CMBS Deal Pulled - Traders Quit

The GC4 deal was pulled today after S&P waffled and then pulled its ratings, but perhaps even more interesting is the fact that the head traders quit at both lead underwriters. Citigroup stated that the departure of Warren Geiger was in no way related to the GC4 transaction. Matthew Salem also left Goldman Sachs today.


So, sell all your CMBS - traders are giving up.

Comings and Goings

It really was busy the last couple of weeks with several new issues rolling out, and at least two (WFRBS 2011-C4, GSMS 2011-GC4) not being met with complete success.

WFRBS 2011-C4 ($1.4808b)
FREMF 2011-K014 ($1.12b - IOs and Bs offered)
City Center 2011-CCHP ($425mm)
GNR 2011-109 ($340mm)
WFDB 2011-BXR ($1b)
FNA 2011-M4 (501mm)
GSMS 2011-GC4 ($1.476b)

GG10s are roughly flat since a week ago, but they were 10 bps wider and 5-6 bps tighter intraweek. 


 
 

Calendar:

JP $425mm Hotel Floater

Per Bloomberg, JP is out with the first floater on the old Columbia Sussex portfolio that Blackstone bought.

It's Party Time!!! Pru and Perella Weinberg set up shop for CMBS

They're going to target $1b a year to start. I don't know who's left at Pru but they used to have a really great team of people - of course all of them may have left when they shuttered the storefront a few years ago.

Four Seasons Resort Maui ($425mm pari pasu note) extended FIVE years and split

The maturity was extended from 1/1/2014 until 1/1/2019 and locked out until 1/1/2018. Then they cleaved the loan into an A ($350mm) and B ($75mm - 17.65%) note and added $10mm to reserves from new equity and an LOC for $25mm that is triggered if they BK.

Originally this was split $175 in GECMC 2007-C1 @ $175mm and CD 2007-CD4 @ $250mm; overal it is probably a positive for AJs in those deals.

WFRBS 2011-C4 ($1.480mm)

CLASS        F/MDYs     SIZE($MM) WAL(YRS) C/E   CUM LTV NOI DY

A-1    AAA(sf)/Aaa(sf)    93.159   2.51  16.875%  49.3%  15.1%

A-2    AAA(sf)/Aaa(sf)   201.377   4.81  16.875%  49.3%  15.1%

A-3    AAA(sf)/Aaa(sf)    62.389   6.74  16.875%  49.3%  15.1%

A-FL   AAA(sf)/Aaa(sf)   100.000   9.68  16.875%  49.3%  15.1%

A-4    AAA(sf)/Aaa(sf)   671.432   9.84  16.875%  49.3%  15.1%

A-SB   AAA(sf)/Aaa(sf)   102.472   7.33  16.875%  49.3%  15.1%

B       AA(sf)/Aa2(sf)    42.570   9.93  14.000%  51.0%  14.6%

C       A+(sf)/A2(sf)     42.570   9.93  11.125%  52.7%  14.1% 

D       A-(sf)/Baa1(sf)   33.316   9.93   8.875%  54.1%  13.7%

E     BBB-(sf)/Baa3(sf)   51.824   9.93   5.375%  56.2%  13.2%

X-A    AAA(sf)/Aaa(sf) 1,230.829* 

X-B         NR/Aaa(sf)   249.868*

76 loans, 132 properties, 5.335% WAC, 108 WAM, 61.5% wavgLTV, 1.79x wavgDSCR,

LOAN SELLERS:  WFB (78.9%), RBS (14.3%), GE CAPITAL (6.8%)

Retail (42.6%), Office(13.3%), Hospitality (12.3%), Industrial (11.1%), Multifamily(8.0%)

CA (19.1%), WI (12.9%), NY (10.7%), TX (7.8%), FL (7.0%)

GSMS 2011-GC4 ($1.476b)

New issue fixed-rate from GS and Citi.

Class	MSTR/S&P	Size($mm)	WAL(yr)	CE%	Cum LTV	Debt Yield (UW NOI)
A1	AAA/AAA(sf)	85.249	2.42	14.5	53.70%	13.80%
A2	AAA/AAA(sf)	332.497	4.85	14.5	53.70%	13.80%
A3	AAA/AAA(sf)	90.651	7.38	14.5	53.70%	13.80%
A4	AAA/AAA(sf)	753.667	9.77	14.5	53.70%	13.80%
B	AA+/AA-(sf)	60.889	9.95	10.375	56.30%	13.20%
C	A/A-(sf)	62.734	9.95	6.125	59.00%	12.60%
D	BBB/BBB(sf)	35.058	9.95	3.75	60.40%	12.30%

71 loans, 131 properties, 5.4639% WAC, 104 WAM, 62.8% wavgLTV, 1.67x wavgDSCR, 12.6% have additional debt.

15.0% TX, 14.5% AZ, 11.8% CA, 9.4% NY, 8.3% VA

50.6% Retail, 16.5% Office, 16.1% Multifamily, 7.2% Hospitality, 3.7% Mixed Use, 1.9% Manufactured Housing, 1.9% Industrial, 1.4% Self Storage, 0.7% Ground Leased Land

Comings and Goings

I've got one of those funny feelings that this week might be exciting...


Calendar:

Ward Center - GCMC 2005-C1

CMA also noted today that HHC is looking to refinance the Ward Center, which was previously extended to January 2014.

2600 Michelson - CSMC 2007-C4

CMA reported today that 2600 Michelson was acquired for $70mmand the loan assumed, but modified into a $70mm A note with IO payments at 5.33% and a $25mm B note. The new sponsor put in $9.5mm to partially pay down the A note balance (by $3.5mm) and $6mm went to reserves. Any profits are split in some fashion to send equity back to the new sponsors and hyper-Am down the B note.

It also noted that KBS Real Estate Investment's $15mm mezz note on the property was worthless.

666 Fifth Avenue Workout

The WSJ reports and every dealer on the street reports that Kushner has worked out a deal on 666 Fifth Avenue. They're going to take a 9.5% haircut back as a B note, Vornado is going to be a partner (improving the ownership) and the coupon is going to be reduced.

Boo, for IOs and deep credit, but huge positive for seniors and mezz portions of the CMBS deals: GECMC 2007-C1, WBCMT 2007-C31, and WBCMT 2007-C33. All of which I own some of and two of which I've had heavy reverse inquiry on the last few days.

*So far, I haven't seen any precise information on what the new coupon is or whether the special has formally confirmed the deal.