Investment bank UBS ($18.55 0.51%) will soon bring a $1.33 billion commercial mortgage-backed securitization to market, according to presale reports.
Much of the portfolio comes from New York properties (29.6%), including Manhattan’s Dream Hotel Downtown that’s worth 9% of the CMBS pool. Other loans include Chicago’s Civic Opera House and the Trinity Centre in Manhattan’s Financial District.
UBS worked on the deal for nearly two months.
The CMBS includes 73 commercial mortgages backed by 100 properties. Kroll Bond Ratings gave AAA ratings to seven of the 13 certificate classes, and BBB- or lower ratings to three. Fitch Ratings issued similar assessments, aside from one class it did not rate.
Four of the classes of a credit enhancement of 30%, with three others above 10%.
Fitch analysts, in its report released Thursday, cited above average collateral quality and loan diversity as reasons for its mostly positive ratings. Retail, office and lodging properties comprise the bulk of the CMBS, but none make up more than 30% of loans.
UBS originated the vast majority of the commercial mortgages at 81.4%, followed by Barclays PLC ($20.03 0.51%) at 10.3% and Archetype Mortgage Capital at 8.4%.
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