The Shops at Crystals is making an appearance in a fourth commercial mortgage securitization.

A $35 million portion of a mortgage on the Las Vegas luxury shopping mecca is the sixth largest loan backing $1.04 billion of mortgage bonds on offer from Wells Fargo. Though the loan represents just 3.3% of the collateral pool, it is of higher credit quality, and helps to reduce overall leverage in the deal.

Large commercial mortgages, like the $550 million one financing the Shops at Crystals, are typically split into portions and securitized in several transactions. The biggest portion of the mortgage was securitized in a $300 million transaction completed in June. Other portions were bundled into pools of collateral for deals completed in July and August.  

Wells Fargo Commercial Mortgage Pass-Through Certificates, Series 2016-LC24 is also notable for being backed by 14 loans (6.2%of the pool) secured by multifamily co-ops. Thirteen of the co-ops in this transaction are located within the greater New York City metro area, with the remaining one in Washington, D.C. These properties also have very low leverage, helping to lower the overall leverage in the collateral pool.

Fitch Ratings calculates the pool’s weighted average loan-to-value (LTV) ratio at 103.9%, which compares favorably with an average of 106.5% for commercial mortgage securitization that it has rated year to date. However, excluding the Shops at Crytals loan and the co-op collateral, the deal’s LTV increases, to 110.3%.

Another notable feature of this deal is that the pool of loans used as collateral will pay down 12.9% at maturity. This level is higher than both the year to date average of 10.4% for deals rated by Fitch.

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