Goldman Sachs plans to issue $542.8 million of commercial mortgage backed securities that are backed by eight loans secured by 59 properties, according to Kroll Bond Rating Agency.
Two of the largest loans backing the deal, GSMS 2014-GSFL, are secured by hotel assets, JW Marriott (24.3%) and Yotel (18.9%). Two loans are secured by retail assets (28.4%), which include the Rite Aid Portfolio. The Rite Aid Portfolio is secured by the related borrower’s fee simple interest in 39 properties and leasehold interest in five properties.
Three loans are secured by office properties (21.9%). Industrial properties secure the one remaining loan is (6.6%).
The loans have a weighted average in trust loan-to-value of 85.0%.
The deal is also collateralized by $328.2 million of mezzanine debt and $5.0 million of preferred equity held outside the trust. This debt raises the pool’s weighted average all in KBRA loan-to-value to 134.0%. “Higher leverage implies lower borrower equity levels and higher default probability,” according to the presale report. “Should a default occur, however, the in-trust loans have priority in payment relative to any recovery proceeds.”
