The pipeline of new commercial mortgage backed securities issuance keeps growing with another $1.48 billion of on the way from the UBS Securities/Barclays Capital conduit, UBS-BB 2013 C-5.
Other deals in the pipeline include Morgan Stanley’s $193 million, single-borrower deal backed by a loan on a Los Angeles office property; a $1.3 billion Deutsche Bank/Cantor Fitzgerald conduit; and a $500 million Goldman-led single borrower deal. Once priced, analysts at Standard & Poor’s say, these deals wukk bring year-to-date issuance of CMBS to just under $15 billion.
The UBS/Barclays conduit received preliminary ratings from Fitch Ratings, Kroll Bonds Ratings and Moody’s Investors Service. KeyBanc Capital Markets, Citigroup Global Markets, Drexel Hamilton and Nomura Securities are co-managers on the deal.
The capital structure offers investors $929.02 million of triple-A rated class A notes with an average life of 2.61-years and pricing guidance between 1 basis points and 60 basis points; class A-2 notes with an average life of 4.94 years and price guidance at 60 basis points; and class A-4 with an averae life of 9.86 years and pricing guidance between 119 and 120 basis points. There are also class A-AB notes with an average life of 7.44 year and pricing guidance between 60 basis points and 117 basis points. The deal is expected to price at the end of this week.
The collateral for the transaction is comprised of 81 fixed-rate commercial mortgage loans. According to KBRA pre-sale report, the largest loan in the poll is secured by Santa Anita Mall located in Arcadia, California. The top five loans also include Valencia Town Center, a shopping mall in Valencia, California; Starwood Office Portfolio, Harborplace Waterfront shopping in Baltimore, Maryland; and 2301 South LaSalle in Chicago, Illinois.
Retail properties make up 44.1% of the pool; office properties make up 23.3% of the pool; Properties in the Hospitality industry account for 9.1% of the pool; multifamily properties make up 6% of the pool; and self-storage properties make up 5.9% of the pool.