Two more deals added a total of $1.7 billion to the pipeline for commercial mortgage backed securities Thursday.
Deutsche Bank affiliate German American Capital Corp. is in the market with a $1.1 billion conduit called GSMS 2014-GC18. It is collateralized by 74 fixed-rate commercial mortgage loans that are secured by 141 commercial properties. Kroll Bond Rating Agency has assigned ratings to the 17 classes of certificates offered under the structure.
The loans have principal balances ranging from $1.3 million to $111.0 million. The largest loan represents 10% of the pool is secured by The Shops at Canal Place, a 216,938 sf regional mall located in New Orleans, Louisiana.
Retail properties make up 40.5% of the pool; 16.1% of the pool is comprised of mixed-use properties.
Cantor Fitzgerald is also prepping $620 million securitization of a single 10-year, fixed-rate, interest-only loan that is backed by 82 office, retail and industrial properties.
Proceeds from the loan were used to recapitalize the portfolio as the sponsor, American Realty Capital Properties, purchased all of the collateral assets within the last 18 months using cash equity and existing unsecured credit facilities.
The deal, dubbed, DBCCRE 2014-ARCP, will issue a $345.4 million class of notes with a preliminary AAA’ rating from Fitch Ratings. These notes benefit from credit enhancement of 44.3%. Fitch did not rate the remainder of the deal.
In its presale report, Fitch cited the moderate leverage in the transaction and its diverse and granular pool of properties. The loan has a Fitch stressed debt servicing capital ratio of 1.05x and a loan to value ratio of 86.6%. The properties backing the deal have a total of 7.2 million square feet and are located in 30 states and Puerto Rico.
