Deutsche Bank, Cantor Fitzgerland and UBS priced their $1.2 billion commercial mortgage securitization dubbed COMM 2014-UBS2 on Monday, according to a regulatory filing,
Kroll Bond Ratings Agency, DBRS and Moody’s Investors Service al assigned ratings to the deal, which is collateralized by 59 fixed-rate mortgage loans that in turn are secured by 95 properties.
Fifteen classes of notes were issued, eight of which were publicly placed, with ratings ranging from triple-A to single-A. The super senior, 10-year class A notes priced at swaps plus 92 basis points.
The double-A rated, 10-year class B notes priced at swaps plus 165 basis points.
The single-A rated, 10-year, class C notes priced at swaps plus 200 basis points, 20 basis points tighter than initial guidance according to Interactive Data.
The two largest loans, Google and Amazon Office Portfolio and One Kendall Square, have balances of $452.2 million and $203.0 million, respectively.
The loan sponsors are German American Capital, UBS Real Estate Securities, KeyBank National Association and Cantor Commercial Real Estate Lending. The underlying collateral properties are located in 24 different states with retail and office properties accounting for nearly 50% of the loan pool.
Also set to price this week is the Goldman Sachs led,$306.32 million single-loan CMBS transaction called GSMS 2014-NEW, which is backed 25 independent living facilities. Greenfield Partners’ $460.2 million deal, GP Portfolio Trust 2014-GPP, is also expected to price.
CMBS analysts at Bank of America Merrill Lynch said in a report published Monday that they expect about $17 billion of private label gross issuance in the first quarter of this year. "With broader market volatility subsiding, we expect private label CMBS issuance for 2014 will total around $105 billion,” the report stated.
That means that March would only have to see around $4.5 billion priced to reach BofAML's expected 1Q2014 volumes. Issuance in February totaled $5.9 billion, down from $6.6 billion is January, according Interactive Data.