Barclays Commercial Mortgage Securities, 2023-C19 is preparing to come market with $849.3 million in certificates backed by 36 loans on 109 commercial properties from a group of about eight sponsors.
Barclays Capital Real Estate leads the group of sponsors, which includes Société Générale Financial Corp., Argentic Real Estate Finance, German American Capital Corp., Bank of Montreal, and several others, according to a pre-sale report from Fitch Ratings.
The group of underwriters is almost just as diverse, and includes Barclays Capital, BMO Capital Markets, SG Americas Securities, KeyBanc Capital Markets, Deutsche Bank Securities, Drexel Hamilton and Bankcroft Capital, according to Fitch.
The largest 10 loans in the pool do account for a majority of the pool balance, at 57.2%, while the average loan size is around $23.6 million, Fitch said. On a weighted average (WA) basis, the loans in the pool have a mortgage rate mortgage rate of 6.4%, and a loan constant of 6.6%.
On an issuer level, the deal has a WA capitalization rate of 6.33%, WA debt service coverage ratio (DSCR) of 1.89x, and a WA loan-to-value ratio of 52.5%, according to Fitch.
In other pool characteristics, buildings with single-tenant occupancy account for 19% of the pool, pari-passu participations account for 64.7% of the pool, and subordinate secured debt accounts for 10.3%, according to Fitch.
For its part, S&P Global Ratings says that the transaction has moderate leverage, with a WA LTV of 80.1%, and based on actual debt service S&P puts its DSC of 1.56x. The rating agency also found that the loan coupons range from 4.9% to 7.8%, with a weighted average coupon of 6.4%.
Both rating agencies note that the A-1 through A-SB notes have a credit enhancement level of 30%.
S&P notes that the deal is geographically diverse, as the 109 properties are dispersed across 25 states and the District of Columbia. New Jersey accounts for the largest concentration, with 19.6% of the pool, California with 19.1%, and New York, with 11.4%. In another area of diversification, the pool also has a mix of property types. Of the pooled trust balance, retail accounts for 27.8% of the pool, mixed-use another 22.7%, industrial properties another 16.5%, and office properties another 15.5%. Other property types account for single-digit shares of the pool.
S&P expects to assign ratings of 'AAA' to the A-1 through X-A notes; and 'AA' to the A-S notes. Fitch Ratings says that it plans to assign 'AAA' to the A-1 through X-A notes, and the A-S notes; 'AA-' on the X-B and B notes; 'A-' on the class C notes; 'BBB+' through 'BBB-' on the D-RR through F-RR notes; 'BB-' on the G-RR notes and 'B-' on the H-RR notes.
