Wells Fargo and the RBS Securities plan to issue a $1.1 billion CMBS conduit backed by a pool of 99 commercial mortgage loans secured by 133 properties.
The deal, WFRBS Commercial Mortgage Trust 2014-LC19, is rated by Fitch Ratings. The issuer has structured super-senior AAA’ classes at 30.000% credit enhancement. The subordinate AAA’ rated, class A-S notes are structured with 23.375% credit enhancement, slightly higher than the 22.375% credit enhancement on the subordinate triple-A notes issued by WFRBS 2014-LC14, a recent deal sponsored by the two banks.
Also on offer are BBB’ rated, class D notes; BB-’-rated, class C notes and B-’-rated class F notes.
The pool has leverage metrics that are slightly higher than recent Fitch-rated fixed-rate deals. The pools Fitch DSCR and LTV are 1.27x and 103.8%, respectively, compared with the 2013 averages of 1.29x and 101.6%, respectively. Eight loans, representing 3.3% of the total pool balance, are collateralized by co-op properties.
According to the presale report, the co-op loans have have an average Fitch DSCR and LTV of 4.30x and 26.8% respectively.
There is slightly less retail exposure in the latest deal when compared with the January transaction. However at 32.6% of the pool, retail still represents the biggest chunk of assets. Retail properties, represented 33.6%, of the WFRBS 2014-LC14 pool.
The pool has a 22.8% concentration of hotels, which is higher than the 2013 average of 14.7%. Self-storage properties make-up 9.8%o of the pool and the second largest loan in the pool, the Lifetime Fitness Portfolio which represents 7.2% of the assets, is secured by a portfolio of healthclubs in diverse locations.