D2 Residential and Natixis launch fixed-rate multifamily finance platform for institutional borrowers

Why are D2 Residential and Natixis CIB creating a new fixed-rate securitization platform for multifamily borrowers?

D2 Residential and Natixis Corporate and Investment Banking (Natixis CIB) have jointly introduced a new programmatic multifamily financing initiative that aims to transform how stabilized apartment assets are financed outside of agency channels. Announced on June 13, 2025, in New York, the program introduces a fixed-rate securitization model that seeks to bridge the structural and pricing limitations of traditional agency-backed and CMBS conduit loans. It is tailored specifically for institutional and middle-market sponsors seeking greater flexibility and execution certainty.

Under this collaboration, D2 Residential—led by former Freddie Mac CEO David Brickman—will serve as the first-loss holder, while Natixis CIB will originate, structure, and distribute the securitized loans. The initiative comes at a time when multifamily sponsors face tightening credit conditions, rising interest rates, and a mismatch between standard underwriting models and evolving borrower needs.

What historical lending constraints in the U.S. multifamily sector have created space for this new capital model?

Historically, the multifamily housing sector in the United States has relied heavily on agency-backed financing from institutions like Fannie Mae and Freddie Mac, which together control a substantial share of the fixed-rate loan market. These institutions offer attractive terms, but also impose standardization and rigid criteria that often do not suit sponsors with specialized strategies or non-conforming asset types.

During periods of rate volatility or credit tightening, such constraints become more pronounced, pushing borrowers toward conduit CMBS loans that offer higher flexibility but carry prepayment penalties, yield maintenance fees, and complex documentation. D2 Residential and Natixis CIB are positioning this platform to meet the segment of borrowers who seek long-term, fixed-rate debt with bespoke structuring options—without the drawbacks of conduit execution or reliance on agencies.

What is the structural design of the D2–Natixis CIB program and how does it mitigate credit and liquidity risks?

The program features a unique alignment of interests, with D2 Residential retaining the first-loss position in each transaction, effectively underwriting credit performance alongside Natixis CIB. This retention incentivizes prudent loan selection and risk management while giving capital markets investors added assurance. According to executives, the program is designed to be the only ongoing private-label fixed-rate multifamily securitization platform in the current market environment.

Natixis CIB, through its Real Estate & Hospitality Americas division, will leverage its securitization and capital markets infrastructure to place these loans, primarily targeting long-duration real estate debt investors. The ability to originate and securitize loans on a programmatic basis means borrowers benefit from consistent underwriting, repeatable execution, and tighter spreads compared to conduit alternatives.

Who are the key institutional leaders behind the platform and what expertise are they bringing?

David Brickman, President of D2 Residential and a Partner at D2 Asset Management, brings deep industry knowledge and credibility to the initiative. Brickman is best known for his tenure as CEO of Freddie Mac, where he played a leading role in shaping the agency’s multifamily lending strategy. His presence signals both an understanding of agency limitations and the potential of private platforms to address underserved segments.

Precilla Torres, Head of Real Estate & Hospitality Americas at Natixis CIB, is leading the effort on the institutional side. Her team specializes in delivering tailored real estate finance solutions and has previously worked with top-tier sponsors and asset managers. Natixis CIB operates as part of Groupe BPCE—the second-largest banking group in France—and maintains robust investment-grade ratings (Standard & Poor’s A+, Moody’s A1), ensuring confidence among borrowers and investors alike.

What types of borrowers and assets is the program targeting, and how will this change the competitive lending landscape?

This securitization platform is expected to attract high-quality sponsors who are often constrained by agency or CMBS underwriting conventions. These include middle-market operators managing Class B and workforce housing, as well as institutional sponsors developing or stabilizing multifamily portfolios across core-plus and value-add strategies.

The program is not only structured for current credit environments but is also designed to scale with market recovery cycles. As liquidity returns and cap rates compress, borrowers may look for permanent debt solutions that can lock in attractive pricing while avoiding typical agency or conduit frictions. This strategic positioning could allow D2 Residential and Natixis CIB to carve out a differentiated lane in the multifamily finance landscape.

How is institutional sentiment evolving in response to alternative multifamily finance offerings in 2025?

Institutional investors have remained cautiously optimistic toward multifamily debt, especially stabilized properties with consistent income profiles. In 2025, sentiment continues to be shaped by macroeconomic concerns such as sticky inflation, cautious Fed policy, and market uncertainty around interest rate direction. Within this context, structured private-label securitizations backed by multifamily cash flows are increasingly viewed as attractive risk-adjusted income vehicles.

With D2 Residential taking a first-loss position, the risk-return alignment becomes even more appealing for bondholders and structured credit funds. As a result, analysts expect high investor receptivity for these new issuances, particularly as the platform builds a track record of consistent performance.

What strategic goals does this launch support for D2 Asset Management and Natixis Corporate and Investment Banking?

For D2 Asset Management, this program supports its long-term thesis of providing asset-based, risk-aligned capital to real estate and infrastructure operators. Founded in 2024, the firm emphasizes high-conviction investing across capital structures, and this initiative is among its most prominent moves into scalable credit solutions. Brickman’s leadership reinforces the firm’s credibility within institutional capital circles.

For Natixis CIB, the program expands its footprint in the U.S. real estate market and complements its suite of balance sheet lending, advisory, and capital markets offerings. It also aligns with Natixis’ broader ESG strategy and sustainability goals, which target net-zero alignment across its financing portfolio by 2050. Though not explicitly labeled a green finance product, the stability and community benefits of workforce housing could make future iterations of the program ESG-eligible, according to sector watchers.

What is the future outlook for private-label multifamily finance platforms amid regulatory and interest rate uncertainties?

Looking ahead, analysts suggest that private multifamily securitization platforms could play an increasingly important role in the U.S. housing finance system, particularly as agencies scale back or refocus their mandates in response to regulatory scrutiny. The flexibility, transparency, and risk-sharing models seen in programs like this one may set new benchmarks for the sector, especially if performance proves superior in a volatile credit environment.

With transaction volume still below pre-pandemic highs, the market remains fragmented, offering room for new entrants that bring speed, alignment, and tailored structures. The D2–Natixis CIB collaboration could inspire similar partnerships between asset managers and capital markets players across asset classes.