Another $550 million of commercial mortgages bonds secured by a single, large loan have joined the CMBS pipline.
The latest deal is backed by a New York City Housing Development Corp. building known as 'New York by Gehry,' a 76-story luxury multifamily complex located at 8 Spruce Street, according to Standard & Poor’s.
Famed architect Frank Gehry designed the building, which was build in 2011. The building's wavy, rumpled surface has not been to everyone's liking but the New York Times' critic Nicolai Ouroussoff gave it high marks in his review.
The securitization trust, NYCHDC 104-8SPR, will issue $276.9 million of class A notes rated AAA’/ AAA’ by S&P and Fitch Ratings. Fitch will not rate the rest of the capital structure.
S&P has assigned preliminary ratings of AA- to $64.9 million of class B notes, A+’ to $3.3 million of class C notes, A-’ to $45.7 million of class D notes and BBB-’ to $50.1 million of class E notes. The notes have a final maturity of November 2046 and pay only the interest for the first 10 years.
Proceeds from the transaction will be used to refinance approximately $539 million of existing taxable and tax-exempt debt issued by New York City Housing Development Corporation Multi-Family Revenue Bonds [Beekman Tower] 2008 series A, 2009 series A-1, 2009 series A-2, 2010 series A-1 and 2010 series A-2 and pay $15 million in closing costs, according to the Fitch presale report.
Barclays and Merrill Lynch, Pierce, Fenner & Smith are the lead underwriters on the deal.
The deal joins UBS and Citigroup's $335 million single loan CMBS, secured by 1500 Broadway, a 506,412-square foot, 33-story, Class A high-rise office/retail building in New York City’s Time Square.