Midland, PNC Close $1.2B Joint Deal

Midland Loan Services Inc., Kansas City, Mo., has closed a $1.2 billion securitization of commercial mortgages, the first joint deal with its new parent company, PNC Bank Corp. Midland said the deal is important because "it is one of the first times an issuer has successfully combined loan origination, servicing, and subordinate CMBS investing under one roof."In the transaction, Commercial Mortgage Acceptance Corp. Series 1998-C1, Midland and PNC Bank pooled their loans, with Midland acting as depositor and PNC Capital Markets Inc. as selling agent. In addition, Anthracite Capital -- a real estate investment trust sponsored by BlackRock, an affiliate of the bank -- agreed to acquire the subordinate bonds. The securities were backed by 322 fixed-rate commercial and multifamily mortgages secured by properties in 39 states, with the highest concentrations in California, Pennsylvania, and New Jersey. Midland will be the master and special servicer on the transaction. Morgan Stanley Dean Witter was the lead underwriter.