Goldman, Citi, Starwood Loans Back New $1.3B CMBS

Kroll Bond Rating Agency Thursday released a presale report on GSMS 2013-GC13, a $1.3 billion CMBS conduit deal backed by loans from Goldman Sachs, Citgroup and Starwood entities.

Kroll has assigned its top preliminary rating to eight classes and assigned ratings ranging from an investment grade AA (sf) to a speculative grade B-plus (sf) to six classes. There are three unrated classes.

Goldman Sachs Mortgage Co. (64.2%), Citigroup Global Markets Realty Corp. (24.7%) and Starwood Mortgage Funding I LLC (11.1%) sold loans into the deal, which is backed by 67 fixed-rate commercial mortgages secured by 98 properties.

Loan balances range from $2.2 million to $150 million with the largest loan secured by a Class A office building located in Midtown Manhattan at 11 W. 42^nd St. and the top five loans constitute 45.3% of the deal’s balance. New York properties represent 27.5% of the pool but overall it is secured by properties in 22 states. Property type exposures in excess of 10% are as follows: office (34.5%), retail (28.1%) and multifamily (16.4%).

Both the largest loan and another loan have split loan structures where the property also supports a pari passu companion loan. The A-1 note totaling $150 million on the largest property contributes to this deal and the related $150 million A-2 note is slated to be securitized in a future transaction. The other split loan has a $146.8 million A-1 note included in this transaction and a related $39.8 million loan slated to be securitized in a future deal.