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 COMM 2015-CCRE26 at wider levels relative to CMBS conduits to have priced at the same time.
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%