Deutsche Bank and Cantor Fitzgerald are marketing $1.1 billion of commercial mortgage bonds, according to Kroll Bond Rating Agency.
COMM 2015-CCRE26 is collateralized by 59 commercial mortgage loans secured by 98 properties. The underlying properties are located in 30 states, with four states, California, lllinois, New York and Georgia representing more than 10% of the pool balance.
The pool has exposure to all the major property types, led by offices (39.7%), retail (18.4%), and lodging (13.7%).
The loans have principal balances ranging from $2.7 million to $115.0 million for the largest loan in the pool, Prudential Plaza in Chicago. The top five loans, which also include 11 Madison Avenue (6.4%), Ashley Park (6.3%), Surf City Beach Cottages (4.8%), Devon Park Drive Corporate Campus (4.3%), represent 32.3% of the initial pool balance, while the top 10 loans represent 51.2%.
The loans were contributed by three mortgage loan sellers: German American Capital Corporation (20 loans, 52.0%), Cantor Commercial Real Estate Lending, L.P. (26 loans, 28.6%), and Jefferies LoanCore LLC (13 loans, 19.4%).
The overall pool has a weighted average in-trust loan-to-value ratio, as calculated by Kroll (KLTV), of 104.9%; that’s above the average of 103.0% for the 21 CMBS conduits rated by KBRA over the last six months, which ranged from 97.5% to 108.6%.
Furthermore, the pool’s weighted average KLTV is skewed by 11 Madison Avenue, 6.4%) which has investment grade characteristics. Excluding this loan, which has a KLTV of 51.3%, the pool’s weighted average in-trust KLTV is 108.6%.
Kroll has assigned ‘AAA’ rating to the super senior notes issued by the trust, which benefit from 30% credit enhancement, as well as to the senior notes with 25% credit enhancement.
