Another first-time commercial real estate CDO issuer has come to the market, with a $416 million deal expected to close Nov. 10. JER Investors Trust Inc., a publicly traded REIT, primarily buys and originates commercial mortgage-backed securities and loans, mezzanine loans, mortgage loan B-notes and net leased real estate investments.
The company Chairman and CEO Joseph Robert said the company will use the CDO to provide match-fund assets and liabilities. The company will retain a portion of the triple-B minus rated notes, the non-investment grade notes and all of the preferred shares. The JRE CRE CDO 2005-1 will issue $276 million worth of triple-A through triple-B minus notes. The deal includes a $46 million ramp facility.