Barclays Bank and UBS Real Estate Securities have underwritten a $835 million, single-borrower CMBS deal called BB-UBS Trust 2012-SHOW.
The securitization is backed by a single, non-recourse, first lien mortgage loan made by Barclays and UBS Real Estate Securities to a special purpose entity that is indirectly owned and controlled by GGP Limited Partnership, an affiliate of General Growth Properties (GGP).
Kroll Bond Rating Agency (KBRA) will rate the transaction structure which includes class A,B,C,D and E notes that have been assigned a preliminary rating of 'AAA', 'AA', 'A', 'BBB+', 'BBB-' respectively.
The loan is secured by the borrower’s fee simple interest in 836,006 sf of a 1.86 million sf super-regional mall known as Fashion Show Mall, which is located on the Las Vegas Strip in Nevada. The mall is currently undergoing a redevelopment and that space will serve as collateral for the loan, and will include a new 104,406 Macy’s Men’s anchor store, as well as 97,829 sf of in-line space, according to the Kroll presale report.
To mitigate completion risk, GGP funded a $25.5 million reserve, provided a completion guaranty, and signed a master lease.
Other current CMBS transactions are from Deutsche Bank and Cantor Fitzgerald, which are set to sell COMM 2012-CCRE4 conduit. NorthStar also has a $227.5 milllion transaction series 2012-1. The floating-rate CMBS is being done via Citigroup, according to Bloomberg.