Deutsche Bank has pooled 67 fixed-rate commercial mortgages, secured by 81 properties, in a $1.4 billion securitization called COMM 2015-DC1, according to a pre-sale report by Kroll Bond Rating Agency (KBRA).
The loans, contributed by Deutsche Bank’s German American Capital Corporation (19 loans, 47.7%), Natixis Real Estate Capital LLC (14 loans, 19.6%), Jefferies LoanCore LLC (16 loans, 16.5%) and UBS Real Estate Securities Inc. (18 loans, 16.2%), were used to refinance existing debt, property acquisitions and recapitalization. The loans have a weighted average life of 8.5 years.
KBRA assigned preliminary ratings to the deal throughout the capital structure. At the junior levels, the class B notes are 'BBB-' and structured with 7.9% credit enhancement; the class E notes are 'BB' with 5.7% enhancement; and the F notes are 'BB-' with 4.8% enhancement. The notes are due Feb. 2048.
The pool also has a sizable exposure to high leverage loans (39 loans, 64.3%) with a loan-to-value (LTV) ratio as gauged by KBRA above 100%. The overall pool has a weighted average in-trust LTV of 103.5%, above the average of the 19 CMBS conduits KBRA rated in the last six months. These transactions had in-trust LTVs ranging from 96.8% to 106.4%, with an average of 101.7%.
The properties in the collateral pool are located in 24 states and one U.S. territory, Puerto Rico (0.4%). Only one state exposure, New York (30.1%), represents more than 10.0% of the pool balance. The largest loan in the pool is a $121.8 million loan secured by Pinnacle Hills Promenade, a 1.2-million square-foot mall located in Rogers, Arkansas.