Oaktree, a new CMBS issuer is planning to sell a deal called Oaktree Real Estate Investments/Sabal, Series 2012-LV1 worth $195 million, according to a Fitch Ratings presale..

The notes are secured by all of the issuers' assets, which indirectly comprise 615 performing and nonperforming real estate secured loans, 22 non-real estate secured loans, 49 unsecured loans, and 78 real-estate-owned properties bought at acquisition or via foreclosure, the Fitch presale stated.

The deal's collateral also comprises ownership interests in the SPVs holding the REO properties and the grantor trust certificate, which provides evidence of the holder’s beneficial interests in the loans. These also cover the rights under the loan documents, all accounts, and any and all proceeds and the rights to get payments, Fitch said. 

The collateral comprises most nonperforming loans, performing loans, and real estate owned (REO) that the sponsor bought at a considerable discount to the unpaid principal balance, according the Fitch presale report.

The underlying properties are commercial and multifamily property types (making up 90% of Fitch BCR) and residential and commercial land and single-family residences (10% of Fitch BCR).

Unique Structure

Fitch said that not like other traditional CMBS deals, all collections are aggregated and applied to one waterfall.

There will also be no proceeds that will be distributed to the equity holders until the notes have been paid in full and no principal and interest advancing requirements.

Liquidity is offered by two $6 million reserves that were funded at closing. These are also replenishable to fund shortfalls in interest and working capital payments.

Interest payments may be deffered up to 12 months and the asset manager must advance certain of the issuers' deal-level operating expenses and property protection payments.



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