Cantor Fitzgerald last week filed a form S-3 with the Securities and Exchange Commission to issue CMBS under its CCRE Commercial Mortgage Securities trust.
Once issued, it will be the firm's third deal since it first began issuing CMBS transactions in April. The first transaction was a $634.5 million deal backed by 38 loans in 67 properties, which were originated by Cantor Commercial Real Estate, a real estate financing business formed by Cantor Fitzgerald and CIM Group in August 2010. The transaction was unique in that it is the first time in 10 years that a newcomer to the CMBS sector closed a deal that it originated, securitized and lead-managed.
"It was well received judging by the number of investors that participated and looking at the secondary market for it as well," said Cantor Fitzgerald's CEO Shawn Matthews, in a June interview with NMN affiliate Structured Finance News. "We're excited about the reception and about the next deal to come."
"The depth and breadth of the book was very deep," added Anthony Orso, CEO of CCRE. "We're very excited about it and we are certainly going to be in the market on a regular basis."
The firm came to market with its second CMBS, called CFCRE Commercial Mortgage Trust 2011-C2, in late November. In that deal, Cantor, Barclays Capital and Deutsche Bank Securities are co-lead bookrunning managers on the offering. Its capital structure comprises a Class A-1 worth $52.29 million; Class A-2 $341.4 million; Class A-3 $34.14 million and Class A-4 $114 million.
Cantor is the sole bookrunner with respect to roughly $95.93 million of the offered certificates while Barclays will be the sole bookrunner for the same amount of the certificates. Deutsche will act as sole bookrunning manager for around $350 million of the offered certificates.
"From a holistic standpoint we are trying to look at the middle market where we have the opportunity and take advantage of it aggressively," Matthews said. "Certainly as an investment bank we're targeting the middle market as our focal point. But that's not to say we are not doing other facets of the business, although we have built expertise there. We have a niche that we can capitalize on and we are going to aggressively go after."
