Another $2.4 billion of commercial mortgage bonds began marketing this week via two conduit deals.
Kroll Bond Rating Agency, Moody’s Investors Service and DBRS are all rating the $1.2 billion of CGCMT 2015-GC27 sponsored by Citigroup and Goldman Sachs. The deal is backed by 99 fixed-rate commercial mortgage loans secured by 116 properties.
On offer are six class of triple-A rated notes. The benchmark 10-year, super senior class A tranche is sized at $398.79 million. The senior class A notes are split-rated; Kroll and DBRS each assigned a preliminary AAA’ rating, but Moody’s plans to rate the notes one notch lower, at Aa1’.
Retail, office and multifamily properties make up over 50% of the pool. The loans have principal balances ranging from $1.2 million to $99.0 million for the largest loan in the pool, Kemper Lakes Business Center, a 1.1 million square foot, class-A office complex located in Long Grove, Illinois.
More than half of the loans pay only interest for all or part of their terms: the balance amortizing but have large balloon payment due at the end of their terms.
Deutsche Bank and Cantor Fitzgerald are marketing the $1.2 billion COMM 2015-LC19.
The notes are backed by 59 fixed-rate loans secured by 139 commercial, multifamily, and manufactured housing properties. Loans backed by retail properties make up 25.6% of the pool balance and multifamily-backed loans account for 10.8% of the pool balance.
Less than half of the loans in the pool (25) amortize throughout their terms; the remaining 34 pay only interest for part or all of their terms.
Moody’s, Fitch Ratings and Morningstar will rate the deal. The trust will sell $518 million of super senior, 10 year notes. The senior, class A-M notes have been assigned Aa1’/ AAA’/ AAA’/ ratings.
