Spirit, the Scottsdale, Ariz. triple-net lease REIT, is preparing a $330 million commercial net lease mortgage-backed securitization, according to a Standard & Poor’s presale report.

The deal, Spirit Master Funding VII LLC will issue two series of notes: 2013-1 and 2013-2. 

S&P has assigned preliminary ratings of ‘A+’ to both the 5-year, 2013-1, class A notes  and the 10-year, 2013-2 class B notes.

Morgan Stanley and Deutsche Bank are joint bookrunners on the deal.

The deal is backed by the fee titles to 239 commercial real estate properties and 79 properties securing four mortgage loans. The loans are secured by fee titles to commercial real estate properties.

The triple-net nature of the leases requires the tenants to pay all maintenance, taxes, and insurance on the properties. The properties are geographically diversified across 37 states.

Spirit primarily invested in, single-tenant, operationally essential real estate throughout the U.S. Single-tenant, operationally essential real estate consists of properties that are generally

freestanding, commercial real estate facilities where tenants conduct primarily retail, service, or distribution activities.  

The REIT invests in properties that are leased to small and middle market companies with attractive credit characteristics and stable operating histories.

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