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SF multifamily development leads $904M Barclays CMBS deal

Barclays’ next commercial mortgage-backed securitization includes a loan that sets the table for expanding one of the West Coast’s largest single-owner multifamily neighborhoods.

Barclays Commercial Mortgage Securities (BBCMS) Trust 2020-C6 is a $904 million, multiborrower transaction that includes a $65 million participation in a $1.775 billion debt refinancing package for Parkmerced, a 3,221-property owned by local developer Maximus Real Estate Partners.

The BBCMS 2020-C6 loan assignment is part of a $1.5 billion whole loan package that, along with $275 million in mezzanine debt, is being used by Maximus to refinance an existing loan — and according to published reports, free up the developer to proceed with a planned expansion of more than 2,000 new units in the high-rise Parkmerced development.

The new loan is backed by the revenue and fee interest in 3,156 of the 3,221 existing apartments in Parkmerced, a rent-controlled development consisting of eleven 13-story high-rise apartment buildings and townhomes located between San Francisco’s financial district and Silicon Valley regions.

The Parkmerced loan is the largest of the 45 loans pooled in BBCMS Mortgage Trust 2020-C6. The loans are backed by 118 properties in 32 states, with the largest concentration in New York (11 properties, 21.4% of the pool balance). The loans are split among retail properties (20.5% of the pool), office (20%), mixed-use (19%), multifamily (17.1%), lodging (12.1%), industrial (12.1%) and other property types (3.4%), according to a presale report from S&P Global Ratings.

S&P, along with Fitch Ratings and DBRS Morningstar, have each assigned preliminary triple-A ratings to six classes of senior term notes among the 13 tranches of P&I and interest-only notes being offered to investors. The capital stack also includes six classes of subordinate notes that will be held by the sponsor for regulatory risk-retention purposes.

The deal is being underwritten by Barclays Capital, SG Americas Securities, Bancroft Capital and Drexel Hamilton.

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