ARES 2026-GCP, a single-asset, single-borrower transaction is preparing to sell $430 million in commercial mortgage-backed securities (CMBS) collateralized by 30 properties totaling 2.3 million square feet of space.
The property has a value of $624,260, with a value per square foot of $269, and a cap rate of 5.15%, according to Kroll Bond Rating Agency. The issuer claims net cash flow of $32,179, and a loan-to-value (LTV) ratio of 68.9%, the rating agency said.
Citi Real Estate Funding and Morgan Stanley Bank are expected to originate the floating-rate mortgage that will collateralize the CMBS, the rating agency said. The loan is expected to have an initial term of two years, with three, 12-month extensions, if there are no outstanding default events and only under specific conditions.
Interest will be paid monthly, based on one-month term Secured Overnight Financing Rate (SOFR), plus an expected spread of 2.15%, the rating agency said.
The borrower's fee simple interests in 30 primarily self-storage properties will collateralize the single mortgage, KBRA said.
Self-storage properties account for most of the transaction's total square footage, 88.7%. Of the self-storage properties, 62.5% is climate-controlled.
Geographically, the properties are in 15 different metro areas across 10 states, and three of the states—Florida (23.5%), California (21.6%) and Washington (20.2%)—each represent more than 10.0% of the pool balance, KBRA said.
All the notes are slated to have a rated final distribution date of February 2043, KBRA said. The rating agency assigns AAA, AA- and A- to classes A, B and C, respectively.
