Next CMBS Conduit is Heavy on Hotels, Offices

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The first conduit commercial mortgage securitization to hit the market in several weeks has significant exposure to offices and hotels.

The $900 million CD 2017-CD4 Mortgage Trust is backed by 47 loans on 53 properties contributed by thee loan sellers, German American Capital Corp., Citigroup Global Markets Realty Corp., and Citi Real Estate Funding, according to Fitch Ratings.

The pool has lower leverage than recent Fitch-rated multiborrower transactions. The pool’s Fitch DSCR and LTV for the trust are 1.22x and 102.4%, respectively, compared with the YTD 2017 average DSCR of 1.22x and LTV of 104.7% and the 2016 average DSCR of 1.21x and LTV of 105.2%.

Among Fitch’s other major credit considerations is the limited amortization: Ten loans representing 28.4% of the pool are full-term interest-only and 18 loans representing 44.5% of the pool are partial interest-only. The pool is scheduled to amortize by 9.9% of the initial pool balance prior to maturity.


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