Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 05 March 2007

Another Huge CMBS Deal Hits Market

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The latest, largest CMBS deal ever has been launched.

Wachovia Securities, which had been thought to be working on a deal approaching $8 billion, has unveiled Wachovia Bank Commercial Mortgage Trust, 2007-C30, and it weighs in at a whopping $7.9 billion, dwarfing the last two largest-ever deals: the $6.6 billion CD, 2007-CD4, which also just started being marketed, and the $6.58 billion Greenwich Capital Commercial Funding Corp., 2007-GG9, which priced at extremely tight levels on Feb. 21.

The market, however, has softened substantially since then because of turmoil in the asset-backed securities market.

The upcoming Wachovia deal includes a $2.3 billion class of AAA bonds backed by all the deal's collateral apartment loans. That class will be sold to Fannie Mae and/or Freddie Mac and would be the largest-ever multifamily carve-out. Outside of that class, the deal has $4.7 billion of AAA bonds, the equivalent of three or so conventionally sized CMBS deals.

The bulk of the deal's collateral was originated by Wachovia Bank. But Artesia Mortgage is providing $754.7 million of loans. That's more than a third of what it contributed to CMBS deals all of last year. Credit Suisse is also contributing a smattering of loans.

The deal's largest loan is a $1.5 billion piece of a $3 billion senior financing package on the Peter Cooper Village/Stuyvesant Town apartment complex in Manhattan. An $800 million companion piece was securitized through ML-CFC Commercial Mortgage Trust, 2007-5.

The loan has a 10-year term during which it pays only interest at a rate of 6.38 percent. The property also backs $1.4 billion of mezzanine debt, and another $300 million of mezzanine debt is permitted under the senior mortgage. A total of $890 million was provided to fund a variety of reserves. The apartment complex, which totals 11,232 units, was purchased last year by a venture between Tishman Speyer and BlackRock Realty for $5.4 billion.

Also in the deal's collateral pool is a $536 million piece of a $1.1 billion debt package on Five Times Square, a 1.1 million-square-foot office building in midtown Manhattan that was purchased late last year by AVR Realty Co. for $1.28 billion. It also includes a $387.5 million piece of a $775 million debt package on the State Street Building, a 1 million-square-foot office building at One Lincoln Street in Boston that was acquired in January for $889 million by Fortis Property Group and a group led by investor David Werner.

CWCapital has circled the deal's B-piece.

Comments? E-mail Orest Mandzy or call him at (267) 247-0112, Ext. 211.



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Additional Info

  • Syndicate to Realpoint: No
  • Subject: CMBS - non-deal specific (CMBS-G)
  • Deal Name: CD, 2007-CD4, ML-CFC Commercial Mortgage Trust, 2007-5
  • Company: Transcontinental Realty Investors Inc.
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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