Goldman Sachs plans to issue a $1.1 billion commercial mortgage backed securitization, GS Mortgage Securities Corporation Trust 2013-KYO.

Citigroup is co-manager on the deal and Fitch Ratings has assigned preliminary ratings of ‘AAA’ to the class-A notes issued under the capital structure.

The total debt package includes a $750.0 million mezzanine piece that is being sold separately.

The transaction is secured by six hotels, five of which are located in Hawaii (91.5% of the allocated loan amount) and one in San Francisco, according to a Fitch presale report.

Fitch said that the location of the assets makes the properties more susceptible to weather-related damage. The portfolio has insurance coverage for full-replacement costs of the properties and fixtures to address wind storm- and earthquake-related losses.

The loan sponsors are Kokusai Kogyo K.K., Kyo-ya Company, LLC, and funds managed by Cerberus Capital Management, L.P. and Cerberus Real Estate Capital Management, LLC. The portfolio is managed by Starwood Hotels and Resorts. Cerberus acquired a controlling stake in the portfolio through its 2004 acquisition of an interest in Kokusai Kogyo, which has owned interests in the portfolio since 1963.

 

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