Bank of America Merrill Lynch priced an offering of bonds backed by the mortgage on the Intercontinental New York Times Square, a 36-story, 607-room full-service luxury hotel in New York City.
The deal, BAMLL Commercial Mortgage Securities Trust 2014-ICTS, priced its triple-A rated, two-year class A notes at 80 basis points over one month Libor, according to Interactive Data.
The deal is secured by a $188 million floating-rate loan that has an initial term of 25 months but allows for four one-year extensions. Morningstar rated the deal. The loan is secured by the Intercontinental New York Times Square, which is managed by an affiliate of InterContinental Hotels Group PLC.
By comparison, spreads on the two-year triple-A notes on the last large loan hotel CMBS, Deutsche Bank’s COMM 2014-KYO, priced at 90 basis points over the one month Libor on June 30. That deal is backed by a single, two-year loan that is secured by five full-service hotels located in Hawaii and California.
Large loan deals have picked up the pace in recent weeks. This week kicked off with $614 million of securities backed by large loans issued over three deals. The first half of 2014 saw 19 single-borrower transaction totaling $11.2 billion and 23 conduit deals totaling $25.8 billion, according to figures reported by Commercial Real Estate Direct.