Wells Fargo is offering $1 billion of commercial mortgage bonds via the WFCM 2015-C27 conduit, according to a Kroll Bond Rating Agency presale report.
A total of 95 fixed-rate loans contributed by Wells Fargo Bank (29 loans, 37%), Rialto Mortgage Finance (20 loans, 27.9%), Principal Commercial Capital (9 loans, 14.6%), Liberty Island Group I (12 loans, 11.3%), C-III Commercial Mortgage (23 loans, 8.1%) and Basis Real Estate Capital II (2 loans, 1.2%) back the CMBS.
The loans are secured by 124 properties located in 30 states, with two states representing more than 10% of the pool balance: California (16.6%) and Florida (13%). The pool has exposure to all the major property types, with retail, lodging, office, self-storage and multifamily representing the top five.
The largest loan in the pool is a $62.5 million loan secured by Westfield Palm Desert, a 979,108-square-foot regional mall located in Palm Desert, Calif., approximately 80 miles northeast of San Diego. The loan represents 6% of the collateral pool.
Along with the Westfield Palm Desert loan, the top five loans include WPC Self Storage Portfolio VI (4.6%), 312 Elm (4.4%), Marriott Greensboro (4.2%) and Capital Penn Self-Storage Portfolio (3.6%).
Overall, the pool has a weighted loan-to-value ratio, as calculated by Kroll, of 104.1%, which is above the average of 101.8% for the 20 CMBS conduits it has rated over the last six months.
Three loans in the pool totaling 9.7% of assets that were originated with a split loan structure which means that the mortgaged properties securing these loans also secure a companion loan not included in the trust. They are Westfield Palm Desert (largest, 6%), Depot Park (13th largest, 2.1%) and Boca Hamptons Plaza Portfolio (19th largest, 1.7%) that were originated with a split loan structure which means that the mortgaged properties securing these loans.
One loan, Capital Penn Self-Storage Portfolio (5th largest, 3.6%), has existing subordinate debt in the form of mezzanine financing; and three loans totaling 3% of assets permit future subordinate debt in the form of mezzanine financing.
Most of the loans (95.4% of the pool) have 10-year terms and 69% of the loans pay only interest for part of all of their terms.