Greenfield Partners is shopping $460.2 million of commercial mortgage bonds, according to rating agency reports.
The deal, GP Portfolio Trust 2014-GPP, is backed by a single, floating rate loan that was co-originated by JPMorgan Chase Bank, National Association and German American Capital Corp. The loan has an initial two-year term with three one-year extension options. Proceeds from the mortgage loan, along with approximately $268.3 million of cash equity contributed by the loan sponsor, were used to acquire 94 office and industrial assets from Liberty Property Trust for an aggregate purchase price of $697.3 million.
The trust will issue seven classes of notes with preliminary ratings from Standard & Poor’s and Kroll Bond Rating Agency. The senior, $260 million class A is rated triple-A by both agencies.
S&P notes in its presale report that the loan backing the deal has “moderate” leverage of 78.3%. However the agency’s “long-term, sustainable value” of the portfolio is 17.1% below the appraiser's valuation.
Among other strengths, the loan lacks subordinate debt and the borrower is prohibited from incurring additional subordinate debt in the future.
Greenfield is a real estate firm focused on acquisition, development, asset management, and finance that has raised more than $4.0 billion across eight funds. The sponsor was established in 1997 by Eugene A. Gorab.