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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.

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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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