Another securitization of a very large commercial loan is in the works. This one is the mortgage on a high rise office building located at 300 Park Avenue in Manhattan, just north of Grand Central Station.
The loan was originated by German American Capital Corp., a subsidiary of Deutsche Bank, and Deutsche Bank Securities is the bookrunner and lead manager of the securitization.
However, the sponsor of the deal is Prime Plus Investments, a private Maryland REIT affiliated with Tishman Speyer, the manager of the property.
As of July 2013, the property was 91.6% leased by 13 tenants. It serves as the global headquarters for Colgate-Palmolive, which leases 65.3% of the space through June 2023.
The securitization, COMM 2013-300P Mortgage Trust, consists of three classes of notes assigned preliminary ‘AAA’ ratings by Fitch Ratings: the $222 million class A1, the $75 million class A1P, and the $297 million class X-A, an interest-only class.
There are also $61 million of notes with preliminary 'AA' ratings, $42 million of notes rated 'A', $57 million of notes rated 'BBB' and $28 million of notes rated’ BB'.
In its presale report, Fitch cited the low amount of leverage in the trust. It said the “stressed” debt service coverage ratio the trust component of the debt is 1.32x, and the stressed loan to value is 67.2%. Additionally, Fitch said its analysis implies that the property could sustain a 70% decline in value from its current $1.0 billion appraised value and still repay the 'AAA' debt.