The CMBS new-issue pipeline is still growing. This week adds a new $1.4 billion single-loan deal backed by the Ala Moana Center mall in Honolulu, Hawaii.
Kroll Bond Rating Agency will rate the Goldman Sachs deal that is structured with three triple-A rated tranches. The offering will also include a double-A minus class B piece, a single-A minus class C piece and a triple-B minus class D piece.
The new-issue space has lately been dominated by conduits. The latest to price was the $1.1 billion JPMorgan deal called JPMCC 2012-C6.
According to this week's Bank of America Merrill Lynch securitization weekly, there was good demand for the shorter-duration triple-A pieces, which included the 2.5- and 4.7-year tranches.These were oversubscribed and priced around 10 basis points tighter than initial talk at 40 basis points and 80 basis points over swaps, respectively.
However, the remainder of the structure priced at wider levels compared to where the prior conduit transaction priced.
The $1.3 billion UBS 2012-C1 offering was also launched last week, bringing conduit issuance volumes for 1H12 to roughly $15 billion, according to BofA Merrill.
"Due to insurance companies’ continued voracious bid for CRE loans, as the coupons or cap rates on many trophy assets becomes too low to meet a company’s yield requirements, it appears that these lenders are beginning to turn their attention to better-quality conduit-type collateral," the analysts wrote.
