Resource Capital plans to securitize a pool of 20 floating-rate mortgages secured by commercial, multifamily and hospitality properties totalling $346.2 million.
Deutsche Bank Securities is a co-manager on the deal, Resource Capital Corp 2015-CRE3, which DBRS describes as a commercial real estate collateralized loan obligation (CRE CLO).
The issuer, a publicly traded real estate investment trust, focuses on self-originated commercial real estate debt investments and has a market capitalization of $643 million as of January 30, 2015 with assets of $2.6 billion, according to DBRS's presale report.
The transaction will offer $193 million of 'A' notes rated triple-A by DBRS and Moody’s Investors Service. DBRS also plans to rate the subordinate notes as well, with scored ranging from AA’ to B’.
The pool is fully ramped up with the exception of one asset, which may not close prior to closing of the transaction, according to the presale report. This loan, 755 Sansome Street, represents 6.4% of the pool. If the loan does not close prior to the closing date, a deposit will be made to the unused proceeds account in an amount equal to the expected initial principal balance of the loan.
All loans in the pool are two- and three-year floating-rate loans, with one-year extension options out to fully extended terms of four to five years. Overall, the properties are well-located in larger markets. Only one loan, comprising 2.7% of the loan balance, is located in a tertiary market, and no loans are located in rural areas.
