CMBS Gathers Speed, But Doubts Linger
Carl Gaines March 6, 2012, 12:35 p.m.
Another new CMBS deal is being issued on the heels of a recent Deutsche Bank offering. This one, Morgan Stanley Capital I Trust 2012-C4, totals $1.1 billion and is collateralized by 38 fixed rate commercial mortgage loans. Kroll Bond Rating Agency announced the assignment of preliminary ratings for the transaction.
The 77 properties securing the loans span the U.S. and Mexico, and include the Shoppes at Buckland Hills in Manchester, CT and, locally, 50 Central Park South and 9 MetroTech Center. The Shoppes at Buckland Hills represents the largest portion of the pool, at 11.8 percent, while 50 Central Park South and 9 MetroTech Center totaled 6.8 percent and 5.7 percent, respectively.
The bulk of the loans—15 percent—are on properties in New York State, with retail leading the pack of asset types at 42.3 percent.
Despite the latest issuances, Fitch Ratings, in its U.S. Structured Finance Snapshot for February 2012, predicts that the CMBS market’s performance this year will mirror last year’s. Kevin Duignan, head of U.S. Structured Finance at Fitch, writes that the ratings agency “expects volume to improve only modestly, to roughly $35 billion, with another $15 billion possibly coming via Freddie Mac.”