The pace of new issue CMBS deals maintained momentum with the addition of two new deals on Thursday.
JPMorgan Chase announced its $1.14 billion CMBS conduit transaction called Commercial Mortgage Securities Trust 2012-C8. The deal is collateralized by 43 commercial mortgage loans secured by 84 properties.
The top five loans represent 39.1% of the initial pool balance. This portion includes National Industrial Portfolio (8.1%), 5th & Yesler (7.4%), Gallery at Harborplace (7.2%) and the Ashford Office Complex (5.4%).
Meanwhile, the top 10 loan exposures represent 58.5%. Unless otherwise indicated, all percentages are based on the aggregate cut-off date balance.
Standard & Poor's and Kroll Bond Ratings Service will assign preliminary ratings to the class A-1, A-2, A-3, A-SB, X-A, A-S, B, C, EC, D, E, F, and G notes.
S&P and Kroll will also rate the Morgan Stanley and Bank of America large loan securitization called MSBAM Commercial Mortgage Securities Trust. The $406 million CMBS is backed by retail assets and the accompanying leases, rents, and other income.
The loans are each secured by a super-regional mall. The larger of the two loans was originated by BofA on Sept. 5. The loan has a balance of $216 million and is secured by the borrower’s fee simple interest in 631,537 square feet of the Clackamas Town Center. The other loan that serves as trust collateral was originated by Morgan Stanley Mortgage Capital Holdings LLC on Aug. 31.
The loan has an original balance of $190 million and is secured by the borrower’s fee and leasehold interests in 1.2 million square feet of the Sunvalley Shopping Center. Each of the loans has a 10-year term.
The Clackamas Town Center loan is interest-only and requires monthly interest payments calculated using an annualized rate of 4.177%. The Sunvalley Shopping Center loan amortizes on a 30-year schedule and requires monthly payments of principal and interest, which is calculated using an annualized rate of 4.440%.
General Growth Properties also plans to offer investors an extra tranche of triple-A rated CMBS bonds.
The issuer has engaged Kroll to rate the $79 million class X-B tranche that has been assigned a preliminary 'AAA' rating. The rating agency on Sept. 10 announced that it would rate the $259 million CMBS large-loan transaction named COMM 2012-LTRT.
The rating agency gave the class A-1, A-2 and X-A notes a 'AAA' rating. The class B notes are rated 'AA'; the class C notes are rated 'A'; the class D notes are rated 'BBB+' and the class E notes are rated 'BBB-'
Standard & Poor's analysts in a midday note today characterized the current rising CMBS issuance as a modest credit negative since some underwriting characteristics are beginning to show deterioration.
They reported that last week’s $2.6 billion in CMBS issuance brought the sector's year-to-date total to $29.3 billion. S&P analysts expect a full-year total of just over $40 billion.