Wells Fargo Commercial Mortgage Securities is offering $1.1 billion of securities backed by 99 commercial mortgage loans on 117 of mostly retail and lodging properties, according to Kroll Bond Rating.
Twenty-one classes of certificates will be issued from the WFCM 2014-LC18 conduit. The underlying loans have principal balances ranging from $850,000 to $84.8 million for the largest loan in the pool, which is secured by Hawaii Kai Towne Center, a 469,787 square foot, mixed-use retail, office, and self-storage complex located in Honolulu, Hawaii.
The top five loans also include the JW Marriott New Orleans, Nashville Hotel Portfolio, 2900 Fairview Park Drive, and Marriott Kansas City Country Club Plaza.
Most of the loans have 10-year terms; though four loans have five-year terms, and two loans have seven-year terms. Nearly one-half of the pool’s balance (58 loans, 46.9%) is comprised of loans with balloon payments at the end of their terms that nevertheless amortize througout their terms. The balance of the pool is comprised of loans that pay only interest either for part of their terms or their entire terms.
The pool of collateral is less highly leveragd than other CMBS conduits recently rated by the Kroll. According to the presale report the pool has a weighted average loan to value ratio of 97.1%, which is lower than the average of 100.9% for the 19 CMBS conduits the Kroll rated over the last six months.