UBS, Deutsche Bank and Cantor Fitzgerald are preparing nearly $1.29 billion of commercial mortgage bonds, according to a presale report published by Fitch Ratings.
The deal, COMM 2014-UBS4 Mortgage Trust, will be backed by a pool of 91 loans secured by 124 properties, the majority of them in New York, Texas, and California. A mix of property types will be offered, including office (31.5%), retail (18.7%), multifamily (18.4%), hotel (16.3%), and mixed use (11.2%).
Eight tranches of notes received AAA’ preliminary ratings from Fitch, including the $53.4 million class A-1 notes and the $143.25 million class A-2 notes, both benefiting from a credit enhancement of 30%. The $80.3 million class A-SB and $250 million class A-4 notes were also assigned AAA’ provisional status—also with a credit enhancement of 30%. All notes offered through the transaction have a final maturity of August 2047.
Full-term, interest-only loans make up 20.7% of the pool, and 39.0% of the pool is partial-term, interest-only.
Loan concentration in the deal is lower than recent transactions, with the top 10 loans representing only 47.1% compared with the first-half 2014 concentration’s 52.5%. The pool is scheduled to amoritize 12.1% prior to maturity.