A $350 million commercial mortgage backed security (CMBS) secured by a building with the U.S. Postal Service as the main tenant is coming down the pipeline, according to a release by Standard & Poor’s.

The underlying loan is set to mature in 2021. The borrower of the loan is an indirectly majority-owned unit of Vornado Realty.

The Class A notes, rated ‘AAA (sf),’ are sized at $187 million and have a loan-to-value ratio of 45%. The loan backing the deal has an LTV of 84.2%, according to S&P’s valuation. The agency considers this a “moderate” degree of leverage.

Based on S&P’s net cash flow for the Class A notes, the debt yield is 14.3%. The deal is scheduled to close on June 23, 2014.

The property securing the mortgage loan is a roughly 1.3-million-square-foot office building in Midtown Manhattan. Built in 1968, the 32-story building has gone through about $52 million in capital expenditures since 2010.

Presently, the mortgage collateral is 99.8% leased and has historically had a high rate of occupancy. The US Postal Service takes up 36.7% — or 492,375 square feet — of the collateral’s net rentable area. The USPS has been there since the building opened its doors in 1968 and holds a lease that extends to 2038.

The originator is Ladder Capital Commercial Mortgage Securities. The master servicer is Wells Fargo Bank and the special servicer Rialto Capital Advisors

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