Credit Suisse is marketing $767 million of bonds backed by 53 mortgage that are secured in turn by 199 commercial properties, according to ratings agency reports.
The loans backing Credit Suisse Commercial Mortgage Pass Through Certificates, Series 2016-C7 were underwritten by affiliate Column Financial (52.2%), Benefit Street Partners (40.4% of the pool) and Silverspeak Real Estate Finance (7.4%).
Wells Fargo Bank is the servicer and Rialto Capital Advisors is the special servicer.
Among the strengths of the deal, according to Moody's Investors Service, is the inclusion of two loans that, while not rated, have investment grade characteristics. These are backed by 9 West 57th Street (in Manhattan) and the GLP Industrial Portfolio B. They represent a combined $65.9 million pool contribution, or approximately 8.6% of the pool balance.
Among other strengths, the loans used as collateral amortize more than those backing several other deals that Moody’s has recently rated. Thirty-five loans representing 51.6% of the pool balance pay both interest and principal throughout their terms; another 25 loans (39.8% of the pool) pay only interest, and no principal, for part of their terms, while just two loans (8.6% of the pool) pay only interest for their entire terms.
Nevertheless, Moody's considers the deal to be highly leveraged; it calculates the debt service at 114.8%. This would be even higher, 120%, if not for the inclusion of two, high-quality properties that skew overall metrics lower.
In terms of leverage dispersion, approximately 7.7% of the pool balance has a MLTV between 100% and 110%, with 22.1% of the pool between 110% and 120%, 47.1% of the pool between 120% and 130%, 5.1% of the pool between 130% and 140%, 0.8% of the pool above between 140% and 150%, and no loans in the pool above 143.3%.
The pool also contains loans encumbered by additional debt not included as trust collateral — GLP Industrial Portfolio B (2.6% of the pool balance) and Peacock Run Apartments (1.4% of the pool balance).
