Morgan Stanley and Bank of America Merrill Lynch are marketing $1.5 billion of commercial mortgage backed securities.

MSBAM 2013-C10 certificates represent the beneficial interests in a pool of 75 commercial mortgage loans secured by 87 properties. 

Morgan Stanley, Merrill Lynch, Pierce, Fenner & Smith, and CIBC World Markets Corp are the underwriters.

Midland Loan Services, a division of PNC Bank, will be the master servicer and special servicer on the deal.

The transaction is structured  with super senior A classes rated ‘AAA’ by Fitch Ratings and Kroll Bond Rating Agency that benefits from 30% credit enhancement, and a subordinate class A-S class also rated ‘AAA’, that benefits from 22.500% credit enhancement.

It also has a floating-rate ‘AAA’ rated A-3FL class; an ‘AA’ rated B class; an ‘A’ rated C class; an ‘A’ rated PST class; and privately-placed D, E, F, G, H, and J classes rated ‘BBB’, ‘BBB’, ‘BB’, ‘B’, and not rated, respectively.

The class A-S, class B, and class C certificates can be exchanged for the class PST certificates and the class PST certificates can be exchanged for the class A-S, class B, and class C certificates. The initial certificate balance of the class PST certificates is equal to the aggregate of the initial certificate balances of the class A-S, class B, and class C certificates and thus the maximum amount that could be issued in an exchange, according to Fitch in a presale report.

In its presale report, KBRA said all of the loans were originated by three mortgage loan sellers: Morgan Stanley Mortgage Capital Holdings (64.1%), Bank of America, NA (20.1%) and CIBC, Inc. (15.8%).

The properties in the collateral pool are located in 25 different states and the District of Columbia, with three states each representing more than 10.0% of the pool balance, Florida (13.9%), New York (12.1%) and California (11.4%).  There are three main types of properties in the pool: retail (43.3%), office (19.1%), and hospitality (16.6%), KBRA also noted in the report. 

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