Cantor Commercial Real Estate (CCRE) is in the market with its very first CMBS worth a little more than $634.5 million.
The transaction, which is called CFCRE Commercial Mortgage Trust 2011-C1 (CFCRE 2011-C1) certificates, is collateralized by the beneficial interests in a pool of 38 commercial mortgages backed by 67 properties, according to a Fitch Ratings presale report. The certificates has a sequential-pay structure.
Since this is the firm's first CMBS, the rating agency reviewed a higher percentage of loans in the pool versus other recent transactions. Fitch said that it performed a limited-scope originator review of CCRE in March 2011. CCRE started forming a CMBS securitization team in 2009 and has put together "an experienced and knowledgeable staff," according to the rating agency.
The pool, according to Fitch, is not backed by any hotel properties. The deal also has less exposure to retail properties, comprising 27.2% of the pool compared with recent conduit transactions while multifamily properties represented 22% of the pool.
According to the rating firm, five of the deal's loans have indirect or direct exposure to the U.S. government. NGP portfolios I, II, and III, Heights at McArthur Park, and Columns at Independence have government tenants or rely heavily on the U.S. military.
The Santa Fe Retail Portfolio has several borrower-related tenants that account for 46.2% of the rent. Tribeca West has a high dependency on the entertainment industry and management’s ability to buy post-production business.
In general, Fitch applied higher capitalization rates (cap rates), refinance constants, or volatility scores to these assets.