Deutsche, Cantor Are Back with Another CMBS

Deutsche Bank and Cantor Fitzgerald are marketing $1.2 billion of bonds collateralized by 63 commercial mortgage loans, according to Kroll Bond Rating Agency.

The conduit, COMM 2013-CCRE12, includes five tranches of AAA-rated notes that benefit from credit enhancement of 30%.

The loans principal balances range from $3 million to $150 million for the largest loan in the pool. The top five loans represent nearly 40% of the initial pool balance, while the top 10 loans represent 56.5%.

The deals weighted average in-trust loan-to-value ratio is 101.5%, as Kroll defines it. This is above the average for the 18 CMBS conduits KBRA rated over the past six months, which is about 96%. LTVs for previously CMBS deals ranged from approximately 89% to 97%.

The current deals strengths include its geographic diversity. The underlying properties are located in 31 states, the District of Columbia and the U.S. Virgin Islands, and there are only two state exposures which represent more than 10% of the pool balance, Illinois (almost 15%) and Nevada (about 12%).

The transaction also has exposure to all of the major property type segments, though it has a sizeable retail (approximately 31%) and office (roughly 27%) exposure.

This is the second CMBS conduit from Deutsche and Cantor in less than a month; in early October, they priced an $813 million deal, COMM-CCRE11.

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