Goldman Sachs priced its $300 million CMBS deal backed by Bridgewater Commons, a three-story, 992,561 square foot super-regional mall and adjacent lifestyle center located in Bridgewater, New Jersey.
One market source familiar with the deal said that pricing was 10 basis points to 20 basis points tighter than initial guidance. The class A notes priced at 100 basis points over benchmark swap rates, the B notes priced at 130 basis points, the class C notes priced at 170 basis points and the class D notes priced at 215 basis points.
Malls have featured prominently in the single asset CMBS pipeline this year. CMBS market analysts said that these properties are often dominant malls that have relatively high sales. Malls sales per square foot determine if they are productive place for retailers to locate. The Bridgewater Commons deal has sales of $782 per square foot deal and is located near counties with the highest disposable income in the U.S., according to Kroll Bond Ratings Agency.
Proceeds from the deal will be used to refinance existing debt totaling $124.4 million, pay $1.1 million in closing costs, and return $174.5 million of equity to the sponsors.