Wells Fargo, JP Morgan and Bank of America priced the $600 million single-asset commercial mortgage-backed securitization,
The deal, which is backed by backed by the Queens Center in New York City, was rated by Fitch Ratings. According to one industry source, the $400 million of class A notes , rated ‘AAA’ priced at +85 basis points. The $77 million of class B notes rated ‘AA-’ priced at 95 basis points; $52 million of class C notes rated ‘A-’ priced at 125 basis points; and $60 million of class D notes rated ‘BBB-’ priced at 180 basis points.
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On Wednesday, Morgan Stanley and Bank of America priced the lower rated tranches for its $1.23 billion commercial mortgage-backed securitization conduit, series 2013-C7 up to 75 basis point wider than the Queens Center deal. The deal’s $85.3 million of class B, double-A rated notes priced at 155 basis points; and the $52.2 million of class C, single-A rated notes priced at 200 basis points.
“The pricing on single assets can be a lot flatter that the conduits,” said on CMBS analyst. “It really depends upon the assets however. Where you have stabilized trophy properties, you do a curve that is considerably flatter. This is true of performing legacy asset deals as well.”