There is yet another commercial mortgage-backed security (CMBS) on the horizon: STORE Master Funding, a $270 million deal backed by 287 properties linked to a mix of industries.
Standard & Poor’s has rated a $252-million A tranche ‘A (sf).’ A B piece, for $18 million, is at ‘BBB (sf).’
Credit Suisse Securities is the sole bookrunner and structurer.
The collateralized receivables include rents related to the underlying properties, such as those due under triple-net leases and hybrid leases with the properties’ tenants. The rating on the A piece is based on credit enhancement from the subordinated B tranche; overcollateralization; and the cushion provided by a debt service coverage ratio estimated at 1.66x.
Based in Scottsdale, Arizona, STORE is a two-year old firm focused on investing in single-tenant real estate in a wide gamut of sectors, ranging from restaurants to furniture stores to daycare facilities. Its main equity investors are Oaktree Capital-managed funds.