Triple Five Group is offering up securities backed by a $1.4 billion commercial mortgage that is secured by the Mall of America, a 2.8-million-square-foot, super regional mall located in Bloomington, Minn, according to Standard & Poor’s.
Credit Suisse has been mandated to manage the deal.
Mall of America is the most visited tourist destination in the U.S. according to Travel + Leisure's most recent national survey, with approximately 42 million annual visitors.
The underlying loan backing CSMC Trust 2014-USA pays interest at a 4.38% fixed rate and was originated in August 2014 with an 11-year term, maturing in September 2025. For the first five and a half years the loan pays only interest on the principal balance.
The loan is highly levered, with loan-to-value ratio of 97.1%, according to the S&P presale report. However,the rating agency feels this is partly mitigated by the fact that Mall of America generates strong sales. According to the information provided by the issuer, in-line comparable sales increased approximately 8%, on average, each year since 2009; net cash flow has also increased each year during the same period, excepts for a 1% decrease in 2013 due to a $3.5 million real estate tax increase.
The securitization trust will offer $666 million of AAA’ rated class A notes, $136 million of AA-’ rated class B notes, $94 million of A-’ rated class C notes, $154 million of BBB-’ class D notes, $180 million of BB-’ rated class E notes and $168 million of B-’ class F notes.