Houston's Galleria Mall showed among the property securing a second commercial mortgage securitization in as many weeks.
The latest deal to include the Simon Property Group-owned mall is JP Morgan and Barclays’ JPMBB 2015-C28. In that deal the property secures the biggest loan in the pool. The $150 million loan makes up 13.1% of the pool and has a relatively low loan to value ratio of 63%, which lowers the overall in trust LTV to 100.7%, according to Kroll Bond Ratings. Morningstar has also assigned preliminary ratings to the transaction.
Last week Barclays priced a $1.05 billion large loan CMBS called Houston Galleria Mall Trust 2015-HGLR, backed by the Houston mall.
Six other loans in the JPMBB 2015-C28 pool are secured by mortgage properties that also secure one or more pari passu companion loans, not included in the trust.
The Club Row Building secures a $180.0 million loan and is represented by two senior pari passu A-Notes with an aggregate balance of $155.0 million and a subordinate B-Note with a balance of $25.0 million. The $110.0 million A-1 note was contributed to the JPMBB 2015-C27 transaction and the $45.0 million A-2 note will be contributed to this securitization.
The Shaner Hotels Portfolio , the 7th largest loan in the pool, has a balance of $77.1 million and is represented by two pari passu notes, a $35.0 million A-1 note that was contributed to the JPMBB 2015-C27 transaction and a $42.1 million A-2 note that will be contributed to this securitization.
Horizon Outlet Shoppes Portfolio, which secures the 12th largest loan of the pool, has a balance of $54.7 million and is represented by two pari passu A-Notes: a $28.0 million A-1 note that will be contributed to this securitization and a $26.7 million A-2 note that is expected to be contributed to a future CMBS transaction.
Renaissance New Orleans Portfolio , which secures the 15th largest loan in the pool, has a balance of $43.5 million and is represented by two pari passu A-Notes: an A-1 note with a balance of $23.9 million that will be contributed to this securitization and a $19.6 million A-2 note that is expected to be contributed to a future securitization.
In total the pool is comprised of 67 loans that have principal balances ranging from $1.6 million to $150.0 million, for a total trust balance of $1.1 billion.
Over the last few years, the trend in conduit CMBS transactions has been toward lower levels of principal amortization. In this transaction, nearly 36% of the loans provide for no principal amortization, while roughly 40% allow for interest-only payments for at least a portion of the loan terms. The loans included in the JPMBB 2015-C28 pool have an average life of 10-years; eight of the loans pay only interest for their full term and 26 pay only interest for portion of their terms.