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Tuesday, 16 July 2019

INITIAL PRICING: Morgan Stanley Capital I Trust, 2019-H7

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Class Amt
$mln
Sub
Level%
Avg
Life (yrs)
Rating
Fitch
Rating
Kroll
Rating
S&P
Pricing
%
Yield% Final
Pricing (bp)
Bnch
mark
A-1 19.20 30.00 2.83 AAA AAA AAA 99.998 2.306 +48 swaps
A-2 29.90 30.00 4.92 AAA AAA AAA 99.997 2.485 +65 swaps
A-SB 26.60 30.00 7.37 AAA AAA AAA 102.995 2.718 +79 swaps
A-3 205.00 30.00 9.80 AAA AAA AAA 100.997 2.892 +87 swaps
A-4 242.19 30.00 9.93 AAA AAA AAA 102.995 2.916 +89 swaps
A-S 62.56 21.625 9.97 AAA AAA AA- 102.999 3.178 +115 swaps
B 33.61 17.125 9.97 AA- AA NR 102.993 3.378 +135 swaps
C 34.55 12.50 9.97 A- A NR 102.993 3.778 +175 swaps
D 15.87 10.375 9.97 BBB BBB+ NR 87.589 4.578 +255 swaps
E-RR 22.41 7.375 9.97 BBB- BBB- NR       swaps
F-RR 17.74 5.00 9.97 BB- BB NR       Treas
G-RR 8.40 3.875 9.97 B- B+ NR       Treas
H-RR 28.95 0/00 9.97 NR NR NR       Treas
X-A 522.89* NA NA AAA AAA AAA 10.138 3.369 +135 Treas
X-B 130.72* NA NA A- AAA NR       Treas
X-D 15.87* NA NA BBB BBB+ NR       Treas

*Notional amount, interest only

Pricing Date: 15 July, 2019

Collateral balance: $746.99 million

Trepp/BBG Ticker: MSC 2019-H7

Bookrunner(s): Morgan Stanley (89.1 percent of deal balance), Cantor Fitzgerald & Co. (10.9 percent)

Lead Managers: Morgan Stanley, Cantor Fitzgerald & Co.

Co-managers: Williams Capital Group

B-Piece Buyer: Argentic Securities Holdings

Risk Retention Type: Horizontal

Vertical Size, Holder: NA

Horizontal Size, Holder: 10.37 percent of par value, Argentic Securities Holding

Master Servicer: Midland Loan Services

Special Servicer: LNR Partners

Certificate Administrator: Wells Fargo Bank

Trustee: Wells Fargo Bank

Operating Adviser: Pentalpha Surveillance

Asset Representations Reviewer: Pentalpha Surveillance

Originators: Argentic Real Estate Finance (41.7 percent of pool balance), Morgan Stanley (31.6 percent), Starwood Mortgage Capital (15.8 percent), Cantor Commercial Real Estate Lending (10.9 percent)

Number of Loans/Properties:  53/81

Top-10 Concentration: 48.5 percent

Property Types: Retail (33.1 percent of pool balance), hotels (19.6 percent), office (13.1 percent), multifamily (12.9 percent), industrial (11.8 percent), mixed use (9.1 percent), self storage (0.4 percent)

Underwritten DSCR: 2.01x

Underwritten LTV: 59.6 percent

Underwritten Debt Yield: 10.6 percent

Weighted Average Mortgage Rate: 4.4207 percent

Subordinate Debt: 6 loans (18.8 percent of pool balance)

Full-term IO Loans: 26 loans (58.6 percent of pool balance)

Partial-term IO Loans: 18 loans (17.6 percent of pool balance)

Largest loans:

  • $70 million piece of a $975 million loan, contributed by Morgan Stanley, against the Grand Canal Shoppes, a 759,891-square-foot retail/entertainment property at 3327 and 3377 Las Vegas Boulevard South in Las Vegas that is owned by a venture of Brookfield Properties REIT Inc., which assumed it through its purchase of GGP Inc., and Nuveen Real Estate. The It's 94 percent occupied and anchored by a Barneys New York, which is in 84,743 sf. But the retailer is slated to close in January. Meanwhile, the property had $1,154/sf of inline sales during the 12 months through the end of last February. Grand Canal Shoppes generated $71.5 million of cash flow last year. The property recently had $20.3 million of capital improvements and will undergo another $12 million upgrade in order to make way for a food hall that's slated for completion some time next year. Its existing food court generates $1,580/sf in annual sales, which is nearly 50 percent more than what the property's anchor stores do and 37 percent more than its inline stores. The senior mortgage requires only interest payments for its 10-year term and pays a coupon of 3.7408 percent. The $215 million of subordinate debt pays a rate of 6.25 percent.
  • $60 million piece of a $214.8 million loan, contributed by Argentic Real Estate Finance, against a portfolio of 14 retail properties with 1.5 million sf in Southern California owned by an affiliate of the Charles Co. of West Hollywood, Calif., which is led by Mark Gabay. The properties are anchored by tenants including Home Depot, Target, Marshalls, WalMart and Ross Dress for Less. They are 99 percent occupied and generated $20.1 million of net cash flow last year. The mortgage requires only interest payments for its 10-year term and pays a coupon of 4.059 percent.
  • $45 million piece of an $83.5 million loan, contributed by Argentic, against the 321-room Embassy Suites at Centennial Olympic Park at 267 Marietta St. near the Centennial Olympic Park in Atlanta that's owned by an affiliate of Legacy Ventures of Atlanta. The property operated at an 84.2 percent occupancy rate during the 12 months through last April and generated $205.88 in...




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Additional Info

  • Subject: CMBS Pricing (PRICE)
  • Deal Name: Morgan Stanley Capital I Inc., 2019-H7
  • Private: Yes
  • bloombergDealName: MSC 2019-H7
Read 285 times Last modified on Monday, 22 July 2019

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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