Barclays will underwrite a securitization of a single commercial loan that is secured by a portfolio of office properties owned by Blackstone Real Estate Partners, according to Morningstar.
The deal BBCMS Trust 2014-BXO will offer $146.4 million of senior rated securities backed by a single loan. The loan has an initial term of two years and three one-year extension options. The loan provides for interest only debt service payments at an interest rate of one-month LIBOR plus 2.6%. The loan payments are interest-only for the entire loan term, including extension periods.
Morningstar has assigned preliminary AAA’ ratings to the notes that have credit enhancement at 58.7%. The CMBS trust will also offer $209 million of unrated notes.
Blackstone’s office portfolio consists of nine properties in six markets, which total 1,840,953 square feet. The portfolio was acquired in December 2011 through a deed in lieu of foreclosure on a $225 million junior mezzanine loan, according to Morningstar. The junior mezzanine loan was part of a 2007 financing which included a securitized first mortgage loan and a senior mezzanine loan.
Since 2011, Blackstone has invested $26.7 million in the properties for tenant improvement, leasing commissions and capital improvements and has a total cost basis of $445.0 million in the portfolio.