Priya Patel
Key points:
- CMBS deal worth $721.3 million, backed by a portfolio of commercial mortgages on mostly multifamily properties, is set to be issued by BBCMS.
- The deal will be securitized into seventeen tranches and is expected to close by December 7, 2023.
- All loans in the pool are full-term, interest-only, and 11% of the pool carries existing additional debt.
- The in-trust appraisal loan-to-value ratio is 54.5%, while the pooled trust basis has an LTV ratio of 81.5%.
- The deal includes 33 properties, with 34% being multifamily properties.
- S&P Global Ratings considers the geographic diversity of the pool, with New York accounting for 33.6% of the pool, followed by Pennsylvania at 24.0% and Texas at 17.3%.
- The properties are located in primary, secondary, and tertiary markets.
- The deal will be rated by S&P as ‘AAA’ for classes A2 through XA and ‘AA-‘ for AS notes, while KBRA will rate them ‘AAA’ for A2 through AS notes and assign ratings of ‘BBB’ through ‘B’ for classes E through H.
- KBRA will also assign interest-only certificate ratings ranging from ‘AAA’ to ‘B’.
BBCMS is set to issue a CMBS deal worth $721.3 million, backed by a portfolio of commercial mortgages on mostly multifamily properties. The deal is expected to close by December 7, 2023, and will be securitized into seventeen tranches. All loans in the pool are full-term, interest-only, with 11% carrying existing additional debt. The appraisal loan-to-value ratio is 54.5% on an in-trust basis and 81.5% on a pooled trust basis, which S&P Global Ratings considers moderate. The deal includes 33 properties, with 34% being multifamily properties. Geographic diversity is seen as a strength, with New York accounting for the largest concentration at 33.6%, followed by Pennsylvania at 24.0% and Texas at 17.3%. The properties are located in primary, secondary, and tertiary markets. S&P will assign ratings of ‘AAA’ and ‘AA-‘ to various classes, while KBRA will assign ratings ranging from ‘AAA’ to ‘B’.
