Deutsche Bank and Cantor Fitzgerald are back with another $931.6 million of bonds backed by commercial mortgages to be issued from the COMM-CCRE trust.
COMM 2015-CCRE27 comes just one a week after the sponsors priced the
The problem loan in that transaction, the Prudential Plaza loan, won't be part of the collateral pool backing the latest transaction; but 11 Madison Ave once again features as part of the line-up. The loan comprises 7.5% of the pool and has a Fitch Ratings investment grade credit opinion of 'A-' on a standalone basis.
The loan helps lower the the overall loan-to-value (LTV) ratio of the pool to 110.9%, which is still slightly above the average LTV of CMBS rated by Fitch this year of 109.4%. Without 11 Madison Avenue however, the pool's LTV rises to 114.9%.
The loan also lowers the credit enhancement required for ratings across the capital stack. For example Fitch assigned ratings of 'AAA' to class AM notes (the junior/ senior notes) at credit enhancement of 24.250%; at the 'BBB-' level the notes required credit enhancement of 8.25%; excluding the 11 Madison Avenue loan, Fitch’s implied conduit subordination at the junior ‘AAA’ tranche is approximately 26.2% and ‘BBB–’ is approximately 8.9%.
The investment grade loan is part of a larger, $1.17 billion whole mortgage loan that is secured by 11 Madison Avenue in New York City. The loan is comprised of 16 pari passu A notes totalling $764,330,000 and three B notes totalling $310,670,000. A $70,000,000 A-1-C2 note is securitized in COMM 2015-CCRE27. Nine of the senior notes totaling $397,530,000 along with all three junior B notes were contributed to the single-borrower CMBS MAD 2015-11MD trust. The $70,000,000 A-1C1 note was securitized in the COMM 2015-CCRE26 transaction. The remaining A notes are anticipated to be securitized in future transactions.
COMM 2015-CCRE27's trust is backed by a total of 65 loans secured by 96 properties. Eight loans, representing 20.6% of the pool, pay interest only for their entire terms, and 30 loans representing 45.5% of the pool pay only interest for part of their terms. The remainder of the pool consists of 27 balloon loans representing 33.9% of the pool, with loan terms of five to 10 years. Based on the scheduled balance at maturity, the pool will pay down 11.3%
