Deutsche Bank and UBS priced $905.4 million of commercial mortgage bonds at wider spreads than the mst recently priced conduit, sponsored by Citigroup.
The latest deal, dubbed COMM 2014-UBS3, is collateralized by 49 fixed-rate commercial mortgage loans that are secured by 81 properties.
The super-senior, 10-year, triple-A notes priced at swaps plus 86 basis points. By comparison, two weeks earlier Citigroup priced the 10-year, super senior notes issued by the $902.3 million CGCMT 2014-GC2 at swaps plus 83 basis points.
Four mortgage loan sellers contributed all of the loans backing COMM 2014-UBS3: German American Capital Corporation (11 loans, 42.7%), UBSRES (13 loans, 32.0%), Natixis (17 loans, 19.1%), and KeyBank(8 loans, 6.2%), according to a Kroll Bonds Rating presale report.
The largest loan, backed by the Bronx Terminal Market, comprises 9.9% of the pool. The 912,333 square foot anchored retail center, located in the Bronx, New York, was co-originated by Cantor Commercial Real Estate Lending and German American Capital.
Along with Bronx Terminal Market, State Farm Portfolio (9.5%), Equitable Plaza (9.0%), Southfield Town Center (7.6%), and Sixty LES (5.9%), represent 41.9% of the initial pool balance
Three of these loans are structured with pari passu debt.
The Bronx Terminal Market loan has a balance of $380 million. Two notes totaling $105 million will be securitized in this transaction. Two notes totaling $140 million were securitized in the COMM 2014-CCRE17 deal. Another three notes, totaling $135 million will be added to a future securitization pool, according to the Morningstar presale report.
The State Farm loan has a balance of $383.5 million: $100 million is being contributed to COMM 2014-UBS3 and $283.5 million will be contributed to future transactions.
The Southfield Town Center whole loan has a balance of $142.0 million. An $80.0 million A-1 note is being contributed to COMM 2014-UBS3and a $62.0 million A-2 note will be contributed to a future securitization.