Another single-asset CMBS deals have been added to the new issue pipeline, according to a presale reports published Wednesday by Standard & Poor’s.
The $270 million LCCM 2013-GCP Mortgage Trust is backed by a $275.0 million loan secured by the fee interest in Grand Central Plaza, an office building and free-standing restaurant in New York, N.Y.
This loan refinances $258.7 million of existing securitized debt that was previously the largest loan in an existing transaction called CSFB 2003-C3. The refinancing returns $65.3 million of equity to the loan sponsor.
LCCM 2013-GCP has three tranches with a preliminary ‘AAA’ rating from S&P: the $36.6 million Class A-1; $154.8 million Class A-2; and the $191.1 million Class X-A.
S&P said the securitized debt represents a relatively low leverage with a 64.4% loan-to-value (LTV) ratio at closing. However, after taking into account $50 million of mezzanine debt taken out against the property (but not included as collateral), the LTV increases to 76.1%.
Among risk factors cited by S&P is the fact that the lease with the second-largest tenant in the building, Canadian Imperial Bank of Commerce, is scheduled to expire in 2013.
Also, the 15-year loan is structured with a seven-year interest-only period.
The deal is expected to close March 21.