The national headquarters building for Huntington National Bank in Columbus, Ohio, is among the 101 properties securing 60 commercial loans in an office-centric, $953.2 million securitization pieced together by Morgan Stanley, Bank of America Merrill Lynch and three other lenders.
The 37-story Huntington Center in Columbus, Ohio represents the largest commercial mortgage loan within the collateral for Morgan Stanley Bank of America Merrill Lynch Trust 2016-C31, with an $80 million portion of its new $140 million mortgage loan assigned to the MSBAM portfolio. More than 40% of the pool’s collateral is tied to office properties.
The MSBAM transaction includes 12 classes of notes led by six classes of super-senior Class A notes totaling $667.2 million and carrying 30% credit enhancement. They super-senior notes have received preliminary triple-A structured finance ratings from Kroll Bond Rating Agency and Fitch Ratings.
The notes also include a subordinate Class A-S structure with a 23.125% CE.
The new deal follows MSBAM’s previous transaction from September (2016-C30), an $889.2 million asset-backed deal rated by Moody’s Investors Service. The latest offering through the MSBAM trust puts a focus on additional diversity (the concentration of top 10 loans is reduced to 49.7% from 56.5% in 2016-C30) and lowers the risk to pari passu loans outside of the trust.
None of the loans included in 2016-C31 have mezzanine financing (compared to 8.7% in the prior deal) and only 7.6% of the pool are to loans that permit additional debt. That compared to 27% among September’s collateral pool.
Only five loans (representing 10.8% of the pool) are interest-only, non-amortizing loans, while 46.9% of the loans in the pool are partial interest only. The deal also more loans with above-average amortization metrics: 13.9% of the pool will pay down, above the year-to-date average of 10.3% of Fitch-rated CMBS transactions
The mortgages were sponsored, sold or originated by Bank of America, Morgan Stanley Mortgage Capital Holdings, UBS, KeyBank, and Starwood Mortgage Funding III.
Other large loans in the transaction include a $37.7 million slice of a $450million, 10-year mortgage for the International Square office complex in Washington, D.C. International Square, which has The Federal Reserve and The World Bank as prime tenants, has other shares of its mortgage previously apportioned to other CMBS transactions.
A familiar name to CMBS investors added to the deal is part of the loan backed by a Las Vegas strip shopping center, The Shops at Crystals. While comprising just the 20th-largest loan in the pool, the $15 million strip of its $382.7 million purchase loan signed last spring joins International Square as the only two investment-grade borrower credit-opinion loans assigned to MSBAM 2016-C31.
After Huntington, the largest loans in the pool include $45 million split across two notes backed by a 338,810-square foot Vintage Park shopping center in Houston (anchored by major regional grocery chain); and a $42.2 million piece of a $104 million refi loan taken out for three Simon Premium Outlets locations in Georgia, Massachusetts and South Carolina.
A majority of loans in the pool are being used to refinance debt, according to a presale report from Kroll.