Nearly Billion-Dollar CMBS on the Way

Mortgage & Real Estate









A new $913.5 million CMBS is in the market, according to a presale from DBRS.

The deal, called GS Mortgage Securities Trust 2015-GC28, is backed by 74 loans on a total of 112 properties.

Nearly a third of this pool consists of loans that are interest-only for their entire term.

There are six tranches with a 30% subordination, helping them earn AAA from DBRS. The largest senior tranche is for $224.6 million, the second largest for $180 million. The lowest rated tranche, for $15.99 million, is B (low).

The sponsors of the deal are Goldman Sachs Mortgage Co., Cantor Commercial Real Estate Lending, Starwood Mortgage Funding I, Citigroup Global Markets Realty Corp. and MC-Fine Mile Commercial Mortgage Finance.

The master servicer is Wells Fargo Bank.

DBRS said that the deal’s term default debt service coverage ratio — the cash flow available to cover debt payments — is 1.68x. What is more, 27 of the loans, or about 42.5% of the pool, have a term DSCR above 1.5x. These figures reflect a low risk of term default, according to the agency.

Risk factors for the transaction include the 22.3% portion of the loan pool that is leased either fully or primarily to a single tenant. DBRS pointed out that when loans on these kinds of properties default, they tend to have steeper losses.

In addition, nine of the loans, or 29.8% of the total, are full-term interest-only, meaning they don’t amortize at all. Another 31 loans are interest-only for periods ranging from a year to 60 months.

Office properties make up 34.4% of the loan pool, while retail properties account for 27.5%.

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