Credit Suisse is marketing $1.2 billion of commercial mortgage backed securities in the issuer’s first conduit transaction backed entirely by loans it underwrote since the financial crisis.
Credit Suisse restarted CMBS issuance in 2014 with a single borrower, large loan transaction and in December the issuer partnered with Barclays and JP Morgan on the JPMBB Commercial Mortgage Securities Trust, 2014-C26.
The current transaction, CSAIL 2015-C1, pools 82 loans that are secured by 114 properties. Kroll Bond Rating Agency and Morningstar have assigned preliminary ratings to eight classes of notes to be sold from the trust.
The loans have on average 10-year terms; five of the loans pay only interest for the entire term, 40 loans pay only interest for some of the loan term and the rest pay interest and principal. The loans have a weighted average LTV as calculated by Kroll of 102.7%.
The top three property types represented in the pool are retail (25.6% of the pool), lodging (23.9%) and multifamily (23.1%).
Soho-Tribeca Grand Hotel Portfolio, a portfolio of two luxury hotels that contain a total of 554-keys located in New York City, is the largest loan in the pool. The top five loans also include 500 Fifth Avenue, a 59-story office building at the corner of 42nd Street in N.Y.C, which represents 8.2% of the pool, Courtyard Midtown East represents 7.1% of the pool, Westfield Trumbull, a mall in Fairfield County, Connecticut represents 6.4% of the pool, and Westfield Wheaton, a mall in Wheaton, Maryland represents 3.5% of the pool.
Column Financial, Inc., MC-Five Mile Commercial Mortgage Finance, The Bancorp Bank, and BSPCC Lender are the loan sponsors. The majority of the loans were used to refinance existing debt.
Credit Suisse completed its first post-crisis CMBS in February 2014. The bank was hired to lead manage the large loan transaction called CSMC Trust 2014-SURF, which is backed by a mortgage linked to the Shutters on the Beach and the Casa Del Mar in Santa Monica, California, according to Morningstar.
The bank was subsequently hired as lead manager on several single-asset, large loan CMBS last year, the largest of which was the $1.4 billion transaction backed by Mall of America, issued in September.