Citigroup and Cantor Fitzgerald have teamed up for a large-loan commercial mortgage securitization, according to Kroll Bond Rating Agency.
The deal, CGCCRE 2014-2, is backed by six mortgages with a combined balance of $512.5 million. With the exception of a $64 million loan backed by the Hotel Martha Washington, each of the loans has been split into a senior component that feeds into a pool totalling $346.2 million of interests one or more subordinated components totaling $101.8 million. Proceeds from the senior pooled components and the Hotel Martha Washington loan provide the sole source of cash flow for the pooled certificates and the non-pooled subordinate loan components provide cash flow to a loan-specific class of certificates.
The financing for the properties also includes $154.6 million of mezzanine debt that is held outside of the securitization trust.
The are secured by a total of six properties in four states, New York (34%), Utah (28.7%), Pennsylvania (27.5%) and Indiana (9.8%). By property type, the pool offers the most exposure to retail (50.2%), lodging (20.1%) mixed-use (19.9%), and offices (9.8%).
All of the loans pay only interest for their entire terms, with the principal due upon maturity.
Four loans representing 82.6% of the collateral were originated by Cantor Commercial Real Estate and the remaining two were originated by Citigroup Global Markets Realty Corp.
The capital structure consist of 20 classes of certificates, 17 of which receive principal and interest, two of which receive interest only, and one of which is entitled to residual interest. Kroll has only assigned ratings to the classes that receive cash flow from the pooled loan components; the senior-most class is rated 'AAA.'
