Kroll Bond Rating Agency has assigned preliminary ratings to COMM 2013-CCRE7, a $930.2 million commercial mortgage-backed securities conduit deal.
The company assigned its top preliminary rating of AAA(sf) to 10 classes of the deal. It assigned lower investment grade ratings to other classes: AA-(sf), one class; A-sf, two classes; and BBB-(sf), two classes. It assigned speculative grade ratings to two other classes: BB(sf) and B(sf). One classes of the deal was not rated, according to Kroll.
Three mortgage loan sellers contributed the loans. The sellers and their respective contribution to the pool balance are as follows: Cantor Commercial Real Estate Lending (25 loans, 44.9%), German American Capital Corp. (22 loans, 44.4%) and KeyBank (10 loans, 9.3%).
Deutsche Mortgage & Asset Receiving Corp. is the depositor. The parties authorized set to act on behalf of the issuing entity are as follows: Wells Fargo Bank, trustee and certificate administrator; Midland Loan Services, master servicer; Situs Holdings, special servicer; and Park Bridge Lender Services, operating advisor.
Fifty-nine fixed rate commercial mortgages secured by 87 properties serve as collateral. The loans have principal balances ranging from $1.8 million to $130 million for the largest loan in the pool. The largest loan is secured by the fee simple interest in Moffett Towers Phase II (13.9%), a 676,598-square-foot office complex located in Sunnyvale, Calif. California has the largest state concentration in the pool at 36.2%. Office is the property type with the largest presence in the pool at 39.1%.
Three mortgage loan sellers contributed the loans. The sellers and their respective contribution to the pool balance are as follows: Cantor Commercial Real Estate Lending (25 loans, 44.9%), German American Capital Corp. (22 loans, 44.4%) and KeyBank (10 loans, 9.3%).
Almost half of the underlying collateral properties by pool balance (29 properties, 48.6%) are located in markets that KBRA considers primary. This is above the average primary market exposure of the last 10 conduits the company rated, which ranged from a low of 23% to a high of 61%, with an average of 45%.
“Much of the remaining collateral (38.2%) is in markets that KBRA considers secondary, and the balance (13.1%) is located in tertiary markets,” according to Kroll.
Other recent conduit deals seen in the market include
