Deutsche Bank is preparing a $750 million single loan commercial mortgage-backed securitization, according to a presale report published by Kroll Bond Rating Agency.

The loan has a 10-year term and a fixed-rate coupon of 3.62%.

The loan is secured by the fee interest on 277 Park Avenue, a 1.8 million square foot, 51-story office building located in Midtown, Manhattan, which is currently the largest business district in the US.  The property has maintained a 97.6% occupancy rate over the last six years and was 98.0% leased as of July 2014, which Kroll views as strength for the transaction.

However, the loan is interest-only, meaning that it will not deleverage over its 10-year term due to the absence of amortization. 

Proceeds from $750 million COMM 2014-277P will be used to retire $700 million of existing debt, pay $37.8 million of prepayment costs, fund reserves, and pay closing costs.

Kroll assigned a provisional ‘AAA’ rating to the $570 million class A notes with a final distribution date in August 2049.  The $84 million class B notes were provisionally rated ‘AA.’

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