ($) 9,786,492 8,194,268 8,234,051 8,171,316 8,155,094 -0.2 Page 38 of 99 Other Income ($) 2,679,144 1,171,235 1,181,481 1,111,398 1,034,913 -6.9

Page 38 of 99 Vacancy & Concessions 1,699,320 158,673 490,319 408,566 794,649 94.5 ($) EGI ($) 10,766,316 9,206,830 8,925,213 8,874,148 8,395,358 -5.4

Expenses ($) 1,534,572 3,813,877 3,798,662 3,904,120 4,033,564 3.3 NOI ($) 9,231,744 5,392,953 5,126,551 4,970,028 4,361,794 -12.2 Capex ($) 0 70,875 85,050 70,875 198,450 180.0 NCF ($) 9,231,744 5,322,078 5,041,501 4,899,153 4,163,344 -15.0

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF for the subject was $4,163,344, representing a variance of -15.0% from the Issuer’s NCF of $4,899,153. The primary drivers of the variance were vacancy and capital expenditures/replacement reserves. DBRS Morningstar assumed a 3% vacancy rate for the 57 S.M.A.R.T. housing beds and 10% for the 510 market rate student beds, for an all-in blended vacancy rate of 9.48%, while the issuer assumed a vacancy rate of 5% on the total 567 beds. For replacement reserves, the issuer estimated $125 per bed while DBRS Morningstar assumed $350 per bed, accounting for student housing and the units being fully furnished.

DBRS Morningstar Viewpoint

The collateral is a 567-bed newly developed Class A student housing high-rise property in Austin, Texas, approximately 0.25 miles southwest of the UT Austin central campus area. UT Austin is one of the largest U.S. universities with over 52,000 students per school year and 6,643 beds across 13 university- owned facilities on campus, per Axiometrics Fall 2020 data. Undergraduate students are not required to live on campus, which provides strong market conditions for student housing near the university, as evidenced by the appraiser’s six comparable properties that report strong occupancy rates, ranging from 96.0% to 100.0%. DBRS Morningstar believes the property stands to compete strongly in the loan term, even as new housing supply, stemming from recent ordinance changes in the property’s West Campus area that have spurred more development of student housing, becomes available because there is little developable vacant land closer to the campus than the property’s position, as noted by the appraiser.

Downside Risks • The loan has no carveout guarantors. • As of January 19, 2021, all spring semester undergraduate classes were moved to online-only instruction. This could result in a short-term disruption in occupancy. • New supply—because of recent zoning changes in the West Campus submarket, there is considerable uptick in construction and future supply (5,918 beds) in the 2020–22 delivery pipeline expected to compete with the subject. The appraiser noted the market is becoming more competitive due to a surge

Page 39 of 99 FREMF 2021-K741 | February 22, 2021

Page 39 of 99

in new construction, noting that 2,424 beds were delivered in Fall 2018–19, with an additional 4,647 Page 39 of 99 being added from Fall 2020 to -Fall 2023.

Page 39 of 99 Stabilizing Factors Page 39 of 99 • The borrowing entity features well-capitalized and experienced professionals that bring in a strong,

Page 39 of 99 nationally recognized property management company and a plethora of experience in student housing assets and markets. • The subject is considered to be in excellent condition and has a strong amenity package and unit plans compared with competing Class A student housing products in the surrounding buildings. The building was well leased at 99.0% for the Fall 2020 semester and demonstrates the appeal of the property. The S.M.A.R.T. program makes places available for lower income students at lower rents and typically has lower vacancy. • UT Austin has experienced positive enrollment trends and Axiometrics predicts the student enrollment to increase to 53,568 students by 2023. Student housing properties in the West Campus submarket have experienced favorable acceptance in pre-leasing and occupancies with occupancy rates at the appraiser’s six comparable properties’ ranging from 96.0% to 100.0%. Despite the subject having only a one-year track record, the property was able to pre-lease favorably and stabilized in its first school year online (Fall 2020), with the September 2020 reported occupancy rate of 99.1%. The appraiser also noted there are barriers to entry about available land positioned closer to the University in the West Campus area.

Page 40 of 99 FREMF 2021-K741 | February 22, 2021

Page 40 of 99

Page 40 of 99 Arcadia Apartment Homes

Page 40 of 99

Page 40 of 99 Loan Snapshot

Page 40 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 56.8 Loan PSF/Unit ($) 189,367 Percentage of the Pool 5.0% Loan Maturity/ARD December 2027 Amortization n/a Collateral Summary DBRS Morningstar DSCR (x) DBRS Morningstar Property Type Multifamily Year Built/Renovated 1984/2020 2.42 City, State Centennial, CO Physical Occupancy (%) 95.7 DBRS Morningstar LTV (%) Units/SF 300 Physical Occupancy Date December 2020 69.4 DBRS Morningstar Balloon LTV (%) 69.4 The loan is secured by the borrower’s fee simple-interest in Arcadia Apartment Homes, a 300-unit, DBRS Morningstar Property Type Multifamily garden-style apartment complex located in Centennial, Colorado, a suburban area five miles south of the DBRS Morningstar Property Quality Denver Tech center, a major employment hub, and 18 miles southeast of the Denver CBD. The collateral Average was constructed in 1984 and most recently renovated in 2020. The borrower acquired the collateral is

January 2016 for a purchase price of $60.3 million and has since invested $1.7 million in capital Debt Stack ($ millions) improvements, resulting in a cost basis of $62.0 million. Loan proceeds of $56.8 million refinanced $39.5 million in existing debt and returned $15.9 million in equity to the borrower. The loan is structured with Trust Balance initial deposits of $301,984 for a tax escrow, $150,703 for an Energy Efficient Repair Reserve, and $1.1 56.8 million for a coronavirus Debt Service Reserve, which represents nine months of amortizing debt service Pari Passu 0.0 payments. The loan is IO throughout its seven-year term. B-Note 0.0 The collateral is located on 14.8 acres and consists of 30 three-story buildings. The subject is a 100% Mezz 0.0 owned condominium regime. Communal amenities include a pool, fitness center, business center, Zen Total Debt garden, combination leasing office/clubhouse, basketball court, grilling stations, two dog parks, pet 56.8 grooming station, bicycle storage, and 579 parking spaces. All units feature amenities such as a full set Loan Purpose Refinance of stainless steel kitchen appliances and tiled backsplash, vinyl wood flooring, laminate countertops, Equity Contribution/(Distribution) fireplace, washer/dryer, and patio or balcony. Select units feature vaulted ceilings, an exterior storage ($ millions) area on the patio/balcony, and scenic mountain views. As of December 31, 2020, the property was $(15.9) 95.7% occupied. Based on the rent roll dated October 15, 2020, the 300-unit mix consists of 40 one- bedroom units (679 sf) with an average rent of $1,343 per unit and 260 two-bedroom units (1,022 sf) with an average rent of $1,615 per unit.

Page 41 of 99 FREMF 2021-K741 | February 22, 2021

Page 41 of 99

Renovations within the last three years included upgrading approximately 90% of the units at a cost of Page 41 of 99 approximately $1.3 million ($4,434/unit). Exterior renovations totaled $385,690 and include HVAC

Page 41 of 99 replacement, painting, new windows, and other exterior maintenance.

Page 41 of 99 The appraiser identified eight competitive properties in the subject’s surrounding area. The subject’s

Page 41 of 99 occupancy of 95.7% is slightly above the competitive set’s WA occupancy of 94.7%. The property’s average rent of $1,579 per unit is below the competitive set’s WA rent of $1,638 per unit.

Competitive Set Property Location Distance Units Year Built/ Occupancy Avg. from Renovated (%) Rental Subject Rate (Miles) Per Unit ($) Villas at Homestead Englewood, CO 1.8 312 1993/2017 97.0 1,627 Monte Vista Luxury Apartments Littleton, CO 4.6 219 1995/2015 95.0 1,696 Villas at Holly Centennial, CO 2.0 144 1980/2015 93.0 1,606 Copper Terrace Apartments Centennial, CO 2.7 168 1998/2015 94.0 1,543 Stratford Station Centennial, CO 2.2 192 1986/2015 97.0 1,498 Contour39 Lane Tree, CO 1.6 316 1996/2015 95.0 1,728

Autumn Chase Highlands Ranch, CO 2.3 404 1986/2016 93.0 1,518 The Bluffs at Highlands Ranch Highlands Ranch, CO 4.5 340 1995/2017 94.0 1,812 Total/Wtd. Avg. Comp. Set Various, State Various 2095 Various 94.7 1,638 Arcadia Apartment Homes- Subject n/a 300 1984/2020 95.7 1,579 Source: Appraisal, except the subject figures are based on the rent roll dated month December 31, 2020

Sponsorship The borrowing entity for this transaction is a single-purpose, Delaware LLC. The key sponsor and carveout guarantor represents a privately held real estate investment trust. The real estate investment trust was established in 2012 and closed its public offering in 2016. The key sponsor’s investment strategy focuses on value-add multifamily properties. The portfolio includes ownership interest in 17 multifamily properties with 5,159 units located in nine states. The portfolio has strong financial metrics, as indicated by the overall LTV and DSCR of 52.0% and 2.05x, respectively. The guarantor benefits from a robust net worth and liquidity of $202.4 million and $32.9 million, respectively. The key sponsor belongs to a leading, privately held real estate investment management company, which represents a repeat Freddie Mac sponsor, that has completed 23 loan transactions since 2016 for a total transaction volume of $733.0 million.

The property is managed by a third-party property management company that was established in 1993 and is based in Charleston, South Carolina. The property reported management interest in 690,000 units and student beds across the globe, of which 1,526 units are located in the subject’s local market. The in- place management fee at the property is 2.7% of EGI.

Page 42 of 99 FREMF 2021-K741 | February 22, 2021

Page 42 of 99

DBRS Morningstar Analysis Page 42 of 99 Site Inspection Summary

Page 42 of 99

DBRS Morningstar toured the property on Thursday, February 4, 2021. Based on the site inspection, DBRS Morningstar found the property to be Average.

The collateral is a garden apartment complex located in Centennial a suburban community in Arapahoe County, approximately 16 miles south/southeast of downtown Denver, and part of the Denver-Aurora- Lakewood MSA. The subject site wraps around a Hobby Lobby anchored retail center that is directly at the corner of the signalized intersection of East County Line Road and South Quebec Street. A retail corridor is to the south, along East County Line Road and Hwy. 470, which is parallel to the south of East County Line Road, including a Walmart Supercenter, Sam’s, Kohl’s, anchored and strip retail centers, hospitality properties, eateries, and service businesses. East County Line Road provides access to Interstate 25 approximately two miles to the east, with major retail development along the interstate corridor including the Park Meadows Mall anchored by Dillard’s, Nordstrom, Macy’s, Crate & Barrel, and Dick’s Sporting Goods along with box retailers (Costco, Home Depot, IKEA), power and anchored retail centers, stand-alone retail, and eateries. Established and well-developed residential neighborhoods are to the north and south of East County Line Road and Hwy. 470 along with parks and golf courses.

The subject is a multifamily property located on land area of 14.83 acres. Improvements were built in 1984, with renovations in 2018, and consist of 27 three-story buildings of wood frame construction with sided exterior walls and pitched composite roof. Parking and drives are asphalt with 579 surface and carport parking spaces provided. Reserved and assigned spaces are available. Additional site amenities include a clubhouse, 24/7 fitness center, 24/7 lounge, saltwater pool, Zen garden, bike storage, and dog spa and park.

The property offers 300 one- and two-bedroom units, with average floorplans of 679 sf and 1,022 sf, respectively. Unit amenities and finishes include a full kitchen appliance package with stainless steel appliances, including stove, vent hood, refrigerator, and dishwasher; white cabinets; granite countertops; ceramic tiled backsplashes; and track lighting. The units have vinyl plank and carpeted flooring. All apartments have in-unit washers/dryers and vertical and mini-blinds. Select units have fireplaces.

Page 43 of 99 FREMF 2021-K741 | February 22, 2021

Page 43 of 99

DBRS Morningstar NCF Summary Page 43 of 99 NCF Analysis 2018 2019 T-12 Sept Budget Issuer NCF DBRS NCF Page 43 of 99 2020 Morningstar Variance (%) NCF ($)

GPR ($) 5,476,794 5,577,873 5,627,315 5,727,474 5,684,244 5,683,440 0.0 Page 43 of 99 Other Income ($) 399,477 399,539 390,187 414,575 389,053 389,053 0.0

Page 43 of 99 Vacancy & 501,733 453,470 567,786 373,901 570,036 636,618 11.7 Concessions ($) EGI ($) 5,374,538 5,523,942 5,449,716 5,768,148 5,503,261 5,435,875 -1.2

Expenses ($) 1,723,627 1,734,322 1,807,339 1,752,680 1,751,831 1,780,641 1.6 NOI ($) 3,650,911 3,789,620 3,642,377 4,015,468 3,751,430 3,655,234 -2.6 Capex ($) 0 0 0 0 68,400 75,000 9.6 NCF ($) 3,650,911 3,789,620 3,642,377 4,015,468 3,683,030 3,580,234 -2.8

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $3,580,234, representing a -2.79% variance from the Issuer’s NCF of $3,683,030. The primary drivers were vacancy, bad debt, and management fee.

DBRS Morningstar assumed a vacancy factor of 8.6% based on the economic vacancy for the trailing three months ended September 30, 2020. The Issuer assumed a vacancy factor of 5.3%. DBRS Morningstar assumed bad debt to 0.4% of GPR based on the T-12 amount. The Issuer did not assume any bad debt. DBRS Morningstar estimated management fees to 3.0% of EGI. The Issuer estimated management fees to 2.7% of EGI based on the actual contract fee.

DBRS Morningstar Viewpoint The subject is well located in the Arapahoe County submarket within the Denver-Aurora MSA, where it benefits from strong market fundamentals. The Denver MSA boasts one of the most diverse and fastest growing economies in the state, consisting of a variety of industries with not one accounting for more than 18.5% of employment. Industries in the Denver MSA include government, tech, finance, education, tourism, and distribution services. According to Q4 2020 Reis data, job growth in the Denver MSA increased 1.9% over the past quarter, which eclipses the nationwide increase of 1.4%. The subject has an average DBRS Morningstar market rank of 4, which is considered a suburban location. According to Q3 2020 Reis data, the submarket has a current average vacancy factor of 4.5% with an average submarket rent of $1,651 per unit. Over the next five years, Reis projects that 121 units will be built, which reflects an increase of 1.7% to the submarket’s current supply. Additionally, the submarket’s vacancy will average 6.3% and asking rents will decrease by -0.2% annually.

The subject is located within a relatively recently developed neighborhood where it enjoys sufficient vehicle access and proximity to local economic drivers. In the late 1990s and early 2000s, the subject’s neighborhood, previously lacking retail uses, experienced rapid growth as a number of community and shopping centers were constructed. The neighborhood is now nearing development maturity with only a few remaining developable and vacant sites. The collateral is near two major arterials, I-25 and the C-43 (two miles east), which provide access throughout the MSA. The subject is five miles south of the

Page 44 of 99 FREMF 2021-K741 | February 22, 2021

Page 44 of 99

Denver Tech Center, a major employment hub that represents 25.0 million sf of office space. Nearby Page 44 of 99 retail uses are abundant and include Park Meadow Mall (two miles east), Quebec Village Shopping

Page 44 of 99 Center (immediate southeast), and Walgreens (immediate east).

Page 44 of 99 Because the property was constructed in 1984, the loan’s risk profile is increased by the collateral’s

Page 44 of 99 older vintage. However, risk is mitigated by the property’s quality coupled with past and future capex plans. On its site inspection, DBRS Morningstar found the property to be of Average quality and noted no deferred maintenance or significantly dated finishes. Similarly, the property condition assessment report noted only minimal repairs, totaling $30,686. Over the past three years, the borrower has invested $1.7 million in capital improvements, which entailed upgrades to 90.0% of the total units. Improvements included new kitchen cabinets, countertops, appliances, flooring, washer/dryers, and bathroom fixtures. Over the next 12 months, the borrower plans to invest an additional $70,000 in renovations to resurface the parking lot area. Additionally, the loan is structured with an initial deposit of $150,703 for an Energy Efficient Repair reserve, which may alleviate energy issues stemming from the collateral’s older vintage. Moreover, despite the collateral’s vintage, it benefits from a low vacancy rate of 4.3% as of December 31, 2020, which is below the submarket average vacancy rate of 4.5% per Q3 2020 Reis data. In light of the collateral’s capital improvement plans and high occupancy level, DBRS Morningstar expects the collateral to produce a stable cash flow over the course of the loan term.

Downside Risks • The sponsor for the transaction is using loan proceeds to cash out approximately $15.9 million of equity. DBRS Morningstar views cash-out refinancing transactions as less favorable than acquisition financing because sponsors typically have less incentive to support a property through times of economic stress if less of their own cash equity is at risk.

Stabilizing Factors • The sponsor has $5.2 million of cash equity remaining in the transaction. Furthermore, DBRS Morningstar determined the property's implied cap rate to be lower than comparable properties and made an upward adjustment.

Page 45 of 99 FREMF 2021-K741 | February 22, 2021

Page 45 of 99

Page 45 of 99 IMT Ballantyne

Page 45 of 99

Page 45 of 99 Loan Snapshot

Page 45 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 56.1 Loan PSF/Unit ($) 141,330 Percentage of the Pool 4.9% Loan Maturity/ARD December 2027 Amortization n/a Collateral Summary DBRS Morningstar DSCR (x) DBRS Morningstar Property Type Multifamily Year Built/Renovated 2018 2.28 City, State Charlotte, NC Physical Occupancy (%) 87.2 DBRS Morningstar LTV (%) 62.3 Units/SF 397 Physical Occupancy Date October 2020 DBRS Morningstar Balloon LTV (%) 62.3 DBRS Morningstar Property Type The loan is secured by the borrower’s fee-simple interest in a 397-unit mid-rise apartment complex in Multifamily Charlotte, North Carolina. Loan proceeds of $56.1 million along with $33.1 million of borrower’s equity DBRS Morningstar Property Quality were used acquire property for a total purchase price of $89.2 million. The seven-year fixed rate loan is Average + IO throughout the loan term. The borrower has made an initial deposit for a coronavirus debt service reserve equal to nine months of interest-only debt service payments. The reserve will be released after Debt Stack ($ millions) 90 days following the lifting of all governmental actions related to the coronavirus affecting the property. Based on a September 2020 appraised value of $90.1 million, the loan represents a DBRS Morningstar Trust Balance 56.1 LTV of 62.3%. Pari Passu 0.0 Built in 2018 on 30.6 acres, the property was 87.2% occupied as of the October 2020 rent roll. Common- B-Note area amenities at the property consist of a swimming pool, a fitness center, a clubhouse, an outdoor 0.0 Mezz lounge, a grilling area, fire pits, a business center, a spin room, a playground, a dog park, a bike storage 9.0 area, and a package locker system. Unit amenities include granite countertops, stainless steel Total Debt appliances, wood flooring, an in-unit washer/dryer, and walk-in closets. The unit breakdown consists of 56.1 Loan Purpose 183 one-bedroom units averaging 731 sf, 151 two-bedroom units averaging 1,125 sf, and 63 three- Acquisition bedroom units averaging 1,464 sf. The average unit size and rental rate per unit is 997 sf and $1,376 per Equity Contribution/(Distribution) unit, respectively. ($ millions) $33.1

Page 46 of 99 FREMF 2021-K741 | February 22, 2021

Page 46 of 99

The appraiser identified six multifamily properties that directly compete with the subject detailed in the Page 46 of 99 table below.

Page 46 of 99 Competitive Set Page 46 of 99 Property Location Distance Units Year Built/ Occupancy Avg. Rental Avg. Unit from Renovated (%) Rate Per Size (SF) Page 46 of 99 Subject Unit ($) (Miles) Lantower Waverly Charlotte, NC 6.5 375 2016 89.0 1,337 998

Element Ballantyne Charlotte, NC 1.6 281 2015 95.0 1,422 961

The Lowrie Charlotte, NC 3.8 245 2017 95.0 1,345 1,046 Legacy 521 Charlotte, NC 0.5 248 2015 94.0 1,410 902 The Sawyer Providence Farm Charlotte, NC 8.3 404 2017 93.0 1,589 1,143 The Flats at Ballantyne Charlotte, NC 2.9 194 2016 96.0 1,426 988 Total/WA Avg. Comp. Set Charlotte, NC Various 1,747 Various 93.2 1,430 1,018 IMT Ballantyne Charlotte, NC n/a 397 2018 87.2 1,492 930 Source: Appraisal, except the subject figures are based on the rent roll dated October 2020.

Sponsorship A single-purpose Delaware limited liability company controlled by four individuals is the sponsor for this transaction. The borrower is a private vertically integrated real estate investment firm specializing in value-add acquisitions and property management. The company served as repeat Freddie Mac borrowers having completed more than 75 transactions valued at $3.8 billion with all loans having performed as agreed.

The property is managed by a borrower-controlled entity with a portfolio of 20,000 multifamily units nationwide with 397 units in the local area.

DBRS Morningstar Analysis Site Inspection Summary

DBRS Morningstar toured the property Monday, February 8, 2021. Based on the site inspection, DBRS Morningstar found the property to be of Average + quality.

Page 47 of 99 FREMF 2021-K741 | February 22, 2021

Page 47 of 99

The collateral is a garden apartment complex in the Ballantyne West neighborhood, an affluent area 18 Page 47 of 99 miles south of downtown Charlotte. Ballantyne is home to the Ballantyne Corporate Park, with more

Page 47 of 99 than 4 million sf of office space, and the Ballantyne Village shopping center, Blakeney Village (an outdoor mall with major national brands), an 18-hole public golf course, Ballantyne County Club, and Page 47 of 99 luxury hotels. The subject is on the west side of US Highway 521 (Johnston Road/Lancaster Highway).

Page 47 of 99 Retail developments are along the east side of the highway, including a neighborhood center directly across from the subject site, with eateries, a fitness center, personal services, and medical and vet clinics, with a Harris Teeter-anchored retail center further to the south on Lancaster Highway. Otherwise, the surrounding area is composed of multifamily developments, large residential subdivisions, golf courses, country clubs, and residential golf communities, interspersed among wooded lands and green space.

Improvements were built in 2018 and consist of six five-story buildings of reinforced masonry and wood frame construction with stucco exterior walls and pitched composite roofs. Additional site improvements include asphalt parking and drives, with 677 surface spaces provided, concrete curbing and sidewalks, and professionally designed and maintained landscaping (in winter condition at the time of inspection).

Unit finishes and amenities include wood-style flooring, a full kitchen appliance package with stainless steel appliances, two-tone painted pantry doors and wood cabinetry, granite countertops, and pendant and track lighting. Bathrooms have porcelain fixtures and wood vanity cabinets with granite countertops. Select units have kitchen islands, separate walk-in showers, ceramic tile tubs, private patios/balconies, and attached garages. All units have in-home washers/dryers. The model unit has modern and upscale finishes, furnishings, and decor and shows very well.

DBRS Morningstar NCF Summary NCF Analysis T-12 Sept Budget Appraisal Issuer NCF DBRS NCF Variance 2020 Morningstar (%) NCF ($) GPR ($) 6,691,278 6,544,672 6,516,048 6,556,872 6,556,872 0.0 Other Income ($) 440,886 576,324 371,195 484,756 449,216 -7.3 Vacancy & Concessions ($) 1,862,286 536,977 521,283 982,141 1,179,365 20.1 EGI ($) 5,269,878 6,584,019 6,365,960 6,059,487 5,826,722 -3.8 Expenses ($) 2,322,106 2,548,673 2,212,815 2,361,608 2,406,742 1.9 NOI ($) 2,947,772 4,035,346 4,153,145 3,697,879 3,419,980 -7.5 Capex ($) 0 59,550 89,325 73,842 99,250 34.4 NCF ($) 2,947,772 3,975,796 4,063,820 3,624,037 3,320,730 -8.4

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting NCF was $3,320,730 representing a variance of -8.37% from the Issuer’s NCF of $3,624,037. The primary drivers behind the variance were residential concessions and management fee. Concessions were based on September 2020 T-12 ratio, which calculates to 4.7% of the GPR compared with the Issuer’s assumed rate of 1.0%. DBRS Morningstar concluded the management fee at a rate of 4.0% of the EGI relative to the Issuer’s concluded rate of 3.0%.

Page 48 of 99 FREMF 2021-K741 | February 22, 2021

Page 48 of 99

DBRS Morningstar Viewpoint Page 48 of 99 The collateral is generally well-located in an established residential suburb residing just 18 miles outside

Page 48 of 99 of the Charlotte CBD, which is home to one of the largest financial centers in the nation. The overall demographic is above the national standard with average household incomes within a five-mile radius in Page 48 of 99 excess of $140,000. The property also benefits from its recent construction vintage, which offers a

Page 48 of 99 modern amenity package consistent with recently built garden-style multifamily complexes.

The subject’s vacancy rate of 12.8% relative to the submarket’s vacancy rate of 7.0% may be an indicator that the subject is underperforming compared with competitors. From August 1, 2019, to the T-12 period ended September 30, 2020, average historical vacancy rates have remained fairly low, ranging from 33.8% to 10.4%. This may be attributed to higher-than-average rental rates at the property of $1,376 per unit compared with the market average rent of $1,240 per unit and properties of similar vintage average rental rates of $1,179. Despite the lack of an accelerated leasing momentum, the collateral seems to be trending upward in occupancy since opening. Additionally, collections at the property was reported at above 95.0% as of January 2021.

As defined by Reis, the subject is in the Carmel submarket, which comprises 10.1% of the MSA’s multifamily inventory. Major employers in the area include Atrium Health, Wells Fargo, Walmart Inc., and Bank of America Corp. Per Reis, the submarket has experienced fairly stable inventory in recent years and is projected to deliver 175 multifamily units amounting to 2.4% of new construction to Charlotte in the next two years, which will have minimal impact on rent prices and vacancy rates. As of Q4 2020, the submarket has a 7.0% vacancy rate and an average asking rent price of $1,240.

Downside Risks • The property lies in a DBRS Morningstar Market Rank 3, which is less densely developed and can be associated with a higher probability of default. • The property also exhibits high historical vacancy, which is an ongoing concern, and the subject is underperforming relative to the submarket.

Stabilizing factors • The transaction benefits from strong, experienced sponsorship. The sponsor of this loan is a repeat Freddie Mac borrower, having completed 75 transactions totaling $3.8 billion with no payment issues. At closing, the borrower contributed $33.1 million of cash equity, representing 37.1% of the purchase price, to the transaction. • The loan is structured with a coronavirus debt service reserve in an amount equal to nine months of amortizing debt service payments or approximately $728,157.

Page 49 of 99 FREMF 2021-K741 | February 22, 2021

Page 49 of 99

Page 49 of 99 Ashford 75

Page 49 of 99

Page 49 of 99 Loan Snapshot

Page 49 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 55.0 Loan PSF/Unit ($) 132,212 Percentage of the Pool 4.9% Loan Maturity/ARD November 2027 Amortization 30 Years Collateral Summary DBRS Morningstar DSCR (x) DBRS Morningstar Property Type Multifamily Year Built/Renovated 1972/2014 1.09 City, State Smyrna, GA Physical Occupancy (%) 94.2 DBRS Morningstar LTV (%) 79.7 Units/SF 416 Physical Occupancy Date December 2020 DBRS Morningstar Balloon LTV (%) 70.7 DBRS Morningstar Property Type This loan is secured by the borrower’s fee-simple interest in Ashford 75, a 416-unit garden-style Multifamily multifamily property in Smyrna, Georgia. The 7-year fixed-rate loan is structured with an initial two-year DBRS Morningstar Property Quality IO period and is scheduled to amortize on a 30-year basis thereafter. Aggregate loan proceeds of $55.0 Average + million in addition to $14.0 million in borrower equity facilitated the $69.0 million acquisition of the property. With an appraised value of $69.0 million, the LTV at issuance is 79.7% and will amortize down Debt Stack ($ millions) to 70.7% LTV at maturity. The loan is also structured with a coronavirus debt service reserve in an amount equal to nine months of amortizing debt service or approximately $2.0 million. Trust Balance 55.0 Pari Passu The property was originally built in 1972 and was later purchased by the borrower in September 2020 for 0.0 $69.0 million. Before the borrower purchased the property, the previous owner had completed $13.4 B-Note million ($32,132 per unit) in capital improvements since 2014. The invested capital was used for 0.0 Mezz extensive exterior renovations as well as upgrading 350 units at the property with updated features. Of 0.0 the 350 units that received upgrades, 219 received “elite” level upgrades while 131 received “premier” Total Debt level upgrades. In addition, the borrower plans on investing $4.1 million in capital improvements to 55.0 Loan Purpose further renovate the exterior of the property as well as finish upgrading the remaining units. Unit Acquisition interiors of the “elite” renovated units typically feature granite countertops, stainless-steel kitchen Equity Contribution/(Distribution) appliances including built-in microwaves, and tile backsplashes. “Premier” level renovations include ($ millions) $14.0 laminate countertops and black appliances. Exterior renovations to the property by the seller included mold remediation; water-saving improvements; new signage; entrance upgrades; structural repairs, HVAC and water heater replacement; and pool, dog park, and sports court upgrades.

Page 50 of 99 FREMF 2021-K741 | February 22, 2021

Page 50 of 99

Common area amenities at the property include gated access, clubhouse with lounge area, business Page 50 of 99 center, fitness center, picnic area, swimming pool, tennis court, dog park, electric car charging station,

Page 50 of 99 and courtesy patrol. Unit amenities include washer and dryer connections. Townhome units feature fireplaces, while select units include microwaves as well as a washers and dryers. The unit breakdown Page 50 of 99 consists of 60 one-bedroom units (750 sf), 244 two-bedroom units (988 sf), and 112 three-bedroom units

Page 50 of 99 (1,252 sf). Rental rates of the units are $974, $1,146, and $1,364, respectively, with an average rent of $1,180, which is less than the Reis submarket average rent of $1,321.

The appraiser identified six properties in the immediate area that directly compete with the subject. Based on the comparative set, the subject property offers units of similar sizes at lower market rents, while performing in line with the competitive set on occupancy.

Competitive Set Property Location Distance from Units Year Built/ Occupancy Avg. Rental Avg. Subject Renovated (%) Rate Per Unit Unit (Miles) ($) Size (SF) Walton Grove Smyrna, GA 0.2 171 1995 96.0 1,379 1,187 Kenwood Creek Smyrna, GA 0.4 300 1972 95.0 1,068 945 Kinstone River Atlanta, GA 1.1 370 1972 97.0 1,319 1,079 Wildwood Ridge Atlanta, GA 1.2 546 1974 98.0 1,303 1,135 Hudson Ridge at Battery Atlanta, GA 1.0 434 1998 96.0 1,474 1,040 Calibre Brook Smyrna, GA 0.4 173 1990 96.0 1,356 1,096 Total/WA Comp. Set Various, State Various 1,994 Various 96.6 1,319 1,076 Ashford 75 Smyrna, GA n/a 416 1972/2014 94.2 1,180 1,025 Source: Appraisal, except the Subject figures are based on the rent roll dated December 31, 2020.

Sponsorship The sponsor and guarantor for this transaction is a real estate fund manager that currently has more than $1.3 billion of assets under management on behalf of more than 235 institutional and high-net- worth investors. The firm specializes in the acquisition, renovation, reposition, rebranding, and asset management of apartment communities. Over the past 10 years, the firm has been actively investing in the Southeastern and Mid-Atlantic regions of the U.S. Currently the firm controls more than 20,000 apartment units in 19 states. The sponsor is a repeat Freddie Mac sponsor and has closed 27 loans totaling approximately $400.0 million since 2009. All loans have performed and paid as agreed. The property is managed for a fee of 2.5% of EGI by a third-party management company that currently manages 44,000 units nationwide, with 1,830 units in the local area..

Page 51 of 99 FREMF 2021-K741 | February 22, 2021

Page 51 of 99

DBRS Morningstar Analysis Page 51 of 99 Site Inspection Summary

Page 51 of 99

DBRS Morningstar toured the exterior and interior of the property on Monday, February 1, 2021. Based on the site inspection, DBRS Morningstar found the property to be Average +.

The collateral is a garden apartment complex located in Smyrna, a suburban community approximately 17.0 miles northwest of downtown Atlanta. The property is in a commercial/retail corridor around the interchange of I-285 and I-75. The subject is at the northwest quadrant of the interchange and is specifically south of Herodian Way and east of Cobb Parkway SE (US Hwy. 41). A retail development is North of Herodian Way and west of Cobb Parkway, is a retail development that consists of an anchored retail center (Ross, PetSmart, Cost Plus World Market, Marshalls, Michael’s), and national, regional, and local supporting retailers. Truist Park, the Atlanta Braves’ baseball stadium, is to the south, directly at the interstate interchange, along with office buildings, hospitality properties, restaurants, and entertainment venues. The Galleria Specialty Mall and Cumberland Mall are at the southwest quadrant of the interstate interchange. The property has excellent access to interstate, freeway, highway, and arterial systems, as well as dining, shopping, and entertainment options.

The subject is a garden apartment complex located on a land area of 25.91 acres. The property was built in 1972 with renovations between 2014 and 2019. The property consists of 37 two-story buildings of wood frame construction with stucco and brick exterior walls and pitched composite roofs. Drives are well laid out, providing parking on the perimeters of the buildings, with 687 surface spaces in total. Additional community amenities include a new resident clubhouse, upgraded fitness center, new business center, pool, lighted tennis court, recreation area, and electric vehicle charging stations. There is also a lake with water features.

The property has 416 one-, two-, and three-bedroom units with average floorplans of 750 sf, 988 sf, and 1,252 sf, respectively. Unit amenities and features include vinyl plank flooring throughout, ceiling fans in bedrooms, black or stainless-steel appliances with standard package consisting of a stove, refrigerator, and dishwasher (built-in microwaves are available in select units), white wood cabinetry, brushed nickel hardware, granite countertops, and double bowl stainless-steel sinks with gooseneck faucets. Bathrooms have porcelain fixtures with tiled tub/shower surrounds and wood vanity cabinets with

Page 52 of 99 FREMF 2021-K741 | February 22, 2021

Page 52 of 99

framed mirrors and granite countertops. Select units have washer/dryer connections and balconies or Page 52 of 99 patios that look at onto the property’s lake.

Page 52 of 99 There were no obvious maintenance issues noted. The property has a dated exterior; however, the Page 52 of 99 property is very clean and well maintained.

Page 52 of 99 DBRS Morningstar NCF Summary NCF Analysis 2017 2018 2019 T-12 Issuer NCF DBRS NCF September Morningstar Variance (%) 2020 NCF ($) GPR ($) 5,077,619 5,394,798 5,775,557 5,846,467 5,888,328 5,890,560 0.0 Other Income ($) 627,718 787,761 909,000 769,225 786,632 769,225 -2.2 Vacancy & -536,600 -498,859 -497,727 -645,552 -563,513 -693,727 23.1 Concessions ($) EGI ($) 5,168,737 5,683,700 6,186,830 5,970,140 6,111,447 5,966,058 -2.4 Expenses ($) 2,560,343 2,604,854 2,838,561 2,914,218 2,640,458 2,930,551 11.0 NOI ($) 2,608,394 3,078,846 3,348,269 3,055,922 3,470,990 3,035,507 -12.5 Capex ($) 0 0 0 0 80,704 104,000 28.9 NCF ($) 2,608,394 3,078,846 3,348,269 3,055,922 3,390,286 2,931,507 -13.5

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $2,931,507, representing a -13.53% variance from the issuer’s NCF of $3,390,286. The primary drivers of the variance were vacancy assumptions, operating expenses, and real estate tax assumptions. DBRS Morningstar assumed a 4.0% management fee compared with the issuer’s 2.5% fee. The issuer based its operating expenses on the T- 12, whereas DBRS Morningstar assumed an inflation of 3.0% over the T-12 expenses. DBRS Morningstar assumed a vacancy of 8.63%, compared with the issuer’s 7.3%, so that the NRI was in line with the T-12 figures. In addition, DBRS Morningstar assumed concessions and bad debt figures in line with the T-12, while the issuer assumed bad debt based on 2.3% of GPR and no concessions. Finally, DBRS Morningstar assumed a real estate tax of $777,972 compared with the issuer’s tax estimate of $611,201. Taxes are frozen through the end of 2021 pursuant to a tax appeal filed by the previous owner. DBRS Morningstar took the average of the expected real estate taxes over the loan term and applied that figure instead.

DBRS Morningstar Viewpoint The subject property is located within the Smyrna submarket which is approximately 14.0 miles northeast of the Atlanta CBD. The immediate area around the property consists of office, retail, and residential development. The property’s neighborhood, the Vinings/Cobb Galleria area, is a preferred location in the metro area because of its convenient access to the Northwest, Buckhead, Midtown, and Downtown submarkets.

Located one mile east of the property is Truist Park, which is home to the Atlanta Braves and serves as one of the major demand generators in the area. Construction of the stadium began in 2014 and was finished in time for the Braves’ 2017 season opener game. Other major demand drivers in the

Page 53 of 99 FREMF 2021-K741 | February 22, 2021

Page 53 of 99

surrounding area of the property include the Dobbins Air Reserve Base as well as Mercedes Benz’s Page 53 of 99 headquarters. The relocation of several corporate headquarters such as Porsche and Mercedes Benz,

Page 53 of 99 has served as a motivation for high-skilled workers to enter the labor force in the Atlanta MSA. The property was originally constructed in 1972 and, per Reis, is one of 21 other properties that were Page 53 of 99 constructed in the 1970s. These properties account for approximately 24.0% of the submarket’s total

Page 53 of 99 inventory of market rate rental apartments. Typically, this would make competing with the 5,447 units that have been constructed since 2000 difficult for the subject property. However, as the property saw extensive renovations to the exterior and interior between 2014 and 2019, the property is better positioned than the rest of the submarket’s vintage properties. In addition, per Reis, the property is approximately 35.0% larger than the average apartment property size in the submarket by unit size. Per 2026, Reis expects an absorption of 40 units in the market. As fewer units are available in the submarket, Ashford 75 will be well positioned to accommodate the increased demand from the property’s size.

Downside Risks • The loan exhibits high leverage with a DBRS Morningstar LTV of 79.7% based on the appraised value of $69.0 million and will have a maturity LTV of 70.7%. Higher leverage loans have historically been associated with elevated rates of default. • The loan is structured with an initial two-year IO period. Transactions structured with partial IO periods generally exhibit higher-than-average default rates relative to transactions with full-term IO periods or transactions without IO periods. • The subject property is in the DBRS Morningstar Market Rank 3. Properties that are located in Market Ranks 3 and 4 typically experience higher default rates.

Stabilizing Factors • The property has seen extensive capital improvements as a result of the $13.4 million ($32,132 per unit) investment in the property by the previous owner from 2014 to 2019. In addition, the borrower plans to invest another $4.1 million ($9,830 per unit) in the property. The borrower’s firm specializes in the acquisition and renovation of apartment communities. • The loan includes a repeat Freddie Mac borrower, a fully integrated real estate firm that has completed transactions with Freddie Mac totaling more than $400 million with all loans performing as agreed. The sponsor has also contributed cash equity of $14.0 million as part of the acquisition, demonstrating a commitment to the asset and a vested interest in the property’s successful performance throughout the loan term.

Page 54 of 99 FREMF 2021-K741 | February 22, 2021

Page 54 of 99

Page 54 of 99 Calloway at Las Colinas

Page 54 of 99

Page 54 of 99 Loan Snapshot

Page 54 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 51.9 Loan PSF/Unit ($) 96,894 Percentage of the Pool 4.6% Loan Maturity/ARD December 2027 Amortization n/a Collateral Summary DBRS Morningstar DSCR (x) DBRS Morningstar Property Type Multifamily Year Built/Renovated 1984/2019 2.20 City, State Irving, TX Physical Occupancy (%) 95.0 DBRS Morningstar LTV (%) 72.2 Units/SF 536 Physical Occupancy Date December 2020 DBRS Morningstar Balloon LTV (%) 72.2 DBRS Morningstar Property Type This loan is secured by the borrower’s fee-simple interest in Calloway at Las Colinas, a 536-unit, garden- Multifamily style multifamily property in Irving, Texas. Aggregate loan proceeds of $51.9 million were used to DBRS Morningstar Property Quality refinance existing debt of $31.4 million and return $16.3 million of cash equity to the borrower. The Average remaining $4.2 million went towards reserves and closing costs. The seven-year, full-term IO, fixed-rate loan is structured with a borrower-funded coronavirus debt service reserve (DSR) of approximately $1.3 Debt Stack ($ millions) million (an amount equal to nine months of IO debt service payments), to be used for P&I payment shortfalls that may occur because of the pandemic. The coronavirus DSR will be released 90 days after Trust Balance 51.9 the removal of all governmental restrictions related to the pandemic, subject to the collateral’s Pari Passu ($) achievement of certain trailing three month (T-3) collections set forth in the loan agreement. The loan 0.0 represents an initial LTV ratio of 65.0%, based on the appraised value estimate of $79.0 million. B-Note

0.0 Mezz The property was originally built in 1984 and was purchased by the borrower in September 2014 for 0.0 $48.5 million. Since acquisition, the borrower has invested $2.4 million ($4,417 per unit) in capital Total Debt improvements to both the exterior and interior of the property. The property’s units saw renovations to 51.9 Loan Purpose the kitchen cabinets, countertops, appliances, flooring, and bathroom fixtures for a total cost of $998,443 Refinance ($1,863 per unit). Renovations to the exterior of the property included roof replacement for 14 buildings, Equity Contribution/(Distribution) foundation work, HVAC replacement, asphalt work, painting, amenity refurbishment, and other exterior s($ millions) ($16.3) maintenance. The borrower has stated that it also plans to invest another $1.3 million in capital improvements to the property in order to address the immediately needed repairs that were identified by the engineer. Finally, the borrower has elected to provide an Energy Efficient Repair Reserve of $317,250

Page 55 of 99 FREMF 2021-K741 | February 22, 2021

Page 55 of 99

as part of the Green Up program. These funds will be used to improve energy and water efficiencies at Page 55 of 99 the property.

Page 55 of 99 Common area amenities at the property include two saltwater swimming pools, fitness center, Page 55 of 99 clubhouse with game room, business center, tennis courts, barbecue grills, playground, dog park,

Page 55 of 99 laundry facilities, covered parking, perimeter fencing, and secure gated access. All common area amenities are secured by gated access. The unit breakdown consists of 276 one-bedroom units (708 sf), 240 two-bedroom units (974 sf), and 20 three-bedroom units (1,325 sf). Rental rates of the one-, two-, and three-bedroom units are $1,042, $1,305, and $1,801, respectively, with an average rent of $1,188, which is in line with the Reis submarket average rent of $1,212.

The appraiser identified five properties in the immediate area that directly compete with the subject. Based on the comparative set, the subject property offers units of similar sizes at similar market rents, while performing in line with the competitive set on occupancy rate.

Competitive Set Property Location Distance Units Year Built/ Occupancy Avg. Avg. from Renovated (%) Rental Unit Size Subject Rate Per (SF) (Miles) Unit ($) Arbors of Las Colinas Irving, TX 0.1 408 1985 97.0 1,188 849 Grand Venetian of Las Colinas Irving, TX 0.9 514 1997 94.0 1,258 939 Jefferson Place Irving, TX 0.7 424 1990/2014 95.0 1,060 815 Macarthur Place Irving, TX 0.4 276 1984/2003 88.0 1,187 854 Oaks Hackberry Creek Irving, TX 0.2 432 1987/2006 98.0 1,030 866 Total/WA Comp. Set Irving, TX Various 2054 Various 94.8 1,146 869 Calloway at Las Colinas Irving, TX n/a 536 1984/2019 95.0 1,188 850 Source: Appraisal, except the Subject figures are based on the rent roll dated December 14, 2020.

Sponsorship The sponsor and guarantor for this transaction is a global firm that specializes in direct real estate investments, commercial real estate lending, and global property securities with a focus on multifamily properties. As of June 2020, the firm reported ownership interest in 28 multifamily properties with 8,487 units across 13 states. The sponsor is a repeat Freddie Mac borrower and has closed 23 loans totaling approximately $733.0 million since 2016. All loans have performed and paid as agreed. The property is managed for a fee of 2.65% of EGI by a third-party management company that currently manages 713,000 units nationwide, with 28,746 units in the Dallas market.

Page 56 of 99 FREMF 2021-K741 | February 22, 2021

Page 56 of 99

DBRS Morningstar Analysis Page 56 of 99 Site Inspection Summary

Page 56 of 99

DBRS Morningstar toured the exterior and interior of the property on Monday, February 1, 2021. Based on the site inspection, DBRS Morningstar found the property to be Average.

The collateral is a garden apartment complex located in the Freeport/Hackberry neighborhood of Irving, a North Dallas suburban city. The Freeport/Hackberry neighborhood is bordered by I-635 (Lyndon B. Johnson Freeway) on the north, a series of trail parks on the east, TX-114 (John Carpenter Freeway) on the south and International Parkway on the west. International Parkway runs directly through the center of the Dallas Fort Worth International Airport to the south. The President George Bush Turnpike runs through the east side of the neighborhood. The subject sits directly to the south of Kinwest Parkway, with a massive retail development to the north toward I-635, consisting of nationally anchored retail centers, power centers, box retailers, and numerous eateries. The Baylor Health Center at Irving Coppell is at the east end of the retail area inside the interchange of I-635 and the President George Bush Turnpike. Similar multifamily properties border to the east and west, with a densely developed residential subdivision to the northwest. A well-developed light industrial and office corridor is at the west end of the neighborhood. The Dallas Fort Worth International Airport dominates the area to the south of the interchange of John Carpenter Freeway and International Parkway.

The subject property is a Class B garden apartment complex located on a 22.98-acre site. The property was built in 1984 with renovations completed in 2019 and consists of 46 three-story buildings of wood frame construction with stucco exteriors and pitched Spanish tiled roofs. Parking and drives throughout the complex are concrete with 1,055 surface and carport spaces provided. Additional site amenities include gated, controlled access; resident clubhouse; fitness center; iLounge; resident services center; laundry facilities; two saltwater pools; sun deck; outdoor kitchens and grill stations; playground; and dog park. Minor isolated damage was noted in some of the drives; however, the buildings are well maintained although the grounds are in need of improvement as the grass is sparce throughout the property.

The property has 536 one-, two-, and three-bedroom units with average floorplans of 708 sf, 974 sf, and 1,325 sf, respectively. Unit features and amenities include renovated kitchens with black appliances including stove, built-in microwave, refrigerator, and dishwasher; dark stained wood cabinetry; granite

Page 57 of 99 FREMF 2021-K741 | February 22, 2021

Page 57 of 99

countertops; and double bowl stainless steel sinks with gooseneck faucets. Bathrooms have porcelain Page 57 of 99 fixtures with tiled tub/shower surrounds and wood vanity cabinets with granite countertops. Flooring

Page 57 of 99 has been upgraded and includes vinyl plank tile in kitchens, living areas, and bathrooms, with carpet in bedrooms. Page 57 of 99

Page 57 of 99 DBRS Morningstar NCF Summary NCF Analysis 2017 2018 2019 T-12 Issuer NCF DBRS NCF September Morningstar Variance (%) 2020 NCF ($) GPR ($) 6,988,962 7,329,557 7,549,453 7,683,336 7,640,310 7,641,216 0.0 Other Income ($) 624,641 706,882 687,083 655,558 655,558 655,558 0.0 Vacancy & -494,230 -476,303 -579,775 -802,351 -735,642 -987,090 34.2 Concessions ($) EGI ($) 7,119,373 7,560,136 7,656,761 7,536,543 7,560,226 7,309,684 -3.3 Expenses ($) 3,171,027 3,489,396 3,749,292 3,798,176 4,036,220 4,196,296 4.0 NOI ($) 3,948,346 4,070,740 3,907,469 3,738,367 3,524,006 3,113,388 -11.7 Capex ($) 0 0 0 0 107,200 134,000 25.0 NCF ($) 3,948,346 4,070,740 3,907,469 3,738,367 3,416,806 2,979,388 -12.8

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $2,979,388, representing a -12.8% variance from the Issuer’s NCF of $3,416,806. The primary drivers of the variance were economic vacancy assumptions and operating expenses. DBRS Morningstar assumed a 3.0% management fee compared with the issuer’s 2.65% fee. In addition, DBRS Morningstar inflated the T-12 ending in September 30, 2020 expenses by 3% compared with the issuer’s use of the T-12 figures. The variance in vacancy rate resulted from the issuer assuming a residential vacancy of 7.6%, compared with DBRS Morningstar assuming 10.5%, in order to target an NRI in line with the T-12 figures. In addition, DBRS Morningstar assumed concessions and bad debt figures based on what was offered during the T-12, while the issuer assumed concessions based on 2.2% of GPR and no bad debt.

DBRS Morningstar Viewpoint The subject property is located in the Las Colinas submarket within the greater Dallas-Fort Worth MSA. The regional economy is primarily centered around banking, telecommunications, energy, commerce, and transportation. One of the main drivers for the Dallas-Fort Worth MSA has been the expanding corporate environment, which has led to the steady delivery of the number of apartments in the area. As companies relocate and develop more office space, demand for housing will continue to increase, which will benefit the property. Las Colinas is a master-planned business and residential community in Irving. The market consists of 27.4 million sf of office space, 7.6 million sf of industrial spaces, 2.9 million sf of retail, and 54 apartment communities with 19,500 units in total. The subject property benefits from its close proximity to several suburban offices as well as its ease of access to several major highways that directly lead to major employment centers in downtown Dallas.

Despite cashing out approximately $16.3 million of cash equity as part of the transaction, the borrower has shown a commitment to the property since acquiring the asset in September of 2014. The borrower

Page 58 of 99 FREMF 2021-K741 | February 22, 2021

Page 58 of 99

has completed capital improvements of $2.4 million ($4,416 per unit) on 94.0% of the units as well as Page 58 of 99 extensive renovations to the exterior of the property. Per Reis Q3 2020, the property is consistent with

Page 58 of 99 the submarket inventory with 53.0% of properties built before 1990. The borrower further plans to invest $1.3 million ($2,389 per unit) on exterior renovations at the property that it hopes will increase the Page 58 of 99 property’s curb appeal compared with the more recently built competitors in the area. The planned

Page 58 of 99 renovations include roof replacement, landscaping enhancement, and pool/amenity upgrades. The engineer noted that several of these renovations were in need of immediate repair.

Per Reis, the subject property is part of the North Irving submarket. As the property was originally built in 1985, it is one of 54 properties constructed during the 1980s that account for 38.4% of the submarket’s total inventory. Currently, the property is poorly positioned as it competes against 38 apartments that have been built since 2000, which represent 29.1% of the submarket inventory. According to Reis, properties built after 2000 fetch between approximately $300 and $600 more per unit while operating at a vacancy rate around 2.0% to 6.0% higher. Therefore, although the property is dated, it appears that properties offering lower rents are more able to maintain a stable occupancy rate in this submarket.

As companies relocate and develop more office space, demand for housing will continue to increase, which will benefit the property. However, due to the increased demand in housing expected between 2021 and 2022, Reis is projecting the construction of 1,713 units with the absorption of only 1,226 units and, as a result, is expecting the submarket vacancy rate to reach 6.6% and rental rates to average $1,176 in 2022. Although the subject’s current rental rates are in line with this projection, if newer properties offer more comparable rents, the subject property could be negatively affected.

Downside Risks • The property was originally built in 1984 and the engineer noted that the property is in need of several immediate repairs totaling $1.1 million. The major repairs needed are replacement of the roof, expired fire extinguishers, and fire alarms. In addition, the engineer reported several radon samples taken at the property. However, due to the coronavirus pandemic, access to the property was limited, which in turn limited radon testing. Additional radon screenings are required within 30 days of closing. • The sponsor for the transaction cashed out $16.3 million in this transaction and has no remaining cash equity in the deal. DBRS Morningstar views cash-out refinancing as less favorable than acquisition financing because sponsors typically have less incentive to support a property through times of economic stress if less of their own cash equity is at risk. • Because of the ongoing coronavirus pandemic, the subject property experienced a decline of 5.7% in T-3 rent collections. In addition, Reis projects the submarket vacancy rate to further increase to 7% by 2022 from 5.8% in Q4 2020.

Stabilizing Factors • The borrower has previously invested $2.4 million in capital improvements and is planning to invest an additional $1.3 million. The current LTV stands at 65.0%, which DBRS Morningstar considers to be a moderate degree of leverage with lower-than-average default frequency.

Page 59 of 99 FREMF 2021-K741 | February 22, 2021

Page 59 of 99

• Although the property’s collections were hurt due to the coronavirus pandemic, the loan is structured Page 59 of 99 with a coronavirus DSR in an amount equal to nine months of amortizing debt service payments or

Page 59 of 99 approximately $1.3 million. • The property benefits from an experienced third-party management company that has been managing Page 59 of 99 the property since 2014. The firm currently manages over 2,500 multifamily properties, with 28,746 units

Page 59 of 99 specifically in the Dallas MSA.

Page 60 of 99 FREMF 2021-K741 | February 22, 2021

Page 60 of 99

Page 60 of 99 Linq Midtown

Page 60 of 99

Page 60 of 99 Loan Snapshot

Page 60 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 50.0 Loan PSF/Unit ($) 181,818 Percentage of the Pool 4.4% Loan Maturity/ARD December 2027 Amortization n/a Collateral Summary DBRS Morningstar Property Type Multifamily Year Built/Renovated 2011/2018 DBRS Morningstar DSCR (x) City, State Sacramento, CA Physical Occupancy (%) 89.2 2.92 Units/SF 275 Physical Occupancy Date December 2020 DBRS Morningstar LTV (%) 51.9 DBRS Morningstar Balloon LTV (%) The loan is secured by the borrower’s fee-simple interest in a 275-unit, mid-rise multifamily property in 51.9 Sacramento, California. The sponsor used loan proceeds of $50.0 million and refinanced existing debt of DBRS Morningstar Property Type Multifamily $35.0 million to fund a deferred maintenance reserve of $1.0 million as well as a rental income holdback DBRS Morningstar Property Quality of $100,000. The borrower cashed out $13.9 million as part of the transaction and has $22.0 million of Average + cash equity remaining in the deal. The seven-year fixed-rate loan is IO for the entire term. With an

appraised value of $96.4 million, the LTV at issuance is 51.9%. Debt Stack ($ millions) The property was built in 2011 and is situated on a 4.19-acre site comprising five five-story buildings. Trust Balance The property reported physical occupancy of 89.2% as of December 15, 2020. The borrower purchased 50.0 Pari Passu ($) the property in 2013 for $70.0 million, and has invested $2.0 million ($7,273/unit) in capital 0.0 improvements to date for a total cost basis of $72.0 million. Recently completed improvements include B-Note common-area upgrades and residential unit improvements, appliance replacements, and fitness center 0.0 and yoga room upgrades. Property wide amenities include a large pool, pet spa, 24-hour fitness center Mezz 0.0 with virtual workouts on demand, game room with shuffleboard and ping pong, cafe lounge with Total Debt demonstration kitchen, large courtyards, resident lounge areas, multiscreen billiards room, fire pit, and 50.0 barbecue grilling areas. Unit amenities include stainless-steel refrigerators, Energy Star dishwashers, Loan Purpose Refinance Energy Star ovens/ranges, programmable thermostats, water-saving fixtures, energy-efficient lighting, Equity Contribution/(Distribution) and energy-efficient windows. There are 27 studio units averaging 616 sf with rent of $1,652 per month, ($ millions) 132 one-bedroom units averaging 799 sf with rent of $1,922 per month, and 116, two-bedroom units ($13.9) averaging 1,156 sf with rent of $2,415 per month based on the rent roll dated September 17, 2020. The property additionally features three commercial suites, two of which are occupied. The physical occupancy for the commercial space is 56.6% and both tenants are paying rent.

Page 61 of 99 FREMF 2021-K741 | February 22, 2021

Page 61 of 99

The appraiser identified six multifamily properties in the local market that directly compete with the Page 61 of 99 subject. Linq Midtown is in line with the competitive set on occupancy and has an average rent that is

Page 61 of 99 lower than that of its competitors. The units at the subject are larger, on average, than the competitive set. The fifth property listed below, Gio Apartments, is still in the leaseup phase and therefore excluded Page 61 of 99 from the WA occupancy calculation for the competitive set. For more information, please refer to the

Page 61 of 99 table below.

Competitive Set Property Location Distance Units Year Occupancy Avg. Rental Avg. Unit from Built/Renovated (%) Rate Per Size (SF) Subject Unit ($) (Miles) 1801 L Sacramento, CA 1.1 176 2006 99.0 2,036 728 Eviva Midtown Sacramento, CA 1.3 118 2016 95.0 2,534 783 Q19 Apartments Sacramento, CA 1.3 68 2018 98.0 2,010 760 Ice House Sacramento, CA 1.1 142 2018 98.0 2,132 N/A Gio Apartments Sacramento, CA 0.5 213 2019 52.0 2,714 847 Fremont Mews Sacramento, CA 1.3 119 2005 95.0 1,648 770 Total/WA Set Sacramento, CA Various 836 Various 97.1 2,238 784 Linq Midtown Sacramento, CA N/A 275 2011/2018 89.2 2,103 932 Source: Appraisal, except the subject figures are based on the rent roll dated December 15, 2020.

Sponsorship The key sponsor for the transaction is a global financial services firm with over $327.0 billion in assets under management (AUM). There is no carveout guarantor for this transaction. The sponsor company has a real estate platform, which offers a broad spectrum of solutions across private debt and equity investment markets with $45.9 billion in AUM. The firm's investment vehicles include open- and closed- end commingled funds, separate accounts, joint ventures, and subadvised mutual funds. The company invests in many asset classes, including office, multifamily, retail, industrial, and hotel as well as other specialized properties, such as self-storage, senior housing, student housing, parking, and medical office buildings.

The property is managed by a third-party management company for a fee of 2.0% of EGI. The company currently manages over 81,000 units in 29 metropolitan markets with 1,260 units under management locally. Its parent company, Greystar Real Estate Properties, is one of the largest management firms in the world with over 200,000 units under management globally.

Page 62 of 99 FREMF 2021-K741 | February 22, 2021

Page 62 of 99

DBRS Morningstar Analysis Page 62 of 99 Site Inspection Summary

Page 62 of 99

DBRS Morningstar toured the interior and exterior of the property. Based on the site inspection, DBRS Morningstar found the property to be Average +.

The collateral is a five-building mid-rise multifamily property in the Alhambra Triangle (the Triangle) in Midtown Sacramento. The Triangle is bordered by Capital City Freeway (Business I-80) on the west, Stockton Boulevard on the northeast, and El Dorado Freeway (U.S. Hwy. 50) on the south. The intersection of Business I-80 and U.S. Hwy. 50 is at the southwest corner of the neighborhood. Downtown Sacramento is 2.6 miles to the northwest. The subject buildings are east of Alhambra Boulevard and line the north side of South Street. A densely developed single-family residential neighborhood is across South Street to the south. Mid-rise professional office buildings are across Alhambra Boulevard to the east, with small commercial office and neighborhood retail buildings to the southwest. The Cannery, a 275,000-sf office building constructed in 1912 and renovated to its current office use in 2013, is north of the subject bordering Stockton Boulevard. Neighborhood commercial support businesses are interspersed throughout the Triangle, with major shopping and services destinations over a mile removed.

Improvements consist of five five-story buildings of wood-frame construction with masonry, fiber cement, and brick exterior walls and pitched composite roofs. The property offers detached garage parking with 408 spaces provided. Additional amenities include a clubhouse with fitness center, business center, game room with shuffleboard and ping pong, a cafe lounge with demonstration kitchen, resident lounge, multiscreen TV and billiards room, dog park, pool with fire pit, and grills. All interior common areas are well appointed and inviting with upscale furnishings, fixtures, and decor.

Unit finishes and amenities include plank and carpeted flooring; a full kitchen appliance package with stainless-steel appliances including a stove, built-in microwave, refrigerator, and dishwasher; dark- stained European style cabinetry with quartz countertops and subway tiles backsplashes; programmable thermostats; water-saving fixtures; and energy-efficient lighting and windows. Bathrooms have single- unit acrylic tub/shower surrounds, open shelf storage, and wood vanity cabinets with a single-unit sink and countertop.

Page 63 of 99 FREMF 2021-K741 | February 22, 2021

Page 63 of 99

DBRS Morningstar NCF Summary Page 63 of 99 NCF Analysis 2019 T-12 Sept Budget Appraisal Issuer NCF DBRS NCF Page 63 of 99 2020 Morningstar Variance (%) NCF ($)

GPR ($) 7,093,344 7,097,283 7,341,906 6,803,340 6,941,172 6,939,900 0.0 Page 63 of 99 Other Income ($) 1,095,664 1,057,602 1,048,736 1,097,421 1,136,707 1,041,068 -8.4

Page 63 of 99 Vacancy & 409,408 459,588 437,598 340,167 624,939 574,233 -8.1 Concessions ($) EGI ($) 7,779,600 7,695,297 7,953,044 7,560,594 7,452,939 7,406,735 -0.6

Expenses ($) 2,776,182 2,860,394 2,894,992 2,873,615 2,920,731 3,074,814 5.3 NOI ($) 5,003,418 4,834,903 5,058,052 4,686,979 4,532,208 4,331,922 -4.4 Capex ($) 0 0 0 68,750 63,800 68,750 7.8 NCF ($) 5,003,418 4,834,903 5,058,052 4,618,229 4,468,408 4,263,172 -4.6

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $ $4,263,172, representing a -4.59% variance from the Issuer’s NCF of $ $4,468,408. Main drivers of the variance are vacancy and management fee. DBRS Morningstar concluded to a residential vacancy of 7.5%, which is in line with the submarket five-year average vacancy of 7.1%. DBRS Morningstar additionally concluded to a management fee of 3.0%, which is the standard rate for third-party management per the company’s guidelines. For the rest of the operating expenses, DBRS Morningstar concluded to a mix of budget figures and the T-12 period ended September 30, 2020, numbers inflated by 3.0%. The resulting expense ratio is 41.5%.

DBRS Morningstar Viewpoint The property is in the Downtown Sacramento submarket, which had a vacancy of 11.2% as of Q3 2020 according to Reis. The subject property has a tighter vacancy than the submarket as well as the competitive set of 15 properties within a 1.5-mile radius. According to Reis, the competitive set has an average vacancy of 6.4%, which is higher than the subject property’s residential vacancy of 4.4%. The property had a physical vacancy of 6.7% in 2018, which gradually declined to 5.9% in the T-12 period ended September 30, 2020. In the same time frame, residential net rental income increased from to $6,637,695 from $6,361,611, which is an increase of 4.3%.

The property features strong amenities, such as a large pool, 24-hour fitness center with virtual workouts on demand, and a cafe lounge with a demonstration kitchen. DBRS Morningstar feels that the property will continue to perform during the loan term because of its strong propertywide amenities and above-average finishes in units as well as the property’s relatively stable performance in the recent years.

Downside Risks • The property experienced a partial flood on September 24, 2020, that affected 64 units (23.0%) to some degree. Of the 64 affected units, 15 were either vacant or occupied but on notice. The remaining 49 affected units are occupied, with tenants remaining in their units and paying rent. These 49 units experienced baseboard and flooring damage at the entry doors and drywall damage only to the front

Page 64 of 99 FREMF 2021-K741 | February 22, 2021

Page 64 of 99

wall shared with the interior corridor where the water originated. The total cost to remediate and repair Page 64 of 99 is $900,000.

Page 64 of 99 • There is no carveout guarantor for the transaction. • The sponsor cashed out $13.9 million as part of the transaction. DBRS Morningstar views cashout Page 64 of 99 refinancing as less favorable than acquisition financing because sponsors typically have less incentive to

Page 64 of 99 support a property through times of economic stress if less of their own cash equity is at risk.

Stabilizing Factors • Freddie Mac escrowed the funds to repair the damage as well as a rental income holdback of $100,000, which represents one month’s rent for all affected units. All water remediation and removal of damaged materials have already been completed. Only repairs and replacements remain, which will be completed within 180 days. • The sponsor has $22.0 million in cash equity remaining in the transaction based on a September 15, 2020, appraisal value of $96.4 million.

Page 65 of 99 FREMF 2021-K741 | February 22, 2021

Page 65 of 99

Page 65 of 99 Verdant Apartment Homes

Page 65 of 99

Page 65 of 99 Loan Snapshot

Page 65 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 47.1 Loan PSF/Unit ($) 218,269 Percentage of the Pool 4.2% Loan Maturity/ARD December 2027 Amortization n/a Collateral Summary DBRS Morningstar DSCR (x) DBRS Morningstar Property Type Multifamily Year Built/Renovated 1991/2016 2.28 City, State Boulder, CO Physical Occupancy (%) 93.5 DBRS Morningstar LTV (%) 69.7 Units/SF 216 Physical Occupancy Date December 2020 DBRS Morningstar Balloon LTV (%) 69.7 DBRS Morningstar Property Type The loan is secured by the borrower’s fee-simple interest in Verdant Apartment Homes, a 216-unit, Class Multifamily B garden-style apartment complex located in Boulder, Colorado, two miles east of the University of DBRS Morningstar Property Quality Colorado Boulder Campus and two miles northeast of Hwy. 36, which provides access throughout the Average MSA. Per a full lease audit as of August 26, 2020, 27.3% of the units are tenanted by students. The collateral was originally constructed in 1991 and most recently renovated in 2016. The borrower Debt Stack ($ millions) acquired the collateral in December 2015 for a purchase price of $65.2 million and has since invested $1.8 million in capital improvements, resulting in a cost basis of $67.0 million. Loan proceeds of $47.1 Trust Balance 47.1 million were used to refinance $36.3 million in debt and return $9.3 million in equity to the borrower. The Pari Passu ($) loan is structured with initial deposits of $290,964 for a tax escrow, $118,013 for an Energy Efficient 0.0 Repair Reserve, and $921,361 for a coronavirus Debt Service Reserve, which represents nine months of B-Note amortizing debt service payments. The seven-year, fixed-rate loan is IO for its full term. 0.0 Mezz 0.0 The collateral is located on 9.2 acres and consists of 15 three-story buildings. Common area amenities Total Debt include a clubhouse with a leasing office, fitness center, pool, spa, dog grooming station, dog park, 47.1 Loan Purpose barbecue grill area, and detached garages. Within the past three years, the borrower renovated 207 Refinance units (96% of total units). All units feature amenities such as a standard appliance package with Equity Contribution/(Distribution) dishwasher and microwave, granite countertops, vinyl wood flooring, walk-in closets, in-unit ($ millions) ($9.3) washer/dryer, fireplace, and a balcony or patio. Recently renovated units feature superior amenities, including stainless-steel appliances, new cabinet faces, and new lighting fixtures. As of December 31, 2020, the subject was 93.5% occupied. The 216-unit property consists of 105 one-bedroom units (706 sf)

Page 66 of 99 FREMF 2021-K741 | February 22, 2021

Page 66 of 99

with an average rent of $1,770/unit and 111 two-bedroom units (987 sf) with an average rent of Page 66 of 99 $2,119/unit.

Page 66 of 99 The appraisal identified six competitive properties in the subject’s surrounding area. The collateral’s Page 66 of 99 occupancy of 93.5% is slightly below the competitive set’s WA occupancy of 95.8% The property’s

Page 66 of 99 average rent of $1,949/unit is higher than the competitive set’s WA rent of $1,696/unit.

Competitive Set Property Distance from Units Year Built/ Occupancy (%) Avg. Rental Subject (Miles) Renovated Rate Per Unit ($)

The Hive at Boulder 1.7 144 1993 90.0 $2,417

The View on 26th 1.6 83 193/2008 92.0 $1,745 Boulder Creek 2.3 221 1972/2015 98.0 $1,779 Timber Ridge Apartments 1.3 407 1958/2012 100.0 $1,469 The Boulders 2.2 161 1992/2015 93.0 $1,759 Kensington 1.4 163 1973/2014 92.0 $1,423 Total/Wtd. Avg. Comp. Set Various 1,179 Various 95.8 $1,696 Verdant Apartment Homes - Subject n/a 216 216 93.5 $1,949 Source: Appraisal, except the Subject figures are based on the rent roll dated month December 31,2020

Sponsorship The borrowing entity for this transaction is a single-purpose, Delaware LLC. The key sponsor and carveout guarantor represents a privately held real estate investment trust. The real estate investment trust was established in 2012 and closed its public offering in 2016. The key sponsor’s investment strategy focuses on value-add multifamily properties. Its portfolio includes ownership interest in 17 multifamily properties with 5,159 units located in nine states. The portfolio has strong financial metrics, as indicated by the overall LTV and DSCR of 52.0% and 2.05x, respectively. The guarantor benefits from a robust net worth and liquidity of $202.4 million and $32.9 million, respectively. The key sponsor belongs to a leading privately held real estate investment management company, which represents a repeat Freddie Mac sponsor, that has completed 23 loan transactions since 2016 for a total transaction volume of $733.0 million.

The property is managed by a third-party property management company that was established in 1993 and is based in Charleston, South Carolina. The company reported management interest in 690,000 units and students beds across the globe, of which 1,526 units are located in the subject’s local market. The in-place management fee at the property is 3.0% of EGI.

Page 67 of 99 FREMF 2021-K741 | February 22, 2021

Page 67 of 99

DBRS Morningstar Analysis Page 67 of 99 Site Inspection Summary

Page 67 of 99

DBRS Morningstar toured the property on Friday, February 05, 2021. Based on the site inspection, DBRS Morningstar found the property to be Average.

The collateral is a garden apartment complex located in the East Foothills neighborhood, 2.0 miles east of downtown Boulder. The East Foothills neighborhood is bordered by Arapahoe Avenue (Hwy. 7) to the north, 55th Street to the east, Baseline Road to the south, and Foothills Parkway to the west. The subject is on the south side of Arapahoe Avenue between 48th Street to the west and Eisenhower Drive to the east. Signalized intersections are at the 48th Street and Eisenhower intersections with Arapahoe Avenue, providing easy access into the subject site. The Boulder Community Foothills Hospital and medical office buildings and clinics are across Arapahoe Avenue to the north. A new multifamily development is across Eisenhower Drive to the east. Well-developed residential neighborhoods are to the south. Commercial/retail support businesses are located along Arapahoe Avenue to the east, including neighborhood retail centers, shops, services, and eateries. Colorado University East campus is approximately 1.5 miles to the west, with the main campus 2.0 miles to the west.

The subject property is a garden apartment complex built in 1991 and located on a 9.17-acre lot. Improvements consist of 15 three-story buildings of wood frame construction with brick and siding exterior walls and pitched composite roofs. Asphalt access drives are well laid out, providing access to several surface lots and detached garages situated throughout the property, with 355 surface and detached (rental) garage spaces provided. All parking areas and garages are in good proximity to respective buildings and units. Additional site amenities include a resident clubhouse, 24/7 fitness facility and lounge, coffee bar, saltwater pool, outdoor kitchen with grill, car charging and bike stations, dog park, and pet spa.

The property has 226 one- and two-bedroom units, with average floorplans of 706 sf and 987 sf, respectively. Unit upgrades were completed in 2016, with upgraded amenities and finishes featuring a full appliance package with stainless steel appliances including a stove, built-in microwave, refrigerator, and dishwasher; white cabinetry with brushed nickel hardware; granite countertops; and ceramic subway-tiled backsplashes. Bathrooms have porcelain fixtures, tiled tub/shower surrounds, and white

Page 68 of 99 FREMF 2021-K741 | February 22, 2021

Page 68 of 99

vanity cabinets with granite countertops. Flooring is vinyl plank in kitchens, living areas, and bathrooms, Page 68 of 99 with carpet in bedrooms. All apartments have in-unit washers/dryers. Select units have fireplaces and

Page 68 of 99 the option of renting a detached garage.

Page 68 of 99 DBRS Morningstar NCF Summary NCF Analysis Page 68 of 99 2018 2019 T-12 Issuer NCF DBRS NCF Variance September Morningstar (%) 2020 NCF ($) GPR ($) 4,711,367 5,022,691 5,085,694 5,052,204 5,052,708 0.0

Other Income ($) 466,000 466,658 439,503 439,220 439,503 0.1 Vacancy & Concessions ($) 469,215 442,360 704,150 801,264 1,012,869 26.4 EGI ($) 4,708,152 5,046,990 4,821,047 4,690,160 4,479,342 -4.5 Expenses ($) 1,515,469 1,627,125 1,601,750 1,598,232 1,621,245 1.4 NOI ($) 3,192,683 3,419,865 3,219,297 3,091,928 2,858,098 -7.6 Capex ($) 0 0 0 46,224 54,000 16.8 NCF ($) 3,192,683 3,419,865 3,219,297 3,045,704 2,804,098 -7.9

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $2,804,098, representing a variance of -7.93% from the Issuer’s NCF of $3,045,704. The primary driver represents vacancy.

DBRS Morningstar assumed a vacancy factor of 15.2% based on the trailing nine months economic vacancy ended September 30, 2020, whereas the Issuer assumed a vacancy factor of 10.36%.

DBRS Morningstar Viewpoint The property is well positioned in a desirable residential neighborhood within the Boulder MSA, proximate to transportation networks, support facilities, and local economic drivers. According to Reis Q3 2020, the Boulder MSA represents a relatively strong multifamily market with a low vacancy rate of 8.0% and an average asking rent of $1,374 per unit. The subject enjoys adequate accessibility, situated two miles northeast of Hwy. 36, which provides access throughout the MSA. The subject is two miles east of the University of Colorado Boulder Campus and the Boulder CBD. The collateral benefits from proximity to retail corridors, including Pearl Street Mall (three miles west), which features small businesses and restaurants within historic buildings; and a large retail corridor (1.5 miles west) that features various national retailers such as REI, PetSmart, Home Depot, Sprouts, and Trader Joes. Notable nearby employers represent the 256-bed Boulder Community Hospital (0.5 mile northwest), which accommodates 2,310 employees, and Google’s recently constructed campus (two miles northwest), built to accommodate 1,500 employees.

Constructed in 1991, the collateral is of an older vintage, which is often associated with deferred maintenance and poor property quality. However, such risk is mitigated by renovations completed over the past three years, which totaled $1.8 million and entailed upgrades to 207 units (95.8% of total units). Specific interior improvements included a new stainless-steel appliance package, granite countertops, vinyl wood flooring, new cabinet faces, and new lighting fixtures. The property condition assessment report indicated only minimal immediate repairs, totaling $19,900. Risk associated with the property

Page 69 of 99 FREMF 2021-K741 | February 22, 2021

Page 69 of 99

vintage is further alleviated by the borrower’s initial deposit for an Energy Efficient Repair Reserve, Page 69 of 99 totaling $118,00, which the borrower will use to improve the collateral’s total energy and water savings

Page 69 of 99 by a projected 15.3% and 21.7%, respectively.

Page 69 of 99 Downside Risks

Page 69 of 99 • The sponsor for the transaction is using loan proceeds to cash out approximately $9.3 million of equity. DBRS Morningstar views cash-out refinancing transactions as less favorable than acquisition financings because sponsors typically have less incentive to support a property through times of economic stress if less of their own cash equity is at risk • Trailing three month collections have declined a significant 6.0% due to the coronavirus pandemic.

Stabilizing Factors • The sponsor has $19.0 million of cash equity remaining in the transaction, representing 28% of the total cost basis. The borrower has invested $1.8 million in capital improvements since 2018, indicating commitment to the collateral. • A coronavirus Debt Service Reserve is in place, which required the borrower to make an initial deposit equal to nine months of amortizing debt service payments. This provides additional cushion in the event of NCF instability.

Page 70 of 99 FREMF 2021-K741 | February 22, 2021

Page 70 of 99

Page 70 of 99 Palo Alto Commons

Page 70 of 99

Page 70 of 99 Loan Snapshot

Page 70 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 45.0 Loan PSF/Unit ($) 248,619 Percentage of the Pool 4.0% Loan Maturity/ARD November 2027 Amortization n/a Collateral Summary DBRS Morningstar Property Type Multifamily Year Built/Renovated 1989/2012 DBRS Morningstar DSCR (x) City, State Palo Alto, CA Physical Occupancy (%) 85.7 3.37 Units/SF 161 Physical Occupancy Date September 2020 DBRS Morningstar LTV (%) 53.5 DBRS Morningstar Balloon LTV (%) This loan is secured by the borrower’s fee-simple interest in Palo Alto Commons, a 161-unit independent 53.5 living (IL), assisted living (AL), and memory care (MC) facility in Palo Alto, California. Loan proceeds of DBRS Morningstar Property Type Multifamily $45.0 million were used to refinance existing debt of $40.2 million; cash out $4.1 million to the sponsor; DBRS Morningstar Property Quality and fund tax, insurance, and deferred maintenance reserves as well as a coronavirus-related debt Average service reserve equal to six months of IO debt service payments. The seven-year fixed-rate loan is IO for

the entire term. With an appraised value of $118.4 million, the LTV at issuance stands at 38.0%. Debt Stack ($ millions) Situated on 2.5 acres, the multifamily complex comprises two three-story buildings. The borrower Trust Balance developed the first building for AL and MC in 1989 and constructed a second building in 2012 entirely 45.0 Pari Passu ($) for IL. The unit mix consists of 67 AL units (54%), 50 MC units (19%), and 44 IL units (27%). The property 0.0 reported physical occupancy of 85.7% as of September 30, 2020. Recently completed capital B-Note improvements in 2018 and 2019 include replacing kitchen equipment, recarpeting first-floor common 0.0 areas and hallways, refurbishing common area furniture, replacing three air conditioning units, replacing Mezz 0.0 two of the four elevators, and repairing communication wire at an estimated cost of $945,000 ($5,870 Total Debt per unit). Common area amenities include courtyards, swimming pool/whirlpool, bocce court, theater, 45.0 arts and crafts rooms, beauty shop, covered parking, lounge areas, and scheduled transportation. Unit Loan Purpose Refinance amenities include kitchenettes for AL and MC units while IL units have full kitchens and washer/dryer Equity Contribution/(Distribution) units. Other unit amenities include balconies/porches, cable/satellite TV, emergency pull cords, ($ millions) fire/smoke detectors, high-speed Internet, walk-in closets, and individually controlled HVAC. There are ($4.1) 67 studio units averaging 434 sf and rent of $14,468 per month, 69 one-bedroom units averaging 661 sf and rent of $10,379 per month, and 25 two-bedroom units averaging 1,007 sf and rent of $10,127 per month based on the rent roll dated September 30, 2020.

Page 71 of 99 FREMF 2021-K741 | February 22, 2021

Page 71 of 99

A licensed clinician confirmed appropriate infectious policies and procedures are being implemented at Page 71 of 99 the property. As of August 25, 2020, there were no residents that tested positive for coronavirus;

Page 71 of 99 however, two staff members had tested positive and were on quarantine until they recovered.

Page 71 of 99 The appraiser identified six multifamily properties in the local market that directly compete with the

Page 71 of 99 subject. Palo Alto Commons is underperforming the competitive set in terms of average occupancy. For more information, please refer to the table below.

Competitive Set Property Location Units Year Built/Renovated Occupancy (%) Moldaw Family Residences Palo Alto, CA 193 2009 94.7 Villa Sienna Mountain View, CA 69 n/a n/a Redwood Villa Mountain View, CA 80 1976 94.0 Sunnyside Gardens Sunnyvale, CA 48 1989 96.0 Atria Sunnyvale Sunnyvale, CA 94 1976 95.0 Chateau Cupertino Cupertino, CA 162 1988 95.0 Total/WA Set Various 646 Various 94.8 Palo Alto Commons Palo Alto, CA 161 1989/2012 85.7 Source: Appraisal, except the subject figures are based on the rent roll dated September 30, 2020.

Sponsorship The key sponsors and carveout guarantors for this transaction are two real estate developers. The first sponsor has been active in the local real estate market since the 1960s and active in development since the 1980s, developing multiple mixed-use and special-use projects in and around downtown Palo Alto. The sponsor’s various trusts, which were established for estate planning purposes, own 74.0% of the borrower. His son, the second sponsor, currently owns and operates a high-end home and office developer/construction company in Palo Alto. Since founding the company in 1996, he and his partner have successfully completed dozens of projects, the majority of which are in Palo Alto and Menlo Park.

The property is managed by a borrower-affiliated company for a fee of 5.0% of EGI. The principals of the management company have been in the real estate industry since 2003. The company’s portfolio includes IL, AL, and MC properties. It currently manages eight properties consisting of approximately 1,200 units in California and Nevada, with 161 units in the local area.

DBRS Morningstar Analysis Site Inspection Summary DBRS Morningstar toured the exterior of the property on Thursday, February 4, 2021. Based on the site inspection, DBRS Morningstar found the property to be Average.

Page 72 of 99 FREMF 2021-K741 | February 22, 2021

Page 72 of 99

The subject is a senior care facility located in the Charleston Meadow neighborhood of Palo Alto, a densely developed and predominantly residential neighborhood bordered by El Camino Real to the southwest, West Meadow Drive to the northwest, Alma Street to the northeast, and West Charleston Road to the southeast. The subject specifically sits at the corner of El Camino Way and West Meadow Drive, with a retail building directly fronting the intersection. Neighborhood commercial support businesses, including eateries, retails shops, and services, are along El Camino Real. Blocks to the west, north, and east, are residential, consisting of detached single family residences, two- to four-family family dwellings, and small apartment buildings. The Stanford University campus is approximately two miles to the northwest along El Camino Real. The VA Palo Alto Health Care System is two miles to the south.

The improvements consist of a three-story building of wood frame construction with vinyl-sided exterior walls and a flat roofing system. Private balconies and patios are along the perimeter of the building. Underground parking is provided. The grounds are esthetically landscaped with walkways, water features, and patio areas throughout. Interior common areas are attractively furnished, light, and inviting, with spacious rooms, high ceilings, and ample natural and ambient lighting. The furnishings and finishes are well suited to the resident profile. Walls have two-toned color schemes with wainscotting. Ceilings are raised and coffered, with recessed lighting. Floor coverings are of high quality and in good condition.

Due to the senior resident profile and ongoing coronavirus pandemic, inspection was limited to common areas. Amenities and units were not inspected.

Page 73 of 99 FREMF 2021-K741 | February 22, 2021

Page 73 of 99

DBRS Morningstar NCF Summary Page 73 of 99 NCF Analysis 2018 2019 T-12 Budget Issuer NCF DBRS NCF Page 73 of 99 September Morningstar Variance 2020 NCF ($) (%)

GPR ($) 19,850,475 20,864,161 21,266,627 22,306,582 23,263,824 23,263,824 0.00 Page 73 of 99 Other Income ($) 1,685,433 1,971,541 2,239,815 2,115,458 2,129,332 2,073,538 -2.62

Page 73 of 99 Vacancy & 0 0 0 0 3,722,212 3,722,212 0.00 Concessions ($) EGI ($) 21,535,908 22,835,702 23,506,442 24,422,040 21,670,944 21,615,150 -0.26

Expenses ($) 14,301,673 15,110,251 15,524,124 15,277,036 16,559,595 17,013,540 2.74 NOI ($) 7,234,235 7,725,451 7,982,318 9,145,004 5,111,349 4,601,611 -9.97 Capex ($) 0 0 0 0 61,502 61,502 0.00 NCF ($) 7,234,235 7,725,451 7,982,318 9,145,004 5,049,847 4,540,109 -10.09

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $4,540,108, representing a -10.09% variance from the issuer’s NCF of $ $5,049,847. The main driver of the variance is payroll expenses, which DBRS Morningstar concluded to T-12 figures inflated by 3.0%. For the rest of operating expenses, DBRS Morningstar concluded to a mix of appraisal figures and T-12 expenses inflated by 3.0%. The resulting expense ratio is 73.1%.

DBRS Morningstar Viewpoint The North/West Santa Clara County submarket in San Jose, where the property is located, had a submarket vacancy of 8.6% as of Q3 2020 according to Reis. Palo Alto Commons is well positioned as an AL facility in the area with two hospitals, El Camino Hospital and Stanford Hospital, within approximately four miles of the property. A Veterans Administration hospital is also located to the south of the property. These hospitals can be a good source of referrals to senior housing facilities.

Since the start of the coronavirus pandemic, the property has experienced a slight downturn in NRI as senior housing facilities were often hardest hit by the virus. However, this facility has a long history of good performance. The property’s NRI has been increasing at the property over the last years to $21.3 million in the T-12 ended September 30, 2020, from $18.8 million in 2017 (an increase of 13.2%). In the same time frame, Palo Alto Commons’ NCF increased from $5.6 million to $6.8 million, which is an increase of 19.6%. The loan additionally benefits from a modest level of leverage, with LTV at issuance standing at 38.0%.

Downside Risks • The property is underperforming the submarket as well as the competitive set identified by the appraiser in terms of occupancy. • The borrower cashed out $4.1 million as part of the transaction and has no cash equity remaining in the deal. • The coronavirus pandemic has had an outsize impact on senior housing facilities, with reduced occupancy and revenues.

Page 74 of 99 FREMF 2021-K741 | February 22, 2021

Page 74 of 99

Stabilizing Factors Page 74 of 99 • The property’s occupancy is in line with the submarket average occupancy for majority AL facilities per

Page 74 of 99 the National Investment Center map, which stood at 87.0% as of Q3 2020. • The sponsors are long-term owners committed to the asset. They developed the property more than 30 Page 74 of 99 years ago and invested $945,000 in capital improvements in 2018 and 2019.

Page 74 of 99 • The property has a long history of increasing revenue and cash flow. No residents at the property were known to be infected by the virus, and safety inspections of the property cited generally isolated and minor violations. The loan’s LTV is only 38.0%, which reduces the long-term risk.

Page 75 of 99 FREMF 2021-K741 | February 22, 2021

Page 75 of 99

Page 75 of 99 Coles Crossing Apartment Homes

Page 75 of 99

Page 75 of 99 Loan Snapshot

Page 75 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 42.2 Loan PSF/Unit ($) 107,132 Percentage of the Pool 3.7% Loan Maturity/ARD December 2027 Amortization 30 Years Collateral Summary DBRS Morningstar DSCR (x) DBRS Morningstar Property Type Multifamily Year Built/Renovated 2003/2018 1.43 City, State Cypress, TX Physical Occupancy (%) 95.7 DBRS Morningstar LTV (%) Units/SF 394 Physical Occupancy Date November 2020 70.0 DBRS Morningstar Balloon LTV (%) 63.6 The loan is secured by the borrower’s fee-simple interest in Coles Crossing Apartment Homes, a 394-unit DBRS Morningstar Property Type Multifamily garden-style apartment complex in Cypress, Texas, 25.8 miles northwest of the Houston CBD. The DBRS Morningstar Property Quality property was 95.7% occupied as of the November 16, 2020, rent roll. The seven-year loan is structured Average with an upfront three-year IO period and amortizes on a 30-year schedule thereafter. Loan proceeds of

$42.2 million refinanced approximately $31.5 million of existing debt and returned approximately $8.8 Debt Stack ($ millions) million of equity to the borrower. The borrower has approximately $5.9 million of cash equity remaining in the deal. Additionally, the loan is structured with an upfront coronavirus debt service reserve of $1.0 Trust Balance million, or equal to six months of amortizing debt service payments. The loan exhibits moderate leverage 42.2 with a DBRS Morningstar Issuance LTV of 70.0% and a maturity LTV of 63.6% based on the appraised Pari Passu ($) 0.0 value of $60.3 million. B-Note 0.0 Originally built in 2003, the sponsor acquired the property in 2016 for an acquisition cost of $43.8 million. Mezz 0.0 The borrower has invested approximately $4.3 million in capital improvements over the last four years. Total Debt As part of the capital improvements, the borrower developed another building which added 24 units for 42.2 an estimated cost of $3.2 million. The borrower had previously renovated 97 units (approximately 25% of Loan Purpose Refinance the total units) with new flooring, kitchen appliances, and countertops in addition to exterior Equity Contribution/(Distribution) improvements that included new grills, playground, gazebos, and package lockers as well as repairs to ($ millions) the sidewalk, parking lot, and roof. The subject’s unit mix includes 166 one-bedroom units averaging 727 ($8.8) sf, 178 two-bedroom units averaging 1,113 sf, and 50 three-bedroom units averaging 1,358 sf. Per the October 6, 2020, rent roll, the subject’s one-, two-, and three-bedroom units average monthly rents of $1,178, $1,581, and $1,740, respectively. Unit amenities at the property include a stainless-steel kitchen

Page 76 of 99 FREMF 2021-K741 | February 22, 2021

Page 76 of 99

appliance package, vinyl plank flooring, tile backsplash, washer/dryer, and patio or balcony. Common Page 76 of 99 area amenities include a fitness center, clubhouse, business center, swimming pool, game room, theater

Page 76 of 99 room, barbecue grills, picnic areas, playground, dog park, garage parking, and package lockers.

Page 76 of 99 The property’s recent performance is relatively stronger than the competitive properties in the

Page 76 of 99 submarket Cypress/Fairbanks of the broader Houston market, as identified by Reis. Collections over the T-12 ended September 30, 2020, indicate that the property has achieved an average occupancy of 94.1%; however, the rent roll dated November 16, 2020, indicates the property is currently 95.7% occupied. This average occupancy figure is slightly stronger than the submarket’s average vacancy of 6.5% during Q4 2020. The collateral has also been able to achieve this stronger occupancy while collecting above-average rental rates. During the T-12, the property’s average rental rate was $1,292 while the submarket’s average rental was $1,060 during Q4 2020. Furthermore, the November 2020 rent roll indicates that the average scheduled rental rate was higher around $1,421. Although the current roll indicates much higher rental rates than the submarket average, the property offers significant concessions and the effective average rental rate is much lower at $1,291. Thus, comparing the effective average rental rate at the subject to the average submarket rental rate of $1,232 for properties of the same construction vintage as the subject shows the property is more competitive. The appraiser identified five properties within the property’s submarket that compete directly with the subject collateral. The property’s performance compared with other properties in the area appear to be consistent with the data provided by the appraisal as the property has been able to achieve a higher occupancy rate while demanding a slightly higher average rental rate. Please see the table below for more information on the competitive properties as outlined by the appraiser.

Competitive Set Property Location Distance Units Year Built/ Occupancy Avg. Avg. from Renovated (%) Rental Unit Subject Rate Per Size (Miles) Unit ($) (SF) Waterford Place at Riata Ranch Cypress, TX 1.8 228 2008 96.0 1,119 1,070 Provenza at Barker Cypress Cypress, TX 0.2 318 2014 93.0 1,273 1,045 Camden Cypress Creek Cypress, TX 2.9 309 2008 88.0 1,238 989 North Haven Cypress, TX 3.6 310 2015 93.0 1,571 1,168 Windsor Cypress Cypress, TX 3.9 208 2003 99.0 1,105 883 Total/Wtd. Avg. Comp. Set Cypress, TX Various 1,373 Various 93.3 1,281 1,040 Coles Crossing Apartments - Subject Cypress, TX n/a 394 2003 95.7 1,421 981 Source: Appraisal, except the subject figures are based on the rent roll dated November 16, 2020.

Sponsorship The sponsor for this transaction is a real estate investment firm and its two co-founders. The main operations of the investment firm include the acquisition and management of multifamily apartment complexes located predominantly in the southern United States. The firm has completed more than $2 billion in commercial real estate transactions and currently manages more than $2.5 billion in value of commercial real estate. The firm was founded in 2001 and the two co-founders previously held senior

Page 77 of 99 FREMF 2021-K741 | February 22, 2021

Page 77 of 99

positions within technology companies and investment banking. The sponsors are repeat Freddie Mac Page 77 of 99 sponsors and have closed 18 loans totaling more than $500 million since 2010.

Page 77 of 99 The property manager is a borrower-related entity that operates for a contractual rate of 3.5%. The Page 77 of 99 management firm manages more than 15,000 units across the United States and more than 10,000 units

Page 77 of 99 in the broader Houston market.

DBRS Morningstar Analysis Site Inspection Summary

DBRS Morningstar toured the property on Friday, February 5, 2021. Based on the site inspection, DBRS Morningstar found the property to be Average.

The collateral is a garden apartment complex located 2.0 miles southeast of downtown Cypress, a suburban community 27.5 miles northwest of downtown Houston. The subject is on the east side of Barker Cypress Road and is directly north of a retail development fronting Northwest Freeway (US290/TX-6) including an HEB supermarket and several strip centers and eateries. A garden apartment complex is directly to the west across Barker Cypress Road, with a residential neighborhood to the east. The property has almost immediate access to Northwest Freeway to the south (through the retail area), which provides access to TX-8 (Beltway 8/Sam Houston Parkway), the outer beltway around the Houston metro area and continues to provide access to I-610 (Loop 610), the beltway around the inner-city section of Houston. The greater surrounding area is typical suburban development, comprising residential subdivisions, established neighborhoods, and green space, with commercial support along the major arterials through the area.

The subject comprises 32 buildings on a land area of 34.5 acres. It was built in 2003 with renovations in 2019. The buildings are three stories of wood frame construction with brick and fiber cement sided exterior walls and pitched composite roofs. Parking and drives are concrete with 654 surface, carport, and attached garage spaces provided. Additional site amenities include controlled access entrance, clubhouse with a fitness center, business center, yoga studio, game room, billiards, media room, pool with poolside grilling area, cabanas, sundeck, and dog park. The interior of the clubhouse was very presentable and it was clear that the sponsor had invested significant capital into the common area

Page 78 of 99 FREMF 2021-K741 | February 22, 2021

Page 78 of 99

amenities. The clubhouse amenities such as the lounge and the billiards room appeared to be very well Page 78 of 99 maintained and recently upgraded. The fitness room equipment appeared to be older than the rest of

Page 78 of 99 the common area amenities, but the equipment was well maintained and the area was clean. Surrounding the swimming pool was well-manicured landscaping and recently upgraded pavers, Page 78 of 99 contributing to an inviting common area space behind the clubhouse.

Page 78 of 99 The property has 394 one-, two-, and three- bedroom units with average floorplans of 727 sf, 1,113 sf, and 1,358 sf, respectively. Unit features and amenities include vinyl plank and carpeted flooring; a full appliance package with stainless-steel appliances including a stove, built-in microwave, refrigerator, and dishwasher; white cabinetry; quartz countertops; and ceramic tiled backsplashes. Some units have vaulted ceilings. The kitchens with recently upgraded stainless-steel appliances showed very well. The living spaces and kitchens appeared to be adequately sized considering the strong finishes. Bathrooms have garden-style tubs, white wood vanity cabinets with quartz countertops, and step-in showers in some units. Similar to the living spaces, the bedrooms were adequately sized. All units are equipped with the SMART Home Bundle, which includes a door lock, thermostat, and outlet. All apartments have in-unit washers/dryers and vertical or mini blinds. Select units have a balcony or patio, kitchen island, eat-in kitchen, and attached garage.

DBRS Morningstar NCF Summary NCF Analysis 2018 2019 T-12 Budget Issuer NCF DBRS NCF September Morningstar Variance (%) 2020 NCF ($) GPR ($) 5,448,586 5,949,399 6,108,908 6,800,000 6,768,289 6,768,289 0.0 Other Income ($) 538,218 560,545 548,978 560,000 548,978 548,978 0.0 Vacancy & 537,766 425,847 422,522 1,000,000 1,113,337 1,081,904 -2.8 Concessions ($) EGI ($) 5,449,039 6,084,097 6,235,364 6,360,000 6,203,930 6,235,363 0.5 Expenses ($) 2,649,527 2,763,355 2,911,039 3,136,908 3,132,017 3,233,054 3.2 NOI ($) 2,799,511 3,320,742 3,324,325 3,223,092 3,071,913 3,002,309 -2.3 Capex ($) 0 0 0 109,926 105,198 105,198 0.0 NCF ($) 2,799,511 3,320,742 3,324,325 3,113,166 2,966,715 2,897,111 -2.3

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF was $2,897,111, representing a -2.35% variance from the issuer’s NCF of $2,966,715. The primary drivers of the variance included a management fee and operating expenses.

DBRS Morningstar estimated management fee to be 4.0% of EGI, whereas the issuer applied a management fee of 3.0% of EGI. DBRS Morningstar generally estimated operating expenses by inflating the T-12 ended September 30, 2020, by 3.0%, while the issuer generally accepted the operating expenses.

Page 79 of 99 FREMF 2021-K741 | February 22, 2021

Page 79 of 99

DBRS Morningstar Viewpoint Page 79 of 99 The collateral is located in the Cypress/Fairbanks submarket within the broader Houston market. Located

Page 79 of 99 approximately 26 miles northwest of the Houston CBD, the property is situated in a fairly suburban neighborhood. The property is surrounded primarily by other multifamily properties and single-family Page 79 of 99 homes. Along more major roads and thoroughfares are commercial properties including many retail

Page 79 of 99 locations and eateries. The demand generators in the immediate area include retail properties in addition to a fairly large Sysco office approximately one mile away that acts as the company’s Business Services headquarters. Although Sysco appears to be the only significant, large office property in the immediate area, the Houston CBD and Houston’s Energy Corridor are both less than a thirty-minute drive and contain major employers.

Although the property was not constructed recently, the subject collateral does benefit from recent capital improvement projects carried out by the sponsor. In addition to developing a building that added 24 units, the borrower also completed interior renovations to approximately 25.0% of the property’s units that included new kitchen appliances, countertops, flooring, and painting. The property has experienced volatile occupancy since 2017, which could be attributed to the renovations and development of the additional building. Specifically, the property achieved vacancy rates of 4.9%, 8.8%, 6.8%, and 6.1% during 2017, 2018, 2019, and the T-12 ended September 30, 2020, respectively. Although based on the 2019 and T-12 historical cash flow it appears the subject’s occupancy may stabilize between 6% and 7%, the submarket’s vacancy rate is expected to climb rapidly over the next several years. Furthermore, Reis projects the submarket’s vacancy rate to peak around 9.1% in 2024. The property’s construction vintage cohort, 2000–09, makes up 38.0% of the total submarket inventory according to Reis. Coupled with rising vacancies, this will increase the difficulty to remain competitive in a crowded market where many of the properties are of the same age and potentially the same quality. DBRS Morningstar applied an overall 16.0% economic vacancy in its NCF analysis to account for this risk.

Downside Risks • The loan represents a cash-out refinance as the borrower is cashing out approximately $8.8 million of cash equity in the transaction. • The property is currently offering significant concessions of around 9.0% of total collected rent and there is significant supply currently under construction. Specifically, there are approximately 1,571 units currently under construction, compared with the current inventory of approximately 29,000 units. • The property is located in a zip code that exhibits a DBRS Morningstar MSA Group 1 and Market Rank 3, which are generally indicative of higher levels of default.

Stabilizing Factors • The borrower still has approximately $5.9 million of cash equity in the transaction. Additionally, the sponsor has invested more than $4.3 million in capital improvements since acquiring the asset in 2016, signaling the borrower’s commitment to the collateral. • Recent interior renovations to 97-units include upgraded kitchen appliances, countertops, plank flooring, and new painting. These renovations should help keep these renovated units relatively competitive with new supply and inventory coming on line in the near term.

Page 80 of 99 FREMF 2021-K741 | February 22, 2021

Page 80 of 99

• The Houston MSA is expected to experience moderate employment and population growth over the next Page 80 of 99 several years, which should assist in demand for multifamily and apartment units. Specifically, the

Page 80 of 99 appraiser predicts employment to grow 2.5% and 4.4% annually in 2021 and 2022, respectively, and the population to grow 1.4% annually in both 2021 and 2022. Page 80 of 99

Page 80 of 99

Page 81 of 99 FREMF 2021-K741 | February 22, 2021

Page 81 of 99

Page 81 of 99 Carmel Center Apartments

Page 81 of 99

Page 81 of 99 Loan Snapshot

Page 81 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 36.0 Loan PSF/Unit ($) 111,801 Percentage of the Pool 3.2% Loan Maturity/ARD December 2027 Amortization n/a Collateral Summary DBRS Morningstar Property Type Multifamily Year Built/Renovated 2002/2017 DBRS Morningstar DSCR (x) City, State Carmel, IN Physical Occupancy (%) 96.3 2.56 Units/SF 322 Physical Occupancy Date December 2020 DBRS Morningstar LTV (%) 63.9 DBRS Morningstar Balloon LTV (%) This loan is secured by the borrower’s fee-simple interest in the Carmel Center Apartments, a 322-unit 63.9 garden-style multifamily complex in Carmel, Indiana, a suburban city immediately north of Indianapolis. DBRS Morningstar Property Type Multifamily Loan proceeds of $36.0 million refinanced existing debt of $31.7 million and returned $4.5 million of cash DBRS Morningstar Property Quality equity to the borrower. The seven-year loan is IO for the entire loan term with a DBRS Morningstar LTV Average of 63.9%.

Debt Stack ($ millions) The garden-style complex was built in 2002 on a 15.22-acre site. The borrower purchased the property in 2015 and between January 2017 and April 2020 completed $1.6 million in capital improvements that Trust Balance included site improvements, unit upgrades and/or replacements, and building repairs. The property 36.0 Pari Passu ($) contains 17 three-story apartment buildings and a clubhouse building. Amenities at the property include 0.0 the clubhouse, which features a news café serving Starbucks coffee and bottled water; media room; B-Note fitness center; and business center. Outdoor amenities include a pool with outdoor kitchen and lounge 0.0 area, gazebo and fire pit area, a basketball court, and walking path. The unit breakdown consists of 142 Mezz 0.0 one-bedroom units (806 sf per unit), 152 two-bedroom units (1,192 sf per unit), and 28 four-bedroom Total Debt units (1,946 sf per unit). All units feature a fully equipped kitchen with granite countertops and stainless- 36.0 steel appliances, wine refrigerator, wood-burning fireplace, full-size washer/dryer, and a private patio. Loan Purpose Refinance Some units have an attached garage. Equity Contribution/(Distribution) ($ millions) The property was 96.3% occupied as of the rent roll dated December 31, 2020. The average in-place ($4.5) monthly rents range from $1,044 for one-bedroom units to $1,420 for two-bedroom units and $2,071 for four-bedroom units. The property’s average rent of $1,311 per unit is slightly above market when compared with the Reis averages of $1,164 per unit for the submarket and $1,145 per unit by submarket

Page 82 of 99 FREMF 2021-K741 | February 22, 2021

Page 82 of 99

vintage. However, the in-place average rent by unit type is slightly lower than the appraisal-concluded Page 82 of 99 market rent by the same unit type, based on the appraisal-identified five comparable properties.

Page 82 of 99 Although the property’s in-place physical vacancy rate of 3.7% as of the October rent roll outperformed the Reis submarket vacancy rate of 5.7%, the property has experienced low occupancy in the past three Page 82 of 99 years, with vacancy ranging from 9.2% to 13.2% and an average of 5.8% over the T-12 period ended

Page 82 of 99 September 30, 2020. Per Reis, the collateral is located in the Hamilton County submarket in Indianapolis, which exhibited an average submarket and submarket by vintage vacancy rates of 5.7% and 3.1%, respectively, as of Q4 2020, and an average submarket rent of $1,164 per unit for the submarket and $1,145 per unit by submarket vintage. Reis reported an average submarket vacancy rate of 6.7% over the five-year period ended December 31, 2020, and projects submarket vacancy to average 7.4% annually over the next five-year period with an annual new supply of approximately 318 units.

Sponsorship The carveout guarantor and key sponsor for the loan is a diversified real estate firm based in Louisville, Kentucky. The company has been in business since 1965 and owns or manages approximately 10.9 million sf of space that includes multifamily, office, and healthcare properties. The company reported ownership interest in sixteen multifamily properties consisting of 4,566 units and four office properties.

The property is managed by an affiliate of the borrower. The company currently manages more than 5,000 multifamily units and 3.9 million sf of commercial properties in Louisville and Lexington in Kentucky; Nashville; Orlando; Indianapolis; and Richmond, Virginia. It currently manages five multifamily properties with 1,253 units, including the subject, in the Indianapolis MSA.

DBRS Morningstar Analysis Site Inspection Summary

DBRS Morningstar toured the property on Tuesday, February 2, 2021. Based on the site inspection, DBRS Morningstar found the property to be Average.

The collateral is a garden-style apartment complex in Carmel, a suburban community approximately 23 miles north of downtown Indianapolis. The subject is on the south side of City Center Drive, a primary east/west arterial, and is accessed from the intersection of Beacon Street and City Center Drive. The

Page 83 of 99 FREMF 2021-K741 | February 22, 2021

Page 83 of 99

intersection is not signalized, but a dedicated left turn lane aids access for westbound traffic. The Page 83 of 99 surrounding area consists of residential subdivisions and multifamily properties to the west and to the

Page 83 of 99 north across City Center Drive, with light industrial and office buildings to the south and west. The Carmel Clay Veterans Memorial Freedom Circle borders to the west. The University of Indiana Health Page 83 of 99 North Hospital campus is approximately two miles to the southwest, along the west side of U.S. Hwy. 31

Page 83 of 99 (North Meridian Street), with medical and professional office buildings, hospitality properties, and some restaurants and services. The St. Vincent Carmel Hospital is two miles to the north. Significant shopping and services are several miles distant.

The subject was built in 2002 with renovations in 2017 and consists of 17 three-story buildings of wood frame construction with brick and vinyl-sided exterior walls and pitched composite roofs. The main building, which also serves as the clubhouse, is a four-story, brick structure with Federalist architectural styling. Asphalt drives throughout the property are well laid out and in good overall condition, providing access to parking along the front perimeters of the buildings, as well to parking in detached and attached garages. The property offers 574 surface, attached, and detached garage parking spaces. Additional community amenities include a resident clubhouse; fitness center; media room; business center with Wi-Fi lounge; elevator service to select apartment homes; coffee bar; bike rack and repair stations; package center; pool with poolside kitchens, grills, and lounge areas; dog park and pet spa; and access to walking trails.

The property has 322 one-, two-, and four-bedroom units, with average floorplans of 806 sf, 1,192 sf, and 1,946 sf, respectively. Unit amenities and features include 9’ ceilings; vinyl plank flooring; full kitchen appliance packages with black and stainless steel appliances including stove, built-in microwave, refrigerator, and dishwasher; stained wood cabinetry with solid- and glass-paneled doors; granite countertops and backsplashes; and single bowl stainless steel sinks with gooseneck faucets. Bathrooms have porcelain fixtures, ceramic tiled shower surrounds, and wood vanity cabinets with granite countertops. Extra features include crown molding and wainscoting in some units. Full-size washers/dryers and walk-in closets are in each unit. Select units have screened in porches, wood burning fireplaces, and garages.

DBRS Morningstar NCF Summary NCF Analysis 2017 2018 2019 T-12 Issuer NCF DBRS NCF September Morningstar Variance (%) 2020 NCF ($) GPR ($) 5,188,760 5,350,990 5,089,048 5,128,735 5,101,260 5,101,260 0.0 Other Income ($) 388,375 398,345 419,320 417,979 417,979 417,979 0.0 Vacancy & -1,114,854 -1,009,143 -606,946 -404,764 -293,472 -426,251 45.2 Concessions ($) EGI ($) 4,462,281 4,740,192 4,901,422 5,141,950 5,225,767 5,092,988 -2.5 Expenses ($) 2,079,362 2,140,037 2,241,083 2,340,762 2,355,698 2,450,034 4.0 NOI ($) 2,382,919 2,600,155 2,660,339 2,801,188 2,870,069 2,642,955 -7.9 Capex ($) 0 0 0 0 80,500 80,500 0.0 NCF ($) 2,382,919 2,600,155 2,660,339 2,801,188 2,789,569 2,562,455 -8.1

Page 84 of 99 FREMF 2021-K741 | February 22, 2021

Page 84 of 99

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Page 84 of 99 Property Analysis Criteria. The resulting DBRS Morningstar NCF for the subject was $2,562,455,

Page 84 of 99 representing a variance of -8.14% from the Issuer’s NCF of $2,789,569. The primary drivers of the variance were economic vacancy, controllable expenses, and utilities expenses. While the Issuer applied Page 84 of 99 5.8% of economic vacancy, DBRS Morningstar applied 8.5% of economic vacancy, which includes 6.1%

Page 84 of 99 of residential vacancy and adopted T-12 residential concessions and bad debt figures. For controllable expenses, DBRS Morningstar inflated T-12 figures by 3.0% for R&M and payroll expenses but adopted budgeted figures for G&A, whereas the Issuer adopted T-12 figures for all. Additionally, DBRS Morningstar relied on the appraisal’s projection for utilities versus the Issuer’s T-12 figures.

DBRS Morningstar Viewpoint The collateral is a well-planned and well-designed residential community located in an established neighborhood with easy access to various shopping facilities and major highways. The arrival of substantial new housing supplies over the past three years from six properties totaling 1,004 units within one mile of the subject has pressured the subject into a high vacancy rate of 9.2% to 13.2% within the same period. However, occupancy has improved in recent months as evidenced by an average occupancy rate of 94.2% for the T-12 period ended September 30, 2020, and 96.3% reported on the December 2020 rent roll. According to the appraisal report, there are eleven planned multifamily projects totaling 2,505 units within a five-mile radius of the subject. These potential new supplies will bring additional pressure to the subject. However, in order to compete effectively with the newer properties, the sponsor has budgeted $1.9 million ($5,923 per unit) in capital improvements for the next few years, including roof replacements, exterior wood replacements, and repair and/or replacement of asphalt paved surfaces. Additionally, despite the underperforming occupancy of the past three years, the property NOI has improved year-over-year during the same period. The continued commitment from the experienced sponsor, coupled with the planned capital improvements, suggest the subject property should be able to achieve stable property cash flows.

DBRS Morningstar noted that the loan lacks debt service reserve to cover any potential payment shortfall related to the coronavirus pandemic. This represents elevated risk during the remainder of the pandemic period if the property cash flow should fall to the level that unable to cover the debt service. The loan is structured with full-term IO, which may experience elevated refinance risk as evidenced by DBRS Morningstar’s Exit Debt Yield of 7.1%, however, the DBRS Morningstar Balloon LTV of 63.9% is considered reasonable.

Downside Risks • The borrower is cashing out $4.3 million from this transaction.

Stabilizing Factors • The property benefits from experienced and committed ownership. The sponsor has invested $1.6 million ($5,095 per unit) in capital improvements since 2017, with an additional $1.9 million budgeted for the next few years. Furthermore, $13.5 million in cash equity remains in the transaction, based on the cost

Page 85 of 99 FREMF 2021-K741 | February 22, 2021

Page 85 of 99

basis of $49.5 million, which includes $47.9 million purchase price in 2015 and the $1.6 million Page 85 of 99 subsequent capital improvements.

Page 85 of 99

Page 86 of 99 FREMF 2021-K741 | February 22, 2021

Page 86 of 99

Page 86 of 99 Lakeside Retreat at Peachtree

Page 86 of 99

Page 86 of 99 Loan Snapshot

Page 86 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 35.8 Loan PSF/Unit ($) 109,070 Percentage of the Pool 3.2% Loan Maturity/ARD October 2027 Amortization n/a Collateral Summary DBRS Morningstar DSCR (x) DBRS Morningstar Property Type Multifamily Year Built/Renovated 1982/2019 2.22 City, State Peachtree Corners, GA Physical Occupancy (%) 87.2 DBRS Morningstar LTV (%) 73.6 Units/SF 328 Physical Occupancy Date December 2020 DBRS Morningstar Balloon LTV (%) 73.6 DBRS Morningstar Property Type This loan is secured by the borrower’s fee-simple interest in a 328-unit garden-style apartment complex Multifamily in Peachtree Corners, Georgia. As of the December 2020 rent roll, the property was 87.2% occupied. DBRS Morningstar Property Quality Loan proceeds of $35.8 million along with $11.9 million of the borrower’s equity were used to acquire Average the property at arm’s length for a total purchase price of $47.7 million. The seven-year fixed rate loan is IO for entire duration of the term. The loan is structured with an initial deposit for a coronavirus debt Debt Stack ($ millions) service reserve equal to nine months of IO debt service payments and an on-going replacement reserve escrow. The loan represents a DBRS Morningstar LTV of 73.6% based on a July 2020 appraised value of Trust Balance 35.8 $48.6 million. Pari Passu ($) 0.0 Built in 1982 on a 31.9-acre lot, the property was renovated in 2019 with a $4.7 million ($14,251/unit) B-Note capital improvement budget. Renovations included full interior upgrades for 108 units and partial 0.0 Mezz renovations for 82 units. Interior work comprised new paint and lighting, window, electric, and plumbing 0.0 improvements. Exterior renovations consisted of upgrades to the roof, landscaping, street pavement, Total Debt common area lighting, trash enclosure, signage, and outdoor deck. Community amenities feature a 35.8 Loan Purpose clubhouse, a fitness center, a business center, a sports court with soccer goals, two playgrounds, a pool, Acquisition picnic and grill areas, a car wash area, raised community gardens, and lakeside walking trails. The Equity Contribution/(Distribution) property’s unit mix contains 96 one-bedroom units averaging 815 sf and 232 two-bedroom units ($ millions) $11.9 averaging 1,156 sf with average rental rates of $1,107 per unit.

The loan is part of a self-imposed Master Financing Commitment (MFC) for a $250.0 million commitment amount for the purpose of providing social impact housing to areas in need with a sponsor, maintaining

Page 87 of 99 FREMF 2021-K741 | February 22, 2021

Page 87 of 99

the supply of affordable housing, and adding value to the quality of its assets through renovations Page 87 of 99 and/or capital expenditures. As part of the MFC, the sponsor is required to cap rents at 40.0% to 80.0%

Page 87 of 99 of the area median income (AMI) maximum rents for at least 51.0% of the units starting one year after loan closing. The property is already in compliance with the restriction as all units have rental rates less Page 87 of 99 than or equal to 80.0% of AMI maximum rents. The property's average in-place rents are reportedly

Page 87 of 99 approximately 12.0% below the submarket's average.

The appraiser identified six multifamily properties that compete directly with the subject within a one- mile radius. The collateral is operating at an occupancy of 87.2% as per the rent roll dated December 30, 2020. The property’s average in-place rent of $1,107 per unit is lower than the WA of $1,386 per unit from the competitive set primarily because of the affordable units’ lower rent requirement. According to Reis, there are 15 multifamily properties within a 1.5-mile radius of the subject that are considered comparable assets, and they exhibited an average vacancy rate of 3.9% as of Q4 2020 and an average monthly rent of $1,146 per unit over the same period. Per Reis, the collateral is in the North Gwinnett submarket in Atlanta, which exhibited an average submarket vacancy rate of 7.2% as of Q4 2020 and an average submarket rent of $1,228 per unit. Reis reported an average submarket vacancy rate of 5.3% over the past five years and projects an annual new supply of approximately 249 units.

Competitive Set

Property Location Distance Units Year Occupancy Avg. Avg. from Built (%) Rental Unit Subject Rate Size (Miles) Per (SF) Unit ($) Wynfield Trace Peachtree Corners, GA 0.7 146 1988 97.0 1,479 1,214 Verdanda Estates Norcross, GA 0.6 152 1995 94.7 1,333 1,265 The Atlantic at Peachtree Norcross, GA 0.8 420 1983 95.7 N/A 1,397 Veranda Knolls Norcross, GA 0.4 146 1997 97.0 1,348 1,345 Rosemont Peachtree Norcross, GA 0.3 440 1983 96.4 n/a 867 Park at Peachtree Corners Norcross, GA 1.0 460 1986 90.0 n/a 860 Total/WA Comp. Set Various, GA Various 1,764 Various 94.5 1,386 1,094 Lakeside Retreat at Peachtree Peachtree Corners, GA n/a 328 1982 87.2 1,107 1,056 Corners - Subject Source: Appraisal, except the subject figures are based on the rent roll dated December 2020.

Sponsorship A single-purpose Delaware limited-liability company provides the sponsorship for this transaction. The guarantors have an average of 25 years of experience in the industry mainly focusing on multifamily acquisitions, management, and developments in North America. They have ownership interest a multifamily portfolio valued at $1.33 billion. The borrowers were previously on a “nonapproved borrower list” because of delinquent payments, but the issue has been resolved and all loans between the parties were paid off as agreed.

Page 88 of 99 FREMF 2021-K741 | February 22, 2021

Page 88 of 99

The property manager is a borrower-related entity that operates for a contractual rate of 3.0% of EGI. Page 88 of 99 The management firm has extensive experience in the area and manages approximately 1,146 units in

Page 88 of 99 the local area.

Page 88 of 99 DBRS Morningstar Analysis

Page 88 of 99 Site Inspection Summary

DBRS Morningstar toured the property on Tuesday, February 2, 2021. Based on the site inspection, DBRS Morningstar found the property quality to be Average.

The collateral is a Class B garden apartment complex in Peachtree Corners, Georgia, a suburban community 22.5 miles northeast of downtown Atlanta. The property is on the west side of Holcomb Bridge Road (GA-140) and the south side of Park Lake Lane. Multifamily properties are to the north and south of the subject, with commercial/retail development along Holcomb Bridge Road and to the north at the intersection of Holcomb Bridge Road and Spalding Drive, including neighborhood retail centers, local offices, branch banks, business parks, storage units, and service businesses. The greater area to the north is composed of residential neighborhoods and subdivisions interspersed among wooded lands. A large industrial corridor along GA-141 (Peachtree Industrial Boulevard) is two miles south.

The subject is on a land area of 31.9 acres. It consists of 35 two-story wood-framed structures with vinyl siding and pitched roofs. The site and surrounding area are densely landscaped with mature trees, grass areas, various bushes and plants, and gravel walking paths. The asphalt drives and lots were in below- average condition, showing heavy cracking. The property has 328 one- and two-bedroom units with average floorplans of 815 sf and 1,156 sf, respectively. Unit finishes include vinyl plank flooring in kitchens, living areas, and baths, with carpeted flooring in bedrooms. Kitchens have stainless steel appliances, including a stove, vent hood, refrigerator, and dishwasher. Cabinetry is white wood with granite countertops and ceramic tiled backsplashes. Bathrooms have porcelain fixtures and wood vanity cabinets with quartz countertops. All apartments have vertical and mini blinds and in-unit washers/dryers. Select units have fireplaces. The model unit has modern and attractive furnishings and decor and shows very well.

Page 89 of 99 FREMF 2021-K741 | February 22, 2021

Page 89 of 99

DBRS Morningstar NCF Summary Page 89 of 99 NCF Analysis 2017 2018 2019 T-12 July Issuer NCF DBRS NCF Page 89 of 99 2020 Morningstar Variance (%) NCF ($)

GPR ($) 3,847,736 4,011,356 4,148,302 4,260,937 4,355,556 4,355,556 0.0 Page 89 of 99 Other Income ($) 453,204 433,772 418,407 439,778 439,778 406,363 -7.6

Page 89 of 99 Vacancy ($) -397,726 -476,612 -296,539 -324,132 -480,170 -524,866 9.3 EGI ($) 3,903,215 3,968,517 4,270,169 4,376,583 4,315,164 4,237,054 -1.8 Expenses ($) 1,911,697 1,975,656 2,165,804 2,185,373 1,889,575 2,074,145 9.8 NOI ($) 1,991,517 1,992,860 2,104,366 2,191,210 2,425,589 2,162,908 -10.8 Capex ($) 0 0 0 0 49,200 62,341 26.7 NCF ($) 1,991,517 1,992,860 2,104,366 2,191,210 2,376,389 2,100,567 -11.6

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF for the subject was $2,100,567, representing a variance of -11.61% from the Issuer’s NCF of $2,376,389. The primary drivers of the variance were controllable expenses, economic vacancy, and management fee. For controllable expenses, DBRS Morningstar adopted the appraiser’s estimates, whereas the Issuer generally relied on the borrower’s budgeted figures. While the Issuer applied 11.1% economic vacancy, DBRS Morningstar applied 12.1%. The vacancy variance was due to the residential vacancy for which DBRS Morningstar adopted the budget estimated 11.0% versus the Issuer’s 10.0%. Additionally, DBRS Morningstar applied a normalized management fee of 4.0% of EGI versus the Issuer’s 3.0%, which is the actual contractual rate though it’s from a borrower-affiliated company.

DBRS Morningstar Viewpoint The subject property is in a growing area that has experienced high population growth. According to the appraisal, the average annual population growth from 2010 to 2019 within a one-mile and three-mile radius of the subject was 2.2% and 1.4% per annum, respectively. The median household income within a one-mile radius, at $55,053, was lower than the median of $74,351 in the three-mile radius of the property. The subject’s affordable housing status serves the neighborhood well. Additionally, the property is well-serviced by various retail facilities within one mile of the subject including a grocer- anchored neighborhood shopping center, Spalding Corners. Although an older property, built in 1982, Lakeside Retreat at Peachtree Corners appeared well maintained by the previous owner. Additionally, since the acquisition, the sponsor has budgeted a capital improvement of $4.7 million ($14,251 per unit) for interior and exterior renovations including a full renovation of 92 units at $8,835 per unit, partial renovation of 82 units at $5,855 per unit, and interior renovations of 108 units at of $2,446 per unit, as well as common area lighting and new office equipment for the business center, activity center, and sports complex. Exterior renovations include landscaping, street paving, and repairs to the roof, wood paneling, dog park, and picnic and barbecue area, as well as various miscellaneous capital improvements. Historically, the subject has demonstrated stable occupancy of 93.8%, 91.4%, 94.4%, and 93.5% in 2017, 2018, 2019, and the T-12 period ended July 2020, respectively. The declined occupancy of 87.2% in December 2020 is primarily due to the budgeted unit renovation since the acquisition. Given the sponsor’s extensive experience and strong commitment to the property, DBRS Morningstar expects the property should achieve stable occupancy and cash flow once the renovation is complete.

Page 90 of 99 FREMF 2021-K741 | February 22, 2021

Page 90 of 99

Downside Risks Page 90 of 99 • The loan is structured as full-term IO, which may result in elevated refinance risk as evidenced by the

Page 90 of 99 DBRS Morningstar Exit Debt Yield of 5.9% and the DBRS Morningstar Balloon LTV of 73.6%. • The property is reportedly legal nonconforming because of changes in the zoning code subsequent to its Page 90 of 99 development in 1982.

Page 90 of 99 Stabilizing Factors • The loan, at $109,070 per unit, is reasonable as compared with the appraiser-reported median home value of $218,117 within a one-mile radius of the subject. • The insurance related to building law and ordinance was obtained and a carve-out guarantee was added for any losses related to the nonconformance.

Page 91 of 99 FREMF 2021-K741 | February 22, 2021

Page 91 of 99

Page 91 of 99 Markana Modern Living

Page 91 of 99

Page 91 of 99 Loan Snapshot

Page 91 of 99 Seller FREMF Ownership Interest Fee Simple Trust Balance ($ million) 35.5 Loan PSF/Unit ($) 152,944 Percentage of the Pool 3.1% Loan Maturity/ARD December 2027 Amortization n/a Collateral Summary DBRS Morningstar DSCR (x) DBRS Morningstar Property Type Multifamily Year Built/Renovated 2018/2020 2.76 City, State Albuquerque, NM Physical Occupancy (%) 96.1 DBRS Morningstar LTV (%) 64.3 Units/SF 232 Physical Occupancy Date September 2020 DBRS Morningstar Balloon LTV (%) 64.3 DBRS Morningstar Property Type This loan is secured by the borrower’s fee-simple interest in Markana Modern Living, a 232-unit garden- Multifamily style apartment complex in Albuquerque, New Mexico, 9.4 miles northeast of the Albuquerque CBD. The DBRS Morningstar Property Quality property was 96.1% occupied as of the September 2020 rent roll. Loan proceeds of $35.5 million, along Average + with $18.5 million of the borrower’s equity, were used to acquire the property at arm’s length for a total purchase price of $54.0 million. The seven-year fixed-rate loan is IO throughout its entire term. Based on Debt Stack ($ millions) a September 2020 appraised value of $55.2 million, the loan represents a DBRS Morningstar LTV of 64.3%. The loan is structured with an upfront coronavirus debt service reserve equal to nine months of Trust Balance 35.5 IO debt service payments. The reserve will be released after 90 days following the lifting of all Pari Passu ($) governmental actions related to the coronavirus affecting the property. 0.0 B-Note Built in 2018, the property consists of 15 three-story buildings with 407 surface, carport, and attached 0.0 Mezz garage parking spaces. Community amenities include a clubhouse, fitness center, media center, game 0.0 room with billiards, conference room, pool with poolside cabanas, outdoor kitchen with grill stations, Total Debt outdoor lounge with fireplace and TV, package room, and dog park. The unit mix comprises 88 one- 35.5 Loan Purpose bedroom units averaging 726 sf, 104 two-bedroom units averaging 1,031 sf, and 40 three-bedroom units Acquisition averaging 1,220 sf. Equity Contribution/(Distribution) ($ millions) $18.5 The appraiser identified five competitive multifamily properties built between 1974 and 2018 within a 5.0 mile radio. With an average occupancy rate of 97.5%, the subject achieves a slightly lower occupancy compared with the competitive set.

Page 92 of 99 FREMF 2021-K741 | February 22, 2021

Page 92 of 99

Competitive Set Page 92 of 99 Property Location Distance Units Year Built/ Occupancy Avg. Avg. Unit from Renovated (%) Rental Size (SF) Page 92 of 99 Subject Rate Per (Miles) Unit ($)

Olympus Encantada Albuquerque, NM 1.9 460 2013 100.0 1,495 1,129 Page 92 of 99 Vista Del Sol Albuquerque, NM 2.0 168 1987 99.0 918 777 Page 92 of 99 Broadstone Promenade Albuquerque, NM 1.7 180 2015 94.0 1,510 1,112 Olympus Northpoint Albuquerque, NM 1.2 226 2018 96.0 1,622 1,220 The Towers Albuquerque, NM 5.0 156 1974 95.0 923 981 Total/WA Avg. Comp. Set Albuquerque, NM Various 1,190 Various 97.5 1,365 1,075 Markana Modern Living Albuquerque, NM n/a 232 2018 96.1 1,548 948 Source: Appraisal, except the subject figures are based on the rent roll dated September 2020.

DBRS Morningstar NCF Summary NCF Analysis 2018 2019 T-12 Budget Issuer NCF DBRS NCF September Morningstar Variance (%) 2020 NCF ($) GPR ($) 3,760,448 3,828,186 4,070,919 4,171,847 4,166,748 4,166,748 0.0 Other Income ($) 173,546 471,433 500,748 478,400 500,748 500,748 0.0 Vacancy & 2,249,039 183,617 191,518 229,452 228,643 264,071 15.5 Concessions ($) EGI ($) 1,684,955 4,116,002 4,380,148 4,420,795 4,438,853 4,403,425 -0.8 Expenses ($) 732,846 1,445,962 1,482,409 1,325,308 1,428,636 1,571,752 10.0 NOI ($) 952,109 2,670,040 2,897,739 3,095,487 3,010,217 2,831,673 -5.9 Capex ($) 0 0 0 0 34,800 58,000 66.7 NCF ($) 952,109 2,670,040 2,897,739 3,095,487 2,975,417 2,773,673 -6.8

The DBRS Morningstar NCF is based on the DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria. The resulting DBRS Morningstar NCF for the subject was $2,773,673, representing a variance of -6.78% from the Issuer’s NCF of $2,975,417. The primary drivers are operating expenses with an emphasis on an additional expense plug. DBRS Morningstar included a $500 per unit expense plug in addition to the operating expenses, which were taken from T-12 figures plus 3.0% inflation resulting in a 35.7% expense ratio. Without the addition of the expense plug, the expense ratio came out low at 32.0% compared with average ratios for multifamily properties, which range between 35.0% and 45.0%. Furthermore, a Q4 2020 Reis submarket report expense comps in the submarket averaged at 42.8%.

Page 93 of 99 FREMF 2021-K741 | February 22, 2021

Page 93 of 99

DBRS Morningstar Analysis Page 93 of 99 Site Inspection Summary

Page 93 of 99

DBRS Morningstar toured the property on Monday, February 8, 2021. Based on the site inspection, DBRS Morningstar found the property to be Average +.

The collateral is a garden apartment complex in the northern portion of Albuquerque, 9.0 miles north/northeast of the downtown business district. The property benefits from its proximity to Alameda Boulevard NE, which is a half mile east of I-25/US Highway 85. The surrounding area is a mix of light industrial, commercial, and residential. The area to the east of the interstate is mostly residential, with industrial uses along the west interstate corridor. The greater area to the north is mostly undeveloped, consisting of foothills and mountain ranges.

The property has excellent curb appeal featuring Class A modern exterior finishes. All units have exterior corridor entrances with upper level units accessed by exterior metal stairs. The clubhouse has upscale finishes, furnishings, and decor, with stained and polished concrete flooring, metal and ceramic tiled walls, and tray ceilings with recessed and suspended specialty pendant lighting. Furnishings are modern, attractive, and functional. The resort style pool, although empty, appeared clean and well- maintained.

Unit features and amenities include nine-foot ceilings; tiled flooring; a full kitchen appliance package with stainless steel appliances including a stove, built-in microwave, refrigerator, and dishwasher; kitchen island with farmhouse sink and gooseneck faucet; pendant and track lighting; stained wood cabinetry; and quartz countertops. All toured units featured ample natural lighting and spacious floor designs; however, the kitchen appliances and washer/dryer units seem a bit dated. Bathrooms have porcelain fixtures, single-unit acrylic tub-shower surrounds, and wood vanity cabinets with quartz countertops. All units have private balconies/patios, in-unit washers/dryers, and mini-blinds. Select units have attached garages and fireplaces.

Page 94 of 99 FREMF 2021-K741 | February 22, 2021

Page 94 of 99

Sponsorship Page 94 of 99 The sponsorship for this transaction is a Texas-based real estate investment firm specializing in high-end

Page 94 of 99 multifamily acquisitions with more than 29 years of experience in the industry. Since 2008, the sponsor has completed 45 Freddie Mac transactions valued at more than $1.1 billion with all loans performed as Page 94 of 99 agreed.

Page 94 of 99 A third-party contractor with management interests in 693,000 multifamily units nationwide and 5,998 multifamily units locally manages the property.

DBRS Morningstar Viewpoint Developed in 2018 by the sponsor, the property boasts a modern amenity package consistent with recently built garden-style multifamily complexes. After opening in January 2018, the property took a full 12 months to stabilize at 94.0% in January 2019. Despite slow leasing momentum, the property showcased stable and steady occupancy rates above 90.0% since the start of 2019. Occupancy rates from January 2019 to October 2020 ranged from 94.03% to 99.21%. The average rental rate at the property is $1,497 per unit, which is significantly higher than the market average rent of $886 per unit but generally in line with properties of similar vintage ($1,441).

The property benefits from a favorable location near an interchange for I-25, which has several commercial corridors and provides access to downtown Albuquerque. Major employers in the area include General Mills and Blue Cross Blue Shield of New Mexico. Employment continues to grow in Albuquerque and Reis projects that another 38,000 jobs could be added to the area by the end of 2026. The property saw almost no disruption from coronavirus with occupancy staying above 94.0% and rents increasing throughout the lockdowns.

According to Reis, the North Central submarket, which contains 10,139 market rate rental units, will have 135 units of market rate rental multifamily apartments amounting to 27.3% of the new construction introduced to MSA. The lack of new construction presents favorably to the subject in keeping market fundamental steady and fairly predictable. Reis reported an average 4Q 2020 vacancy rate of 3.4%. Over the next year, the submarket could see an increase because of new supply; however, this supply is forecast to be absorbed quickly with vacancy forecast to decrease to 3.2% in by 2026.

Downside Risk • The loan is IO for its entire loan term, loans that are fully interest only face additional balloon payment default risk once the loan nears maturity.

Stabilizing Factors • The transaction benefits from strong, experienced sponsorship. The sponsor of this loan is a repeat Freddie Mac borrower, having completed 45 transactions totaling $1.1 billion with no payment issues. At closing, the borrower contributed $33.1 million of cash equity, representing 33.3% of the purchase price, to the transaction.

Page 95 of 99 FREMF 2021-K741 | February 22, 2021

Page 95 of 99

Transaction Structural Features Page 95 of 99 Freddie Mac Guarantee

Page 95 of 99 Freddie Mac guarantees certain principal and interest payments for the guaranteed certificates consisting of the Class A-1, A-2, and A-M certificates (guaranteed principal balance certificates), and Page 95 of 99 Class X1, Class AM, and Class X3 certificates with respect to (1) timely payment of interest; (2) payment

Page 95 of 99 of related principal on the distribution date following the maturity date of each mortgage loan, to the extent that such principal would have been distributed to the corresponding underlying class of guaranteed principal balance certificates; (3) reimbursement of any realized losses and additional trust fund expenses allocated to the guaranteed principal balance certificates; and (4) ultimate payment of principal by the assumed final distribution date for the guaranteed principal balance certificates. Freddie Mac will not guarantee any other class of certificates other than the guaranteed certificates.

Controlling Class The transaction’s most subordinate bonds represent the controlling class, and as of the closing date, the Class D certificateholders represent the controlling class. The Special Servicer may be terminated without cause by the controlling class certificateholder.

No-Downgrade Confirmation This transaction contemplates waivers of Rating Agency Confirmations (RACs). It is the intent of DBRS Morningstar to waive loan-level RACs, yet to receive notice upon their occurrence. DBRS Morningstar will review all loan-level changes as a part of its monthly surveillance. DBRS Morningstar will not waive RACs that affect any party involved in the operational risk of the transaction (e.g., replacement of the Special Servicer, Master Servicer, etc.).

Coronavirus-Related Structural Changes The pooling and servicing agreement for this transaction contains additional provisions recognizing the coronavirus-related forbearance agreements and debt service logistics at a program level and authorizes the servicers to implement such programs in accordance with the described Freddie Mac temporary forbearance program. With respect to 27 loans, representing 88.2% of the pool by balance, each of the related borrowers established a coronavirus debt service reserve at origination to aide in ensuring that adequate funds are available for paying any deficit in the monthly debt service. Under the related loan agreement, if the borrower fails to collect a predetermined amount of rent in a given month, subject to conditions related to various forbearance options, such borrower may request a disbursement from the coronavirus debt service reserve, and subject to such conditions, the lender will apply such disbursement to pay the deficit in the monthly debt service then due on the related underlying mortgage loan.

Page 96 of 99 FREMF 2021-K741 | February 22, 2021

Page 96 of 99

Methodologies Page 96 of 99 The following are the methodologies DBRS Morningstar applied to assign ratings to this transaction.

Page 96 of 99 These methodologies can be found on www.dbrsmorningstar.com under the heading Methodologies & Criteria. Alternatively, please contact [email protected] or contact the primary analysts whose Page 96 of 99 information is listed in this report.

Page 96 of 99 • North American CMBS Multi-Borrower Rating Methodology • DBRS Morningstar North American Commercial Real Estate Property Analysis Criteria • Rating North American CMBS Interest-Only Certificates

Surveillance DBRS Morningstar will perform surveillance subject to the North American CMBS Surveillance Methodology.

Notes: All figures are in U.S. dollars unless otherwise noted.

This report is based on information as of February 22, 2021. Subsequent information may result in material changes to the rating assigned herein and/or the contents of this report.

Page 97 of 99 FREMF 2021-K741 | February 22, 2021

Page 97 of 99

Page 97 of 99 Glossary

Page 97 of 99

Page 97 of 99 ADR average daily rate MSA metropolitan statistical area ARA appraisal-reduction amount n.a. not available ASER appraisal subordinate entitlement reduction n/a not applicable BOV broker’s opinion of value NCF net cash flow

CAM common area maintenance NNN triple net capex capital expenditures NOI net operating income CBD central business district NRA net rentable area CBRE CB Richard Ellis NRI net rental income CMBS commercial mortgage-backed securities NR – PIF not rated – paid in full CoStar CoStar Group, Inc. OSAR operating statement analysis report CREFC CRE Finance Council PCR property condition report DPO discounted payoff P&I principal and interest DSCR debt service coverage ratio POD probability of default EGI effective gross income PIP property improvement plan EOD event of default PILOT property in lieu of taxes F&B food & beverage PSA pooling and servicing agreement FF&E furniture, fixtures and equipment psf per square foot FS Hotel full-service hotel R&M repairs and maintenance G&A general and administrative REIT real estate investment trust GLA gross leasable area REO real estate owned GPR gross potential rent RevPAR revenue per available room HVAC heating, ventilation and air conditioning sf square foot/square feet IO interest only STR Smith Travel Research LC leasing commission SPE special-purpose entity LGD loss severity given default TI tenant improvement LOC letter of credit TIC tenants in common LOI letter of intent T-12 trailing 12 months LS Hotel limited-service hotel UW underwriting LTC loan-to-cost WA weighted average LTCT long-term credit tenant WAC weighted-average coupon LTV loan-to-value x times MHC manufactured housing community YE year end MTM month to month YTD year to date

Page 98 of 99 FREMF 2021-K741 | February 22, 2021

Page 98 of 99

Page 98 of 99 Definitions

Page 98 of 99

Page 98 of 99 Capital Expenditure (Capex) Costs incurred in the improvement of a property that will have a life of more than one year. DBRS Morningstar Refi DSCR A measure that divides the DBRS Morningstar stabilized NCF by the product of the loan’s maturity balance and a stressed refinance debt constant. DBRS Morningstar Term DSCR A measure that divides the DBRS Morningstar stabilized NCF by the actual debt service payment Debt Service Coverage Ratio (DSCR) A measure of a mortgaged property’s ability to cover monthly debt service payments, defined as the ratio of net operating income or net cash flow to the debt service payments. Effective Gross Income (EGI) Rental revenue minus vacancies plus miscellaneous income. Issuer UW Issuer underwritten from Annex A or servicer reports. Loan-to-Value (LTV) The ratio between the principal amount of the mortgage balance, at origination or thereafter, and the most recent appraised value of the underlying real estate collateral, generally from origination. Net Cash Flow (NCF) The revenues earned by a property’s ongoing operations less the expenses associated with such operations and the capital costs of tenant improvements, leasing commissions and capital expenditures (or reserves). Moreover, NCF is net operating income less tenant improvements, leasing commissions and capital expenditures. NNN (Triple Net) A lease that requires the tenant to pay operating expenses such as property taxes, insurance and maintenance, in addition to the rent. Net Operating Income (NOI) The revenues earned by a property’s ongoing operations less the expenses associated with such operations but before mortgage payments, tenant improvements, replacement reserves and leasing commissions. Net Rentable Area (NRA) The area (sf) for which rent can be charged. NRA includes the tenant’s premises plus an allocation of the common area directly benefiting the tenant, such as common corridors and restrooms. Revenue Per Available Room (RevPAR) A measure that divides revenue by the number of available rooms, not the number of occupied rooms. It is a measure of how well the hotel has been able to fill rooms in the off-season, when demand is low even if rates are also low, and how well it fills the rooms and maximizes the rate in the high season, when there is high demand for hotel rooms. Tenant Improvements (TIs) The expense to physically improve the property or space, such as new improvements or remodeling, paid by the borrower. Weighted Average (WA) Calculation is weighted by the size of each mortgage in the pool. Weighted-Average Coupon (WAC) The average coupon or interest payment on a set of mortgages, weighted by the size of each mortgage in the pool.

Page 99 of 99 FREMF 2021-K741 | February 22, 2021

Page 99 of 99

About DBRS Morningstar Page 99 of 99 DBRS Morningstar is a full-service global credit ratings business with approximately 700 employees around the world. We’re a market leader in Canada, and in multiple asset classes across the U.S. and Europe.

Page 99 of 99 We rate more than 3,000 issuers and nearly 60,000 securities worldwide, providing independent credit ratings for financial institutions, corporate and sovereign entities, and structured finance products and instruments. Market innovators choose to work with us because of our agility, transparency, Page 99 of 99 and tech-forward approach.

Page 99 of 99 DBRS Morningstar is empowering investor success as the go-to source for independent credit ratings. And we are bringing transparency, responsiveness, and leading-edge technology to the industry.

That’s why DBRS Morningstar is the next generation of credit ratings.

Learn more at dbrsmorningstar.com.

The DBRS Morningstar group of companies consists of DBRS, Inc. (Delaware, U.S.)(NRSRO, DRO affiliate); DBRS Limited (Ontario, Canada)(DRO, NRSRO affiliate); DBRS Ratings GmbH (Frankfurt, Germany)(EU CRA, NRSRO affiliate, DRO affiliate); and DBRS Ratings Limited (England and Wales)(UK CRA, NRSRO affiliate, DRO affiliate). For more information on regulatory registrations, recognitions and approvals of the DBRS Morningstar group of companies, please see: https://www.dbrsmorningstar.com/research/225752/highlights.pdf.

The DBRS Morningstar group of companies are wholly-owned subsidiaries of Morningstar, Inc.

© 2021 DBRS Morningstar. All Rights Reserved. The information upon which DBRS Morningstar ratings and other types of credit opinions and reports are based is obtained by DBRS Morningstar from sources DBRS Morningstar believes to be reliable. DBRS Morningstar does not audit the information it receives in connection with the analytical process, and it does not and cannot independently verify that information in every instance. The extent of any factual investigation or independent verification depends on facts and circumstances. DBRS Morningstar ratings, other types of credit opinions, reports and any other information provided by DBRS Morningstar are provided “as is” and without representation or warranty of any kind. DBRS Morningstar hereby disclaims any representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability, fitness for any particular purpose or non-infringement of any of such information. In no event shall DBRS Morningstar or its directors, officers, employees, independent contractors, agents and representatives (collectively, DBRS Morningstar Representatives) be liable (1) for any inaccuracy, delay, loss of data, interruption in service, error or omission or for any damages resulting therefrom, or (2) for any direct, indirect, incidental, special, compensatory or consequential damages arising from any use of ratings and rating reports or arising from any error (negligent or otherwise) or other circumstance or contingency within or outside the control of DBRS Morningstar or any DBRS Morningstar Representative, in connection with or related to obtaining, collecting, compiling, analyzing, interpreting, communicating, publishing or delivering any such information. No DBRS Morningstar entity is an investment advisor. DBRS Morningstar does not provide investment, financial or other advice. Ratings, other types of credit opinions, other analysis and research issued or published by DBRS Morningstar are, and must be construed solely as, statements of opinion and not statements of fact as to credit worthiness, investment, financial or other advice or recommendations to purchase, sell or hold any securities. A report with respect to a DBRS Morningstar rating or other credit opinion is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. DBRS Morningstar may receive compensation for its ratings and other credit opinions from, among others, issuers, insurers, guarantors and/or underwriters of debt securities. DBRS Morningstar is not responsible for the content or operation of third party websites accessed through hypertext or other computer links and DBRS Morningstar shall have no liability to any person or entity for the use of such third party websites. This publication may not be reproduced, retransmitted or distributed in any form without the prior written consent of DBRS Morningstar. ALL DBRS MORNINGSTAR RATINGS AND OTHER TYPES OF CREDIT OPINIONS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AT https://www.dbrsmorningstar.com/about/disclaimer. ADDITIONAL INFORMATION REGARDING DBRS MORNINGSTAR RATINGS AND OTHER TYPES OF CREDIT OPINIONS, INCLUDING DEFINITIONS, POLICIES AND METHODOLOGIES, ARE AVAILABLE ON https://www.dbrsmorningstar.com.