Wells Fargo and the Royal Bank of Scotland are joint bookrunners on a $1.3 billion CMBS conduit transaction that is collateralized by 98 fixed rate commercial mortgage loans that are, in turn, secured by 142 properties.

The deal, WFRBS 2014-C20, will be rated by Kroll Bond Rating Agency (KBRA). KBRA expects to rate 19 classes of notes issued under the capital structure. The chart below outlines how the tranches are sized and their respective KBRA rating.

Deutsche Bank is co-manager on the deal. All of the loans came from seven mortgage loan sellers: Wells Fargo Bank (21 loans, 30.5%), RBS (9 loans, 26.3%), Rialto Mortgage Finance (24 loans, 25.5%), C-III Commercial Mortgage (14 loans, 6.4%), Liberty Island Group I (7 loans, 5.0%), NCB, FSB (11 loans, 3.6%) and Basis Real Estate Capital II (7 loans, 2.8%).

The loans have principal balances ranging from $827,847 to $130 million for the largest loan in the pool, which is secured by Woodbridge Center (10.4%), a 1.1-million-sf regional mall located in Woodbridge, New Jersey, according to KBRA's presale report.

The four property types that each account for over 15.0% or more of the pool are retail (33.2%), hospitality (18.7%), multifamily (15.3%), and office (15.0%). Bloomberg Data Center (7.0%), Worldgate Center (5.2%), Sugar Creek I & II (5.0%), and Rockwell – ARINC HQ (3.9%), represent 31.5% of the initial pool balance.  

KBRA highlighted in the presale report that the transaction has a higher single-tenant exposure than the last 18 conduits it rated. In total, 11 loans — 18% of the pool — are secured in whole or in part by single tenant buildings. “Properties with multiple tenants that rely on a diversified tenant roster for their income stream can present less credit risk than properties that derive all of their cash flow from a single lessee,” according to the presale.

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