Bank of America Merrill Lynch is marketing a $432.6 million of commercial mortgage bonds backed by four large, floating-rate loans securing the property types du jour: lodging and retail, according to Kroll Bond Rating.
Each of the four loans backing BAMLL 2014-FL1 is secured in turn by a single property. They are Lynnhaven Mall (54.3%), PGA National Resort & Spa (22.2%), Warner Center Marriott (11.9%) and Estancia La Jolla Hotel & Spa (11.6%).
All four properties collateralize three senior tranches of notes, which Kroll plans to rate 'AAA’, AA-' and A-’.
However the Estancia La Jolla Hotel & Spa and PGA National Resort loans also secure some junior tranches that are not rated by Kroll, and the Warner Center Marriott also secures additional, subordinated debt held outside the trust.
The Warner Center Marriott loan has a three-year term that can be extended by one year up to two times; each of the remaining loans has a two-year term that can be extended by a year up to three times. All of the loans pay only interest for their entire terms.