The U.S. CMBS pipeline is seeing some activity this week including a securitization from Morgan Stanley and Bank of America.
The two banks are planning to sell a $1.2 billion CMBS under their Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5.
The deal, which is rated by Moody's Investors Service and Fitch Ratings, will be backed by seventy-two fixed-rate mortgage loans secured by first liens on ninety-eight multifamily and commercial properties, according to a Securities and Exchange Commission (SEC) filing on the offering. To view the full SEC filing, please click here.
As of July 1, the balances of the mortgage loans in the pool ranged from roughly $1.74 million to about $180 million and they mortgages had a rough average balance of $18.8 million.
Fitch has also released a presale on the JPMCC Mortgage Securities Trust 2012-HSBC or JPMCC 2012-HSBC transaction. The $300 million deal is backed by the beneficial interests in the mortgage loan securing the HSBC Tower property located in New York City. The loan's proceeds were used to pay down existing debt, fund reserve accounts, pay closing costs, and return equity to the sponsor, according to the rating agency.
Fitch said that the deal is secured by a single property and it is thus more vulnerable to single-event risk related to the market, sponsor, or the largest tenants on the property. The agency noted that HSBC occupies 63.4% of the space and the bank's lease expires with the loan term.
Other transactions in the market are a CMBS conduit from Wells Fargo and Royal Bank of Scotland that might be announced this week and a $1 billion multifamily transaction from Freddie Mac, according to Bloomberg.
In year-to-date 2012, there have been 22 public and private CMBS deals combined totaling more than $16 billion, according to the ASR Scorecards database. ASR's numbers do not include agency transactions.