CMBS

Brookfield and partners will take approximately $46.3 million in a cashout, while the loan is interest only for the entire loan term.

Small and regional banks have been rocked by deposit outflows following the demise of Silicon Valley Bank, raising concerns that will crimp their ability to provide finance to borrowers.

On an issuer level, the deal has a WA capitalization rate of 6.33%, WA debt service coverage ratio (DSCR) of 1.89x, and a WA loan-to-value ratio of 52.5%.

The five-year notes benefit from overcollateralization equal to 35%, and will use the proceeds to repay a line of credit facility.

Loans located in the 2A market tier accounted for the highest concentration of loans in the pool, at 33.6%.

As of December 2022, improvements contributed about $15.4 million in incremental rental income, plus more than $310 million of additional sales volume.

Retail (36.1%) and office (28.1%) accounted for the largest percentages of loans by far, and the largest percentage of loans is in large metro areas.

Most California households and businesses lack adequate flood insurance protections, raising concerns about eventual risks to RMBS and CMBS transactions.

Members of the Brazos Electric Power Cooperative seek to recoup cost outlays from the fallout of Winter Storm Uri in 2021 the latest Texas utility to do so.

For hotel mortgage-backed securities, Fitch expects a better outlook, with the 2023 delinquency rate not expected to return to its pandemic peak of 18.4%.