New York-based ACRES Commercial Realty is concentrating multifamily properties into its forthcoming $802 million CRE CLO of non-investment grade commercial real estate whole loans.
According to Moody’s Investors Service, nearly 73% of the 33-obligor pool for ACRES Commercial Realty 2021-FL1 are apartment buildings that lack current revenue streams due to property rehabilitation efforts or being under transition.
Two of three largest loans are apartment loans: a $75.1 million loan for the Lantana Apartments in Las Vegas, (8.1% of the pool balance) and the $43.4 million loan for Village at Eastpointe multifamily property in Oakland Park, Fla. (5.4%).
The second-largest loan is the $44.7 million Lathan Square office building in Oakland, Calif. (5.6% of the pool).
The commercial real estate/collateralized loan obligation deal is the 11th by the manager, which formerly operated as Exantas.
The transaction includes a two-year reinvestment period, with a weighted average spread of 2.75% and WA life of 5.5 years on the portfolio.
Moody’s has assigned a preliminary Aaa rating to the Class A notes tranche of $431.4 million, with an assumed coupon of one-month Libor plus 1.3%.
The expected closing date is May 12. Barclays Capital Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC and Raymond James are underwriters on the transaction.
