Presale Shows $390M Single-Asset CMBS Coming to Market

A $390 million large-loan commercial mortgage backed securities deal backed by a property on New York’s Fifth Avenue is coming to market with preliminary ratings from Kroll, according to a presale report.

The deal, CGRBS 2013-VNO5th, is backed by a single, nonrecourse first-lien mortgage secured by borrower’s fee interest, and carries preliminary investment grade ratings ranging from AAA(sf) to BBB-minus(sf) on seven classes of certificates.

The fee interest is in a 38,814-square-foot retail condominium and leasehold interest in 73,846 square feet of an office condominium located at 666 Fifth Ave.

The entire building at that address includes three condominium units: an office condominium, a single-tenant retail condominium and a multitenant retail condominium.

The building is 100% occupied by three international retailers—Uniqlo, Hollister and Swatch—each of which has a long term lease that extends beyond the 10-year loan term.

Citigroup Global Markets Realty Corp. and The Royal Bank of Scotland PLC co-originated the loan on Feb. 20.

The sponsor used proceeds from the mortgage loan, along with $317.8 million of cash equity, to acquire the property for $707.8 million or $6,283 per square foot from a joint venture among The Carlyle Group, Crown Acquisitions and The Kushner Cos. for $707.8 million or $6,283 per square foot.

Vornado Office Management LLC, an affiliate of the sponsor, owns and manages the collateral.

Wells Fargo Bank is the servicer and special servicer, and Citigroup Commercial Mortgage Securities Inc. is the depositor.