Goldman Sachs and Citigroup are preparing a $1.2 billion commercial mortgage backed securities conduit, according to a presale report published by Kroll Bond Rating Agency.

The transaction, GSMS 2014-GC20, collateralized by 63 fixed-rate commercial mortgage loans that are secured by 127 properties located in 32 different states.

Three state exposures each representing more than 10.0% of the pool balance: Texas (23.3%), Florida (11.8%), and Ohio (10.6%).  Only one property type that represents more than 20.0% of the pool, which is retail (25.2%).

 The loans have principal balances ranging from $2.3 million to $118.0 million for the largest loan in the pool, Newcastle Senior Housing Portfolio (9.9%), a portfolio of 26 independent living facilities located across 14 states.

The trust will issue 19 classes of notes, including seven tranches with preliminary ‘AAA’ ratings that benefit from credit enhancement of 30%.

Kroll calculates the weighted average in-trust loan-to-value ratio of the collateral at 103.1%, which is above the average of the 17 CMBS conduits that it rated over the last six months.

Five mortgage loan sellers sold the loans to the trust: Goldman Sachs Mortgage Company, Citigroup Global Markets Realty Corp., MC-Five Mile Commercial Mortgage Finance LLC, Starwood Mortgage Funding and Redwood Commercial Mortgage Corporation.

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