Deutsche Bank, Cantor Fitzgerland and UBS have teamed up for a $1.2 billion commercial mortgage securitization.
Kroll Bond Ratings Agency is rating the deal, COMM 2014-UBS2, which is collateralized by 59 fixed-rate mortgage loans that are secured by 95 properties.
The loans have principal balances ranging from $2.9 million to $120.0 million. 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.
KBRA assigned preliminary ratings ranging from AAA’ to B’ to 15 classes of notes to be issued under the transaction structure.
The underlying collateral properties are located in 24 different states with retail and office properties accounting for nearly 50% of the loan pool.
KBRA calculcates the weighted average loan to value ratio of the pool at 102.5%, which is higher than any of the last 14 CMBS conduits it rated over the past six months. “These transactions had in-trust KLTVs [Kroll-adjusted loan-to-value raios] ranging from 90.8% to 101.9%, with an average of 96.8%,” according to the presale.
The pool’s exposure to high leverage loans with KLTVs in excess of 100% (69.6%) is also higher than any of the last 14 conduits rated by KBRA over the past six months, which ranged from 37.2% to 69.5% with an average of 45.6%.