Kroll Bond Rating Agency has released a presale report on a $1.4 billion commercial mortgage-backed securities deal called COMM 2013-CCRE8, a transaction in which some large split loans are or will be shared with other securitizations.
According to Kroll, the conduit transaction is collateralized by 59 commercial mortgage loans that are secured by 94 properties. The loans have $2.2 million-$209 million principal balances.
Kroll assigned preliminary ratings ranging from its top rating of AAA(sf) to a speculative grade B(sf) to 14 classes of the transaction. Two classes were not rated. Eight classes received AAA(sf) ratings and six of these had 30% credit enhancement levels.
The mortgaged properties are in 25 different states and the District of Columbia, with New York (26.6%) and California (25.9%) the only states that represent more than 10% of the pool balance. The pool has exposure to all the major property types, with office (37.4%) being the only exposure that exceeds 20%.
The largest loan in the collateral pool is secured by 375 Park Ave. an 830,928 square-foot, Class A office tower located in New York. It represents a little over 15% of the pool.
Loans on 375 Park Ave., Moffett Towers Phase II (representing 8.3% of the pool) and The Paramount Building (representing 4% of the pool) were originated with split-loan structures whereby the mortgaged property securing the loans also secures a pari passu companion loan.
The loan on 375 Park Ave. is the senior component of a larger $782.8 million mortgage loan that was split into senior and subordinate components. The remaining $364.8 million subordinate component contributed to
Also in the case of Moffett Towers II, the related $130 million companion note was previously contributed to the
German American Capital Corp. contributed 16 loans representing 56.7% of the pool, Cantor Commercial Real Estate Lending LP contributed 32 loans representing 35.2% of the pool, and Natixis Real Estate Capital LLC contributed 11 loans representing 8.2% of the pool.
The loan sellers will sell the mortgage loans to the depositor, Deutsche Mortgage & Asset Receiving Corp.
Following the issuance of the certificates, the parties authorized to act on behalf of the issuing entity are as follows: U.S. Bank NA as trustee, Midland Loan Services as master servicer and special servicer, Deutsche Bank Trust Co. Americas as certificate administrator, and Park Bridge Lender Services LLC as operating advisor.
