A CMBS with exposure to the historic Standard Oil building in lower Manhattan is in the market, according to a pre-sale by Kroll Bond Rating Agency.
COMM 2015-CCRE22 totals $1.3 billion and is backed by 59 commercial mortgages that are, in turn, secured by 74 properties.
The size of the underlying mortgages range from $1.9 million to $100 million for the largest loan, secured by the Standard Oil Building, located at 26 Broadway in N.Y's Bowling Green area. This iconic structure, a Class-B office building, stands 29 stories and contains 839,316 square feet, nearly all for office space. The largest tenant is New York City''s Department of Education. Originally built in 1885, the property was “virtually rebuilt” in 1921-28, according to Wikipedia.
Crowning the building is a pyramid modeled after the Mausoleum of Maussollos, a tomb built for a Persian ruler between 353 and 530 BC.
COMM 2015-CCRE22 has a number of tranches, ranging in ratings from B-’ to AAA.’ Some are unrated. All have a final maturity of March 2048.
The largest AAA’ rated tranche, for $200 million, is the A-4. All the AAA’ pieces have 30% credit enhancement, a cushion against losses. The exception is A-M, an $81-million piece with a CE of 23.75%.
For investors seeking more risk and, with it, potentially higher returns, COMM 2015-CCRE22 features a few below investment-grade tranches. Among them are the $27.6-million E piece, rated BB’ and the $24 million G piece, rated B-.’ The former has a CE of 6.125%, the latter 3%.
Some 43.8% of the properties in the deal’s pool are offices, and 25% are in retail. New York accounts for 28.2%.
Loans that pay on only interest through their entire terms make up 30% of the pool; partial IO loans are 41.2%.
The state of New York is home to buildings securing 28.2% of the loans in the pool by balance. The next largest is Texas, with 11.5%.
