Citigroup plans to issue a $240 million of commercial mortgage backed securities backed by a single shopping mall, according to a presale report; the deal is called Citigroup Commercial Mortgage Trust 2013-SMP.
Kroll Bond Rating Agency assigned preliminary ratings to the deal. Seven classes of certificates will be issued, of which four classes are entitled to principal and interest, two classes receive interest only, and one class is a residual interest. KBRA assigned a ‘AAA’ to the class A notes; ‘AAA’ to class X-A and X-B notes; ‘AA-‘ to the class B notes; ‘A-‘ to the class C notes; and ‘BBB-‘ to the class D notes.
The collateral for the securitization is a single, non-recourse, first-lien mortgage loan backed by Santa Monica Place and the land underlying the Nordstrom’s anchor space. The property is a 519,593 square foot, three-level, open-air super-regional mall located in Santa Monica, California, according to the Kroll presale report.
The loan sponsor is the Macerich Company, a publically traded REIT based in Santa Monica. As of Jan. 24, the REIT had an interest in 62 regional and super regional shopping malls and nine community shopping centers throughout the U.S.
The Santa Monica Place mall is 94.5% occupied and sales were $723 per square foot for tenants with under 10,000 square feet, an increase of 6.6% over the December 2011 figure of $678 per square feet, according to the presale report. KBRA said that these sales are 60% higher than the average in-line sales for U.S. malls of $452 per sf reported.