Four investment-grade quality loans – including one refinancing the tony Miami Design District luxury retail development – highlight a new $1 billion commercial mortgage securitization being placed by Bank of America.
BANK 2021-BNK33, the third CMBS offering on the conduit trust shelf of BofA Merrill Lynch Commercial Mortgage Inc., includes 68 loans for 143 commercial properties with a diverse mix of multifamily/co-op, office, retail, industrial and self-storage use.
No hotel loans are part of the collateral pool, according to presale reports from Fitch Ratings and Moody’s Investors Service.
Heading the list of largest loans is the $95 million portion of a total $500 million refinancing debt package taken out by the joint-venture owners and developers of the Miami Design District, a 497,094-square-foot outdoor luxury retail center five miles from Miami Beach and downtown Miami.
The 30-acre property, opened in 2014 and controlled by a partnership between local developer Dacra, L Catterton Real Estate and Brookfield Properties REIT Inc., is considered a Class A-quality property.
Representing the second-largest loan in the pool is another high-grade property collection: the $69.9 million Equus Industrial Portfolio loan secured by 33 industrial and flex buildings in 15 business parks in four Southeastern states. The Equus loan is part of a $387 million debt package helping to finance the $585.9 million acquisition of the properties by AIG Global Real Estate from Equus Capital Partners (which retains a small ownership stake).
Fitch’s report says the total debt-service coverage ratio of the collateral pool (1.65x) is slightly larger than the multiborrower CMBS averages in 2020 and 2021, while the loan-to-value ratio (95.1%) is lower.
All loans in the portfolio were contributed by Bank of America, Morgan Stanley Capital Holdings, Wells Fargo and National Cooperative Bank.
The note offering includes 14 classes of senior notes with preliminary triple-A ratings from Fitch and Moody’s.
