Barclays backs $905m conduit securitization

BBCMS 2022-C17 prepares to complete a $905 million CMBS conduit securitization. The transaction is secured by 53 loans and 119 commercial properties (primarily office and retail).

Of the 53 loans in the collateral pool of 119 properties, 11 are portfolio loans, accounting for 29.3% of the pool. According to Kroll Bond Rating Agency, these portfolio loans include four top 10 loans from Chase Street & Cardon, Hamilton Portfolio, A&R Hospitality Portfolio and Oatkiniton Industrial Portfolio. .

According to KBRA, loans backed by multiple properties, or portfolio loans, give each borrower an incentive to keep loan payments up to date if one or more properties underperform. According to KBRA, in the event of a foreclosure, the trust may mitigate the severity of the loss by realizing income from multiple properties to mitigate potential losses.

According to KBRA, certain loans in the deal are split loans governed by joint lender agreements and represent 38.6% of the pool.

According to Moody’s Investors Service, the six classes of bonds in the Class A Series will benefit from around 30% credit support.

KBRA plans to give A-1 a ‘AAA’ rating through AS Notes, the rating agency said.

Office (26.4%) and retail (29.8%) properties dominated the pool, with multifamily, lodging and industrial properties accounting for 10.3%, 14.3% and 12.3% of the deals respectively. Overall, single-tenant loans make up about 23% of the pool.

Lone pools appear to be focused on several things. The largest loan in the collateral pool accounts for approximately 5.2% of the pool, and the two largest loans account for 10.2%. The 15 largest loans in the pool make up the majority of the pool (56.2%) and the top 10 loans make up 42.3% of the pool balance.

Among the pool’s top 10 loans is a loan to Park West Village, which is 94.7% leased as of July 2022. It consists of three of his high-rise apartment complexes totaling 850 units in Manhattan’s Upper West Side neighborhood. Approximately 418 units are eligible for rent stabilization. At closing, the loan’s respective sponsors will use the $7.9 million refurbishment reserve to refurbish 325 units. During reconstruction, 55 units are combined with neighboring units to create 27 larger units.

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