6.                 Consolidated K-Series

The Company has elected the fair value option on the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations in the assets and liabilities of the Consolidated K-Series be reflected in the Company's statements of operations. Our investment in the Consolidated K-Series is limited to the multi-family CMBS comprised of first loss tranche PO securities and/or certain IOs issued by certain K-Series securitizations with an aggregate net carrying value of $240.0 million and $123.3 million at December 31, 2013 and 2012, respectively (see Note 7).  

During the year ended December 31, 2013, the Company consolidated two additional Freddie Mac K-Series securitizations. The condensed consolidated balance sheets of the Consolidated K-Series at December 31, 2013 and December 31, 2012, respectively, are as follows (dollar amounts in thousands):

The multi-family loans held in securitization trusts had unpaid principal balance of approximately $8.0 billion and $4.9 billion at December 31, 2013 and December 31, 2012, respectively. The multi-family CDOs had unpaid principal balance of approximately $8.0 billion and $4.9 billion at December 31, 2013 and December 31, 2012, respectively. As of December 31, 2013 and 2012, respectively, the current weighted average interest rate on these Multi-Family CDOs was 4.16% and 4.59%.

The condensed consolidated statements of operations of the Consolidated K-Series for the years ended December 31, 2013, 2012, and 2011 respectively, are as follows (dollar amounts in thousands):

The geographic concentrations of credit risk exceeding 5% of the total loan balances related to our CMBS investments included in investment securities available for sale and multi-family loans held in securitization trusts as of December 31, 2013 and December 31, 2012, respectively, are as follows: