FREE WRITING PROSPECTUS
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FILED PURSUANT TO RULE 433
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REGISTRATION FILE NO.: 333-193376-02
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February 26, 2014
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FREE WRITING PROSPECTUS
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STRUCTURAL AND COLLATERAL TERM SHEET
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$1,235,745,402
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(Approximate Total Mortgage Pool Balance)
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$1,073,553,000
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(Approximate Offered Certificates)
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COMM 2014-UBS2
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Deutsche Mortgage & Asset Receiving Corporation
Depositor
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German American Capital Corporation
UBS Real Estate Securities Inc.
KeyBank National Association
Cantor Commercial Real Estate Lending, L.P.
Sponsors and Mortgage Loan Sellers
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Deutsche Bank Securities
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UBS Securities LLC
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Joint Bookrunning Managers and Co-Lead Managers
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Cantor Fitzgerald & Co.
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Drexel Hamilton
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KeyBanc Capital Markets
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Co-Managers
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The depositor has filed a registration statement (including the prospectus) with the SEC (SEC File No. 333-193376) for the offering to which this communication relates. Before you invest, you should read the prospectus in the registration statement and other documents the depositor has filed with the SEC for more complete information about the depositor, the issuing trust and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the depositor or Deutsche Bank Securities Inc., any other underwriter, or any dealer participating in this offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-503-4611 or by email to the following address: prospectus.cpdg@db.com. The offered certificates referred to in these materials, and the asset pool backing them, are subject to modification or revision (including the possibility that one or more classes of certificates may be split, combined or eliminated at any time prior to issuance or availability of a final prospectus) and are offered on a “when, as and if issued” basis. You understand that, when you are considering the purchase of these certificates, a contract of sale will come into being no sooner than the date on which the relevant class has been priced and we have verified the allocation of certificates to be made to you; any “indications of interest” expressed by you, and any “soft circles” generated by us, will not create binding contractual obligations for you or us. | ||||
KEY FEATURES OF SECURITIZATION |
Key Features:
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Pooled Collateral Facts(1):
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|||||
Joint Bookrunners & Co-Lead
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Deutsche Bank Securities Inc.
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Initial Outstanding Pool Balance:
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$1,235,745,402
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|||
Managers:
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UBS Securities LLC
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Number of Mortgage Loans:
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59
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Co-Managers:
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Cantor Fitzgerald & Co.
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Number of Mortgaged Properties:
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95
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KeyBanc Capital Markets Inc.
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Average Mortgage Loan Cut-off Date Balance:
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$20,944,837
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Drexel Hamilton, LLC
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Average Mortgaged Property Cut-off Date Balance:
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$13,007,846
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Mortgage Loan Sellers:
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German American Capital Corporation* (“GACC”)
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Weighted Avg Mortgage Loan U/W NCF DSCR:
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1.48x
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(54.5%), UBS Real Estate Securities Inc.
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Range of Mortgage Loan U/W NCF DSCR:
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1.21x – 2.33x
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(“UBSRES”) (30.6%), KeyBank National Association
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Weighted Avg Mortgage Loan Cut-off Date LTV(2):
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66.5%
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(“KeyBank”) (8.0%), Cantor Commercial Real Estate
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Range of Mortgage Loan Cut-off Date LTV(2):
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43.1% – 75.0%
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Lending, L.P. (“CCRE”) (6.9%)
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Weighted Avg Mortgage Loan Maturity Date or ARD LTV(2):
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58.5%
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*An indirect wholly owned subsidiary of Deutsche Bank AG.
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Range of Mortgage Loan Maturity Date or ARD LTV(2):
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38.4% – 68.3%
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Master Servicer:
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KeyBank National Association
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Weighted Avg U/W NOI Debt Yield:
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10.1%
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Operating Advisor:
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Park Bridge Lender Services LLC
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Range of U/W NOI Debt Yield:
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7.8% – 18.0%
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Special Servicer:
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LNR Partners, LLC
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Weighted Avg Mortgage Loan
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Certificate Administrator:
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Deutsche Bank Trust Company Americas
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Original Term to Maturity (months)(3):
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114
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Trustee:
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U.S. Bank National Association
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Weighted Avg Mortgage Loan
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||||
Rating Agencies:
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Moody’s Investors Service, Inc., DBRS, Inc. and Kroll Bond Rating Agency, Inc.
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Remaining Term to Maturity (months)(3):
Weighted Avg Mortgage Loan Seasoning (months):
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112
1
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|||
Determination Date:
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The 6th day of each month, or if such 6th day is not a business day, the following business day, commencing in April 2014.
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% Mortgage Loans with Amortization for Full Term:
% Mortgage Loans with Partial Interest Only:
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36.4%
56.0%
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Distribution Date:
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4th business day following the Determination Date in each month, commencing in April 2014.
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% of Mortgage Loans with Full Interest Only(4):
% Mortgage Loans with Upfront or Ongoing Tax Reserves:
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7.6%
83.3%
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Cut-off Date:
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Payment Date in March 2014 (or related origination date, if later). Unless otherwise noted, all Mortgage Loan statistics are based on balances as of the Cut-off Date.
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% Mortgage Loans with Upfront or
Ongoing Replacement Reserves(5): % Mortgage Loans with Upfront or Ongoing Insurance Reserves:
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91.4%
38.7%
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Settlement Date:
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On or about March 18, 2014
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% Mortgage Loans with Upfront or Ongoing TI/LC Reserves(6):
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80.6%
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Settlement Terms:
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DTC, Euroclear and Clearstream, same day funds, with accrued interest.
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% Mortgage Loans with Upfront Engineering Reserves:
% Mortgage Loans with Upfront or Ongoing Other Reserves:
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38.7%
44.8%
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ERISA Eligible:
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All of the Offered Certificates are expected to be ERISA eligible.
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(1) | With respect to the Google and Amazon Office Portfolio Loan and the One Kendall Square Loan, LTV, DSCR and Debt Yield calculations include the related pari passu companion loans. | |||
SMMEA Eligible:
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None of the Offered Certificates will be SMMEA eligible.
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Day Count:
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30/360
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Tax Treatment:
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REMIC
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(2) | With respect to the Creekside Mixed Use Development loan and the Hampton Inn Rehoboth Beach loan, the Cut-off Date LTV and Maturity Date or ARD LTV have been calculated based on “As Stabilized” appraised values of $33.8 million and $14.6 million, respectively. The “As-is” Cut-off Date LTV and “As-is” Maturity Date or ARD LTV are 75.9% and 63.5%, respectively, for the Creekside Mixed Use Development loan and 77.5% and 58.6%, respectively, for the Hampton Inn Rehoboth Beach loan. With respect to the Arlington Farms Apartments loan, the Cut-off Date LTV and Maturity Date or ARD LTV have been calculated based on an “As Complete” appraised value of $6.76 million. The “As-is” Cut-off Date LTV and “As-is” Maturity Date or ARD LTV are 77.9% and 64.9%, respectively. | |||
Rated Final Distribution Date:
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March 2047
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Minimum Denominations:
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$10,000 (or $100,000 with respect to Class X-A) and in each case in multiples of $1 thereafter.
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Clean-up Call:
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1%
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(3) | For the ARD loan, the original term to maturity and remaining term to maturity are through the anticipated repayment date. | |||||
(4) | Interest only through the maturity or anticipated repayment date. | |||||
(5) | Includes FF&E Reserves. | |||||
(6) | Represents the percent of the allocated Initial Outstanding Pool Balance of retail, office, industrial and mixed use properties only. | |||||
Distribution of Collateral by Property Type |
SUMMARY OF THE CERTIFICATES
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Class(1)
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Ratings
(Moody’s/DBRS/KBRA)
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Initial Certificate
Balance or Notional Amount(2) |
Initial
Subordination
Levels
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Weighted
Average Life
(years)(3) |
Principal
Window (months)(3) |
Certificate
Principal to Value Ratio(4) |
Underwritten
NOI Debt Yield(5)
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Class A-1
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Aaa(sf) / AAA(sf) / AAA(sf)
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$50,034,000
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30.000%(6)
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2.86
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1 - 57
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46.5%
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14.4%
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Class A-2
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Aaa(sf) / AAA(sf) / AAA(sf)
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$110,593,000
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30.000%(6)
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4.87
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57 - 59
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46.5%
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14.4%
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Class A-3
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Aaa(sf) / AAA(sf) / AAA(sf)
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$18,667,000
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30.000%(6)
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6.93
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82 - 84
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46.5%
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14.4%
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Class A-SB
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Aaa(sf) / AAA(sf) / AAA(sf)
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$93,739,000
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30.000%(6)
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7.43
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59 - 117
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46.5%
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14.4%
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Class A-4
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Aaa(sf) / AAA(sf) / AAA(sf)
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$237,000,000
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30.000%(6)
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9.78
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117 - 118
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46.5%
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14.4%
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Class A-5
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Aaa(sf) / AAA(sf) / AAA(sf)
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$354,988,000
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30.000%(6)
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9.84
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118 - 119
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46.5%
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14.4%
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Class X-A(7)
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Aaa(sf) / AAA(sf) / AAA(sf)
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$934,532,000(8)
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N/A
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N/A
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N/A
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N/A
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N/A
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Class A-M(9)(10)
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Aaa(sf) / AAA(sf) / AAA(sf)
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$69,511,000
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24.375%
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9.89
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119 - 119
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50.3%
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13.4%
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Class B(9)(10)
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Aa3(sf) / AA(sf) / AA-(sf)
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$89,592,000
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17.125%
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9.89
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119 - 119
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55.1%
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12.2%
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Class PEZ(9)(10)
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A1(sf) / A(low)(sf) / A-(sf)
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$208,532,000
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13.125%(6)
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9.89
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119 - 119
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57.8%
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11.6%
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Class C(9)(10)
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A3(sf) / A(low)(sf) / A-(sf)
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$49,429,000
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13.125%(6)
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9.89
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119 - 119
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57.8%
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11.6%
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Class(1)
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Ratings
(Moody’s/DBRS/KBRA)
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Initial Certificate
Balance or Notional Amount(2)
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Initial
Subordination
Levels
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Weighted
Average
Life (years)(3) |
Principal
Window
(months)(3)
|
Certificate
Principal to Value Ratio(4) |
Underwritten
NOI Debt Yield(5)
|
Class X-B(7)
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NR / AAA(sf) / AAA(sf)
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$214,711,000(8)
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N/A
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N/A
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N/A
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N/A
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N/A
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Class D
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NR / BBB(low)(sf) / BBB-(sf)
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$75,690,000
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7.000%
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9.89
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119 - 119
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61.8%
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10.9%
|
Class E
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NR / BB(low)(sf) / BB-(sf)
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$27,804,000
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4.750%
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9.95
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119 - 120
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63.3%
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10.6%
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Class F
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NR / B(low)(sf) / B(sf)
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$20,081,000
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3.125%
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9.98
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120 - 120
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64.4%
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10.4%
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Class G
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NR / NR / NR
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$38,617,401
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0.000%
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9.98
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120 - 120
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66.5%
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10.1%
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(1)
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The pass–through rates applicable to the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4, Class A–5, Class A–M, Class B, Class C, Class D, Class E, Class F and Class G Certificates will equal one of: (i) a fixed per annum rate, (ii) the weighted average of the net mortgage rates on the mortgage loans (in each case, adjusted, if necessary, to accrue on the basis of a 360–day year consisting of twelve 30–day months) as of their respective due dates in the month preceding the month in which such distribution date occurs, (iii) a rate equal to the lesser of a specified pass–through rate and the weighted average of the net mortgage rates on the mortgage loans (in each case, adjusted, if necessary, to accrue on the basis of a 360–day year consisting of twelve 30–day months) as of their respective due dates in the month preceding the month in which such distribution date occurs, or (iv) the weighted average of the net mortgage rates on the mortgage loans (in each case, adjusted, if necessary, to accrue on the basis of a 360–day year consisting of twelve 30–day months) as of their respective due dates in the month preceding the month in which such distribution date occurs, less a specified rate. The Class PEZ Certificates will not have a pass-through rate, but will be entitled to receive the sum of the interest distributable on the percentage interest of the Class A–M, Class B and Class C trust components represented by the Class PEZ Certificates. The pass-through rate on the Class A–M, Class B and Class C trust components will at all times be the same as the pass-through rate of the Class A–M, Class B and Class C Certificates.
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(2)
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Approximate; subject to a permitted variance of plus or minus 5%.
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(3)
|
The weighted average life and principal window during which distributions of principal would be received as set forth in the table with respect to each class of certificates with a certificate balance is based on (i) modeling assumptions and prepayment assumptions described in the Free Writing Prospectus, (ii) assumptions that there are no prepayments or losses on the mortgage loans and (iii) assumptions that there are no extensions of maturity dates and that mortgage loans with anticipated repayment dates are repaid on their respective anticipated repayment dates.
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(4)
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“Certificate Principal to Value Ratio” for any class with a Certificate Balance is calculated as the product of (a) the weighted average mortgage loan Cut–off Date LTV of the mortgage pool, multiplied by (b) a fraction, the numerator of which is the total initial Certificate Balance of the related class of Certificates and all other classes, if any, that are senior to such class, and the denominator of which is the total initial Certificate Balance of all Certificates. The Certificate Principal to Value Ratios of the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4 and Class A–5 Certificates are calculated in the aggregate for those classes as if they were a single class.
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(5)
|
“Underwritten NOI Debt Yield” for any class with a Certificate Balance is calculated as the product of (a) the weighted average U/W NOI Debt Yield for the mortgage pool, multiplied by (b) a fraction, the numerator of which is the total initial Certificate Balance and the denominator of which is the total initial Certificate Balance of the related class of Certificates and all other classes, if any, that are senior to such class. The Underwritten NOI Debt Yields of the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4 and Class A–5 Certificates are calculated in the aggregate for those classes as if they were a single class.
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(6)
|
The initial subordination levels for the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4 and Class A–5 are represented in the aggregate. The initial subordination levels for the Class PEZ and Class C Certificates are equal to the initial subordination level of the underlying Class C trust component which will have an initial outstanding balance on the closing date of $49,429,000.
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(7)
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The pass–through rate applicable to the Class X–A and Class X–B Certificates for each Distribution Date will generally be equal to the excess of (i) the weighted average of the net mortgage rates on the mortgage loans (in each case, adjusted, if necessary to accrue on the basis of a 360 day year consisting of twelve 30–day months), over (ii)(A) with respect to the Class X–A Certificates, the weighted average of the pass–through rates of the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4, Class A–5 and Class A–M Certificates (based on their Certificate Balances and without regard to any exchange of Class A–M, Class B and Class C Certificates for Class PEZ Certificates), as further described in the Free Writing Prospectus and (B) with respect to the Class X–B Certificates, the weighted average of the pass–through rates of the Class B, Class C and Class D Certificates (based on their Certificate Balances and without regard to any exchange of Class A–M, Class B and Class C Certificates for Class PEZ Certificates), as further described in the Free Writing Prospectus.
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(8)
|
The Class X–A and Class X–B Certificates (the “Class X Certificates”) will not have Certificate Balances. None of the Class X–A and Class X–B Certificates are entitled to distributions of principal. The interest accrual amounts on the Class X–A Certificates will be calculated by reference to a notional amount equal to the sum of the total Certificate Balances of each of the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4, Class A–5 and Class A–M Certificates (without regard to any exchange of Class A–M, Class B, and Class C Certificates for Class PEZ Certificates). The interest accrual amounts on the Class X–B Certificates will be calculated by reference to a notional amount equal to the Certificate Balances of each the Class B, Class C and Class D Certificates (without regard to any exchange of Class A–M, Class B, and Class C Certificates for Class PEZ Certificates).
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(9)
|
Up to the full Certificate Balance of the Class A–M, Class B and Class C Certificates may be exchanged for Class PEZ Certificates, and Class PEZ Certificates may be exchanged for up to the full Certificate Balance of the Class A–M, Class B and Class C Certificates.
|
SUMMARY OF THE CERTIFICATES
|
(10)
|
On the closing date, the issuing entity will issue the Class A–M, Class B and Class C trust components, which will have outstanding principal balances on the closing date of $69,511,000, $89,592,000 and $49,429,000, respectively. The Class A–M, Class B, Class PEZ and Class C Certificates will, at all times, represent undivided beneficial ownership interests in a grantor trust that will hold such trust components. Each class of the Class A–M, Class B and Class C Certificates will, at all times, represent a beneficial interest in a percentage of the outstanding principal balance of the Class A–M, Class B and Class C trust components, respectively. The Class PEZ Certificates will, at all times, represent a beneficial interest in the remaining percentages of the outstanding principal balances of the Class A–M, Class B and Class C trust components. Following any exchange of Class A–M, Class B and Class C Certificates for Class PEZ Certificates or any exchange of Class PEZ Certificates for Class A–M, Class B and Class C Certificates as described in the Free Writing Prospectus, the percentage interest of the outstanding principal balances of the Class A–M, Class B and Class C trust component that is represented by the Class A–M, Class B, Class PEZ and Class C Certificates will be increased or decreased accordingly. The initial Certificate Balance of each of the Class A–M, Class B and Class C Certificates represents the Certificate Balance of such class without giving effect to any exchange. The initial Certificate Balance of the Class PEZ Certificates is equal to the aggregate of the initial Certificate Balance of the Class A–M, Class B and Class C Certificates and represents the maximum Certificate Balance of the Class PEZ Certificates that could be issued in an exchange. The Certificate Balances of the Class A–M, Class B and Class C Certificates to be issued on the closing date will be reduced, in required proportions, by an amount equal to the Certificate Balance of the Class PEZ Certificates issued on the closing date.
|
Short–Term Certificate Principal Paydown Summary(1)
|
Class
|
Mortgage Loan
Seller
|
Mortgage Loan
|
Property Type
|
Cut–off Date
Balance
|
Remaining Term to Maturity (Mos.)
|
Cut-off Date LTV Ratio
|
U/W
NCF DSCR
|
U/W NOI
Debt Yield
|
|
A-1/A-2
|
UBSRES
|
Hood Commons
|
Retail
|
$11,203,565
|
57
|
67.9%
|
1.93x
|
13.6%
|
|
A-2
|
UBSRES
|
Summer Lake Estates
|
Multifamily
|
$6,283,440
|
58
|
64.1%
|
1.34x
|
8.8%
|
|
A-2/A-SB
|
UBSRES
|
Embassy Suites - Anaheim
|
Hospitality
|
$50,000,000
|
59
|
66.1%
|
1.85x
|
12.0%
|
|
A-2/A-SB
|
GACC
|
Tops Markets Grocery Anchored Portfolio
|
Retail
|
$34,948,224
|
59
|
63.4%
|
1.72x
|
12.1%
|
|
A-2/A-SB
|
GACC
|
GRM Arlington
|
Industrial
|
$6,288,420
|
59
|
71.5%
|
1.73x
|
13.9%
|
|
A-2/A-SB
|
KeyBank
|
MVP Parking Portfolio
|
Other
|
$4,291,534
|
59
|
43.1%
|
2.03x
|
15.1%
|
|
A-3/A-SB
|
KeyBank
|
Forest Hills Apartments
|
Multifamily
|
$5,800,000
|
82
|
67.1%
|
1.33x
|
9.5%
|
|
A-3/A-SB
|
KeyBank
|
LA Fitness Portfolio
|
Retail
|
$16,100,000
|
84
|
60.2%
|
1.59x
|
12.3%
|
(1)
|
This table identifies loans with balloon payments due during the principal paydown window assuming 0% CPR and no losses for the indicated Certificates. See “Yield and Maturity Considerations – Yield Considerations” in the Free Writing Prospectus.
|
TRANSACTION HIGHLIGHTS
|
■
|
$1,235,745,402 (Approximate) New–Issue Multi–Borrower CMBS:
|
|
–
|
Overview: The mortgage pool consists of 59 fixed–rate commercial, multifamily and manufactured housing community loans that have an aggregate Cut–off Date Balance of $1,235,745,402 (the “Initial Outstanding Pool Balance”), have an average Cut–off Date Balance of $20,944,837 per Mortgage Loan and are secured by 95 Mortgaged Properties located throughout 24 states.
|
|
–
|
LTV: 66.5% weighted average Cut–off Date LTV and 58.5% weighted average Maturity Date or ARD LTV.
|
|
–
|
DSCR: 1.58x weighted average Debt Service Coverage Ratio, based on Underwritten NOI. 1.48x weighted average Debt Service Coverage Ratio, based on Underwritten NCF.
|
|
–
|
Debt Yield: 10.1% weighted average debt yield, based on Underwritten NOI. 9.4% weighted average debt yield, based on Underwritten NCF.
|
|
–
|
Credit Support: 30.000% credit support for the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4 and Class A–5 Certificates in the aggregate, which are each rated Aaa(sf) / AAA(sf) / AAA(sf) by Moody’s/DBRS/KBRA.
|
■
|
Loan Structural Features:
|
|
–
|
Amortization: 92.4% of the Mortgage Loans by Cut–off Date Balance have scheduled amortization:
|
|
■
|
36.4% of the Mortgage Loans by Cut–off Date Balance have amortization for the entire term with a balloon payment due at Maturity or ARD.
|
|
■
|
56.0% of the Mortgage Loans by Cut–off Date Balance have scheduled amortization following a partial interest–only period with a balloon payment due at Maturity or ARD.
|
|
■
|
7.6% of the Mortgage Loans by Cut-off Date Balance are interest-only for the entire term or through the ARD.
|
|
–
|
Hard Lockboxes: 65.8% of the Mortgage Loans by Cut–off Date Balance have Hard Lockboxes in place.
|
|
■
|
Cash Traps: 91.9% of the Mortgage Loans by Cut–off Date Balance have cash traps triggered by certain declines in net cash flow, all at levels greater than or equal to 1.05x, that fund an excess cash flow reserve.
|
|
–
|
Reserves: The Mortgage Loans require amounts to be escrowed for reserves upfront or on an ongoing basis as follows:
|
|
■
|
Real Estate Taxes: 51 Mortgage Loans representing 83.3% of the total Cut–off Date Balance.
|
|
■
|
Insurance Reserves: 35 Mortgage Loans representing 38.7% of the total Cut–off Date Balance.
|
|
■
|
Replacement Reserves (Including FF&E Reserves): 53 Mortgage Loans representing 91.4% of the total Cut–off Date Balance.
|
|
■
|
Tenant Improvement / Leasing Commissions: 25 Mortgage Loans representing 80.6% of the total allocated Cut–off Date Balance of office, retail, industrial and mixed use properties only.
|
|
–
|
Defeasance: 66.4% of the Mortgage Loans by Cut–off Date Balance permit defeasance only after a lockout period and prior to an open period.
|
|
–
|
Yield Maintenance: 24.5% of the Mortgage Loans by Cut–off Date Balance permit prepayment only after a lockout period and prior to an open period with a Yield Maintenance Charge.
|
|
–
|
Defeasance or Yield Maintenance: 9.2% of the Mortgage Loans by Cut–off Date Balance permit yield maintenance, then either defeasance or prepayment with a Yield Maintenance Charge, in either case only after a lockout period and prior to an open period.
|
■
|
Multiple–Asset Types > 5.0% of the Total Pool:
|
|
–
|
Retail: 25.0% of the Mortgaged Properties by allocated Cut–off Date Balance are retail properties.
|
|
–
|
Office: 22.4% of the Mortgaged Properties by allocated Cut–off Date Balance are office properties.
|
|
–
|
Multifamily: 12.3% of the Mortgaged Properties by allocated Cut–off Date Balance are multifamily properties.
|
|
–
|
Mixed Use: 11.8% of the Mortgaged Properties by allocated Cut–off Date Balance are mixed use properties.
|
|
–
|
Hospitality: 11.3% of the Mortgaged Properties by allocated Cut–off Date Balance are hospitality properties.
|
|
–
|
Manufactured Housing Community: 8.6% of the Mortgaged Properties by allocated Cut–off Date Balance are manufactured housing community properties.
|
|
–
|
Industrial: 6.0% of the Mortgaged Properties by allocated Cut–off Date Balance are industrial properties.
|
■
|
Geographic Diversity: The 95 Mortgaged Properties are located throughout 24 states with only two states having at least 10.0% by allocated Cut–off Date Balance: California (18.9%) and Massachusetts (12.3%).
|
COMM 2014-UBS2 Mortgage Trust | |||||
STRUCTURE OVERVIEW | |||||
Principal Payments:
|
Payments in respect of principal of the Certificates will be distributed, first, to the Class A–SB Certificates, until the Certificate Balance of such Class is reduced to the planned principal balance for the related Distribution Date set forth on Annex A–3 to the Free Writing Prospectus, then, to the Class A–1, Class A–2, Class A–3, Class A–4, Class A–5 and Class A–SB Certificates, in that order, until the Certificate Balance of each such Class is reduced to zero, then, to the Class A–M trust component (and correspondingly to the Class A–M Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class A–M trust component) until the principal balance of the Class A–M trust component has been reduced to zero, then, to the Class B trust component (and correspondingly to the Class B Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class B trust component) until the principal balance of the Class B trust component has been reduced to zero, then, to the Class C trust component (and correspondingly to the Class C Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class C trust component), until the principal balance of the Class C trust component has been reduced to zero, and then, to the Class D, Class E, Class F and Class G Certificates, in that order, until the Certificate Balance of each such Class is reduced to zero. Notwithstanding the foregoing, if the total principal balance of the Class A–M trust component, Class B trust component and Class C trust component and the Certificate Balances of the Class D through Class G Certificates have been reduced to zero as a result of loss allocation, payments in respect of principal of the Certificates will be distributed, first, to the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4 and Class A–5 Certificates, on a pro rata basis, based on the Certificate Balance of each such Class, then, to the extent of any recoveries on realized losses, to the Class A-M trust component (and correspondingly to the Class A–M Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class A–M trust component), then, to the extent of any recoveries on realized losses, to the Class B trust component (and correspondingly to the Class B Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class B trust component), then, to the extent of any recoveries on realized losses, to the Class C trust component (and correspondingly to the Class C Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class C trust component), then, to the extent of any recoveries on realized losses, to the Class D, Class E, Class F and Class G Certificates, in that order, in each case until the Certificate Balance of each such Class or trust component is reduced to zero (or previously allocated realized losses have been fully reimbursed).
The Class X–A and Class X–B Certificates will not be entitled to receive distributions of principal; however, (i) the notional amount of the Class X–A Certificates will be reduced by the aggregate amount of principal distributions and realized losses allocated to the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4, Class A–5 and the Class A–M Certificates (without regard to any exchange of Class A-M, Class B and Class C Certificates for Class PEZ Certificates); and (ii) the notional amount of the Class X–B Certificates will be reduced by the principal distributions and realized losses allocated to the Class B, Class C and Class D Certificates (without regard to any exchange of Class A–M, Class B and Class C Certificates for Class PEZ Certificates.
|
||||
Interest Payments:
|
On each Distribution Date, interest accrued for each Class of the Certificates or trust component at the applicable pass–through rate will be distributed in the following order of priority, to the extent of available funds: first, to the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4, Class A–5, Class X–A and Class X–B Certificates, on a pro rata basis, based on the accrued and unpaid interest on each such Class, then, to the Class A–M trust component (and correspondingly to the Class A–M Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests of the accrued and unpaid interest on the Class A–M trust component), then, to the Class B trust component (and correspondingly to the Class B Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests of the accrued and
|
COMM 2014-UBS2 Mortgage Trust | ||
STRUCTURE OVERVIEW | ||
|
unpaid interest on the Class B trust component), then, to the Class C trust component (and correspondingly to the Class C Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests of the accrued and unpaid interest on the Class C trust component), and then, to the Class D, Class E, Class F and Class G Certificates, in that order, in each case until the interest payable to each such Class is paid in full.
The pass–through rates applicable to the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4, Class A–5, Class A–M, Class B, Class C, Class D, Class E, Class F and Class G Certificates for each Distribution Date will equal one of: (i) a fixed per annum rate, (ii) the weighted average of the net mortgage rates on the mortgage loans (in each case, adjusted, if necessary, to accrue on the basis of a 360–day year consisting of twelve 30–day months) as of their respective due dates in the month preceding the month in which such distribution date occurs, (iii) a rate equal to the lesser of a specified pass–through rate and the weighted average of the net mortgage rates on the mortgage loans (in each case, adjusted, if necessary, to accrue on the basis of a 360–day year consisting of twelve 30–day months) as of their respective due dates in the month preceding the month in which such distribution date occurs, or (iv) the weighted average of the net mortgage rates on the mortgage loans (in each case, adjusted, if necessary, to accrue on the basis of a 360–day year consisting of twelve 30–day months) as of their respective due dates in the month preceding the month in which such distribution date occurs, less a specified rate. The pass-through rate on the Class A–M, Class B and Class C trust components will at all times be the same as the pass-through rate of the Class A–M, Class B and Class C Certificates. The Class PEZ Certificates will not have a pass-through rate, but will be entitled to receive the sum of interest distributable on the percentage interest of the Class A–M, Class B and Class C trust components represented by the PEZ Certificates.
The pass–through rate applicable to the Class X–A and Class X–B Certificates for each Distribution Date will generally be equal to the excess of (i) the weighted average of the net mortgage rates on the mortgage loans (in each case, adjusted, if necessary, to accrue on the basis of a 360–day year consisting of twelve 30–day months), over (ii)(A) with respect to the Class X–A Certificates, the weighted average of the pass–through rates of the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4, Class A–5 and Class A–M Certificates (based on their Certificate Balances and without regard to any exchange of Class A–M, Class B and Class C Certificates for Class PEZ Certificates), as further described in the Free Writing Prospectus and (B) with respect to the Class X–B Certificates, the weighted average of the pass–through rates of the Class B, Class C and Class D Certificates (based on their Certificate Balances and without regard to any exchange of Class A–M, Class B and Class C Certificates for Class PEZ Certificates), as further described in the Free Writing Prospectus.
|
|
Prepayment Interest Shortfalls:
|
Net prepayment interest shortfalls will be allocated pro rata based on interest entitlements, in reduction of the interest otherwise payable with respect to each of the interest–bearing certificate classes.
|
|
Loss Allocation:
|
Losses will be allocated to each Class of Certificates in reverse alphabetical order starting with Class G through and including Class D, then, to the Class C trust component (and correspondingly to the Class C Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class C trust component), then, to the Class B trust component (and correspondingly to the Class B Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class B trust component), then, to the Class A–M trust component (and correspondingly to the Class A–M Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class A–M trust component), and then to Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4 and Class A–5 Certificates on a pro rata basis based on the Certificate Balance of each such class. The notional amount of
|
COMM 2014-UBS2 Mortgage Trust | |||||
STRUCTURE OVERVIEW | |||||
|
either Class of Class X Certificates will be reduced by the aggregate amount of realized losses allocated to Certificates and trust components that are components of the notional amount of such Class of Class X Certificates.
|
||||
Prepayment Premiums:
|
A percentage of all prepayment premiums (either fixed prepayment premiums or yield maintenance amounts) collected will be allocated to each of the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4, Class A–5 and Class D Certificates and the Class A–M, Class B and Class C trust components (the “YM P&I Certificates”) then entitled to principal distributions, which percentage will be equal to the product of (a) a fraction, not greater than one, the numerator of which is the amount of principal distributed to such Class or trust component on such Distribution Date and the denominator of which is the total amount of principal distributed to the holders of the Class A–1, Class A–2, Class A–3, Class A–SB, Class A–4, Class A–5 and Class D Certificates and the Class A–M, Class B and Class C trust components on such Distribution Date, and (b) a fraction (expressed as a percentage which can be no greater than 100% nor less than 0%), the numerator of which is the excess of the pass–through rate of each such Class of Certificates or trust component currently receiving principal over the relevant Discount Rate, and the denominator of which is the excess of the Mortgage Rate of the related Mortgage Loan over the relevant Discount Rate.
|
||||
Prepayment Premium Allocation Percentage for all YM P&I Certificates = | |||||
(Pass–Through Rate – Discount Rate) | The percentage of the principal distribution amount to such Class or trust component as described in (a) above | ||||
(Mortgage Rate – Discount Rate)
|
X
|
||||
The remaining percentage of the prepayment premiums will be allocated to the Class X Certificates in the manner described in the Free Writing Prospectus. In general, this formula provides for an increase in the percentage of prepayment premiums allocated to the YM P&I Certificates then entitled to principal distributions relative to the Class X Certificates as Discount Rates decrease and a decrease in the percentage allocated to such Classes as Discount Rates rise.
All prepayment premiums (either fixed prepayment premiums or yield maintenance amounts) allocated in respect of (i) the Class A–M trust component as described above will be allocated between the Class A–M Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class A–M trust component, (ii) the Class B trust component as described above will be allocated between the Class B Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class B trust component, and (iii) the Class C trust component as described above will be allocated between the Class C Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class C trust component.
|
COMM 2014-UBS2 Mortgage Trust | ||
STRUCTURE OVERVIEW | ||
Loan Combinations:
|
The portfolio of Mortgaged Properties identified on Annex A–1 to the Free Writing Prospectus as Google and Amazon Office Portfolio secures a Mortgage Loan with an outstanding principal balance as of the Cut–off Date of $120,000,000, evidenced by Note A-3 (the “Google and Amazon Office Portfolio Loan”), representing approximately 9.7% of the Initial Outstanding Pool Balance, and also secures on a pari passu basis three companion loans that have an aggregate outstanding principal balance as of the Cut-off Date of $332,200,000, evidenced by Note A-1, Note A-2 and Note A-4. Note A-1 has a principal balance as of the Cut-off Date of $155,000,000 and is currently included in the COMM 2014-CCRE14 Mortgage Trust securitization. Note A-2 has a principal balance as of the Cut-off Date of $110,000,000 and is currently included in the COMM 2014-CCRE15 Mortgage Trust securitization. Note A-4, which has a principal balance as of the Cut-off Date of $67,200,000, is currently held by GACC and may be sold or further divided at any time (subject to compliance with the terms of the related intercreditor agreement). The Google and Amazon Office Portfolio Loan and related companion loans are pari passu in right of payment and are collectively referred to herein as the “Google and Amazon Office Portfolio Loan Combination.”
The Google and Amazon Office Portfolio Loan Combination will be serviced pursuant to the COMM 2014-CCRE14 pooling and servicing agreement and the related intercreditor agreement. For additional information regarding the Google and Amazon Office Portfolio Loan Combination, see “Description of the Mortgage Pool—Loan Combinations—The Google and Amazon Office Portfolio Loan Combination” in the Free Writing Prospectus.
The Mortgaged Property identified on Annex A–1 to the Free Writing Prospectus as One Kendall Square secures a Mortgage Loan with an outstanding principal balance as of the Cut–off Date of $120,000,000, evidenced by Note A-1 (the “One Kendall Square Loan”), representing approximately 9.7% of the Initial Outstanding Pool Balance, and also secures on a pari passu basis a companion loan that has an outstanding principal balance as of the Cut-off Date of $83,000,000, evidenced by Note A-2, which is currently held by GACC and may be sold or further divided at any time (subject to compliance with the terms of the related intercreditor agreement). The One Kendall Square Loan and related companion loan are pari passu in right of payment and are collectively referred to herein as the “One Kendall Square Loan Combination.”
The One Kendall Square Loan Combination will be serviced pursuant to the pooling and servicing agreement related to this transaction (the “Pooling and Servicing Agreement”) and the related intercreditor agreement. For additional information regarding the One Kendall Square Loan Combination, see “Description of the Mortgage Pool—Loan Combinations—The One Kendall Square Loan Combination” in the Free Writing Prospectus.
|
|
Control Rights:
|
Certain Classes of Certificates (the “Control Eligible Certificates”) will have certain control rights over servicing matters with respect to each Mortgage Loan (other than with respect to the Google and Amazon Office Portfolio Loan Combination) and the One Kendall Square Loan Combination. The majority owner or appointed representative of the Class of Control Eligible Certificates that is the Controlling Class (such owner or representative, the “Directing Holder”), will be entitled to direct the Special Servicer to take, or refrain from taking certain actions with respect to a Mortgage Loan. Furthermore, the Directing Holder will also have the right to receive notice and consent to certain material actions that the Master Servicer and the Special Servicer proposes to take with respect to such Mortgage Loan.
For a description of the directing holder for the Google and Amazon Office Portfolio Loan Combination, which are each referred to herein as a “Loan Combination Directing Holder”, see “Description of the Mortgage Pool—Loan Combinations” and “Description of the Pooling and Servicing Agreement—The Directing Holder” in the Free Writing Prospectus.
|
COMM 2014-UBS2 Mortgage Trust | ||
STRUCTURE OVERVIEW | ||
Control Eligible Certificates:
|
Class E, Class F and Class G Certificates.
|
|
Controlling Class:
|
The Controlling Class will be the most subordinate Class of Control Eligible Certificates then outstanding that has an aggregate Certificate Balance, as notionally reduced by any Appraisal Reduction Amounts allocable to such Class, equal to no less than 25% of the initial Certificate Balance of such Class.
The Controlling Class as of the Settlement Date will be the Class G Certificates.
The holder of the control rights with respect to the Google and Amazon Office Portfolio Loan Combination will be the related Loan Combination Directing Holder.
|
|
Appraised–Out Class:
|
Any Class of Control Eligible Certificates that has been determined, as a result of Appraisal Reductions Amounts allocable to such Class, to no longer be the Controlling Class.
|
|
Remedies Available to Holders
of an Appraised–Out Class: |
Holders of the majority of any Class of Control Eligible Certificates that is determined at any time of determination to no longer be the Controlling Class as a result of an allocation of an Appraisal Reduction Amounts in respect of such Class will have the right, at their sole expense, to require the Special Servicer to order a second appraisal for any Mortgage Loan for which an Appraisal Reduction Event has occurred. Upon receipt of the second appraisal, the Special Servicer will be required to determine, in accordance with the Servicing Standard, whether, based on its assessment of the second appraisal, a recalculation of the Appraisal Reduction Amount is warranted. If warranted, the Special Servicer will direct the Master Servicer to recalculate the Appraisal Reduction Amount based on the second appraisal, and if required by such recalculation, the Special Servicer will reinstate the Appraised–Out Class as the Controlling Class. The Holders of an Appraised–Out Class requesting a second appraisal will not be entitled to exercise any rights of the Controlling Class until such time, if any, as the Class is reinstated as the Controlling Class.
|
|
Directing Holder:
|
It is anticipated that (i) affiliates of AllianceBernstein L.P. will purchase no less than the majority of Class E, Class F, Class G and Class V certificates, (ii) affiliates of Raith Capital Management, LLC will purchase the minority of Class E, Class F, Class G and Class V certificates and (iii) an affiliate of Raith Capital Management, LLC will be the initial Directing Holder with respect to each Mortgage Loan (other than the Google and Amazon Office Portfolio Loan Combination) and the One Kendall Square Loan Combination.
See “Description of the Mortgage Pool—Loan Combinations” and “Description of the Pooling and Servicing Agreement—The Directing Holder” in the Free Writing Prospectus for a description of the Loan Combination Directing Holder for the Google and Amazon Office Portfolio Loan Combination.
|
|
Control Termination Event:
|
Will occur when no Class of Control Eligible Certificates has a Certificate Balance (as notionally or actually reduced by any Appraisal Reduction Amounts and Realized Losses) equal to or greater than 25% of the Certificate Balance as of the Settlement Date.
Upon the occurrence and the continuance of a Control Termination Event, the Controlling Class will no longer have any Control Rights. The Directing Holder will no longer have the right to direct certain actions of the Special Servicer and will no longer have consent rights with respect to certain material actions that the Master Servicer or Special Servicer proposes to take with respect to a Mortgage Loan.
|
COMM 2014-UBS2 Mortgage Trust | ||
STRUCTURE OVERVIEW | ||
|
Upon the occurrence and continuation of a Control Termination Event, the Directing Holder (i.e., the majority owner or representative of the senior most Class of Control Eligible Certificates) will retain non–binding consultation rights with respect to certain material actions that the Special Servicer proposes to take with respect to a Mortgage Loan. Such consultation rights will continue until the occurrence of a Consultation Termination Event.
|
|
Consultation Termination Event:
|
Will occur when, without giving regard to the application of any Appraisal Reduction Amounts (i.e., giving effect to principal reduction through Realized Losses only), there is no Class of Control Eligible Certificates that has an aggregate Certificate Balance equal to 25% or more of the initial Certificate Balance of such Class.
Upon the occurrence and continuance of a Consultation Termination Event, the Directing Holder will have no rights under the Pooling and Servicing Agreement other than those rights that all Certificateholders have.
|
|
Appointment and Replacement
of Special Servicer: |
The Directing Holder will appoint the initial Special Servicer as of the Settlement Date. Prior to the occurrence and continuance of a Control Termination Event, the Special Servicer (other than with respect to the Google and Amazon Office Portfolio Loan Combination) may generally be replaced at any time by the Directing Holder.
Upon the occurrence and during the continuance of a Control Termination Event, the Directing Holder will no longer have the right to replace the Special Servicer and such replacement (other than with respect to the Google and Amazon Office Portfolio Loan Combination) will occur based on a vote of holders of all voting eligible Classes of Certificates as described below. See “Description of the Mortgage Pool—Loan Combinations” and “Description of the Pooling and Servicing Agreement” in the Free Writing Prospectus for a description of the special servicer appointment and replacement rights with respect to the Google and Amazon Office Portfolio Loan Combination.
|
|
Replacement of Special Servicer
by Vote of Certificateholders: |
Other than with respect to the Google and Amazon Office Portfolio Loan Combination, if a Control Termination Event has occurred and is continuing, upon (i) the written direction of holders of Certificates evidencing not less than 25% of the voting rights of all Classes of Certificates entitled to principal (taking into account the application of Appraisal Reduction Amounts to notionally reduce the Certificate Balances of Classes to which such Appraisal Reduction Amounts are allocable) requesting a vote to replace the Special Servicer with a replacement Special Servicer, (ii) payment by such requesting holders to the Certificate Administrator of all reasonable fees and expenses to be incurred by the Certificate Administrator in connection with administering such vote and (iii) delivery by such holders to the Certificate Administrator of written confirmations from each Rating Agency that the appointment of the replacement Special Servicer will not result in a downgrade of the Certificates, the Certificate Administrator will be required to promptly provide written notice to all certificateholders of such request and conduct the solicitation of votes of all Certificates in such regard. Upon the written direction (within 180 days) of (i) Holders of at least 75% of a Certificateholder Quorom or (ii) the Holders of more than 50% of the voting rights of each Class of Non–Reduced Certificates, the Trustee will immediately replace the Special Servicer (other than with respect to the Google and Amazon Office Portfolio Loan Combination) with the replacement Special Servicer.
“Certificateholder Quorum” means, in connection with any solicitation of votes in connection with the replacement of the Special Servicer as described above, the holders of Certificates evidencing at least 75% of the aggregate voting rights (taking into account Realized Losses and the application of any Appraisal Reduction Amounts to notionally
|
COMM 2014-UBS2 Mortgage Trust | ||
STRUCTURE OVERVIEW | ||
|
reduce the Certificate Balance of the Certificates) of all classes of Certificates entitled to principal, on an aggregate basis.
In addition, after the occurrence of a Consultation Termination Event, if the Operating Advisor determines that the Special Servicer is not performing its duties in accordance with the Servicing Standard, the Operating Advisor will have the right to recommend the replacement of the Special Servicer (other than with respect to the Google and Amazon Office Portfolio Loan Combination). The Operating Advisor’s recommendation to replace the Special Servicer (other than with respect to the Google and Amazon Office Portfolio Loan Combination) must be confirmed by a majority of the voting rights of all Classes of Certificates entitled to principal (taking into account the application of Appraisal Reduction Amounts to notionally reduce the Certificate Balances of Classes to which such Appraisal Reduction Amounts are allocable) within 180 days from the time such recommendation is posted to the Certificate Administrator website and is subject to the receipt of written confirmations from each Rating Agency that the appointment of the replacement Special Servicer will not result in a downgrade of the Certificates. See “Description of the Mortgage Pool—Loan Combinations” and “Description of the Pooling and Servicing Agreement” in the Free Writing Prospectus for a description of the special servicer appointment and replacement rights with respect to the Google and Amazon Office Portfolio Loan Combination.
|
|
Cap on Workout and Liquidation
Fees: |
The workout fees and liquidation fees payable to a Special Servicer under the Pooling and Servicing Agreement will be an amount equal to the lesser of: (1) 1.0% of each collection of interest and principal following a workout or liquidation and (2) $1,000,000 per workout or liquidation. All Modification Fees actually paid to the Special Servicer in connection with a workout or liquidation or in connection with any prior workout or partial liquidation that occurred within the prior 18 months will be deducted from the total workout and/or liquidation fees payable (other than Modification Fees earned while the Mortgage Loan was not in special servicing). In addition, the total amount of workout and liquidation fees actually payable by the Trust under the Pooling and Servicing Agreement will be capped in the aggregate at $1,000,000 for each Mortgage Loan. If a new special servicer begins servicing the Mortgage Loan, all amounts paid to the prior special servicer will be disregarded for purposes of calculating the cap.
|
|
Special Servicer Compensation:
|
The special servicing fee will equal 0.25% per annum of the stated principal balance of the related specially serviced loan or REO property. The Special Servicer and its affiliates will be prohibited from receiving or retaining any compensation or any other remuneration under the Pooling and Servicing Agreement (including in the form of commissions, brokerage fees, rebates, or as a result of any other fee–sharing arrangement) from any person (including the issuing entity, any borrower, any manager, any guarantor or indemnitor in respect of a Mortgage Loan or Serviced Loan Combination, if any, and any purchaser of any Mortgage Loan, Serviced Companion Loan or REO Property) in connection with the disposition, workout or foreclosure of any Mortgage Loan or Serviced Loan Combination, the management or disposition of any REO Property, or the performance of any other special servicing duties under the Pooling and Servicing Agreement, other than as expressly permitted in the Pooling and Servicing Agreement and other than commercially reasonable treasury management fees, banking fees and insurance commissions or fees received or retained by the Special Servicer or any of its Affiliates in connection with any services performed by such party with respect to any mortgage loan. Subject to certain limited exceptions, the Special Servicer will also be required to report any compensation or other remuneration the Special Servicer or its affiliates have received from any person and such information will be disclosed in the Certificateholders’ monthly distribution date statement.
|
|
Operating Advisor:
|
With respect to the Mortgage Loans (other than with respect to the Google and Amazon Office Portfolio Loan Combination) and prior to the occurrence of a Control Termination
|
COMM 2014-UBS2 Mortgage Trust | ||
STRUCTURE OVERVIEW | ||
|
Event, the Operating Advisor will have access to any final asset status report and all information available with respect to the transaction on the Certificate Administrator’s website but will not have any approval or consultation rights. After the occurrence and during the continuance of a Control Termination Event, the Operating Advisor will have consultation rights with respect to certain major decisions and will have additional monitoring responsibilities on behalf of the entire trust.
The Operating Advisor will be subject to termination if holders of at least 15% of the aggregate voting rights of the Certificates (in connection with termination and replacement relating to the Mortgage Loans) vote to terminate and replace the Operating Advisor and such vote is approved by holders of more than 50% of the applicable voting rights that exercise their right to vote, provided that holders of at least 50% of the applicable voting rights have exercised their right to vote. The holders initiating such vote will be responsible for the fees and expenses in connection with the vote and replacement.
The Operating Advisor will not have consultation rights in respect of the Google and Amazon Office Portfolio Loan Combination.
|
|
Liquidated Loan Waterfall:
|
On liquidation of any Mortgage Loan, all net liquidation proceeds will be applied so that amounts allocated as a recovery of accrued and unpaid interest will not, in the first instance, include any amount by which the interest portion of P&I Advances previously made was reduced as a result of Appraisal Reduction Amounts. After the adjusted interest amount is so allocated, any remaining net liquidation proceeds will be allocated to pay principal on the Mortgage Loan until the unpaid principal amount of the Mortgage Loan has been reduced to zero. Any remaining liquidation proceeds would then be allocated as a recovery of accrued and unpaid interest corresponding to the amount by which the interest portion of P&I Advances previously made was reduced as a result of Appraisal Reduction Amounts.
|
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS
|
Distribution of Cut–off Date Balances(1)
|
% of Initial Outstanding Pool Balance |
Weighted Averages
|
|||||||||||||||
Range of Cut–off Date Balances
|
Number of
Mortgage Loans |
Aggregate
Cut–off Date Balance |
Mortgage Rate
|
Stated
Remaining Term (Mos.)(2) |
U/W
NCF DSCR |
Cut–off Date
LTV Ratio(3) |
LTV Ratio
at Maturity or ARD(3) |
|||||||||
$2,850,000
|
-
|
$9,999,999
|
27
|
$149,411,622
|
12.1%
|
5.1722%
|
110
|
1.53x
|
67.1%
|
56.6%
|
||||||
$10,000,000
|
-
|
$24,999,999
|
17
|
$222,672,757
|
18.0%
|
5.0327%
|
113
|
1.52x
|
68.4%
|
58.5%
|
||||||
$25,000,000
|
-
|
$49,999,999
|
8
|
$273,039,006
|
22.1%
|
5.1011%
|
111
|
1.48x
|
68.6%
|
61.4%
|
||||||
$50,000,000
|
-
|
$59,999,999
|
2
|
$109,907,080
|
8.9%
|
4.9730%
|
92
|
1.57x
|
62.4%
|
56.3%
|
||||||
$60,000,000
|
-
|
$120,000,000
|
5
|
$480,714,937
|
38.9%
|
4.9648%
|
118
|
1.44x
|
65.2%
|
57.9%
|
||||||
Total/Weighted Average
|
59
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
Distribution of Mortgage Rates(1)
|
% of Initial Outstanding Pool Balance |
Weighted Averages
|
|||||||||||||||
Range of Mortgage Rates
|
Number of
Mortgage Loans |
Aggregate
Cut–off Date Balance |
Mortgage Rate
|
Stated
Remaining Term (Mos.)(2) |
U/W NCF
DSCR |
Cut–off Date
LTV Ratio(3) |
LTV Ratio
at Maturity or ARD(3) |
|||||||||
4.2750%
|
-
|
4.7499%
|
2
|
$71,110,645
|
5.8%
|
4.5488%
|
109
|
1.42x
|
60.7%
|
50.4%
|
||||||
4.7500%
|
-
|
4.9999%
|
18
|
$546,630,407
|
44.2%
|
4.8752%
|
116
|
1.46x
|
66.6%
|
59.7%
|
||||||
5.0000%
|
-
|
5.2499%
|
21
|
$350,976,342
|
28.4%
|
5.0578%
|
113
|
1.45x
|
67.7%
|
59.6%
|
||||||
5.2500%
|
-
|
5.7990%
|
18
|
$267,028,008
|
21.6%
|
5.4521%
|
106
|
1.60x
|
66.2%
|
56.7%
|
||||||
Total/Weighted Average
|
59
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
Property Type Distribution(1)(4)
|
Weighted Averages
|
||||||||||||||||||||
Property Type
|
Number of
Mortgaged Properties |
Aggregate
Cut–off Date Balance |
% of Initial
Outstanding Pool Balance |
Number
of Units, Rooms, Beds, Pads or NRA |
Cut–off Date Balance per Unit/Room/Bed Pad/NRA
|
Mortgage Rate |
Stated Remaining Term (Mos.)(2) |
Occupancy | U/W NCF DSCR | Cut–off Date LTV Ratio(3) | LTV Ratio at Maturity or ARD(3) |
|||||||||
Retail
|
26
|
$308,965,807
|
25.0%
|
2,575,735
|
$221
|
4.8765%
|
108
|
94.8%
|
1.46x
|
67.0%
|
57.6%
|
|||||||||
Anchored(5)
|
24
|
$298,585,529
|
24.2%
|
2,422,574
|
$226
|
4.8641%
|
107
|
95.2%
|
1.45x
|
67.1%
|
57.8%
|
|||||||||
Unanchored
|
2
|
$10,380,278
|
0.8%
|
153,161
|
$73
|
5.2341%
|
119
|
82.5%
|
1.78x
|
63.5%
|
52.7%
|
|||||||||
Office
|
7
|
$277,200,000
|
22.4%
|
2,233,853
|
$269
|
4.9577%
|
118
|
99.5%
|
1.56x
|
65.7%
|
59.2%
|
|||||||||
Suburban
|
5
|
$238,100,000
|
19.3%
|
1,792,201
|
$297
|
4.9650%
|
118
|
100.0%
|
1.48x
|
65.2%
|
58.1%
|
|||||||||
CBD
|
1
|
$31,200,000
|
2.5%
|
390,479
|
$80
|
4.9020%
|
118
|
96.3%
|
2.28x
|
68.3%
|
68.3%
|
|||||||||
Medical
|
1
|
$7,900,000
|
0.6%
|
51,173
|
$154
|
4.9590%
|
119
|
96.2%
|
1.29x
|
69.2%
|
58.3%
|
|||||||||
Multifamily
|
33
|
$152,092,797
|
12.3%
|
3,125
|
$159,913
|
5.2532%
|
115
|
95.7%
|
1.38x
|
67.7%
|
59.6%
|
|||||||||
Garden
|
26
|
$61,449,321
|
5.0%
|
1,994
|
$38,633
|
5.1458%
|
109
|
93.7%
|
1.59x
|
67.0%
|
59.0%
|
|||||||||
Mid Rise
|
5
|
$57,218,309
|
4.6%
|
258
|
$360,783
|
5.0497%
|
119
|
98.2%
|
1.23x
|
66.7%
|
60.2%
|
|||||||||
Student Housing
|
2
|
$33,425,167
|
2.7%
|
873
|
$39,020
|
5.7990%
|
118
|
95.2%
|
1.27x
|
70.8%
|
59.8%
|
|||||||||
Mixed Use
|
2
|
$145,265,615
|
11.8%
|
801,696
|
$298
|
4.9291%
|
119
|
93.7%
|
1.35x
|
64.5%
|
57.3%
|
|||||||||
Office/Lab/Retail
|
1
|
$120,000,000
|
9.7%
|
610,110
|
$333
|
4.8200%
|
119
|
93.2%
|
1.34x
|
62.3%
|
56.2%
|
|||||||||
Office/Retail/Multifamily
|
1
|
$25,265,615
|
2.0%
|
191,586
|
$132
|
5.4475%
|
117
|
96.5%
|
1.42x
|
74.8%
|
62.5%
|
|||||||||
Hospitality
|
5
|
$139,414,675
|
11.3%
|
963
|
$153,971
|
5.3797%
|
97
|
77.5%
|
1.77x
|
62.8%
|
55.4%
|
|||||||||
Full Service
|
2
|
$114,907,463
|
9.3%
|
720
|
$164,291
|
5.3782%
|
93
|
78.6%
|
1.80x
|
62.1%
|
56.5%
|
|||||||||
Limited Service
|
3
|
$24,507,212
|
2.0%
|
243
|
$105,586
|
5.3867%
|
119
|
72.4%
|
1.61x
|
65.9%
|
50.1%
|
|||||||||
Manufactured Housing Community
|
8
|
$106,733,859
|
8.6%
|
2,412
|
$54,818
|
4.9358%
|
118
|
91.0%
|
1.30x
|
74.0%
|
66.3%
|
|||||||||
Industrial
|
5
|
$74,231,170
|
6.0%
|
1,233,369
|
$102
|
5.1258%
|
114
|
100.0%
|
1.44x
|
66.5%
|
57.2%
|
|||||||||
Self Storage
|
4
|
$17,418,965
|
1.4%
|
268,060
|
$79
|
5.1572%
|
118
|
86.3%
|
1.60x
|
65.0%
|
54.4%
|
|||||||||
Other
|
5
|
$14,422,513
|
1.2%
|
423,257
|
$36
|
5.2912%
|
101
|
100.0%
|
1.64x
|
61.9%
|
48.8%
|
|||||||||
Total/Weighted Average
|
95
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
93.8%
|
1.48x
|
66.5%
|
58.5%
|
Geographic Distribution(1)(4)
|
State/Location
|
Number of
Mortgaged Properties |
Aggregate Cut–off
Date Balance
|
% of Initial
Outstanding
Pool
Balance
|
Weighted Averages
|
||||||||
Mortgage Rate
|
Stated
Remaining Term
(Mos.)(2)
|
U/W NCF
DSCR |
Cut–off Date
LTV Ratio(3)
|
LTV Ratio
at Maturity or ARD(3)
|
||||||||
California
|
8
|
$233,816,253
|
18.9%
|
5.1137%
|
105
|
1.51x
|
67.2%
|
62.0%
|
||||
Northern(6)
|
2
|
$120,000,000
|
9.7%
|
5.0350%
|
118
|
1.40x
|
66.6%
|
60.6%
|
||||
Southern(6)
|
6
|
$113,816,253
|
9.2%
|
5.1966%
|
92
|
1.63x
|
67.9%
|
63.4%
|
||||
Massachusetts
|
2
|
$151,500,000
|
12.3%
|
4.8699%
|
119
|
1.33x
|
63.3%
|
57.1%
|
||||
New York
|
10
|
$103,287,692
|
8.4%
|
5.0127%
|
99
|
1.43x
|
64.9%
|
57.7%
|
||||
Minnesota
|
1
|
$88,000,000
|
7.1%
|
4.8350%
|
118
|
1.58x
|
62.4%
|
53.8%
|
||||
Colorado
|
3
|
$87,807,474
|
7.1%
|
4.9150%
|
118
|
1.26x
|
74.8%
|
67.4%
|
||||
Illinois
|
5
|
$79,193,867
|
6.4%
|
4.7294%
|
119
|
1.32x
|
62.6%
|
52.0%
|
||||
Louisiana
|
2
|
$78,107,463
|
6.3%
|
5.3044%
|
119
|
1.70x
|
61.6%
|
51.1%
|
||||
Texas
|
6
|
$67,374,351
|
5.5%
|
5.0768%
|
110
|
1.89x
|
68.8%
|
64.1%
|
||||
Pennsylvania
|
3
|
$66,939,352
|
5.4%
|
4.8954%
|
119
|
1.40x
|
69.1%
|
57.6%
|
||||
Other
|
55
|
$279,718,948
|
22.6%
|
5.1931%
|
112
|
1.52x
|
68.2%
|
58.1%
|
||||
Total/Weighted Average
|
95
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
(1)
|
With respect to the Google and Amazon Office Portfolio Loan and the One Kendall Square Loan, LTV, DSCR and Cut–off Date Balance per Unit/Room/Bed/Pad/NRA calculations include the related pari passu companion loans.
|
(2)
|
In the case of one mortgage loan with an anticipated repayment date, Stated Remaining Term (Mos.) is through the related anticipated repayment date.
|
(3)
|
With respect to the Creekside Mixed Use Development loan and Hampton Inn Rehoboth Beach loan, the Cut-off Date LTV and Maturity Date or ARD LTV have been calculated based on “As Stabilized” appraised values of $33.8 million and $14.6 million, respectively. The “As-is” Cut-off Date LTV and “As-is” Maturity Date or ARD LTV are 75.9% and 63.5%, respectively, for the Creekside Mixed Use Development loan and 77.5% and 58.6%, respectively, for the Hampton Inn Rehoboth Beach loan. With respect to the Arlington Farms Apartments loan, the Cut-off Date LTV and Maturity Date or ARD LTV have been calculated based on “As Complete” appraised value of $6.76 million. The “As-is” Cut-off Date LTV and an “As-is” Maturity Date or ARD LTV are 77.9% and 64.9%, respectively.
|
(4)
|
Reflects allocated loan amount for properties securing multi–property mortgage loans (except with respect to the Garden Hill Apartments Portfolio loan).
|
(5)
|
Includes anchored, shadow anchored and single tenant properties.
|
(6)
|
Northern California properties have a zip code greater than 93600. Southern California properties have a zip code less than or equal to 93600.
|
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS
|
Distribution of Cut–off Date LTV Ratios(1)(3)
|
Range of Cut–off Date LTV
Ratios |
Number of
Mortgage Loans |
Aggregate Cut–off
Date Balance
|
% of Initial
Outstanding Pool Balance |
Weighted Averages
|
||||||||
Mortgage Rate
|
Stated
Remaining Term (Mos.)(2) |
U/W NCF
DSCR |
Cut–off Date
LTV Ratio |
LTV Ratio
at Maturity or ARD |
||||||||
43.1%
|
-
|
54.9%
|
2
|
$7,691,534
|
0.6%
|
4.9776%
|
86
|
2.00x
|
47.5%
|
42.2%
|
||
55.0%
|
-
|
59.9%
|
5
|
$138,320,737
|
11.2%
|
5.0102%
|
119
|
1.57x
|
59.0%
|
48.3%
|
||
60.0%
|
-
|
64.9%
|
10
|
$322,585,688
|
26.1%
|
4.8916%
|
109
|
1.47x
|
62.4%
|
55.5%
|
||
65.0%
|
-
|
69.9%
|
23
|
$421,920,170
|
34.1%
|
5.0978%
|
109
|
1.57x
|
67.1%
|
60.3%
|
||
70.0%
|
-
|
74.9%
|
18
|
$342,377,273
|
27.7%
|
5.0956%
|
117
|
1.35x
|
73.0%
|
63.6%
|
||
75.0%
|
-
|
75.0%
|
1
|
$2,850,000
|
0.2%
|
5.1500%
|
120
|
1.43x
|
75.0%
|
62.0%
|
||
Total/Weighted Average
|
59
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
Distribution of LTV Ratios at Maturity or ARD(1)(3)
|
Range of LTV Ratios
at Maturity or ARD |
Number of
Mortgage Loans
|
Aggregate Cut–off
Date Balance
|
% of Initial
Outstanding
Pool Balance
|
Weighted Averages
|
||||||||
Mortgage Rate
|
Stated
Remaining Term
(Mos.)(2)
|
U/W NCF
DSCR |
Cut–off Date
LTV Ratio
|
LTV Ratio
at Maturity or
ARD |
||||||||
38.4%
|
-
|
49.9%
|
7
|
$146,012,271
|
11.8%
|
5.0085%
|
117
|
1.60x
|
58.4%
|
48.0%
|
||
50.0%
|
-
|
54.9%
|
10
|
$179,238,560
|
14.5%
|
5.0104%
|
115
|
1.57x
|
63.6%
|
53.0%
|
||
55.0%
|
-
|
59.9%
|
16
|
$321,488,900
|
26.0%
|
5.0605%
|
111
|
1.38x
|
65.0%
|
57.3%
|
||
60.0%
|
-
|
68.3%
|
26
|
$589,005,670
|
47.7%
|
5.0308%
|
111
|
1.49x
|
70.2%
|
63.5%
|
||
Total/Weighted Average
|
59
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
Distribution of Underwritten NCF Debt Service Coverage Ratios(1)
|
Range of Underwritten NCF
Debt Service Coverage Ratios |
Number of
Mortgage Loans
|
Aggregate Cut–off
Date Balance
|
% of Initial
Outstanding
Pool Balance
|
Weighted Averages
|
|||||||||
Mortgage Rate
|
Stated
Remaining Term
(Mos.)(2)
|
U/W NCF
DSCR |
Cut–off Date
LTV Ratio(3)
|
LTV Ratio
at Maturity or
ARD(3) |
|||||||||
1.21x
|
-
|
1.24x
|
3
|
$61,125,265
|
4.9%
|
5.0203%
|
119
|
1.22x
|
66.4%
|
59.6%
|
|||
1.25x
|
-
|
1.29x
|
6
|
$161,757,641
|
13.1%
|
5.1637%
|
118
|
1.27x
|
72.7%
|
63.6%
|
|||
1.30x
|
-
|
1.39x
|
10
|
$319,741,639
|
25.9%
|
4.8448%
|
117
|
1.34x
|
64.9%
|
56.8%
|
|||
1.40x
|
-
|
1.49x
|
16
|
$257,053,416
|
20.8%
|
5.1204%
|
118
|
1.42x
|
68.9%
|
59.8%
|
|||
1.50x
|
-
|
1.59x
|
9
|
$185,827,882
|
15.0%
|
4.9480%
|
115
|
1.56x
|
64.7%
|
55.1%
|
|||
1.60x
|
-
|
1.69x
|
3
|
$16,439,887
|
1.3%
|
5.0118%
|
119
|
1.65x
|
64.2%
|
52.9%
|
|||
1.70x
|
-
|
1.99x
|
8
|
$181,715,129
|
14.7%
|
5.2382%
|
85
|
1.79x
|
62.9%
|
57.1%
|
|||
2.00x
|
-
|
2.33x
|
4
|
$52,084,543
|
4.2%
|
4.9589%
|
113
|
2.26x
|
65.0%
|
63.7%
|
|||
Total/Weighted Average
|
59
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
Distribution of Original Terms to Maturity or ARD(1)(2)
|
Original Terms
to Maturity or ARD |
Number of
Mortgage Loans
|
Aggregate Cut–off
Date Balance
|
% of Initial
Outstanding
Pool Balance
|
Weighted Averages
|
||||||||
Mortgage Rate
|
Stated
Remaining Term
(Mos.)
|
U/W NCF
DSCR |
Cut–off Date
LTV Ratio(3)
|
LTV Ratio
at Maturity or
ARD(3) |
||||||||
60
|
6
|
$113,015,182
|
9.1%
|
5.1364%
|
59
|
1.79x
|
64.8%
|
61.9%
|
||||
84
|
2
|
$21,900,000
|
1.8%
|
4.8671%
|
83
|
1.52x
|
62.0%
|
53.0%
|
||||
120
|
51
|
$1,100,830,220
|
89.1%
|
5.0256%
|
119
|
1.45x
|
66.8%
|
58.3%
|
||||
Total/Weighted Average
|
59
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
Distribution of Remaining Terms to Maturity or ARD(1)(2)
|
Range of Remaining Terms
to Maturity or ARD
|
Number of
Mortgage Loans
|
Aggregate Cut–off
Date Balance
|
% of Initial
Outstanding
Pool Balance
|
Weighted Averages
|
||||||||
Mortgage Rate
|
Stated
Remaining Term
(Mos.)
|
U/W NCF
DSCR |
Cut–off Date
LTV Ratio(3)
|
LTV Ratio
at Maturity or
ARD(3) |
||||||||
57
|
-
|
60
|
6
|
$113,015,182
|
9.1%
|
5.1364%
|
59
|
1.79x
|
64.8%
|
61.9%
|
||
82
|
-
|
84
|
2
|
$21,900,000
|
1.8%
|
4.8671%
|
83
|
1.52x
|
62.0%
|
53.0%
|
||
114
|
-
|
120
|
51
|
$1,100,830,220
|
89.1%
|
5.0256%
|
119
|
1.45x
|
66.8%
|
58.3%
|
||
Total/Weighted Average
|
59
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
(1)
|
With respect to the Google and Amazon Office Portfolio Loan and the One Kendall Square Loan, LTV and DSCR calculations include the related pari passu companion loans.
|
(2)
|
In the case of one mortgage loan with an anticipated repayment date, Original Terms to Maturity or ARD and Stated Remaining Term (Mos.) are through the related anticipated repayment date.
|
(3)
|
With respect to the Creekside Mixed Use Development loan and the Hampton Inn Rehoboth Beach loan, the Cut-off Date LTV and Maturity Date or ARD LTV have been calculated based on “As Stabilized” appraised values of $33.8 million and $14.6 million, respectively. The “As-is” Cut-off Date LTV and “As-is” Maturity Date or ARD LTV are 75.9% and 63.5%, respectively, for the Creekside Mixed Use Development loan and 77.5% and 58.6%, respectively, for the Hampton Inn Rehoboth Beach loan. With respect to the Arlington Farms Apartments loan, the Cut-off Date LTV and Maturity Date or ARD LTV have been calculated based on an “As Complete” appraised value of $6.76 million. The “As-is” Cut-off Date LTV and “As-is” Maturity Date or ARD LTV are 77.9% and 64.9%, respectively.
|
COMM 2014-UBS2 Mortgage Trust
|
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS
|
Distribution of Underwritten NOI Debt Yields(1)
|
Range of Underwritten NOI
Debt Yields
|
Number of
Mortgage Loans
|
Aggregate Cut–off
Date Balance
|
% of Initial
Outstanding
Pool Balance
|
Weighted Averages
|
||||||||||||||||
Mortgage Rate
|
Stated
Remaining Term
(Mos.)(2)
|
U/W NCF
DSCR
|
Cut–off Date
LTV Ratio(3)
|
LTV Ratio
at Maturity
or ARD(3)
|
||||||||||||||||
7.8%
|
-
|
7.9%
|
2
|
$45,625,265
|
3.7%
|
4.9895%
|
119
|
1.22x
|
63.7%
|
57.4%
|
||||||||||
8.0%
|
-
|
9.9%
|
20
|
$633,624,280
|
51.3%
|
4.9536%
|
118
|
1.34x
|
67.6%
|
59.8%
|
||||||||||
10.0%
|
-
|
12.4%
|
28
|
$446,296,449
|
36.1%
|
5.1050%
|
106
|
1.64x
|
66.8%
|
58.6%
|
||||||||||
12.5%
|
-
|
14.9%
|
7
|
$102,114,865
|
8.3%
|
5.2114%
|
108
|
1.79x
|
60.8%
|
51.6%
|
||||||||||
15.0%
|
-
|
18.0%
|
2
|
$8,084,543
|
0.7%
|
5.2637%
|
87
|
2.09x
|
49.9%
|
41.0%
|
||||||||||
Total/Weighted Average
|
59 |
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
Distribution of Amortization Types(1)
|
Weighted Averages | ||||||||||||||||||
Amortization Type
|
Number of
Mortgage Loans |
Aggregate Cut–off
Date Balance |
% of Initial
Outstanding Pool Balance |
Mortgage Rate
|
Stated
Remaining Term (Mos.)(2) |
U/W NCF
DSCR |
Cut–off Date
LTV Ratio(3) |
LTV Ratio
at Maturity
or ARD(3) |
||||||||||
Interest Only, then Amortizing
|
21
|
$692,432,474
|
56.0%
|
4.9366%
|
118
|
1.38x
|
67.3%
|
60.0%
|
||||||||||
Amortizing Balloon
|
35
|
$449,312,928
|
36.4%
|
5.1511%
|
109
|
1.53x
|
65.2%
|
54.4%
|
||||||||||
Interest Only
|
2
|
$62,800,000
|
5.1%
|
5.3150%
|
71
|
1.95x
|
66.2%
|
66.2%
|
||||||||||
Interest Only, ARD
|
1
|
$31,200,000
|
2.5%
|
4.9020%
|
118
|
2.28x
|
68.3%
|
68.3%
|
||||||||||
Total/Weighted Average
|
59
|
$1,235,745,402
|
100.0%
|
5.0329%
|
112
|
1.48x
|
66.5%
|
58.5%
|
(1)
|
With respect to the Google and Amazon Office Portfolio Loan and the One Kendall Square Loan, LTV, debt yield and DSCR calculations include the related pari passu companion loans.
|
(2)
|
In the case of one mortgage loan with an anticipated repayment date, Stated Remaining Term (Mos.) is through the related anticipated repayment date.
|
(3)
|
With respect to the Creekside Mixed Use Development loan and the Hampton Inn Rehoboth Beach loan, the Cut-off Date LTV and Maturity Date or ARD LTV have been calculated based on “As Stabilized” appraised values of $33.8 million and $14.6 million, respectively. The “As-is” Cut-off Date LTV and “As-is” Maturity Date or ARD LTV are 75.9% and 63.5%, respectively, for the Creekside Mixed Use Development loan and 77.5% and 58.6%, respectively, for the Hampton Inn Rehoboth Beach loan. With respect to the Arlington Farms Apartments loan, the Cut-off Date LTV and Maturity Date or ARD LTV have been calculated based on an “As Complete” appraised value of $6.76 million. The “As-is” Cut-off Date LTV and “As-is” Maturity Date or ARD LTV are 77.9% and 64.9%, respectively.
|
Ten Largest Mortgage Loans(1)
|
Mortgage Loans
|
Mortgage
Loan
Seller
|
City, State
|
Property Type
|
Cut–off Date
Balance
|
% of Initial
Outstanding
Pool Balance
|
Cut–off Date
Balance per
NRA/Unit/Pad/
Room
|
Cut–off
Date LTV
Ratio
|
U/W
NCF
DSCR
|
U/W NOI
Debt
Yield
|
||||||||
Google and Amazon Office Portfolio
|
GACC
|
Sunnyvale, CA
|
Office
|
$120,000,000
|
9.7%
|
$427
|
66.6%
|
1.40x
|
9.0%
|
||||||||
One Kendall Square
|
GACC
|
Cambridge, MA
|
Mixed Use
|
$120,000,000
|
9.7%
|
$333
|
62.3%
|
1.34x
|
9.2%
|
||||||||
Excelsior Crossings
|
GACC
|
Hopkins, MN
|
Office
|
$88,000,000
|
7.1%
|
$175
|
62.4%
|
1.58x
|
10.3%
|
||||||||
AMC Portfolio Pool II
|
GACC
|
Various, CO
|
Manufactured Housing Community
|
$87,807,474
|
7.1%
|
$61,967
|
74.8%
|
1.26x
|
8.1%
|
||||||||
Omni Royal Orleans
|
UBSRES
|
New Orleans, LA
|
Hospitality
|
$64,907,463
|
5.3%
|
$188,138
|
59.0%
|
1.76x
|
13.6%
|
||||||||
One North State Street
|
GACC
|
Chicago, IL
|
Retail
|
$59,907,080
|
4.8%
|
$351
|
59.3%
|
1.33x
|
8.5%
|
||||||||
Embassy Suites - Anaheim
|
UBSRES
|
Garden Grove, CA
|
Hospitality
|
$50,000,000
|
4.0%
|
$133,333
|
66.1%
|
1.85x
|
12.0%
|
||||||||
Canyon Crossing
|
UBSRES
|
Riverside, CA
|
Retail
|
$44,700,000
|
3.6%
|
$151
|
71.0%
|
1.36x
|
9.3%
|
||||||||
53 Broadway
|
GACC
|
Brooklyn, NY
|
Multifamily
|
$37,000,000
|
3.0%
|
$493,333
|
62.4%
|
1.22x
|
7.9%
|
||||||||
Valley Forge Shopping Center
|
GACC
|
King of Prussia, PA
|
Retail
|
$35,000,000
|
2.8%
|
$103
|
71.9%
|
1.33x
|
8.6%
|
||||||||
Total/Weighted Average
|
|
|
|
$707,322,017
|
57.2%
|
65.3%
|
1.44x
|
9.6%
|
(1)
|
With respect to the Google and Amazon Office Portfolio Loan and the One Kendall Square Loan, LTV, DSCR, debt yield and Cut–off Date Balance per NRA/Unit/Pad/ Room calculations include the related pari passu companion loans.
|
Pari Passu Companion Loan Summary
|
Mortgage Loans
|
Mortgage Loan
Cut–off Date
Balance
|
Companion
Loans
Cut–off Date
Balance
|
Loan Combination
Cut–off
Date Balance
|
Pooling & Servicing
Agreement
|
Master Servicer
|
Special Servicer
|
Voting Rights
|
|||||||
Google and Amazon Office Portfolio
|
$120,000,000
|
$332,200,000
|
$452,200,000
|
COMM 2014-CCRE14
|
Wells Fargo Bank, NA
|
Rialto Capital Advisors, LLC
|
COMM 2014-CCRE14
|
|||||||
One Kendall Square
|
$120,000,000
|
$83,000,000
|
$203,000,000
|
COMM 2014-UBS2
|
KeyBank National Association
|
LNR Partners LLC
|
COMM 2014-UBS2
|
COMM 2014-UBS2 Mortgage Trust
|
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS
|
Existing Mezzanine Debt Summary
|
Mortgage Loans
|
Mortgage Loan
Cut–off Date
Balance |
Mezzanine Debt
Cut–off Date
Balance
|
Trust
U/W NCF
DSCR |
Total Debt
U/W NCF
DSCR |
Trust
Cut–off Date
LTV Ratio
|
Total Debt
Cut–off Date
LTV Ratio
|
Trust
U/W NOI
Debt Yield |
Total Debt
U/W NOI
Debt Yield |
||||||||
Google and Amazon Office Portfolio
|
$120,000,000
|
$67,800,000
|
1.40x
|
1.15x
|
66.6%
|
76.6%
|
9.0%
|
7.8%
|
||||||||
Embassy Suites – Anaheim
|
$50,000,000
|
$10,000,000
|
1.85x
|
1.34x
|
66.1%
|
79.4%
|
12.0%
|
10.0%
|
||||||||
Canyon Crossing
|
$44,700,000
|
$5,960,000
|
1.36x
|
1.13x
|
71.0%
|
80.5%
|
9.3%
|
8.2%
|
||||||||
Clemson Student Housing
|
$33,425,167
|
$3,000,000
|
1.27x
|
1.09x
|
70.8%
|
77.2%
|
9.2%
|
8.4%
|
||||||||
FedEx Distribution – Natick
|
$31,500,000
|
$3,500,000
|
1.31x
|
1.07x
|
67.2%
|
74.6%
|
8.4%
|
7.6%
|
Previous Securitization History(1)
|
Mortgage Loans
|
Mortgage Loan Seller
|
City, State
|
Property Type
|
Cut–off Date
Balance
|
% of Initial
Outstanding
Pool Balance
|
Previous Securitization
|
||||||
Google and Amazon Office Portfolio
|
GACC
|
Sunnyvale, CA
|
Office
|
$120,000,000
|
9.7%
|
Various(2)
|
||||||
One Kendall Square
|
GACC
|
Cambridge, MA
|
Mixed Use
|
$120,000,000
|
9.7%
|
COMM 2011-FL1
|
||||||
AMC Portfolio Pool II
|
GACC
|
Various, CO
|
Manufactured Housing Community
|
$87,807,474
|
7.1%
|
Various(3)
|
||||||
One North State Street
|
GACC
|
Chicago, IL
|
Retail
|
$59,907,080
|
4.8%
|
BSCMS 2004-PWR4
|
||||||
Embassy Suites – Anaheim
|
UBSRES
|
Garden Grove, CA
|
Hospitality
|
$50,000,000
|
4.0%
|
GKKRE 2007-1A
|
||||||
Beltway 8 Corporate Centre I
|
GACC
|
Houston, TX
|
Office
|
$15,300,000
|
1.2%
|
MLMT 2004-BPC1
|
||||||
Grand Lifestyle MHC Portfolio
|
UBSRES
|
Various, FL
|
Manufactured Housing Community
|
$12,100,000
|
1.0%
|
Various(4)
|
||||||
Turnpike Square
|
GACC
|
Milford, CT
|
Retail
|
$10,484,657
|
0.8%
|
LBUBS 2004-C4
|
||||||
Valley Park Commons
|
GACC
|
Hagerstown, MD
|
Retail
|
$9,850,000
|
0.8%
|
BSCMS 2005-PWR8
|
||||||
Willow Creek Shopping Center
|
UBSRES
|
Prescott, AZ
|
Retail
|
$8,487,632
|
0.7%
|
MLMT 2005-MKB2
|
||||||
950 Haverford
|
CCRE
|
Bryn Mawr, PA
|
Office
|
$7,900,000
|
0.6%
|
JPMCC 2003-CIBC6
|
||||||
Santan Gateway
|
UBSRES
|
Chandler, AZ
|
Retail
|
$6,079,107
|
0.5%
|
GCCFC 2006-GG7
|
||||||
Apache Trace Apartments
|
KeyBank
|
Guymon, OK
|
Multifamily
|
$5,600,000
|
0.5%
|
JPMCC 2005-LDP3
|
||||||
Arlington Farms Apartments
|
CCRE
|
Waco, TX
|
Multifamily
|
$4,992,923
|
0.4%
|
CSFB 2004-C1
|
||||||
StorQuest Long Beach
|
UBSRES
|
Long Beach, CA
|
Self Storage
|
$3,400,000
|
0.3%
|
CSFB 2004-C2
|
||||||
StorQuest Rancho Cucamonga
|
UBSRES
|
Rancho Cucamonga, CA
|
Self Storage
|
$3,291,734
|
0.3%
|
MSC 2004-T15
|
||||||
Eaton Pines MHC
|
UBSRES
|
Eaton Rapids, MI
|
Manufactured Housing Community
|
$3,039,597
|
0.2%
|
WBCMT 2003-C9
|
||||||
Total
|
$528,240,204
|
42.7%
|
(1)
|
Includes mortgaged properties securing mortgage loans for which the most recent prior financing of all or a significant portion of such property was included in a securitization. The table above is based on information provided by the related borrower or obtained through searches of a third-party database. The information has not otherwise been confirmed by the mortgage loan sellers.
|
(2)
|
The most recent financing of the Technology Corners property was previously securitized in the BACM 2006-4 transaction. The most recent financing of the Moffett Towers Building D property was not included in a securitization.
|
(3)
|
The most recent financing of the Pine Lakes Ranch property was previously securitized in the JPMCC 2003-CIBC7 transaction. The most recent financing of the Countryside Village of Denver property was previously securitized in the JPMCC 2004-C1 transaction. The most recent financing of the Countryside Village of Longmont property was previously securitized in the JPMCC 2004-CIBC8 transaction.
|
(4)
|
The most recent financing of the Ridgecrest Resort Community property was included in the CSMC 2006-C4 transaction. The most recent financings of the Lakeside Village and Maple Corner properties were not included in securitizations.
|
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Mortgage Loan Information
|
Property Information
|
||||||
Loan Seller:
|
GACC
|
Single Asset / Portfolio:
|
Portfolio of two properties
|
||||
Loan Purpose:
|
Refinance
|
Property Type:
|
Suburban Office
|
||||
Sponsor:
|
Joseph K. Paul; Jay Paul Revocable
|
Collateral:
|
Fee Simple
|
||||
Living Trust
|
Location:
|
Sunnyvale, CA
|
|||||
Borrower:
|
MPDB1-4 LLC; MT3D LLC
|
Year Built / Renovated:
|
Various
|
||||
Original Balance(1):
|
$120,000,000
|
Total Sq. Ft.:
|
1,057,809
|
||||
Cut-off Date Balance(1):
|
$120,000,000
|
Property Management:
|
Paul Holdings, Inc.
|
||||
% by Initial UPB:
|
9.7%
|
Underwritten NOI:
|
$40,671,127
|
||||
Interest Rate:
|
5.03496%
|
Underwritten NCF:
|
$40,459,565
|
||||
Payment Date:
|
6th of each month
|
Appraised Value:
|
$679,000,000
|
||||
First Payment Date:
|
February 6, 2014
|
Appraisal Date:
|
December 2, 2013
|
||||
Maturity Date:
|
January 6, 2024
|
||||||
Amortization(2):
|
Interest only for first 48 months; 360
|
Historical NOI(7)
|
|||||
months thereafter
|
Most Recent NOI:
|
NAV
|
|||||
Additional Debt(1):
|
$332,200,000 Pari Passu Debt;
|
2012 NOI:
|
NAV
|
||||
$67,800,000 Mezzanine Loan
|
2011 NOI:
|
NAV
|
|||||
Call Protection(3):
|
L(26), YM1(90), O(4)
|
2010 NOI:
|
NAV
|
||||
Lockbox / Cash Management:
|
Hard / In Place
|
2009 NOI:
|
NAV
|
||||
2008 NOI:
|
NAV
|
||||||
Reserves(4)
|
|||||||
Initial
|
Monthly
|
Historical Occupancy(7)
|
|||||
Taxes:
|
$0
|
$172,473
|
Current Occupancy:
|
100.0% (March 6, 2014)
|
|||
Insurance:
|
$0
|
Springing
|
2012 Occupancy:
|
NAV
|
|||
Replacement:
|
$0
|
$17,630
|
2011 Occupancy:
|
NAV
|
|||
TI/LC:
|
$31,289,848
|
$0
|
2010 Occupancy:
|
NAV
|
|||
Lease Sweep:
|
$0
|
Springing
|
2009 Occupancy:
|
NAV
|
|||
2008 Occupancy:
|
NAV
|
||||||
Financial Information
|
(1) The Original Balance and Cut-off Date Balance of $120.0 million represent the non-controlling Note A-3 of the $452.2 million Google and Amazon Office Portfolio Loan Combination evidenced by four pari passu notes. The pari passu companion loans are comprised of the controlling Note A-1, with an original principal balance of $155.0 million, which was included in the COMM 2014-CCRE14 transaction, the non-controlling Note A-2, with original principal balance of $110.0 million, which was included in the COMM 2014-CCRE15 transaction and the non-controlling Note A-4, with original principal balance of $67.2 million. For additional information on the pari passu companion loans, see “The Loan” herein. For additional information on the mezzanine loan, see “Current Mezzanine or Subordinate Indebtedness” herein.
(2) Following an initial 48-month interest only period from the first payment date, the Google and Amazon Office Portfolio Loan Combination is structured with a fixed amortization schedule based on a 360-month amortization period for the mortgage loan, together with the related mezzanine loan. See Annex H-1 of the Free Writing Prospectus.
(3) The lockout period will be at least 26 payments beginning with and including the first payment date of February 6, 2014. Prepayment of the full $452.2 million Google and Amazon Office Portfolio Loan Combination is permitted after the date that is the earlier to occur of (i) two years after the closing date of the securitization that includes the last pari passu companion loan and (ii) February 6, 2017. Partial release is permitted. See “Partial Release” herein.
(4) See “Lockbox / Cash Management”, “Initial Reserves” and “Ongoing Reserves” herein.
(5) DSCR, LTV, Debt Yield and Balance / Sq. Ft. calculations are based on the aggregate Google and Amazon Office Portfolio Loan Combination.
(6) Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.76x and 1.75x, respectively for the mortgage loan and 1.43x and 1.42x, respectively, for the total debt.
(7) The Technology Corners Property was previously 100.0% leased by Ariba, which vacated in 2013. The Technology Corners Property was subsequently leased by Google and has been undergoing substantial renovations prior to Google taking occupancy of the Technology Corners Property. The Moffett Towers Building D Property was constructed in 2013 and pre-leased by Amazon during construction.
|
||||||
Mortgage
|
Total
|
||||||
Loan(5)
|
Debt
|
||||||
Cut-off Date Balance / Sq. Ft.:
|
$427
|
$492
|
|||||
Balloon Balance / Sq. Ft.:
|
$389
|
$448
|
|||||
Cut-off Date LTV:
|
66.6%
|
76.6%
|
|||||
Balloon LTV:
|
60.6%
|
69.7%
|
|||||
Underwritten NOI DSCR(6):
|
1.41x
|
1.16x
|
|||||
Underwritten NCF DSCR(6):
|
1.40x
|
1.15x
|
|||||
Underwritten NOI Debt Yield:
|
9.0%
|
7.8%
|
|||||
Underwritten NCF Debt Yield:
|
8.9%
|
7.8%
|
|||||
Underwritten NOI Debt Yield at Balloon:
|
9.9%
|
8.6%
|
|||||
Underwritten NCF Debt Yield at Balloon:
|
9.8%
|
8.5%
|
|||||
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Property Summary
|
|||||||
Property Name
|
Location
|
Tenant
|
Sq. Ft.
|
Year Built / Renovated
|
Allocated Loan Amount
|
Appraised Value
|
Occupancy(1)
|
Technology Corners Property
|
Sunnyvale, CA
|
Google
|
700,328(2)
|
2001 / 2013
|
$77,307,692
|
$438,000,000
|
100.0%
|
Moffett Towers Building D Property
|
Sunnyvale, CA
|
Amazon
|
357,481
|
2013 / NAP
|
$42,692,308
|
$241,000,000
|
100.0%
|
Total / Wtd. Avg.
|
1,057,809
|
$120,000,000
|
$679,000,000
|
100.0%
|
(1)
|
Based on a rent roll dated March 6, 2014.
|
(2)
|
Google leases 175,082 sq. ft. at 803 11th Avenue, 175,082 sq. ft. at 805 11th Avenue, 175,082 sq. ft. at 807 11th Avenue, and 175,082 sq. ft. at 809 11th Avenue under four separate coterminous leases.
|
Tenant Summary
|
||||||||
Tenant
|
Ratings
(Fitch/Moody’s/S&P)(1)
|
Net Rentable
Area (Sq. Ft.)
|
% of Net
Rentable Area
|
U/W Base
Rent PSF
|
% of Total
U/W Base Rent
|
Lease
Expiration
|
||
Google
|
NR/Aa2/AA
|
700,328
|
66.2%
|
$32.40
|
63.1%
|
9/30/2024(2)
|
||
Amazon(3)(4)
|
NR/Baa1/AA-
|
357,481
|
33.8%
|
$37.08
|
36.9%
|
2/29/2024(5)
|
||
Total Occupied Collateral
|
1,057,809
|
100.0%
|
$33.98
|
100.0%
|
||||
Vacant
|
0
|
0.0%
|
||||||
Total Collateral
|
1,057,809
|
100.0%
|
||||||
(1)
|
Certain ratings are those of the parent company whether or not the parent company guarantees the lease.
|
(2)
|
Google has no early termination options and has one seven-year renewal option with nine months prior notice at 95% of fair market rent.
|
(3)
|
Amazon’s base rent commenced March 1, 2014. At closing, $2,209,233 was reserved for the two remaining months of abated rent due to Amazon under its lease.
|
(4)
|
This space is leased by A2Z Development Center, Inc., a subsidiary of Amazon. Amazon provided a parent guaranty of this lease.
|
(5)
|
Amazon has no early termination options and has two seven-year renewal options with nine months prior notice at 100% of fair market rent.
|
Lease Rollover Schedule
|
||||||||
Year
|
# of
Leases
Expiring
|
Total
Expiring
Sq. Ft.
|
% of Total Sq.
Ft. Expiring
|
Cumulative
Sq. Ft.
Expiring
|
Cumulative % of
Sq. Ft. Expiring
|
Annual U/W Base Rent
Per Sq. Ft.
|
% U/W Base Rent
Rolling
|
Cumulative %
of U/W
Base Rent
|
MTM
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2014
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2015
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2016
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2017
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2018
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2019
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2020
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2021
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2022
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2023
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
2024
|
5
|
1,057,809
|
100.0%
|
1,057,809
|
100.0%
|
$33.98
|
100.0%
|
100.0%
|
Thereafter
|
0
|
0
|
0.0%
|
1,057,809
|
100.0%
|
$0.00
|
0.0%
|
100.0%
|
Vacant
|
NAP
|
0
|
0.0%
|
1,057,809
|
100.0%
|
NAP
|
NAP
|
|
Total / Wtd. Avg.
|
5
|
1,057,809
|
100.0%
|
$33.98
|
100.0%
|
|||
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Pari Passu Note Summary
|
||||
|
Original Balance
|
Cut-off Date Balance
|
Note Holder
|
Controlling Piece
|
Note A-1
|
$155,000,000
|
$155,000,000
|
COMM 2014-CCRE14
|
Yes
|
Note A-2
|
$110,000,000
|
$110,000,000
|
COMM 2014-CCRE15
|
No
|
Note A-3
|
$120,000,000
|
$120,000,000
|
COMM 2014-UBS2
|
No
|
Note A-4
|
$67,200,000
|
$67,200,000
|
GACC
|
No
|
Total
|
$452,200,000
|
$452,200,000
|
Sources and Uses
|
|||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
||
Loan Amount
|
$452,200,000
|
87.0%
|
Loan Payoff
|
$338,309,831
|
65.1%
|
||
Mezzanine Loan
|
$67,800,000
|
13.0%
|
Reserves
|
$33,499,080
|
6.4%
|
||
Closing Costs
|
$2,757,087
|
0.5%
|
|||||
Return of Equity
|
$145,434,002
|
28.0%
|
|||||
Total Sources
|
$520,000,000
|
100.0%
|
Total Uses
|
$520,000,000
|
100.0%
|
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Lease Comparables(1)
|
|||||||||
Property
|
Tenant
|
Location (CA)
|
Year Built
|
Lease Area
(Sq. Ft.)
|
Base Rent PSF (NNN)
|
Lease Term
(yrs)
|
|||
Technology Corners Property
|
Google
|
Sunnyvale
|
2001
|
700,328
|
$32.40
|
11.5
|
|||
Moffett Towers Building D Property
|
Amazon
|
Sunnyvale
|
2013
|
357,481
|
$37.08
|
10.0
|
|||
Santa Clara Gateway
|
Global Foundaries
|
Santa Clara
|
2013
|
136,630
|
$39.00
|
7.0
|
|||
Moffett Towers I
|
Plaxo
|
Sunnyvale
|
2008
|
30,963
|
$39.00
|
6.5
|
|||
Moffett Towers I
|
GoDaddy.com
|
Sunnyvale
|
2008
|
40,521
|
$39.00
|
6.4
|
|||
Santa Clara Towers II
|
CA Technologies
|
Santa Clara
|
1998
|
74,471
|
$30.60
|
10.6
|
|||
1045-1085 La Avenida Avenue
|
Microsoft Corporation
|
Mountain View
|
2001
|
515,700
|
$40.80
|
12.0
|
|||
Technology Corners Building 6
|
Google, Inc.
|
Sunnyvale
|
2014(2)
|
232,248
|
$42.00
|
10.3
|
|||
Sunnyvale City Center
|
IMPAC Medical Systems
|
Sunnyvale
|
2002
|
76,015
|
$49.80
|
10.0
|
|||
3333 Scott Boulevard
|
Akamai Technologies, Inc.
|
Santa Clara
|
2013
|
80,000
|
$34.20
|
10.0
|
(1)
|
Source: Appraisal.
|
(2)
|
Property is still under construction but has been pre-leased.
|
Cash Flow Analysis
|
|||||
U/W
|
U/W PSF
|
||||
Base Rent(1)
|
$41,853,110
|
$39.57
|
|||
Value of Vacant Space
|
0
|
0.00
|
|||
Gross Potential Rent
|
$41,853,110
|
$39.57
|
|||
Total Recoveries
|
7,458,875
|
7.05
|
|||
Total Other Income
|
847,053
|
0.80
|
|||
Less: Vacancy(2)
|
(1,756,434)
|
(1.66)
|
|||
Effective Gross Income
|
$48,402,604
|
$45.76
|
|||
Total Operating Expenses
|
7,731,477
|
7.31
|
|||
Net Operating Income
|
$40,671,127
|
$38.45
|
|||
TI/LC
|
0
|
0.00
|
|||
Capital Expenditures
|
211,562
|
0.20
|
|||
Net Cash Flow
|
$40,459,565
|
$38.25
|
|||
Average Annual Rent PSF(3)
|
$39.57
|
||||
(1)
|
U/W Base Rent includes $5,907,087 in contractual step rents through November 2014 and the straight line average of step rents through the earlier of the termination option or lease term.
|
(2)
|
U/W Vacancy represents 3.5% of gross income.
|
(3)
|
Average Annual Rent PSF is based on operating statements and occupancy rates provided by the Google and Amazon Office Portfolio Loan Combination borrowers. The Technology Corners Property was previously 100.0% occupied by Ariba, which vacated in 2013. The Technology Corners Property was subsequently leased by Google and underwent substantial renovations prior to Google taking occupancy of the property. The Moffett Towers Building D Property was constructed in 2013 and pre-leased during construction by A2Z Development Center, Inc., a subsidiary of Amazon.com, Inc; therefore, historical average annual rent PSF figures are not available.
|
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
Sunnyvale, CA 94089
|
Collateral Asset Summary – Loan No. 1
Google and Amazon Office Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
66.6%
1.40x
9.0%
|
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
Mortgage Loan Information
|
Property Information
|
||||||
Loan Seller:
|
GACC
|
Single Asset / Portfolio:
|
Single Asset
|
||||
Loan Purpose:
|
Acquisition
|
Property Type:
|
Office/Lab/Retail
|
||||
Sponsor:
|
DivcoWest Fund IV REIT, LP
|
Collateral:
|
Fee Simple
|
||||
Borrower:
|
DWF IV One Kendall, LLC
|
Location:
|
Cambridge, MA
|
||||
Original Balance(1):
|
$120,000,000
|
Year Built / Renovated:
|
1887-1994 / 1986, 2007-2013
|
||||
Cut-off Date Balance(1):
|
$120,000,000
|
Total Sq. Ft.:
|
610,110
|
||||
% by Initial UPB:
|
9.7%
|
Property Management:
|
Divco West Real Estate Services, Inc.
|
||||
Interest Rate:
|
4.8200%
|
Underwritten NOI(6):
|
$18,714,340
|
||||
Payment Date:
|
6th of each month
|
Underwritten NCF:
|
$17,154,662
|
||||
First Payment Date:
|
March 6, 2014
|
Appraised Value:
|
$325,600,000
|
||||
Maturity Date:
|
February 6, 2024
|
Appraisal Date:
|
December 9, 2013
|
||||
Amortization:
|
Interest only for first 48 months; 360
|
||||||
months thereafter
|
Historical NOI(6)
|
||||||
Additional Debt(1):
|
$83,000,000 Pari Passu Debt;
|
Most Recent NOI:
|
$13,501,810 (T-12 November 30, 2013)
|
||||
Future Mezzanine Debt Permitted
|
2012 NOI:
|
$12,593,841 (December 31, 2012)
|
|||||
Call Protection(2):
|
L(25), D(91), O(4)
|
2011 NOI:
|
$10,443,482 (December 31, 2011)
|
||||
Lockbox / Cash Management:
|
Hard / In Place
|
2010 NOI:
|
$7,880,812 (December 31, 2010)
|
||||
Reserves(3)
|
Historical Occupancy
|
||||||
Initial
|
Monthly
|
Current Occupancy(7):
|
93.2% (November 23, 2013)
|
||||
Taxes:
|
$1,103,422
|
$275,856
|
2012 Occupancy:
|
86.7% (December 31, 2012)
|
|||
Insurance:
|
$0
|
Springing
|
2011 Occupancy:
|
82.9% (December 31, 2011)
|
|||
Replacement:
|
$0
|
$12,711
|
2010 Occupancy:
|
73.9% (December 31, 2010)
|
|||
TI/LC:
|
$5,137,394
|
$169,814
|
(1) The Original Balance and Cut-off Date Balance of $120.0 Million represent the controlling Note A-1 of the $203.0 million One Kendall Square Loan Combination evidenced by two pari passu notes. The pari passu companion loan is comprised of the non-controlling Note A-2, with an original principal balance of $83.0 million. For additional information on the pari passu companion loan, see “The Loan” herein. For additional information on permitted future indebtedness, see “Future Mezzanine or Subordinate Indebtedness Permitted” herein.
(2) The lockout period will be at least 25 payments beginning with and including the first payment date of March 6, 2014. Defeasance of the full $203.0 million One Kendall Square Loan Combination is permitted after the date that is earlier to occur of (i) two years after the closing date of the securitization that includes the last pari passu companion loan and (ii) January 16, 2017.
(3) See “Initial Reserves” and “Ongoing Reserves” herein.
(4) DSCR, LTV, Debt Yield and Balance / Sq. Ft. calculations are based on the aggregate One Kendall Square Loan Combination.
(5) Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.89x and 1.73x, respectively.
(6) The increase in Underwritten NOI over Historical NOI is due primarily to recent leasing by Akamai Technologies and M.I.T., which have leases that commence in September 2013 and March 2014, respectively, and contribute approximately $3.7 million in underwritten base rent.
(7) Current Occupancy includes Akamai Technologies (51,693 sq. ft., 8.5% of net rentable area), M.I.T. (22,506 sq. ft., 3.7% of net rentable area) and a 3,617 sq. ft. portion of Merrimack, all of which have signed leases but are not yet occupying their space.
|
||||
Free Rent:
|
$673,135
|
NAP
|
|||||
Required Repairs:
|
$114,713
|
NAP
|
|||||
Lease Sweep:
|
$0
|
Springing
|
|||||
Financial Information(4)
|
|||||||
Cut-off Date Balance / Sq. Ft.:
|
$333
|
||||||
Balloon Balance / Sq. Ft.:
|
$300
|
||||||
Cut-off Date LTV:
|
62.3%
|
||||||
Balloon LTV:
|
56.2%
|
||||||
Underwritten NOI DSCR(5):
|
1.46x
|
||||||
Underwritten NCF DSCR(5):
|
1.34x
|
||||||
Underwritten NOI Debt Yield:
|
9.2%
|
||||||
Underwritten NCF Debt Yield:
|
8.5%
|
||||||
Underwritten NOI Debt Yield at Balloon:
|
10.2%
|
||||||
Underwritten NCF Debt Yield at Balloon:
|
9.4%
|
||||||
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
Tenant Summary
|
|||||||||||||
Tenant
|
Type of
Space |
Ratings
(Fitch/Moody’s/S&P) |
Net Rentable
Area (Sq. Ft.)
|
% of Net
Rentable Area
|
U/W Base
Rent PSF
|
% of Total
U/W Base Rent
|
Lease
Expiration
|
||||||
Merrimack(1)
|
Lab/Office
|
NR/NR/NR
|
121,704
|
19.9%
|
$40.93
|
22.4%
|
6/30/2019
|
||||||
Akamai Technologies(2)
|
Office
|
NR/NR/NR
|
51,693
|
8.5%
|
$49.00
|
11.4%
|
12/31/2019
|
||||||
Nine Point Medical(3)
|
Lab
|
NR/NR/NR
|
31,916
|
5.2%
|
$42.24
|
6.1%
|
12/31/2016
|
||||||
InVivo(4)
|
Lab/Office
|
NR/NR/NR
|
26,150
|
4.3%
|
$43.80
|
5.1%
|
10/31/2018
|
||||||
Abcam Limited(5)
|
Office
|
NR/NR/NR
|
22,925
|
3.8%
|
$34.25
|
3.5%
|
12/31/2016
|
||||||
Total Major Tenants
|
254,388
|
41.7%
|
$42.43
|
48.5%
|
|||||||||
Remaining Tenants
|
314,027
|
51.5%
|
$36.53
|
51.5%
|
|||||||||
Total Occupied Collateral
|
568,415
|
93.2%
|
$39.17
|
100.0%
|
|||||||||
Vacant
|
41,695
|
6.8%
|
|||||||||||
Total
|
610,110
|
100.0%
|
|||||||||||
(1)
|
The 121,704 total Net Rentable Area (Sq. Ft.) for Merrimack includes a 3,617 sq. ft. lease for a space that has not yet been completed. Merrimack is paying full rent on the space and build out is estimated to be complete in early 2014. Merrimack has either (i) one five-year renewal option at market rent upon written notice given no later than March 31, 2018, or (ii) one one-year renewal option at market rent upon written notice given no later than December 31, 2016
|
(2)
|
Akamai Technologies is estimated to take occupancy of its space in April 2014 and will commence paying base rent on April 19, 2014. At closing, $652,323 was reserved, representing three months of rent abatements due to Akamai Technologies under its lease. In addition, Akamai Technologies has two five-year renewal options at market rent upon written notice given on or before 15 months prior to the expiration of the then-existing lease term.
|
(3)
|
Nine Point Medical has one two-year renewal option at 95% of market rent upon nine months prior written notice.
|
(4)
|
InVivo has one five-year renewal option at market rent with 14 months prior written notice.
|
(5)
|
Abcam Limited has one three-year renewal option at the greater of market rent or the prior year’s rent with nine months prior written notice.
|
Lease Rollover Schedule(1)
|
|||||||||||||||
Year
|
# of
Leases
Expiring
|
Total
Expiring
Sq. Ft.
|
% of Total Sq.
Ft. Expiring |
Cumulative
Sq. Ft. Expiring |
Cumulative % of
Sq. Ft. Expiring
|
Annual U/W
Base Rent Per Sq. Ft. |
% U/W
Base Rent Rolling
|
Cumulative %
of U/W
Base Rent
|
|||||||
MTM
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
|||||||
2014
|
33
|
57,465
|
9.4%
|
57,465
|
9.4%
|
$34.55
|
8.9%
|
8.9%
|
|||||||
2015
|
17
|
96,027
|
15.7%
|
153,492
|
25.2%
|
$40.71
|
17.6%
|
26.5%
|
|||||||
2016
|
24
|
100,765
|
16.5%
|
254,257
|
41.7%
|
$39.12
|
17.7%
|
44.2%
|
|||||||
2017
|
7
|
30,351
|
5.0%
|
284,608
|
46.6%
|
$41.12
|
5.6%
|
49.8%
|
|||||||
2018
|
7
|
40,902
|
6.7%
|
325,510
|
53.4%
|
$41.66
|
7.7%
|
57.4%
|
|||||||
2019
|
29
|
195,165
|
32.0%
|
520,675
|
85.3%
|
$41.82
|
36.7%
|
94.1%
|
|||||||
2020
|
1
|
22,506
|
3.7%
|
543,181
|
89.0%
|
$50.00
|
5.1%
|
99.1%
|
|||||||
2021
|
0
|
0
|
0.0%
|
543,181
|
89.0%
|
$0.00
|
0.0%
|
99.1%
|
|||||||
2022
|
4
|
10,170
|
1.7%
|
553,351
|
90.7%
|
$18.72
|
0.9%
|
100.0%
|
|||||||
2023
|
0
|
0
|
0.0%
|
553,351
|
90.7%
|
$0.00
|
0.0%
|
100.0%
|
|||||||
2024
|
0
|
0
|
0.0%
|
553,351
|
90.7%
|
$0.00
|
0.0%
|
100.0%
|
|||||||
Thereafter
|
7
|
15,064
|
2.5%
|
568,415
|
93.2%
|
$0.00
|
0.0%
|
100.0%
|
|||||||
Vacant
|
NAP
|
41,695
|
6.8%
|
610,110
|
100.0%
|
NAP
|
NAP
|
||||||||
Total / Wtd. Avg.
|
129
|
610,110
|
100.0%
|
$39.17
|
100.0%
|
||||||||||
(1)
|
Certain tenants have lease termination options that may become exercisable prior to the originally stated expiration date of the tenant lease and that are not considered in the lease rollover schedule.
|
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
Pari Passu Note Summary
|
|||||
|
Original Balance
|
Cut-off Date Balance
|
Note Holder
|
Controlling Piece
|
|
Note A-1
|
$120,000,000
|
$120,000,000
|
COMM 2014-UBS2
|
Yes
|
|
Note A-2
|
$83,000,000
|
$83,000,000
|
GACC
|
No
|
|
Total
|
$203,000,000
|
$203,000,000
|
Sources and Uses
|
||||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
|||
Loan Amount
|
$203,000,000
|
63.9%
|
Purchase Price
|
$310,000,000
|
97.6%
|
|||
Sponsor Equity
|
$114,693,263
|
36.1%
|
Reserves
|
$7,028,664
|
2.2%
|
|||
Closing Costs
|
$664,599
|
0.2%
|
||||||
Total Sources
|
$317,693,263
|
100.0%
|
Total Uses
|
$317,693,263
|
100.0%
|
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
Unit Breakdown(1)
|
|||||||||||
Type of Space
|
Net Rentable
Area (Sq. Ft.)
|
% of Net
Rentable Area
|
% Occupied
|
U/W Base
Rent PSF
|
% of Total
U/W Base Rent
|
Market Rent
PSF(2)
|
|||||
Lab(3)
|
342,287
|
56.1%
|
89.9%
|
$43.25
|
59.8%
|
$38.00 - $54.00
|
|||||
Office
|
201,834
|
33.1%
|
98.0%
|
$40.05
|
35.6%
|
$45.00 - $52.00
|
|||||
Retail
|
38,388
|
6.3%
|
100.0%
|
$23.97
|
4.1%
|
$22.00 - $31.00
|
|||||
Storage and Miscellaneous
|
27,601
|
4.5%
|
88.5%
|
$5.11
|
0.5%
|
$12.00
|
|||||
Total/Wtd. Avg.
|
610,110
|
100.0%
|
93.2%
|
$39.17
|
100.0%
|
$38.13 - $49.99
|
|||||
|
(1)
|
Based on the underwritten rent roll.
|
|
(2)
|
Source: Appraisal.
|
|
(3)
|
Includes lab and incubator lab space.
|
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
Comparable Office Rentals(1)
|
||||||
Name
|
One Kendall Square
Property |
5 Cambridge
Center |
4 Cambridge
Center |
101 Main Street
|
1 Cambridge
Center |
One Main Street
|
Distance from Subject
|
NAP
|
0.4 miles
|
0.3 miles
|
0.6 miles
|
0.4 miles
|
0.7 miles
|
Building Sq. Ft.(2)
|
201,834
|
237,752
|
198,295
|
341,830
|
215,385
|
305,589
|
Year Built / Renovated
|
1887-1994 / 1986, 2007-2013
|
1981
|
1986
|
1983
|
1987
|
1986
|
Tenant Name
|
Comparable Leases
|
Mass Eye Research
|
The Frankel Group
|
Matrix Partners
|
Johnson & Johnson
|
Schneider Electric
|
Size (Sq. Ft.)(3)
|
6,116
|
1,465
|
4,302
|
11,567
|
9,121
|
7,639
|
Rent PSF(4)
|
$40.05
|
$62.00
|
$58.00
|
$55.00
|
$58.00
|
$53.00
|
(1)
|
Source: Appraisal.
|
(2)
|
Building Sq. Ft. for the One Kendall Square Property represents total office space per the November 23, 2013 rent roll.
|
(3)
|
Size (Sq. Ft.) for the One Kendall Square Property represents the average size of office space per the November 23, 2013 rent roll.
|
(4)
|
Rent PSF for the One Kendall Square Property represents the average rent for office space per the November 23, 2013 rent roll.
|
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
Comparable Lab Rentals(1)
|
|||||||||||
Name
|
One Kendall Square
Property |
400 Technology
Square |
400 Technology
Square |
790 Memorial
Drive |
320 Bent Street
|
320 Bent Street
|
|||||
Distance from Subject
|
NAP
|
0.2 miles
|
0.2 miles
|
2.1 miles
|
0.3 miles
|
0.3 miles
|
|||||
Building Sq. Ft.(2)
|
342,287
|
213,000
|
213,000
|
47,874
|
184,445
|
184,445
|
|||||
Year Built / Renovated
|
1887-1994 / 1986, 2007-2013
|
1966/1999
|
1966/1999
|
2001
|
2000
|
2000
|
|||||
Tenant Name
|
Comparable Leases
|
Aramco Services
|
Warp Drive
|
Infinity Pharma
|
Momento Pharma
|
Idenix Pharma
|
|||||
Unit Size (Sq. Ft.)(3)
|
6,339
|
32,403
|
21,621
|
15,783
|
104,678
|
46,418
|
|||||
Rent PSF(4)
|
$43.25
|
$56.00
|
$59.25
|
$62.00
|
$58.00
|
$48.26
|
(1)
|
Source: Appraisal.
|
(2)
|
Building Sq. Ft. for the One Kendall Square Property represents total lab and incubator lab space per the November 23, 2013 rent roll.
|
(3)
|
Size (Sq. Ft.) for the One Kendall Square Property represents the average size of lab space per the November 23, 2013 rent roll.
|
(4)
|
Rent PSF for the One Kendall Square Property represents the average rent for lab space per the November 23, 2013 rent roll.
|
Cash Flow Analysis
|
|||||||
2010
|
2011
|
2012
|
T-12 11/30/2013
|
U/W
|
U/W PSF
|
||
Base Rent(1)
|
$12,967,983
|
$14,845,894
|
$17,298,314
|
$18,482,225
|
$22,828,190
|
$37.42
|
|
Value of Vacant Space
|
0
|
0
|
0
|
0
|
2,309,888
|
3.79
|
|
Gross Potential Rent
|
$12,967,983
|
$14,845,894
|
$17,298,314
|
$18,482,225
|
$25,138,078
|
$41.20
|
|
Total Recoveries
|
3,494,275
|
5,389,436
|
5,573,452
|
6,124,526
|
6,491,507
|
10.64
|
|
Total Other Income
|
110,516
|
93,776
|
18,482
|
150,139
|
105,965
|
0.17
|
|
Less: Vacancy(2)
|
0
|
0
|
0
|
0
|
(2,309,888)
|
(3.79)
|
|
Effective Gross Income
|
$16,572,774
|
$20,329,107
|
$22,890,248
|
$24,756,891
|
$29,425,662
|
$48.23
|
|
Total Operating Expenses
|
8,691,962
|
9,885,624
|
10,296,408
|
11,255,081
|
10,711,322
|
17.56
|
|
Net Operating Income(3)
|
$7,880,812
|
$10,443,482
|
$12,593,841
|
$13,501,810
|
$18,714,340
|
$30.67
|
|
TI/LC
|
0
|
0
|
0
|
0
|
1,407,150
|
2.31
|
|
Capital Expenditures
|
0
|
0
|
0
|
0
|
152,528
|
0.25
|
|
Net Cash Flow
|
$7,880,812
|
$10,443,482
|
$12,593,841
|
$13,501,810
|
$17,154,662
|
$28.12
|
|
(1)
|
U/W Base Rent includes $563,123 in contractual step rent through December 2014.
|
(2)
|
U/W Vacancy represents 7.3% of gross income compared to a market vacancy rate of 6.5% and a submarket vacancy rate of 5.9%. U/W Vacancy represents vacant space grossed up at $55.40 PSF based on recent leasing.
|
(3)
|
The increase in U/W Net Operating Income over historical Net Operating Income is primarily due to recent leasing by Akamai Technologies and M.I.T., which have leases that commence in September 2013 and March 2014, respectively, and contribute approximately $3.7 million in underwritten base rent.
|
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
One Kendall Square
Cambridge, MA 02139
|
Collateral Asset Summary – Loan No. 2
One Kendall Square
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$120,000,000
62.3%
1.34x
9.2%
|
9350 and 9380 Excelsior Boulevard
Hopkins, MN 55343
|
Collateral Asset Summary – Loan No. 3
Excelsior Crossings
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$88,000,000
62.4%
1.58x
10.3%
|
9350 and 9380 Excelsior Boulevard
Hopkins, MN 55343
|
Collateral Asset Summary – Loan No. 3
Excelsior Crossings
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$88,000,000
62.4%
1.58x
10.3%
|
Mortgage Loan Information
|
Property Information
|
||||
Loan Seller:
|
GACC
|
Single Asset / Portfolio:
|
Single Asset
|
||
Loan Purpose:
|
Acquisition
|
Property Type:
|
Suburban Office
|
||
Sponsor:
|
Colony Financial, Inc.
|
Collateral:
|
Fee Simple
|
||
Borrower:
|
ColFin Midwest NNN Investor, LLC
|
Location:
|
Hopkins, MN
|
||
Original Balance:
|
$88,000,000
|
Year Built / Renovated:
|
2008-2009 / NAP
|
||
Cut-off Date Balance:
|
$88,000,000
|
Total Sq. Ft.:
|
501,603
|
||
% by Initial UPB:
|
7.1%
|
Property Management:
|
Self-managed
|
||
Interest Rate:
|
4.8350%
|
Underwritten NOI:
|
$9,096,055
|
||
Payment Date:
|
1st of each month
|
Underwritten NCF:
|
$8,768,097
|
||
First Payment Date:
|
February 1, 2014
|
Appraised Value:
|
$141,000,000
|
||
Maturity Date:
|
January 1, 2024
|
Appraisal Date:
|
December 3, 2013
|
||
Amortization:
|
Interest only for first 24 months, 360
|
||||
months thereafter
|
Historical NOI
|
||||
Additional Debt:
|
None
|
Most Recent NOI:
|
$9,002,478 (T-12 October 31, 2013)
|
||
Call Protection(1):
|
L(24), YM(2), DorYM(90), O(4)
|
2012 NOI:
|
$8,822,764 (December 31, 2012)
|
||
Lockbox / Cash Management:
|
Hard / In Place
|
2011 NOI:
|
$8,710,021 (December 31, 2011)
|
||
2010 NOI:
|
NAV
|
||||
Reserves(2)
|
|||||
Initial
|
Monthly
|
Historical Occupancy
|
|||
Taxes:
|
$0
|
Springing
|
Current Occupancy:
|
100.0% (March 6, 2014)
|
|
Insurance:
|
$0
|
Springing
|
2012 Occupancy:
|
100.0% (December 31, 2012)
|
|
Replacement:
|
$0
|
$10,450
|
2011 Occupancy:
|
100.0% (December 31, 2011)
|
|
TI/LC:
|
$0
|
$10,450
|
2010 Occupancy:
|
100.0% (December 31, 2010)
|
|
Lease Sweep:
|
$0
|
Springing
|
(1) The lockout period will be 24 payments beginning with and including the first payment date of February 1, 2014. The defeasance lockout period will be 26 payments beginning with and including the first payment date of February 1, 2014. Partial defeasance (without property release) is permitted in lieu of a cash trap. See “Ongoing Reserves” herein.
(2) See “Initial Reserves” and “Ongoing Reserves” herein.
(3) Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 2.11x and 2.03x, respectively.
|
||
Financial Information
|
|||||
Cut-off Date Balance / Sq. Ft.:
|
$175
|
||||
Balloon Balance / Sq. Ft.:
|
$151
|
||||
Cut-off Date LTV:
|
62.4%
|
||||
Balloon LTV:
|
53.8%
|
||||
Underwritten NOI DSCR(3):
|
1.64x
|
||||
Underwritten NCF DSCR(3):
|
1.58x
|
||||
Underwritten NOI Debt Yield:
|
10.3%
|
||||
Underwritten NCF Debt Yield:
|
10.0%
|
||||
Underwritten NOI Debt Yield at Balloon:
|
12.0%
|
||||
Underwritten NCF Debt Yield at Balloon:
|
11.6%
|
9350 and 9380 Excelsior Boulevard
Hopkins, MN 55343
|
Collateral Asset Summary – Loan No. 3
Excelsior Crossings
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$88,000,000
62.4%
1.58x
10.3%
|
Tenant Summary
|
||||||||
Tenant
|
Ratings
(Fitch/Moody’s/S&P)
|
Net Rentable
Area (Sq. Ft.)
|
% of Net
Rentable Area
|
U/W Base
Rent PSF
|
% of Total
U/W Base Rent
|
Lease
Expiration
|
||
Cargill
|
A/A2/A
|
501,603
|
100.0%
|
$18.33
|
100.0%
|
9/30/2020(1)
|
||
Total Occupied Collateral
|
501,603
|
100.0%
|
$18.33
|
100.0%
|
||||
Vacant
|
0
|
0.0%
|
||||||
Total
|
501,603
|
100.0%
|
||||||
(1)
|
Cargill has three five-year renewal options at 95% of the market rate which are exercisable between 15 and 30 months prior to the expiration of the then current term. The tenant has no termination options.
|
Lease Rollover Schedule
|
|||||||||||||||||||||||
Year
|
# of
Leases
Expiring
|
Total
Expiring
Sq. Ft.
|
% of Total Sq.
Ft. Expiring
|
Cumulative
Sq. Ft.
Expiring
|
Cumulative % of
Sq. Ft. Expiring
|
Annual U/W
Base Rent Per Sq. Ft.
|
% U/W
Base Rent Rolling
|
Cumulative %
of U/W
Base Rent
|
|||||||||||||||
MTM
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
|||||||||||||||
2014
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
|||||||||||||||
2015
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
|||||||||||||||
2016
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
|||||||||||||||
2017
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
|||||||||||||||
2018
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
|||||||||||||||
2019
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
|||||||||||||||
2020
|
2
|
501,603
|
100.0%
|
501,603
|
100.0%
|
$18.33
|
100.0%
|
100.0%
|
|||||||||||||||
2021
|
0
|
0
|
0.0%
|
501,603
|
100.0%
|
$0.00
|
0.0%
|
100.0%
|
|||||||||||||||
2022
|
0
|
0
|
0.0%
|
501,603
|
100.0%
|
$0.00
|
0.0%
|
100.0%
|
|||||||||||||||
2023
|
0
|
0
|
0.0%
|
501,603
|
100.0%
|
$0.00
|
0.0%
|
100.0%
|
|||||||||||||||
2024
|
0
|
0
|
0.0%
|
501,603
|
100.0%
|
$0.00
|
0.0%
|
100.0%
|
|||||||||||||||
Thereafter
|
0
|
0
|
0.0%
|
501,603
|
100.0%
|
$0.00
|
0.0%
|
100.0%
|
|||||||||||||||
Vacant
|
NAP
|
0
|
0.0%
|
501,603
|
100.0%
|
NAP
|
NAP
|
||||||||||||||||
Total / Wtd. Avg.
|
2
|
501,603
|
100.0%
|
$18.33
|
100.0%
|
||||||||||||||||||
Sources and Uses
|
|||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
||
Loan Amount
|
$88,000,000
|
71.3%
|
Purchase Price
|
$122,750,000
|
99.4%
|
||
Sponsor Equity
|
$35,460,755
|
28.7%
|
Closing Costs
|
$710,755
|
0.6%
|
||
Total Sources
|
$123,460,755
|
100.0%
|
Total Uses
|
$123,460,755
|
100.0%
|
9350 and 9380 Excelsior Boulevard
Hopkins, MN 55343
|
Collateral Asset Summary – Loan No. 3
Excelsior Crossings
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$88,000,000
62.4%
1.58x
10.3%
|
9350 and 9380 Excelsior Boulevard
Hopkins, MN 55343
|
Collateral Asset Summary – Loan No. 3
Excelsior Crossings
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$88,000,000
62.4%
1.58x
10.3%
|
Lease Comparables(1)
|
||||||||||||
Property
|
Tenant
|
Year Built
|
Lease Area
(Sq. Ft.)
|
Base
Rent (PSF) |
Lease
Term (yrs) |
|||||||
Excelsior Crossings Property(2)
|
Cargill
|
2008-2009
|
501,603
|
$18.33
|
11.9
|
|||||||
Norman Point II
|
GSA
|
2006
|
244,561
|
$20.55
|
5.0
|
|||||||
Interchange North
|
Aetna
|
1980
|
43,308
|
$13.75
|
3.0
|
|||||||
Cargill Building
|
Cargill
|
1998
|
148,220
|
$14.50
|
5.0
|
|||||||
MarketPointe II
|
CB Richard Ellis
|
2008
|
70,000
|
$19.00
|
10.0
|
|||||||
ATK Facility
|
ATK
|
2008
|
107,209
|
$19.76
|
15.0
|
|||||||
XATA Corporation Building
|
XATA Corporation
|
1986
|
26,791
|
$14.07
|
7.0
|
|||||||
Windsor Plaza
|
Virtual Radiologic
|
2007
|
70,000
|
$20.80
|
10.0
|
(1)
|
Source: Appraisal.
|
(2)
|
Based on rent roll dated March 6, 2014.
|
Cash Flow Analysis
|
|||||
2011
|
2012
|
T-12 10/31/2013
|
U/W
|
U/W PSF
|
|
Base Rent(1)
|
$8,709,560
|
$8,822,621
|
$9,000,462
|
$9,586,397
|
$19.11
|
Value of Vacant Space
|
0
|
0
|
0
|
0
|
0
|
Gross Potential Rent
|
$8,709,560
|
$8,822,621
|
$9,000,462
|
$9,586,397
|
$19.11
|
Total Recoveries
|
31,253
|
33,343
|
43,786
|
219,658
|
0.44
|
Total Other Income
|
1,000
|
1,111
|
0
|
0
|
0
|
Less: Vacancy(2)
|
0
|
0
|
0
|
(490,303)
|
(0.98)
|
Effective Gross Income
|
$8,741,813
|
$8,857,075
|
$9,044,248
|
$9,315,752
|
$18.57
|
Total Operating Expenses
|
31,792
|
34,311
|
41,770
|
219,697
|
0.44
|
Net Operating Income
|
$8,710,021
|
$8,822,764
|
$9,002,478
|
$9,096,055
|
$18.13
|
TI/LC
|
0
|
0
|
0
|
252,718
|
0.50
|
Capital Expenditures
|
0
|
0
|
0
|
75,240
|
0.15
|
Net Cash Flow
|
$8,710,021
|
$8,822,764
|
$9,002,478
|
$8,768,097
|
$17.48
|
(1)
|
U/W Base Rent includes $391,592 in step rent which represents the straight line of average rent underwritten throughout Cargill’s lease term.
|
(2)
|
U/W Vacancy represents 5.0% of gross income.
|
9350 and 9380 Excelsior Boulevard
Hopkins, MN 55343
|
Collateral Asset Summary – Loan No. 3
Excelsior Crossings
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$88,000,000
62.4%
1.58x
10.3%
|
9350 and 9380 Excelsior Boulevard
Hopkins, MN 55343
|
Collateral Asset Summary – Loan No. 3
Excelsior Crossings
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$88,000,000
62.4%
1.58x
10.3%
|
9350 and 9380 Excelsior Boulevard
Hopkins, MN 55343
|
Collateral Asset Summary – Loan No. 3
Excelsior Crossings
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$88,000,000
62.4%
1.58x
10.3%
|
Colorado
|
Collateral Asset Summary – Loan No. 4
AMC Portfolio Pool II
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$87,807,474
74.8%
1.26x
8.1%
|
Colorado
|
Collateral Asset Summary – Loan No. 4
AMC Portfolio Pool II
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$87,807,474
74.8%
1.26x
8.1%
|
Mortgage Loan Information
|
Property Information
|
||||||
Loan Seller:
|
GACC
|
Single Asset / Portfolio:
|
Portfolio of three properties
|
||||
Loan Purpose:
|
Acquisition
|
Property Type:
|
Manufactured Housing Community
|
||||
Sponsor:
|
RHP Properties, Inc.; NorthStar Realty
|
Collateral:
|
Fee Simple
|
||||
Finance Corp.
|
Location:
|
Colorado
|
|||||
Borrower:
|
AMC Pine Lakes Ranch LLC; AMC
|
Year Built / Renovated:
|
Various / NAP
|
||||
Countryside Village Denver LLC; AMC
|
Total Pads:
|
1,417
|
|||||
Countryside Village Longmont LLC
|
Property Management:
|
Newbury Management Company
|
|||||
Original Balance:
|
$87,807,474
|
Underwritten NOI:
|
$7,139,637
|
||||
Cut-off Date Balance:
|
$87,807,474
|
Underwritten NCF:
|
$7,033,362
|
||||
% by Initial UPB:
|
7.1%
|
Appraised Value:
|
$117,360,000
|
||||
Interest Rate:
|
4.9150%
|
Appraisal Date:
|
December 2, 2013
|
||||
Payment Date:
|
1st of each month
|
||||||
First Payment Date:
|
February 1, 2014
|
Historical NOI
|
|||||
Maturity Date:
|
January 1, 2024
|
Most Recent NOI:
|
$7,014,004 (T-12 September 30, 2013)
|
||||
Amortization:
|
Interest only for first 47 months; 360
|
2012 NOI:
|
$6,736,442 (December 31, 2012)
|
||||
months thereafter
|
2011 NOI:
|
$6,576,525 (December 31, 2011)
|
|||||
Additional Debt(1):
|
Future Mezzanine Debt Permitted
|
2010 NOI:
|
$6,337,851 (December 31, 2010)
|
||||
Call Protection(2):
|
L(26), YM1(87), O(7)
|
||||||
Lockbox / Cash Management:
|
Springing Soft / Springing
|
Historical Occupancy(5)
|
|||||
Current Occupancy:
|
92.2% (November 1, 2013)
|
||||||
Reserves(3)
|
2012 Occupancy:
|
88.1% (December 31, 2012)
|
|||||
Initial
|
Monthly
|
2011 Occupancy:
|
86.3% (December 31, 2011)
|
||||
Taxes:
|
$204,689
|
$18,608
|
2010 Occupancy:
|
86.1% (December 31, 2010)
|
|||
Insurance:
|
$0
|
Springing
|
(1) See “Future Mezzanine or Subordinate Indebtedness Permitted” herein.
(2) Partial release and substitution are permitted. See “Partial Release” and “Substitution of Collateral” herein.
(3) See “Initial Reserves” and “Ongoing Reserves” herein.
(4) Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.63x and 1.61x, respectively.
(5) Occupancy includes 143 sponsor owned homes, which represent 10.1% of the 1,417 total pads.
|
||||
Replacement:
|
$251,656
|
Springing
|
|||||
Required Repairs:
|
$209,220
|
NAP
|
|||||
Financial Information
|
|||||||
Cut-off Date Balance / Pad:
|
$61,967
|
||||||
Balloon Balance / Pad:
|
$55,846
|
||||||
Cut-off Date LTV:
|
74.8%
|
||||||
Balloon LTV:
|
67.4%
|
||||||
Underwritten NOI DSCR(4):
|
1.27x
|
||||||
Underwritten NCF DSCR(4):
|
1.26x
|
||||||
Underwritten NOI Debt Yield:
|
8.1%
|
||||||
Underwritten NCF Debt Yield:
|
8.0%
|
||||||
Underwritten NOI Debt Yield at Balloon:
|
9.0%
|
||||||
Underwritten NCF Debt Yield at Balloon:
|
8.9%
|
||||||
Property Summary
|
|||||||||||||||||
Allocated
|
|||||||||||||||||
Property Name
|
Location
|
Pads
|
Year Built / Renovated
|
Loan Amount
|
Appraised Value
|
Occupancy(1)
|
|||||||||||
Pine Lakes Ranch
|
Thornton, CO
|
762
|
1970-1997 / NAP
|
$45,661,981
|
$61,030,000
|
87.0%
|
|||||||||||
Countryside Village of Denver
|
Federal Heights, CO
|
345
|
1973 / NAP
|
$22,363,373
|
$29,890,000
|
96.8%
|
|||||||||||
Countryside Village of Longmont
|
Longmont, CO
|
310
|
1972 / NAP
|
$19,782,120
|
$26,440,000
|
100.0%
|
|||||||||||
Total / Wtd. Avg.
|
1,417
|
$87,807,474
|
$117,360,000
|
92.2%
|
Colorado
|
Collateral Asset Summary – Loan No. 4
AMC Portfolio Pool II
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$87,807,474
74.8%
1.26x
8.1%
|
Sources and Uses
|
||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
|
Loan Amount
|
$87,807,474
|
73.7%
|
Purchase Price
|
$117,214,672
|
98.4%
|
|
Sponsor Equity
|
$31,342,998
|
26.3%
|
Reserves
|
$665,565
|
0.6%
|
|
Closing Costs
|
$1,270,235
|
1.1%
|
||||
Total Sources
|
$119,150,472
|
100.0%
|
Total Uses
|
$119,150,472
|
100.0%
|
Colorado
|
Collateral Asset Summary – Loan No. 4
AMC Portfolio Pool II
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$87,807,474
74.8%
1.26x
8.1%
|
Colorado
|
Collateral Asset Summary – Loan No. 4
AMC Portfolio Pool II
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$87,807,474
74.8%
1.26x
8.1%
|
Historical Occupancy and Market Rent Summary
|
||||||||||||||||||
Property Name
|
City
|
Pads
|
2011
Occ. (1) |
2012
Occ. (1) |
Current
Occ. (1)(2)
|
Avg. Monthly Rent per Pad(2)
|
Comparable
Property Avg. Occupancy(3) |
Comparable Property
Rent(3) |
Appraisal Market Rent(3)
|
|||||||||
Pine Lakes Ranch
|
Thornton
|
762
|
81.0%
|
83.2%
|
87.0%
|
$566
|
89.2%
|
$535 - $613
|
$591
|
|||||||||
Countryside Village of Denver
|
Federal Heights
|
345
|
89.9%
|
89.6%
|
96.8%
|
$547
|
89.2%
|
$445 - $589
|
$588
|
|||||||||
Countryside Village of Longmont
|
Longmont
|
310
|
95.2%
|
98.7%
|
100.0%
|
$557
|
96.3%
|
$465 - $569
|
$570
|
|||||||||
Total / Wtd. Avg.
|
1,417
|
86.3%
|
88.1%
|
92.2%
|
$559
|
91.6%
|
$445 - $613
|
$586
|
(1)
|
Occupancy includes 143 sponsor owned homes, which represents 10.1% of the AMC Portfolio Pool II Properties’ total pads.
|
(2)
|
Based on occupied units per the November 1, 2013 rent roll.
|
(3)
|
Source: Appraisal.
|
Cash Flow Analysis
|
||||||
2010
|
2011
|
2012
|
T-12 9/30/2013
|
U/W
|
U/W per Pad
|
|
Gross Potential Rent(1)
|
$7,619,186
|
$7,913,727
|
$8,108,949
|
$8,594,190
|
$8,763,870
|
$6,185
|
Other Income
|
147,949
|
146,523
|
176,007
|
158,005
|
158,005
|
112
|
Utility Reimbursements
|
676,649
|
693,767
|
711,338
|
742,708
|
742,708
|
524
|
Less: Concessions & Credit Loss
|
0
|
0
|
0
|
(151,574)
|
(151,574)
|
(107)
|
Effective Gross Income
|
$8,443,784
|
$8,754,017
|
$8,996,294
|
$9,343,329
|
$9,513,009
|
$6,713
|
Total Operating Expenses
|
2,105,932
|
2,177,493
|
2,259,852
|
2,329,326
|
2,373,372
|
1,675
|
Net Operating Income
|
$6,337,851
|
$6,576,525
|
$6,736,442
|
$7,014,004
|
$7,139,637
|
$5,039
|
Capital Expenditures
|
106,275
|
106,275
|
106,275
|
106,275
|
106,275
|
75
|
Net Cash Flow
|
$6,231,576
|
$6,470,250
|
$6,630,167
|
$6,907,729
|
$7,033,362
|
$4,964
|
Colorado
|
Collateral Asset Summary – Loan No. 4
AMC Portfolio Pool II
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$87,807,474
74.8%
1.26x
8.1%
|
Colorado
|
Collateral Asset Summary – Loan No. 4
AMC Portfolio Pool II
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$87,807,474
74.8%
1.26x
8.1%
|
621 Saint Louis Street
New Orleans, LA 70130
|
Collateral Asset Summary – Loan No. 5
Omni Royal Orleans
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$64,907,463
59.0%
1.76x
13.6%
|
621 Saint Louis Street
New Orleans, LA 70130
|
Collateral Asset Summary – Loan No. 5
Omni Royal Orleans
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$64,907,463
59.0%
1.76x
13.6%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
UBSRES
|
Single Asset / Portfolio:
|
Single Asset
|
|||
Loan Purpose:
|
Refinance
|
Property Type:
|
Full Service Hospitality
|
|||
Sponsor:
|
Darryl D. Berger; Roger H. Ogden;
|
Collateral:
|
Fee Simple
|
|||
Joseph A. Jaeger, Jr.
|
Location:
|
New Orleans, LA
|
||||
Borrower:
|
Royal Orleans Hotel Partners II, L.L.C.
|
Year Built / Renovated:
|
1968 / 2012-2013
|
|||
Original Balance:
|
$65,000,000
|
Total Rooms:
|
345
|
|||
Cut-off Date Balance:
|
$64,907,463
|
Property Management:
|
Omni New Orleans Corporation
|
|||
% by Initial UPB:
|
5.3%
|
Underwritten NOI:
|
$8,825,902
|
|||
Interest Rate:
|
5.3460%
|
Underwritten NCF:
|
$7,677,573
|
|||
Payment Date:
|
6th of each month
|
Appraised Value:
|
$110,000,000
|
|||
First Payment Date:
|
March 6, 2014
|
Appraisal Date:
|
November 13, 2013
|
|||
Maturity Date:
|
February 6, 2024
|
|||||
Amortization:
|
360 months
|
Historical NOI
|
||||
Additional Debt:
|
None
|
Most Recent NOI:
|
$8,586,025 (T-12 November 30, 2013)
|
|||
Call Protection:
|
L(25), D(90), O(5)
|
2012 NOI(2):
|
$4,747,451 (December 31, 2012)
|
|||
Lockbox / Cash Management:
|
Soft Springing Hard / In place
|
2011 NOI:
|
$6,477,584 (December 31, 2011)
|
|||
2010 NOI:
|
$5,141,778 (December 31, 2010)
|
|||||
Reserves(1)
|
||||||
Initial
|
Monthly
|
Historical Occupancy
|
||||
Taxes:
|
$49,035
|
Springing
|
Most Recent Occupancy:
|
76.8% (November 30, 2013)
|
||
Insurance:
|
$369,771
|
Springing
|
2012 Occupancy(2):
|
57.7% (December 31, 2012)
|
||
FF&E: | $0 |
1/12 of 4.0% of prior year’s
|
2011 Occupancy:
|
74.7% (December 31, 2011)
|
||
gross income
|
2010 Occupancy:
|
74.9% (December 31, 2010)
|
||||
Required Repairs:
|
$27,665
|
NAP
|
(1) See “Initial Reserves” and “Ongoing Reserves” herein.
(2) The decrease in 2012 NOI and 2012 Occupancy from 2011 NOI and 2011 Occupancy is due to certain rooms being taken offline in 2012 for ongoing renovations,which totaled $13.2 million ($38,140 per room) and were completed in January 2013.
|
|||
Financial Information
|
||||||
Cut-off Date Balance / Room:
|
$188,138
|
|||||
Balloon Balance / Room:
|
$156,583
|
|||||
Cut-off Date LTV:
|
59.0%
|
|||||
Balloon LTV:
|
49.1%
|
|||||
Underwritten NOI DSCR:
|
2.03x
|
|||||
Underwritten NCF DSCR:
|
1.76x
|
|||||
Underwritten NOI Debt Yield:
|
13.6%
|
|||||
Underwritten NCF Debt Yield:
|
11.8%
|
|||||
Underwritten NOI Debt Yield at Balloon:
|
16.3%
|
|||||
Underwritten NCF Debt Yield at Balloon:
|
14.2%
|
621 Saint Louis Street
New Orleans, LA 70130
|
Collateral Asset Summary – Loan No. 5
Omni Royal Orleans
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$64,907,463
59.0%
1.76x
13.6%
|
Historical Occupancy, ADR, RevPAR(1)
|
|||||||||
Omni Royal Orleans Property(2)
|
Competitive Set
|
Penetration Factor
|
|||||||
Year
|
Occupancy
|
ADR
|
RevPAR
|
Occupancy
|
ADR
|
RevPAR
|
Occupancy
|
ADR
|
RevPAR
|
2011
|
73.7%
|
$175.52
|
$129.32
|
75.3%
|
$158.31
|
$119.14
|
97.9%
|
110.9%
|
108.5%
|
2012(3)
|
56.5%
|
$196.74
|
$111.25
|
73.1%
|
$176.30
|
$128.87
|
77.4%
|
111.6%
|
86.3%
|
2013
|
77.8%
|
$205.43
|
$159.80
|
73.5%
|
$188.98
|
$138.93
|
105.8%
|
108.7%
|
115.0%
|
(1)
|
Source: Hospitality research report.
|
(2)
|
The minor variances between the underwriting and the above table with respect to Occupancy, ADR and RevPAR at the Omni Royal Orleans Property are attributable to variances in reporting methodologies and/or timing differences.
|
(3)
|
The decrease in occupancy and RevPAR from 2011 to 2012, is due to certain rooms being taken offline in 2012 for ongoing renovations, which totaled $13.2 million ($38,140 per room) and were completed in January 2013.
|
Sources and Uses
|
||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
|
Loan Amount
|
$65,000,000
|
100.0%
|
Loan Payoff
|
$42,312,189
|
65.1%
|
|
Reserves
|
$446,471
|
0.7%
|
||||
Closing Costs
|
$739,606
|
1.1%
|
||||
Return of Equity
|
$21,501,734
|
33.1%
|
||||
Total Sources
|
$65,000,000
|
100.0%
|
Total Uses
|
$65,000,000
|
100.0%
|
621 Saint Louis Street
New Orleans, LA 70130
|
Collateral Asset Summary – Loan No. 5
Omni Royal Orleans
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$64,907,463
59.0%
1.76x
13.6%
|
Primary Competitive Set(1)
|
||||||
Property
|
# of Rooms
|
Year Opened
|
Meeting Space
(Sq. Ft.) |
2013
Occupancy(2)
|
2013 ADR(2)
|
2013 RevPAR(2)
|
Omni Royal Orleans Property
|
345
|
1968
|
12,795
|
77.0%
|
$202.00
|
$155.14
|
Royal Sonesta New Orleans
|
482
|
1969
|
19,212
|
73.0%
|
$205.00
|
$149.65
|
Monteleone New Orleans
|
570
|
1886
|
23,669
|
72.0%
|
$218.00
|
$156.96
|
JW Marriott New Orleans
|
496
|
1984
|
19,400
|
82.0%
|
$172.00
|
$141.04
|
Hyatt French Quarter
|
254
|
1995
|
10,200
|
78.0%
|
$168.00
|
$131.04
|
Total/Wtd. Avg.
|
2,147
|
76.0%
|
$195.07
|
$148.28
|
(1)
|
Source: Appraisal
|
(2)
|
2013 Occupancy, 2013 ADR and 2013 RevPAR represent estimates from the appraiser.
|
621 Saint Louis Street
New Orleans, LA 70130
|
Collateral Asset Summary – Loan No. 5
Omni Royal Orleans
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$64,907,463
59.0%
1.76x
13.6%
|
Cash Flow Analysis
|
||||||
2010
|
U/W
|
U/W per Room
|
||||
Occupancy
|
74.9%
|
|||||
ADR
|
$159.55
|
|||||
RevPAR
|
$119.45
|
|||||
Room Revenue
|
$15,041,188
|
$58,353
|
||||
F&B Revenue
|
5,916,023
|
18,561
|
||||
Other Revenue(2)
|
1,602,800
|
6,298
|
||||
Total Dept. Revenue
|
$22,560,011
|
$83,212
|
||||
Total Dept. Expenses
|
9,248,676
|
28,179
|
||||
Total Dept. Profit
|
$13,311,335
|
$55,034
|
||||
Undistributed Expenses
|
7,360,250
|
26,246
|
||||
Total Fixed Expenses
|
809,307
|
3,205
|
||||
Net Operating Income
|
$5,141,778
|
$25,582
|
||||
FF&E
|
0
|
3,328
|
||||
Net Cash Flow
|
$5,141,778
|
$22,254
|
(1)
|
The decrease in occupancy and room revenue from 2011 to 2012, and increase in occupancy and room revenue from 2012 to T-12 11/30/2013 were due to certain rooms being taken offline in 2012 for ongoing renovations, which totaled $13.2 million ($38,140 per room) and were completed in January 2013.
|
(2)
|
Other Revenue includes parking, retail, telephone income, cancellation fees and miscellaneous income.
|
621 Saint Louis Street
New Orleans, LA 70130
|
Collateral Asset Summary – Loan No. 5
Omni Royal Orleans
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$64,907,463
59.0%
1.76x
13.6%
|
621 Saint Louis Street
New Orleans, LA 70130
|
Collateral Asset Summary – Loan No. 5
Omni Royal Orleans
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$64,907,463
59.0%
1.76x
13.6%
|
One North State Street
Chicago, IL 60602
|
Collateral Asset Summary – Loan No. 6
One North State Street
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$59,907,080
59.3%
1.33x
8.5%
|
One North State Street
Chicago, IL 60602
|
Collateral Asset Summary – Loan No. 6
One North State Street
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$59,907,080
59.3%
1.33x
8.5%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
GACC
|
Single Asset / Portfolio:
|
Single Asset
|
|||
Loan Purpose:
|
Refinance
|
Property Type:
|
Anchored Retail
|
|||
Sponsor:
|
Isaac Shalom
|
Collateral:
|
Fee Simple
|
|||
Borrower:
|
TBG State Street LLC
|
Location:
|
Chicago, IL
|
|||
Original Balance:
|
$60,000,000
|
Year Built / Renovated:
|
1912 / 1998
|
|||
Cut-off Date Balance:
|
$59,907,080
|
Total Sq. Ft.:
|
170,507
|
|||
% by Initial UPB:
|
4.8%
|
Property Management:
|
Madison Realty Management Corp.
|
|||
Interest Rate:
|
4.6000%
|
Underwritten NOI:
|
$5,109,866
|
|||
Payment Date:
|
6th of each month
|
Underwritten NCF:
|
$4,924,053
|
|||
First Payment Date:
|
March 6, 2014
|
Appraised Value:
|
$100,950,000
|
|||
Maturity Date:
|
February 6, 2024
|
Appraisal Date:
|
December 2, 2013
|
|||
Amortization:
|
360 months
|
|||||
Additional Debt:
|
None
|
Historical NOI
|
||||
Call Protection:
|
L(25), D(90), O(5)
|
Most Recent NOI:
|
$5,366,324 (T-12 October 31, 2013)
|
|||
Lockbox / Cash Management:
|
Hard / Springing
|
2012 NOI:
|
$4,705,772 (December 31, 2012)
|
|||
2011 NOI:
|
$4,687,527 (December 31, 2011)
|
|||||
Reserves(1)
|
2010 NOI:
|
$4,303,708 (December 31, 2010)
|
||||
Initial
|
Monthly
|
|||||
Taxes:
|
$744,418
|
$89,330
|
Historical Occupancy(2)
|
|||
Insurance:
|
$0
|
Springing
|
Current Occupancy:
|
97.9% (October 31, 2013)
|
||
Replacement:
|
$0
|
$2,131
|
2012 Occupancy:
|
99.8% (December 31, 2012)
|
||
Lease Sweep:
|
$0
|
Springing
|
2011 Occupancy:
|
62.6% (December 31, 2011)
|
||
2010 Occupancy:
|
97.2% (December 31, 2010)
|
|||||
Financial Information
|
(1) See “Lockbox / Cash Management”, “Initial Reserves” and “Ongoing Reserves” herein.
(2) The decline in 2011 Occupancy was due to Filenes Basement vacating its space at the property at the end of 2011 due to the bankruptcy of the chain. The subsequent increase in 2012 Occupancy was due to Burlington Coat Factory taking occupancy of the former Filenes Basement space in 2012. The subsequent increase in Most Recent NOI from 2012 NOI is also due to Burlington Coat Factory backfilling the Filenes Basement space.
|
|||||
Cut-off Date Balance / Sq. Ft.:
|
$351
|
|||||
Balloon Balance / Sq. Ft.:
|
$285
|
|||||
Cut-off Date LTV:
|
59.3%
|
|||||
Balloon LTV:
|
48.2%
|
|||||
Underwritten NOI DSCR:
|
1.38x
|
|||||
Underwritten NCF DSCR:
|
1.33x
|
|||||
Underwritten NOI Debt Yield:
|
8.5%
|
|||||
Underwritten NCF Debt Yield:
|
8.2%
|
|||||
Underwritten NOI Debt Yield at Balloon:
|
10.5%
|
|||||
Underwritten NCF Debt Yield at Balloon:
|
10.1%
|
|||||
One North State Street
Chicago, IL 60602
|
Collateral Asset Summary – Loan No. 6
One North State Street
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$59,907,080
59.3%
1.33x
8.5%
|
Tenant Summary
|
||||||||||
Ratings
(Fitch/Moody’s/S&P)(1)
|
Total
Sq. Ft.
|
% of Total
Sq. Ft.
|
Lease
Expiration
|
Annual UW
Base Rent PSF |
Sales PSF(2)
|
Occupancy
Cost (% of Sales)(2)
|
||||
Anchor Tenants
|
||||||||||
TJ Maxx(3)
|
NR/A3/A+
|
70,029
|
41.1%
|
7/31/2024
|
$20.78
|
$438
|
9.3%
|
|||
Burlington Coat Factory(4)
|
NR/B2/B
|
60,096
|
35.2%
|
2/28/2023
|
$26.00
|
$220
|
20.1%
|
|||
Subtotal
|
130,125
|
76.3%
|
$320
|
13.3%
|
||||||
Major Tenants
|
||||||||||
Garrett Popcorn Shops(5)
|
NR/NR/NR
|
7,665
|
4.5%
|
1/31/2026
|
$37.54
|
$1,426
|
9.5%
|
|||
Pay Half
|
NR/NR/NR
|
6,200
|
3.6%
|
2/28/2017
|
$39.50
|
$218
|
24.1%
|
|||
Dunkin Donuts(6)
|
NR/NR/NR
|
3,720
|
2.2%
|
10/31/2020
|
$41.51
|
$470
|
16.3%
|
|||
Subtotal
|
17,585
|
10.3%
|
$473
|
15.2%
|
||||||
Other In-line Tenants
|
19,207
|
11.3%
|
$85.53
|
$419
|
29.0%
|
|||||
Total Occupied Collateral
|
166,917
|
97.9%
|
$342
|
15.3%
|
||||||
Vacant
|
3,590
|
2.1%
|
||||||||
Total/Wtd. Avg.
|
170,507
|
100.0%
|
||||||||
(1)
|
Certain ratings may be those of the parent company whether or not the parent company guarantees the lease.
|
(2)
|
Sales PSF and Occupancy Cost (% of Sales) provided by the borrower are as of the trailing twelve months ended August 2013 through November 2013, depending on the tenants’ individual sales reporting cycles, and only include tenants reporting sales. Approximately 94.3% of all tenants by sq. ft. and 59.7% of Other In-Line Tenants by sq. ft. report sales.
|
(3)
|
Total Sq. Ft. for TJ Maxx includes 25,029 sq. ft. of storage space. Sales PSF and Occupancy Cost (% of Sales) are calculated excluding storage space.
|
(4)
|
Total Sq. Ft. for Burlington Coat Factory includes 7,213 sq. ft. of storage space. Sales PSF and Occupancy Cost (% of Sales) are calculated excluding storage space. Burlington Coat Factory has one 10-year renewal option at an initial fixed rent of $31.46 PSF with a minimum of one year’s notice due on or before February 28, 2022.
|
(5)
|
Total Sq. Ft. for Garrett Popcorn Shops includes 6,000 sq. ft. of storage space. Sales PSF and Occupancy Cost (% of Sales) are calculated excluding storage space.
|
(6)
|
Total Sq. Ft. for Dunkin Donuts includes 1,070 sq. ft. of storage space. Sales PSF and Occupancy Cost (% of Sales) are calculated excluding storage space.
|
Lease Rollover Schedule(1)
|
||||||||||||||||
Year
|
# of Leases
Expiring
|
Total Expiring
Sq. Ft.
|
% of Total Sq.
Ft. Expiring
|
Cumulative
Sq. Ft.
Expiring
|
Cumulative
% of Sq. Ft.
Expiring |
Annual U/W
Base Rent Per Sq. Ft. |
% U/W
Base Rent Rolling |
Cumulative %
of U/W
Base Rent
|
||||||||
MTM
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
||||||||
2014
|
1
|
3,283
|
1.9%
|
3,283
|
1.9%
|
$112.55
|
6.9%
|
6.9%
|
||||||||
2015
|
1
|
1,807
|
1.1%
|
5,090
|
3.0%
|
$84.87
|
2.9%
|
9.8%
|
||||||||
2016
|
3
|
5,148
|
3.0%
|
10,238
|
6.0%
|
$76.43
|
7.4%
|
17.1%
|
||||||||
2017
|
3
|
9,102
|
5.3%
|
19,340
|
11.3%
|
$47.04
|
8.0%
|
25.1%
|
||||||||
2018
|
2
|
2,883
|
1.7%
|
22,223
|
13.0%
|
$64.96
|
3.5%
|
28.6%
|
||||||||
2019
|
0
|
0
|
0.0%
|
22,223
|
13.0%
|
$0.00
|
0.0%
|
28.6%
|
||||||||
2020
|
2
|
3,720
|
2.2%
|
25,943
|
15.2%
|
$41.51
|
2.9%
|
31.5%
|
||||||||
2021
|
2
|
3,184
|
1.9%
|
29,127
|
17.1%
|
$111.78
|
6.7%
|
38.2%
|
||||||||
2022
|
0
|
0
|
0.0%
|
29,127
|
17.1%
|
$0.00
|
0.0%
|
38.2%
|
||||||||
2023
|
2
|
60,096
|
35.2%
|
89,223
|
52.3%
|
$26.00
|
29.2%
|
67.4%
|
||||||||
2024
|
2
|
70,029
|
41.1%
|
159,252
|
93.4%
|
$20.78
|
27.2%
|
94.6%
|
||||||||
Thereafter
|
2
|
7,665
|
4.5%
|
166,917
|
97.9%
|
$37.54
|
5.4%
|
100.0%
|
||||||||
Vacant
|
NAP
|
3,590
|
2.1%
|
170,507
|
100.0%
|
NAP
|
NAP
|
|||||||||
Total / Wtd. Avg.
|
20
|
170,507
|
100.0%
|
$32.04
|
100.0%
|
(1)
|
Certain tenants have lease termination options, including those related to co-tenancy provisions and sales thresholds, that may become exercisable prior to the originally stated expiration date of the tenant lease and that are not considered in the lease rollover schedule.
|
One North State Street
Chicago, IL 60602
|
Collateral Asset Summary – Loan No. 6
One North State Street
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$59,907,080
59.3%
1.33x
8.5%
|
Sources and Uses
|
||||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
|||
Loan Amount
|
$60,000,000
|
100.0%
|
Loan Payoff
|
$37,387,314
|
62.3%
|
|||
Reserves
|
$744,418
|
1.2%
|
||||||
Closing Costs
|
$572,776
|
1.0%
|
||||||
Return of Equity
|
$21,295,492
|
35.5%
|
||||||
Total Sources
|
$60,000,000
|
100.0%
|
Total Uses
|
$60,000,000
|
100.0%
|
Historical Sales PSF(1)
|
|||||||||||
2009
|
2010
|
2011
|
2012
|
T-12 2013(2)
|
2012 National
Average |
T-12 Occupancy
Cost(2) |
|||||
TJ Maxx
|
$374
|
$380
|
$379
|
$399
|
$438
|
$274
|
9.3%
|
||||
Burlington Coat Factory
|
NAP
|
NAP
|
NAP
|
NAP
|
$219
|
$102
|
20.2%
|
||||
Garrett Popcorn Shops
|
$1,269
|
$1,222
|
$1,265
|
$1,387
|
$1,426
|
NAV
|
9.5%
|
||||
Pay Half
|
$216
|
$234
|
$227
|
$223
|
$218
|
NAV
|
24.1%
|
||||
Dunkin Donuts
|
NAP
|
NAP
|
$424
|
$446
|
$470
|
NAV
|
16.3%
|
||||
Other In-Line Tenants(3)
|
$424
|
$438
|
$440
|
$406
|
$418
|
NAP
|
29.0%
|
(1)
|
Historical Sales PSF is based on historical operating statements provided by the borrower.
|
(2)
|
T-12 2013 sales and T-12 Occupancy Cost for the period ending August 2013 through November 2013, depending on individual tenants’ sales reporting cycles.
|
(3)
|
Four additional tenants, representing 7,824 sq. ft., reported sales in 2009 through 2011. Six additional tenants, representing 10,692 sq. ft., reported sales in 2012 and T-12 2013.
|
One North State Street
Chicago, IL 60602
|
Collateral Asset Summary – Loan No. 6
One North State Street
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$59,907,080
59.3%
1.33x
8.5%
|
Market Rent Conclusions(1)
|
||||||
Lease Category
|
Anchor
|
State Street
|
Madison Street
|
Wabash Avenue
|
Storage
|
Corner Suite
|
Total Building Sq. Ft.
|
97,883
|
11,193
|
12,632
|
6,200
|
40,792
|
1,807
|
Market Rent (PSF)
|
$30.00
|
$150.00
|
$70.00
|
$60.00
|
$10.00
|
$90.00
|
Concessions
|
None
|
None
|
None
|
None
|
None
|
None
|
Reimbursements
|
NNN
|
NNN
|
NNN
|
NNN
|
Gross
|
NNN
|
Annual Escalation
|
10% Midterm
|
10% Midterm
|
10% Midterm
|
10% Midterm
|
None
|
10% Midterm
|
Tenant Improvements (New)
|
$10.00
|
$20.00
|
$20.00
|
$20.00
|
$0.00
|
$20.00
|
Tenant Improvements (Renewals)
|
$5.00
|
$5.00
|
$5.00
|
$5.00
|
$0.00
|
$5.00
|
Average Lease Term
|
10 Years
|
10 Years
|
10 Years
|
10 Years
|
10 Years
|
10 Years
|
(1)
|
Source: Appraisal
|
Lease Comparables(1)
|
||||||
Property
|
Tenant
|
Lease Category
|
Sq. Ft.
|
Base Rent (PSF)
|
Lease Term (yrs)
|
Reimbursements
|
151 North State Street
|
Walgreens
|
Anchor
|
27,385
|
$47.80
|
30
|
NNN
|
1 South State Street
|
DSW
|
Anchor
|
21,423
|
$40.00
|
10
|
NNN
|
150 North State Street
|
Old Navy
|
Anchor
|
31,382
|
$44.61
|
10
|
NNN
|
1 South State Street
|
Target
|
Anchor
|
131,980
|
$35.00
|
10
|
NNN
|
108 North State Street
|
Zara
|
Anchor
|
15,029
|
$32.19
|
10
|
NNN
|
6 North Michigan Avenue
|
Panera Bread
|
State Street
|
5,076
|
$90.00
|
15
|
NNN
|
6 North Michigan Avenue
|
Starbucks
|
State Street
|
1,995
|
$90.00
|
15
|
NNN
|
25-39 East Oak Street
|
Hermes
|
State Street
|
7,734
|
$158.95
|
10
|
NNN
|
1-15 East Oak Street
|
Citibank
|
State Street
|
4,600
|
$114.53
|
10
|
NNN
|
830 North Michigan Avenue
|
Columbia
|
State Street
|
12,000
|
$180.00
|
10
|
NNN
|
555 West Monroe Street
|
Hannah’s Bretzels
|
Madison/Wabash
|
3,391
|
$40.00
|
11
|
NNN
|
30 East Oak Street
|
Prada
|
Madison/Wabash
|
10,786
|
$91.05
|
10
|
NNN
|
227 East Ontario Street
|
Pei Wei
|
Madison/Wabash
|
3,418
|
$55.00
|
10
|
NNN
|
11 East Adams Street
|
New Era
|
Madison/Wabash
|
4,550
|
$87.97
|
10
|
NNN
|
1203 South Wabash Avenue
|
UPS
|
Madison/Wabash
|
990
|
$66.95
|
15
|
Gross
|
(1)
|
Source: Appraisal
|
One North State Street
Chicago, IL 60602
|
Collateral Asset Summary – Loan No. 6
One North State Street
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$59,907,080
59.3%
1.33x
8.5%
|
Cash Flow Analysis
|
||||||
2011
|
2012
|
T-12 10/31/2013
|
U/W
|
U/W PSF
|
||
Base Rent(1)
|
$4,959,023
|
$4,924,497
|
$5,598,398
|
$5,390,413
|
$31.61
|
|
Value of Vacant Space
|
$0
|
$0
|
$0
|
$479,200
|
$2.81
|
|
Gross Potential Rent
|
$4,959,023
|
$4,924,497
|
$5,598,398
|
$5,869,613
|
$34.42
|
|
Total Recoveries
|
1,814,051
|
1,819,210
|
1,901,501
|
1,991,944
|
$11.68
|
|
Total Other Income
|
67,821
|
3,300
|
8,957
|
8,957
|
$0.05
|
|
Less: Vacancy & Credit Loss(2)
|
0
|
0
|
0
|
(520,275)
|
($3.05)
|
|
Effective Gross Income
|
$6,840,896
|
$6,747,007
|
$7,508,856
|
$7,350,239
|
$43.11
|
|
Total Operating Expenses
|
2,153,369
|
2,041,235
|
2,142,533
|
2,240,372
|
$13.14
|
|
Net Operating Income
|
$4,687,527
|
$4,705,772
|
$5,366,324
|
$5,109,866
|
$29.97
|
|
TI/LC
|
0
|
0
|
0
|
160,237
|
$0.94
|
|
Capital Expenditures
|
0
|
0
|
0
|
25,576
|
$0.15
|
|
Net Cash Flow
|
$4,687,527
|
$4,705,772
|
$5,366,324
|
$4,924,053
|
$28.88
|
|
(1)
|
U/W Base Rent includes $42,903 in contractual step rent through December 2014.
|
(2)
|
U/W Vacancy represents 6.6% of gross income and is based on in-place economic vacancy.
|
One North State Street
Chicago, IL 60602
|
Collateral Asset Summary – Loan No. 6
One North State Street
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$59,907,080
59.3%
1.33x
8.5%
|
One North State Street
Chicago, IL 60602
|
Collateral Asset Summary – Loan No. 6
One North State Street
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$59,907,080
59.3%
1.33x
8.5%
|
One North State Street
Chicago, IL 60602
|
Collateral Asset Summary – Loan No. 6
One North State Street
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$59,907,080
59.3%
1.33x
8.5%
|
11767 Harbor Boulevard
Garden Grove, CA 92840
|
Collateral Asset Summary – Loan No. 7
Embassy Suites - Anaheim
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$50,000,000
66.1%
1.85x
12.0%
|
11767 Harbor Boulevard
Garden Grove, CA 92840
|
Collateral Asset Summary – Loan No. 7
Embassy Suites - Anaheim
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$50,000,000
66.1%
1.85x
12.0%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
UBSRES
|
Single Asset / Portfolio:
|
Single Asset
|
|||
Loan Purpose:
|
Refinance
|
Property Type:
|
Full Service Hospitality
|
|||
Sponsor:
|
Mark B. David; Richard H. Packard;
|
Collateral:
|
Fee Simple
|
|||
Lauren Packard
|
Location:
|
Garden Grove, CA
|
||||
Borrower:
|
Landmark Hotels II, LLC
|
Year Built / Renovated:
|
2001 / 2011
|
|||
Original Balance:
|
$50,000,000
|
Total Rooms:
|
375
|
|||
Cut-off Date Balance:
|
$50,000,000
|
Property Management:
|
Dow Anaheim LLC
|
|||
% by Initial UPB:
|
4.0%
|
Underwritten NOI:
|
$6,019,640
|
|||
Interest Rate:
|
5.4200%
|
Underwritten NCF:
|
$5,078,539
|
|||
Payment Date:
|
6th of each month
|
Appraised Value:
|
$75,600,000
|
|||
First Payment Date:
|
March 6, 2014
|
Appraisal Date:
|
November 25, 2013
|
|||
Maturity Date:
|
February 6, 2019
|
|||||
Amortization:
|
Interest Only
|
Historical NOI
|
||||
Additional Debt(1):
|
$10,000,000 Mezzanine Debt
|
Most Recent NOI:
|
$6,114,609 (December 31, 2013)
|
|||
Call Protection:
|
L(25), D(31), O(4)
|
2012 NOI:
|
$5,313,033 (December 31, 2012)
|
|||
Lockbox / Cash Management:
|
Hard / Springing
|
2011 NOI:
|
$4,502,418 (December 31, 2011)
|
|||
2010 NOI:
|
$4,020,330 (December 31, 2010)
|
|||||
Reserves(2)
|
||||||
Initial
|
Monthly
|
Historical Occupancy
|
||||
Taxes:
|
$0
|
$53,887
|
Most Recent Occupancy:
|
81.0% (December 31, 2013)
|
||
Insurance:
|
$60,640
|
Springing
|
2012 Occupancy:
|
78.6% (December 31, 2012)
|
||
FF&E:
|
$1,093,858
|
1/12 of 5.0% of prior year’s
|
2011 Occupancy:
|
75.4% (December 31, 2011)
|
||
gross income
|
2010 Occupancy:
|
71.9% (December 31, 2010)
|
||||
(1) For additional information on the mezzanine loan, see “Current Mezzanine or Subordinate Indebtedness” herein.
(2) See “Initial Reserves” and “Ongoing Reserves” herein.
|
||||||
Financial Information
|
||||||
Mortgage Loan
|
Total Debt
|
|||||
Cut-off Date Balance / Room:
|
$133,333
|
$160,000
|
||||
Balloon Balance / Room:
|
$133,333
|
$160,000
|
||||
Cut-off Date LTV:
|
66.1%
|
79.4%
|
||||
Balloon LTV:
|
66.1%
|
79.4%
|
||||
Underwritten NOI DSCR:
|
2.19x
|
1.59x
|
||||
Underwritten NCF DSCR:
|
1.85x
|
1.34x
|
||||
Underwritten NOI Debt Yield:
|
12.0%
|
10.0%
|
||||
Underwritten NCF Debt Yield:
|
10.2%
|
8.5%
|
||||
Underwritten NOI Debt Yield at Balloon:
|
12.0%
|
10.0%
|
||||
Underwritten NCF Debt Yield at Balloon:
|
10.2%
|
8.5%
|
||||
11767 Harbor Boulevard
Garden Grove, CA 92840
|
Collateral Asset Summary – Loan No. 7
Embassy Suites - Anaheim
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$50,000,000
66.1%
1.85x
12.0%
|
Historical Occupancy, ADR, RevPAR(1)
|
|||||||||
Embassy Suites - Anaheim Property(2)
|
Competitive Set
|
Penetration Factor
|
|||||||
Year
|
Occupancy
|
ADR
|
RevPAR
|
Occupancy
|
ADR
|
RevPAR
|
Occupancy
|
ADR
|
RevPAR
|
2011
|
74.8%
|
$131.73
|
$98.53
|
70.3%
|
$111.55
|
$78.45
|
106.4%
|
118.1%
|
125.6%
|
2012
|
78.0%
|
$134.23
|
$104.64
|
72.9%
|
$114.17
|
$83.24
|
106.9%
|
117.6%
|
125.7%
|
2013
|
80.6%
|
$143.32
|
$115.52
|
74.0%
|
$120.90
|
$89.43
|
109.0%
|
118.5%
|
129.2%
|
(1)
|
Source: Hospitality research report.
|
(2)
|
The minor variances between the underwriting and the above table with respect to Occupancy, ADR and RevPAR at the Embassy Suites - Anaheim Property are attributable to variances in reporting methodologies and/or timing differences.
|
Sources and Uses
|
||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
|
Loan Amount
|
$50,000,000
|
82.7%
|
Loan Payoff
|
$58,256,767
|
96.3%
|
|
Mezzanine Loan
|
$10,000,000
|
16.5%
|
Reserves
|
$1,154,498
|
1.9%
|
|
Sponsor Equity
|
$467,632
|
0.8%
|
Closing Costs
|
$1,056,368
|
1.7%
|
|
Total Sources
|
$60,467,632
|
100.0%
|
Total Uses
|
$60,467,632
|
100.0%
|
11767 Harbor Boulevard
Garden Grove, CA 92840
|
Collateral Asset Summary – Loan No. 7
Embassy Suites - Anaheim
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$50,000,000
66.1%
1.85x
12.0%
|
Primary Competitive Set(1)
|
||||||
Property
|
# of Rooms
|
Year Opened
|
Meeting Space (Sq. Ft.)
|
2013
Occupancy(2)
|
2013 ADR(2)
|
2013
RevPAR(2) |
Embassy Suites – Anaheim Property
|
375
|
2001
|
10,812
|
80.9%
|
$142.05
|
$114.92
|
Marriott Suites Anaheim
|
371
|
2002
|
9,922
|
84.0%
|
$113.00
|
$94.92
|
Sheraton Garden Grove Anaheim South
|
285
|
2008
|
8,330
|
69.0%
|
$95.00
|
$65.55
|
Crowne Plaza Resort Anaheim Garden Grove
|
376
|
2000
|
36,000
|
78.0%
|
$100.00
|
$78.00
|
Hyatt Regency Orange County
|
654
|
1986
|
65,032
|
78.0%
|
$143.00
|
$111.54
|
Sheraton Park Hotel at the Anaheim Resort
|
490
|
1971
|
27,112
|
75.0%
|
$132.00
|
$99.00
|
DoubleTree by Hilton Suites Anaheim Resort Convention Center
|
251
|
2006
|
7,500
|
85.0%
|
$142.00
|
$120.70
|
Total/Wtd. Avg.
|
2,802
|
78.4%
|
$126.63
|
$99.24
|
(1)
|
Source: Appraisal
|
(2)
|
2013 Occupancy, 2013 ADR and 2013 RevPAR represent estimates from the appraiser.
|
Cash Flow Analysis
|
||||||
2010
|
2011
|
2012
|
12/31/2013
|
U/W
|
U/W per Room
|
|
Occupancy
|
71.9%
|
75.4%
|
78.6%
|
81.0%
|
81.0%
|
|
ADR
|
$135.47
|
$130.30
|
$132.65
|
$142.13
|
$142.13
|
|
RevPAR
|
$97.47
|
$98.21
|
$104.26
|
$115.06
|
$115.06
|
|
Room Revenue
|
$13,340,657
|
$13,442,823
|
$14,310,165
|
$15,749,488
|
$15,749,488
|
$41,999
|
F&B Revenue
|
1,966,163
|
1,880,670
|
1,750,308
|
1,905,717
|
1,905,717
|
5,082
|
Other Revenue(1)
|
638,479
|
620,616
|
1,101,088
|
1,166,822
|
1,166,822
|
3,112
|
Total Dept. Revenue
|
$15,945,299
|
$15,944,109
|
$17,161,561
|
$18,822,027
|
$18,822,027
|
$50,192
|
Total Dept. Expenses
|
5,887,773
|
5,680,798
|
5,958,555
|
6,390,264
|
6,390,264
|
17,041
|
Total Dept. Profit
|
$10,057,526
|
$10,263,311
|
$11,203,006
|
$12,431,763
|
$12,431,763
|
$33,151
|
Undistributed Expenses
|
5,223,023
|
4,799,991
|
4,880,486
|
5,269,931
|
5,366,776
|
14,311
|
Total Fixed Expenses
|
814,173
|
960,902
|
1,009,487
|
1,047,223
|
1,045,346
|
2,788
|
Net Operating Income
|
$4,020,330
|
$4,502,418
|
$5,313,033
|
$6,114,609
|
$6,019,640
|
$16,052
|
FF&E
|
0
|
798,970
|
903,517
|
987,107
|
941,101
|
2,510
|
Net Cash Flow
|
$4,020,330
|
$3,703,448
|
$4,409,516
|
$5,127,502
|
$5,078,539
|
$13,543
|
(1)
|
Other Revenue includes parking and event revenue, transportation sales, ticket sales, laundry fees, internet fees, cancellation fees, gift shop and other rental and miscellaneous revenue.
|
11767 Harbor Boulevard
Garden Grove, CA 92840
|
Collateral Asset Summary – Loan No. 7
Embassy Suites - Anaheim
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$50,000,000
66.1%
1.85x
12.0%
|
11767 Harbor Boulevard
Garden Grove, CA 92840
|
Collateral Asset Summary – Loan No. 7
Embassy Suites - Anaheim
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$50,000,000
66.1%
1.85x
12.0%
|
Cut-off Date Balance:
|
$44,700,000
|
||
2550 Canyon Springs Parkway |
Collateral Asset Summary – Loan No. 8
|
Cut-off Date LTV:
|
71.0%
|
Riverside, CA 92507
|
Canyon Crossing
|
U/W NCF DSCR:
|
1.36x
|
U/W NOI Debt Yield:
|
9.3%
|
Cut-off Date Balance:
|
$44,700,000
|
||
2550 Canyon Springs Parkway |
Collateral Asset Summary – Loan No. 8
|
Cut-off Date LTV:
|
71.0%
|
Riverside, CA 92507
|
Canyon Crossing
|
U/W NCF DSCR:
|
1.36x
|
U/W NOI Debt Yield:
|
9.3%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
UBSRES
|
Single Asset / Portfolio:
|
Single Asset
|
|||
Loan Purpose:
|
Acquisition
|
Property Type:
|
Anchored Retail
|
|||
Sponsor:
|
William L. Hutchinson
|
Collateral:
|
Fee Simple
|
|||
Borrower:
|
Canyon Crossing Dunhill LLC
|
Location:
|
Riverside, CA
|
|||
Original Balance:
|
$44,700,000
|
Year Built / Renovated:
|
2008 / NAP
|
|||
Cut-off Date Balance:
|
$44,700,000
|
Total Sq. Ft.:
|
295,949
|
|||
% by Initial UPB:
|
3.6%
|
Property Management:
|
Dunhill Partners West
|
|||
Interest Rate:
|
4.9975%
|
Underwritten NOI:
|
$4,172,725
|
|||
Payment Date:
|
6th of each month
|
Underwritten NCF:
|
$3,924,631
|
|||
First Payment Date:
|
January 6, 2014
|
Appraised Value:
|
$62,945,000
|
|||
Maturity Date:
|
December 6, 2023
|
Appraisal Date:
|
October 7, 2013
|
|||
Amortization:
|
Interest only for first 48 months; 360
|
|||||
months thereafter
|
Historical NOI
|
|||||
Additional Debt(1):
|
$5,960,000 Mezzanine Debt
|
Most Recent NOI:
|
$3,745,960 (T-12 October 31, 2013)
|
|||
Call Protection(2):
|
L(27), D(89), O(4)
|
2012 NOI:
|
$3,630,030 (December 31, 2012)
|
|||
Lockbox / Cash Management:
|
Hard / Springing
|
2011 NOI:
|
$3,865,753 (December 31, 2011)
|
|||
2010 NOI:
|
$3,710,752 (December 31, 2010)
|
|||||
Reserves(3)(4)
|
||||||
Initial
|
Monthly
|
Historical Occupancy
|
||||
Taxes:
|
$183,508
|
$50,974
|
Most Recent Occupancy:
|
92.5% (October 1, 2013)
|
||
Insurance:
|
$48,763
|
$4,600
|
2012 Occupancy:
|
90.8% (December 31, 2012)
|
||
TI/LC:
|
$0
|
$16,667
|
2011 Occupancy:
|
90.3% (December 31, 2011)
|
||
Replacement:
|
$0
|
$3,699
|
2010 Occupancy:
|
81.2% (December 31, 2010)
|
||
Phenix Salon Reserve:
|
$2,000,000
|
$0
|
(1) For additional information on the mezzanine loan, see “Current Mezzanine or Subordinate Indebtedness” herein.
(2) Partial release is permitted. See “Partial Release” herein.
(3) See “Initial Reserves” and “Ongoing Reserves” herein.
(4) In connection with the acquisition of the mortgaged property, an escrow (which is not security for the mortgage loan) was established to secure the performance of Easy Life Furniture, Inc., a tenant at the mortgaged property, under its lease. Pursuant to the related escrow agreement, if any funds from such escrow are released to the borrower, the escrow agent will be required to deposit such funds directly into the clearing account. Upon the occurrence of certain events specified in such escrow agreement (including, without limitation, such tenant being more than 60 days in arrears in the payment of rent, or having gone dark for 15 consecutive days, or such tenant filing for bankruptcy protection), the borrower may elect to have the entire remaining portion of such escrow account disbursed; in such event, a portion of such funds up to the amount of $350,000 will be deposited into the TI/LC reserve account (to be applied to secure a new tenant for the space related to such lease) and any remainder of such funds will be deposited into a separate reserve account (to be paid to the borrower, in monthly installments equal to the amount of rent that such tenant would have paid, in accordance with the mortgage loan agreement).
(5) Based on amortizing debt service payments for the Canyon Crossing Loan and interest only payments on the Canyon Crossing Mezzanine Loan. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.84x and 1.73x, respectively, for the mortgage loan and the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.45x and 1.37x, respectively, for the total debt.
|
|||
Waba Reserve:
|
$89,756
|
$0
|
||||
Financial Information
|
||||||
Mortgage Loan
|
Total Debt
|
|||||
Cut-off Date Balance / Sq. Ft.: |
$151
|
$171
|
||||
Balloon Balance / Sq. Ft.:
|
$137
|
$157
|
||||
Cut-off Date LTV:
|
71.0%
|
80.5%
|
||||
Balloon LTV:
|
64.2%
|
73.7%
|
||||
Underwritten NOI DSCR(6):
|
1.45x
|
1.20x
|
||||
Underwritten NCF DSCR(6):
|
1.36x
|
1.13x
|
||||
Underwritten NOI Debt Yield:
|
9.3%
|
8.2%
|
||||
Underwritten NCF Debt Yield:
|
8.8%
|
7.7%
|
||||
Underwritten NOI Debt Yield at Balloon:
|
10.3%
|
9.0%
|
||||
Underwritten NCF Debt Yield at Balloon:
|
9.7%
|
8.5%
|
||||
Cut-off Date Balance:
|
$44,700,000
|
||
2550 Canyon Springs Parkway |
Collateral Asset Summary – Loan No. 8
|
Cut-off Date LTV:
|
71.0%
|
Riverside, CA 92507
|
Canyon Crossing
|
U/W NCF DSCR:
|
1.36x
|
U/W NOI Debt Yield:
|
9.3%
|
Tenant Summary
|
|||||||||||||||||||||||||||
Ratings
(Fitch/Moody’s/S&P)(1)
|
Total
Sq. Ft.
|
% of Total
Sq. Ft.
|
Lease
Expiration |
Annual U/W
Base Rent PSF(2) |
Total Sales
(000s)(3) |
Sales PSF(3)
|
Occupancy
Cost (% of Sales)(3) |
||||||||||||||||||||
Anchor Tenant
|
|||||||||||||||||||||||||||
Toys “R” Us(4)
|
B-/B2/B
|
73,370 | 24.8 | % |
1/31/2024
|
$16.50 |
NAV
|
NAV
|
NAV
|
||||||||||||||||||
Major Tenants
|
|||||||||||||||||||||||||||
Johns Incredible Pizza(5)
|
NR/NR/NR
|
50,000 | 16.9 | % |
10/31/2022
|
$13.44 |
NAV
|
NAV
|
NAV
|
||||||||||||||||||
Mor Furniture for Less(6)
|
NR/NR/NR
|
45,875 | 15.5 | % |
8/31/2020
|
$10.20 | $12,000 | $262 | 3.9% | ||||||||||||||||||
Staples(7)
|
BBB/Baa2/BBB
|
20,388 | 6.9 | % |
3/31/2018
|
$14.25 |
NAV
|
NAV
|
NAV
|
||||||||||||||||||
Howard’s Appliances(8)
|
NR/NR/NR
|
18,293 | 6.2 | % |
3/31/2018
|
$19.77 |
NAV
|
NAV
|
NAV
|
||||||||||||||||||
Party City(9)
|
NR/B3/B
|
15,625 | 5.3 | % |
1/31/2019
|
$18.70 | $2,433 | $156 | 13.6% | ||||||||||||||||||
Easy Life Furniture(10)
|
NR/NR/NR
|
14,950 | 5.1 | % |
12/31/2017
|
$16.34 | $2,391 | $160 | 13.1% | ||||||||||||||||||
Subtotal
|
165,131 | 55.8 | % | ||||||||||||||||||||||||
In-line Tenants (<10,000 sq. ft.)
|
22,895 | 7.7 | % |
Various
|
$29.07 |
NAV
|
NAV
|
NAV
|
|||||||||||||||||||
Outparcel Tenants
|
12,280 | 4.1 | % |
Various
|
$34.61 | $3,720 | $303 | 12.8% | |||||||||||||||||||
Total Occupied Collateral
|
273,676 | 92.5 | % | ||||||||||||||||||||||||
Vacant
|
22,273 | 7.5 | % | ||||||||||||||||||||||||
Total/Wtd. Avg.
|
295,949 | 100.0 | % | ||||||||||||||||||||||||
(1)
|
Certain ratings are those of the parent company whether or not the parent company guarantees the lease.
|
(2)
|
Annual U/W Base Rent PSF includes contractual rent steps through September 1, 2014.
|
(3)
|
Total Sales (000s), Sales PSF and Occupancy Cost (% of Sales) are provided by the borrower and only include tenants reporting an entire 12 months of sales as of September 30, 2013. Total Sales (000s), Sales PSF and Occupancy Cost (% of Sales) for Mor Furniture for Less was estimated by the tenant.
|
(4)
|
Toys “R” Us has seven, five-year renewal options remaining with 180 days prior notice.
|
(5)
|
Johns Incredible Pizza has three, five-year renewal options and one, four-year renewal option remaining with 270 days prior notice.
|
(6)
|
Mor Furniture for Less has two, five-year renewal options remaining with 12 months prior notice.
|
(7)
|
Staples has four, five-year renewal options remaining with 180 days prior notice.
|
(8)
|
Howard’s Appliances has two, five-year renewal options remaining with 180 days prior notice.
|
(9)
|
Party City has three, five-year renewal options remaining with 270 days prior notice.
|
(10)
|
Easy Life Furniture has two, five-year renewal options remaining with 180 days prior notice.
|
(1)
|
Certain tenants have lease termination options that may become exercisable prior to the originally stated expiration date of the tenant lease that are not considered in the lease rollover schedule.
|
(2)
|
Annual U/W Base Rent Per Sq. Ft., % U/W Base Rent Rolling and Cumulative % of U/W Base Rent include contractual rent steps through September 1, 2014.
|
(3)
|
Annual U/W Base Rent Per Sq. Ft., % U/W Base Rent Rolling and Cumulative % of U/W Base Rent are based on the underwritten occupied base rent and underwritten occupied sq. ft., and exclude any gross up of vacant space.
|
Cut-off Date Balance:
|
$44,700,000
|
||
2550 Canyon Springs Parkway |
Collateral Asset Summary – Loan No. 8
|
Cut-off Date LTV:
|
71.0%
|
Riverside, CA 92507
|
Canyon Crossing
|
U/W NCF DSCR:
|
1.36x
|
U/W NOI Debt Yield:
|
9.3%
|
Sources and Uses
|
|||||||||||||||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
||||||||||||||
Loan Amount
|
$44,700,000 | 67.5 | % |
Purchase Price
|
$62,944,162 | 95.1 | % | ||||||||||||
Mezzanine Loan
|
$5,960,000 | 9.0 | % |
Reserves
|
$2,322,027 | 3.5 | % | ||||||||||||
Sponsor Equity
|
$15,547,513 | 23.5 | % |
Closing Costs
|
$941,324 | 1.4 | % | ||||||||||||
Total Sources
|
$66,207,513 | 100.0 | % |
Total Uses
|
$66,207,513 | 100.0 | % |
Cut-off Date Balance:
|
$44,700,000
|
||
2550 Canyon Springs Parkway |
Collateral Asset Summary – Loan No. 8
|
Cut-off Date LTV:
|
71.0%
|
Riverside, CA 92507
|
Canyon Crossing
|
U/W NCF DSCR:
|
1.36x
|
U/W NOI Debt Yield:
|
9.3%
|
Competitive Set(1)
|
|||||||
Name
|
Canyon
Crossing Property(2) |
Towngate
Center |
Moreno Valley Plaza
|
TownGate Crossing
|
Mission Grove Plaza
|
Canyon Crest Town Center
|
University Village
|
Distance
from Subject |
NAP
|
1.5 miles
|
2.2 miles
|
0.5 miles
|
4.3 miles
|
4.1 miles
|
5.1 miles
|
Property
Type |
Anchored Retail
|
Anchored Retail
|
Anchored Retail
|
Anchored Retail
|
Anchored Retail
|
Anchored Retail
|
Anchored Retail
|
Year Built / Renovated
|
2008
|
1988
|
1983
|
2003
|
1992
|
1978
|
1997
|
Total
Occupancy |
92.5%
|
91.0%
|
85.0%
|
96.0%
|
91.0%
|
97.0%
|
84.0%
|
Size (Sq. Ft.)
|
295,949
|
379,775
|
341,000
|
246,350
|
351,745
|
250,884
|
222,336
|
Anchors /
Major Tenants |
Toys “R” Us, Johns Incredible Pizza,
Mor Furniture for Less
|
Burlington Coat Factory, TJ Maxx/Home Goods, Regency Theaters
|
Superior Warehouse, Harbor Freight Tools, Big Lots
|
Lowe’s Home Improvement, Sports Authority
|
Super K-Mart, SteinMart, Ralphs
|
Ralphs, Rite-Aid
|
Regency Movie Theater
|
(1)
|
Source: Appraisal
|
(2)
|
Based on the rent roll dated October 1, 2013.
|
(1)
|
U/W Vacancy Gross Up is based on vacant sq. ft. as of the rent roll dated October 1, 2013 grossed up at the appraiser’s market rent conclusion for each respective space type.
|
(2)
|
U/W Rent Steps includes contractual rent increases through September 1, 2014.
|
(3)
|
Total Other Income includes interest income and late fees.
|
(4)
|
U/W Vacancy is based on the actual economic vacancy of 10.1%. Actual physical vacancy is 7.5% as of rent roll dated October 1, 2013.
|
(5)
|
The increase in U/W Net Operating Income over the trailing 12-months ended October 31, 2012 is primarily attributable to (i) an approximately $287,381 increase in base rent due to recent leases being executed including Phenix Salon, Round Table Pizza, Burger Boss and Waba Grill, (ii) scheduled rent increases of $184,049, and (iii) a $334,051 increase in recoveries due to increases in occupancy.
|
Cut-off Date Balance:
|
$44,700,000
|
||
2550 Canyon Springs Parkway |
Collateral Asset Summary – Loan No. 8
|
Cut-off Date LTV:
|
71.0%
|
Riverside, CA 92507
|
Canyon Crossing
|
U/W NCF DSCR:
|
1.36x
|
U/W NOI Debt Yield:
|
9.3%
|
Cut-off Date Balance:
|
$44,700,000
|
||
2550 Canyon Springs Parkway |
Collateral Asset Summary – Loan No. 8
|
Cut-off Date LTV:
|
71.0%
|
Riverside, CA 92507
|
Canyon Crossing
|
U/W NCF DSCR:
|
1.36x
|
U/W NOI Debt Yield:
|
9.3%
|
Cut-off Date Balance:
|
$44,700,000
|
||
2550 Canyon Springs Parkway |
Collateral Asset Summary – Loan No. 8
|
Cut-off Date LTV:
|
71.0%
|
Riverside, CA 92507
|
Canyon Crossing
|
U/W NCF DSCR:
|
1.36x
|
U/W NOI Debt Yield:
|
9.3%
|
53 Broadway
Brooklyn, NY 11249
|
Collateral Asset Summary – Loan No. 9
53 Broadway
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$37,000,000
62.4%
1.22x
7.9%
|
53 Broadway
Brooklyn, NY 11249
|
Collateral Asset Summary – Loan No. 9
53 Broadway
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$37,000,000
62.4%
1.22x
7.9%
|
Mortgage Loan Information
|
Property Information
|
|||||||
Loan Seller:
|
GACC
|
Single Asset / Portfolio:
|
Single Asset
|
|||||
Loan Purpose:
|
Acquisition
|
Property Type:
|
Mid-Rise Multifamily
|
|||||
Sponsor:
|
Jonathan Joels; Richard Kreisel-Kilstock
|
Collateral:
|
Fee Simple
|
|||||
Borrower:
|
Broadway Brooklyn Acquisition, LLC
|
Location:
|
Brooklyn, NY
|
|||||
Original Balance:
|
$37,000,000
|
Year Built / Renovated:
|
2013 / NAP
|
|||||
Cut-off Date Balance:
|
$37,000,000
|
Total Units(5)(7):
|
75
|
|||||
% by Initial UPB:
|
3.0%
|
Property Management:
|
Metro Management Development, Inc.
|
|||||
Interest Rate:
|
4.9800%
|
Underwritten NOI:
|
$2,917,856
|
|||||
Payment Date:
|
6th of each month
|
Underwritten NCF:
|
$2,899,106
|
|||||
First Payment Date:
|
March 6, 2014
|
“As-is” Appraised Value(8):
|
$59,300,000
|
|||||
Maturity Date:
|
February 6, 2024
|
“As-is” Appraisal Date:
|
December 12, 2013
|
|||||
Amortization:
|
Interest only for first 60 months; 360 months thereafter
|
“As Stabilized” Appraised Value(9):
|
$59,700,000
|
|||||
Additional Debt:
|
None
|
“As Stabilized” Appraisal Date:
|
July 1, 2014
|
|||||
Call Protection(1):
|
L(25), D(91), O(4)
|
|||||||
Lockbox / Cash Management(2):
|
Soft / Springing
|
Historical NOI(10)
|
||||||
Most Recent NOI:
|
NAP
|
|||||||
Reserves(3)
|
2012 NOI:
|
NAP
|
||||||
Initial
|
Monthly
|
2011 NOI:
|
NAP
|
|||||
Taxes:
|
$4,972
|
$2,486
|
2010 NOI:
|
NAP
|
||||
Insurance:
|
$3,552
|
$3,552
|
||||||
Replacement:
|
$0
|
$1,563
|
Historical Occupancy(10)
|
|||||
TI/LC:
|
$317,400
|
$1,428
|
Current Occupancy(11):
|
100.0% (January 9, 2014)
|
||||
Multifamily Pre-Paid Rent & Concessions:
|
$229,910
|
$0
|
2012 Occupancy:
|
NAP
|
||||
Additional Commercial Income:
|
$79,350
|
$0
|
2011 Occupancy:
|
NAP
|
||||
Other Income:
|
$154,320
|
$0
|
2010 Occupancy:
|
NAP
|
||||
Common Charges:
|
$0
|
1/12 of annual budget
|
(1) Partial release is permitted. See “Partial Release” herein.
(2) The lockbox is soft for residential tenants and hard for commercial tenants. See “Lockbox / Cash Management” herein.
(3) See “Initial Reserves” and “Ongoing Reserves” herein.
(4) Deposits to the Commercial/Parking Rent reserve come from an escrow funded by the previous owner of the 53 Broadway Property and are held by an escrow agent. See “Initial Reserves” and “Ongoing Reserves” herein.
(5) Based on 75 residential apartments.
(6) Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.56x and 1.55x, respectively.
(7) The 53 Broadway Property consists of 75 residential apartments, 12,510 sq. ft. of commercial space and a 60-car parking lot.
(8) The “As-is” Appraised Value includes an “As-is” Appraised Value of $50.3 million for the residential component and an “As-is” Appraised Value of $9.0 million for the commercial component.
(9) The “As Stabilized” Appraised Value is based on the 53 Broadway Property achieving stabilized operations. The “As Stabilized” Appraised Value includes an “As Stabilized” Appraised Value of $50.3 million for the residential component which has achieved stabilized operations and is equal to the “As-is” Appraised Value, and an “As Stabilized” Appraised Value of $9.4 million for the commercial component. Based on the Cut-off Date Balance of $37.0 million, the “As Stabilized” LTV ratio is 62.0%.
(10) The 53 Broadway Property was constructed in 2013. As such, Historical NOI and Historical Occupancy are not applicable.
(11) Current Occupancy is based on the 75-unit residential component. The commercial component of the 53 Broadway Property is 77.6% leased.
|
|||||
Overage Payment:
|
$0
|
Springing
|
||||||
Commercial/Parking Rent(4):
|
$0
|
Ongoing
|
||||||
Financial Information
|
||||||||
Cut-off Date Balance / Unit(5):
|
$493,333
|
|||||||
Balloon Balance / Unit(5):
|
$454,805
|
|||||||
Cut-off Date LTV:
|
62.4%
|
|||||||
Balloon LTV:
|
57.5%
|
|||||||
Underwritten NOI DSCR(6):
|
1.23x
|
|||||||
Underwritten NCF DSCR(6):
|
1.22x
|
|||||||
Underwritten NOI Debt Yield:
|
7.9%
|
|||||||
Underwritten NCF Debt Yield:
|
7.8%
|
|||||||
Underwritten NOI Debt Yield at Balloon:
|
8.6%
|
|||||||
Underwritten NCF Debt Yield at Balloon:
|
8.5%
|
|||||||
53 Broadway
Brooklyn, NY 11249
|
Collateral Asset Summary – Loan No. 9
53 Broadway
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$37,000,000
62.4%
1.22x
7.9%
|
Sources and Uses
|
||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
|
Loan Amount
|
$37,000,000
|
59.5%
|
Purchase Price
|
$58,910,000
|
94.7%
|
|
Sponsor Equity
|
$25,206,019
|
40.5%
|
Reserves
|
$789,504
|
1.3%
|
|
Closing Costs
|
$2,506,515
|
4.0%
|
||||
Total Sources
|
$62,206,019
|
100.0%
|
Total Uses
|
$62,206,019
|
100.0%
|
Unit Mix Summary(1)
|
|||||||
Unit Type
|
# of Units
|
% of Total
|
Occupancy(2)
|
Average Unit Size
(Sq. Ft.)
|
Average Monthly
Rental Rate
|
Average Monthly
Rental Rate PSF
|
|
Studio
|
8
|
10.7%
|
100.0%
|
486
|
$2,568
|
$5.28
|
|
1 BD / 1 BA
|
45
|
60.0%
|
100.0%
|
617
|
$3,084
|
$5.00
|
|
1 BD / 1 BA + Home Office
|
14
|
18.7%
|
100.0%
|
675
|
$3,323
|
$4.92
|
|
2 BD / 2 BA
|
7
|
9.3%
|
100.0%
|
980
|
$4,714
|
$4.81
|
|
3 BD / 2 BA
|
1
|
1.3%
|
100.0%
|
1,205
|
$7,300
|
$6.06
|
|
Total / Wtd. Avg.
|
75
|
100.0%
|
100.0%
|
656
|
$3,282
|
$5.01
|
(1)
|
Based on the Appraisal.
|
(2)
|
Based on the rent roll date January 9, 2014.
|
53 Broadway
Brooklyn, NY 11249
|
Collateral Asset Summary – Loan No. 9
53 Broadway
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$37,000,000
62.4%
1.22x
7.9%
|
Commercial Unit Mix(1)
|
|||||||
Tenant
|
Space
|
Commercial
Sq. Ft.
|
% of Total
Commercial Sq. Ft.
|
In-Place Rent
(PSF)
|
Market Rent
(PSF)(2)
|
Lease Start
|
Lease
Expiration
|
Britt Realty LLC
|
Community Facility
|
1,232
|
9.8%
|
$30.00
|
$30.00
|
1/27/2014
|
1/26/2017
|
Xin Development
|
Retail Unit A
|
3,440
|
27.5%
|
$60.10
|
$60.00
|
2/12/2014
|
2/28/2016
|
Xin Development
|
Storage Unit A
|
1,457
|
11.6%
|
$0
|
$0
|
2/12/2014
|
2/28/2016
|
Streets BK LLC
|
Retail Unit C
|
2,582
|
20.6%
|
$60.00
|
$60.00
|
2/1/2014
|
7/15/2024
|
Streets BK LLC
|
Storage Unit C
|
996
|
8.0%
|
$0
|
$0
|
2/1/2014
|
7/15/2024
|
Total Occupied Space
|
9,707
|
77.6%
|
$41.07
|
$41.03
|
|||
Vacant
|
Retail Unit B
|
1,913
|
15.3%
|
NAP
|
$60.00
|
||
Vacant
|
Storage Unit B
|
890
|
7.1%
|
NAP
|
$0
|
||
Total Vacant Space(3)
|
2,803
|
22.4%
|
|||||
Total
|
12,510
|
100.0%
|
|||||
(1)
|
Based on leases signed in January and February 2014.
|
(2)
|
Market Rent (PSF) represents market rent represented in the appraisal.
|
(3)
|
At closing, the borrower deposited $317,400 into a TI/LC reserve to be used for leasing up the vacant retail space. In addition, on a monthly basis, funds will be deposited into the commercial rent and parking income escrow account in an amount equal to $55.00 PSF of vacant commercial space.
|
53 Broadway
Brooklyn, NY 11249
|
Collateral Asset Summary – Loan No. 9
53 Broadway
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$37,000,000
62.4%
1.22x
7.9%
|
Competitive Set(1)
|
|||||||||
Name
|
53 Broadway
Property
|
146 South
4th Street
|
84-80 South
1st Street
|
185 South 4th
Street
|
205 North 9th
Street
|
225 North
9th Street
|
220 North
10th Street
|
||
Distance from Subject
|
NAP
|
0.3 miles
|
0.4 miles
|
0.4 miles
|
0.9 miles
|
1.0 mile
|
1.1 mile
|
||
Year Built / Renovated
|
2013
|
2011
|
2012
|
2008
|
2011
|
2012
|
2012
|
||
No. of Units
|
75
|
113
|
31
|
46
|
113
|
34
|
64
|
||
Unit Size (Sq. Ft.)
|
458 – 1,205
|
391 – 1,281
|
483 – 1,985
|
401 – 1,790
|
409 – 1,192
|
470 – 958
|
526 – 1,169
|
||
Rent/Unit
|
$2,400 - $7,300
|
$2,175 - $6,800
|
$3,200 - $6,450
|
$2,000 - $6,744
|
$2,075 - $5,960
|
$2,450 - $4,800
|
$3,200 - $4,750
|
||
Avg. Annual Rent PSF
|
$57.96
|
$65.39
|
$56.37
|
$46.73
|
$63.59
|
$61.53
|
$58.74
|
(1)
|
Source: Appraisal
|
Cash Flow Analysis
|
|||||
U/W
|
U/W per Unit(1)
|
||||
Gross Potential Rent
|
$2,943,546
|
$39,247
|
|||
Commercial Income
|
516,229
|
$6,883
|
|||
Other Income(2)
|
125,160
|
$1,669
|
|||
Less: Commercial Vacancy(3)
|
(25,811)
|
($344)
|
|||
Less: Residential Vacancy(4)
|
(147,177)
|
($1,962)
|
|||
Effective Gross Income
|
$3,411,947
|
$45,493
|
|||
Total Operating Expenses
|
494,091
|
$6,588
|
|||
Net Operating Income
|
$2,917,856
|
$38,905
|
|||
Capital Expenditures
|
18,750
|
$250
|
|||
Net Cash Flow
|
$2,899,106
|
$38,655
|
|||
(1)
|
Based on 75 residential apartments.
|
(2)
|
U/W Other Income includes $66,600 from storage unit rental, $48,000 from parking rent and $10,560 from bike storage and miscellaneous fees.
|
(3)
|
U/W Commercial Vacancy represents 5.0% of Commercial Income. The commercial component is 77.6% leased. At closing, $317,400 was reserved for costs associated with leasing the vacant commercial space. In addition, on a monthly basis, funds will be deposited into the commercial rent and parking income escrow account in an amount equal to $55.00 PSF of vacant commercial space at the 53 Broadway Property.
|
(4)
|
U/W Residential Vacancy represents 5.0% of Gross Potential Rent.
|
53 Broadway
Brooklyn, NY 11249
|
Collateral Asset Summary – Loan No. 9
53 Broadway
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$37,000,000
62.4%
1.22x
7.9%
|
53 Broadway
Brooklyn, NY 11249
|
Collateral Asset Summary – Loan No. 9
53 Broadway
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$37,000,000
62.4%
1.22x
7.9%
|
105 Town Center Road
King of Prussia, PA 19406
|
Collateral Asset Summary – Loan No. 10
Valley Forge Shopping Center
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$35,000,000
71.9%
1.33x
8.6%
|
105 Town Center Road
King of Prussia, PA 19406
|
Collateral Asset Summary – Loan No. 10
Valley Forge Shopping Center
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$35,000,000
71.9%
1.33x
8.6%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
GACC
|
Single Asset / Portfolio:
|
Single Asset
|
|||
Loan Purpose:
|
Refinance
|
Property Type:
|
Anchored Retail
|
|||
Sponsor:
|
Andrew N. Heine
|
Collateral:
|
Fee Simple
|
|||
Borrower:
|
VF Center Associates, L.P.
|
Location:
|
King of Prussia, PA
|
|||
Original Balance:
|
$35,000,000
|
Year Built / Renovated:
|
1956 / 2012-2014
|
|||
Cut-off Date Balance:
|
$35,000,000
|
Total Sq. Ft.(3):
|
340,352
|
|||
% by Initial UPB:
|
2.8%
|
Property Management:
|
Great Hill Property Management LLC
|
|||
Interest Rate:
|
4.7600%
|
Underwritten NOI:
|
$3,024,743
|
|||
Payment Date:
|
6th of each month
|
Underwritten NCF:
|
$2,927,056
|
|||
First Payment Date:
|
March 6, 2014
|
“As-is” Appraised Value:
|
$48,700,000
|
|||
Maturity Date:
|
February 6, 2024
|
“As-is” Appraisal Date:
|
January 2, 2014
|
|||
Amortization:
|
Interest only for the first 12 months,
|
“As Complete” Appraised Value(4):
|
$50,800,000
|
|||
360 months thereafter
|
“As Complete” Appraisal Date(4):
|
August 1, 2014
|
||||
Additional Debt:
|
None
|
|||||
Call Protection:
|
L(25), D(91), O(4)
|
Historical NOI(5)
|
||||
Lockbox / Cash Management:
|
Hard / In Place
|
Most Recent NOI:
|
NAP
|
|||
2012 NOI:
|
NAP
|
|||||
Reserves(1)
|
2011 NOI:
|
NAP
|
||||
Initial
|
Monthly
|
2010 NOI:
|
NAP
|
|||
Taxes:
|
$242,399
|
$43,331
|
||||
Insurance:
|
$0
|
Springing
|
Historical Occupancy(5)
|
|||
Replacement:
|
$0
|
$2,630
|
Current Occupancy:
|
91.5% (December 31, 2013)
|
||
TI/LC:
|
$721,999
|
$6,100
|
2012 Occupancy:
|
NAP
|
||
Renovation Reserve:
|
$945,000
|
$0
|
2011 Occupancy:
|
NAP
|
||
Sleepy’s Holdback:
|
$890,750
|
$0
|
2010 Occupancy:
|
NAP
|
||
Rent Concession:
|
$322,538
|
$0
|
(1) See “Initial Reserves” and “Ongoing Reserves” herein.
(2) Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.79x and 1.73x, respectively.
(3) Total Sq. Ft. includes Target and McDonald’s, totaling 168,957 sq. ft., which own their own improvements and operate under ground leases.
(4) The appraiser determined an “As Complete” Appraised Value of $50.8 million based on the completion of all improvements. Based on the Cut-off Date Balance of $35.0 million, the “As Complete” LTV ratio is 68.9%.
(5) The Valley Forge Shopping Center Property underwent a major renovation in 2012, when the sponsor vacated and demolished a portion of the center in order to add Target and an additional approximately 11,200 sq. ft. of retail space. The full redevelopment of the Valley Forge Shopping Center Property is estimated to be complete in 2014.
|
|||
Financial Information
|
||||||
Cut-off Date Balance / Sq. Ft.:
|
$103
|
|||||
Balloon Balance / Sq. Ft.:
|
$86
|
|||||
Cut-off Date LTV:
|
71.9%
|
|||||
Balloon LTV:
|
60.2%
|
|||||
Underwritten NOI DSCR(2):
|
1.38x
|
|||||
Underwritten NCF DSCR(2):
|
1.33x
|
|||||
Underwritten NOI Debt Yield:
|
8.6%
|
|||||
Underwritten NCF Debt Yield:
|
8.4%
|
|||||
Underwritten NOI Debt Yield at Balloon:
|
10.3%
|
|||||
Underwritten NCF Debt Yield at Balloon:
|
10.0%
|
|||||
105 Town Center Road
King of Prussia, PA 19406
|
Collateral Asset Summary – Loan No. 10
Valley Forge Shopping Center
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$35,000,000
71.9%
1.33x
8.6%
|
Tenant Summary
|
||||||||||
Tenant
|
Ratings
(Fitch/Moody’s/S&P)(1)
|
Net Rentable
Area (Sq. Ft.)
|
% of Net
Rentable Area
|
U/W Base
Rent PSF
|
% of Total
U/W Base Rent
|
Lease
Expiration
|
||||
Target(2)
|
A-/A2/A+
|
165,000
|
48.5%
|
$4.24
|
22.3%
|
1/1/2040
|
||||
Bed Bath and Beyond(3)
|
NR/NR/BBB+
|
42,101
|
12.4%
|
$10.25
|
13.7%
|
1/31/2020
|
||||
Michaels(4)
|
NR/B3/B
|
22,242
|
6.5%
|
$15.00
|
10.6%
|
2/28/2018
|
||||
Michael’s Deli
|
NR/NR/NR
|
11,536
|
3.4%
|
$10.00
|
3.7%
|
4/30/2017
|
||||
Peppers
|
NR/NR/NR
|
6,592
|
1.9%
|
$14.06
|
2.9%
|
6/30/2016
|
||||
Total Major Tenants
|
247,471
|
72.7%
|
$6.76
|
53.2%
|
||||||
Outparcel
|
15,807
|
4.6%
|
$28.28
|
14.2%
|
||||||
Remaining Retail Tenants
|
41,778
|
12.3%
|
$23.33
|
31.0%
|
||||||
Total Retail Collateral
|
305,056
|
89.6%
|
$10.15
|
98.4%
|
||||||
Office Tenants(5)
|
4,790
|
1.4%
|
$7.82
|
1.2%
|
||||||
Storage
|
1,550
|
0.5%
|
$7.74
|
0.4%
|
||||||
Total Occupied
|
311,396
|
91.5%
|
$10.10
|
100.0%
|
||||||
Vacant
|
28,956
|
8.5%
|
||||||||
Total
|
340,352
|
100.0%
|
||||||||
(1)
|
Certain ratings may be those of the parent company whether or not the parent company guarantees the lease.
|
(2)
|
Target, which owns its own improvements and operates under a ground lease, is currently under construction with build out estimated to be completed in April 2014. Target is estimated to open in summer 2014 with rent commencing in April 2014. At closing, $58,333 was reserved representing the March rent payment for Target. Target has five 10-year extension options, each with 12 months prior notice, and no termination options.
|
(3)
|
Bed Bath and Beyond has two five-year extension options, and no termination options.
|
(4)
|
Michaels has a rent abatement through June 2014. At closing, $51,058 was reserved, representing rent payments through June 2014. Michaels has three five-year extension options remaining, each with 180 days prior notice. Michaels does not have any termination options.
|
(5)
|
Includes a 1,716 sq. ft. management office.
|
Lease Rollover Schedule(1)
|
||||||||||||||||
Year
|
# of Leases
Expiring
|
Total Expiring
Sq. Ft.
|
% of Total Sq.
Ft. Expiring
|
Cumulative
Sq. Ft.
Expiring
|
Cumulative
% of Sq. Ft.
Expiring |
Annual U/W
Base Rent Per Sq. Ft.
|
% U/W
Base Rent Rolling
|
Cumulative %
of U/W
Base Rent
|
||||||||
MTM
|
0
|
0
|
0.0%
|
0
|
0.0%
|
$0.00
|
0.0%
|
0.0%
|
||||||||
2014
|
16
|
22,369
|
6.6%
|
22,369
|
6.6%
|
$19.36
|
13.8%
|
13.8%
|
||||||||
2015
|
2
|
6,870
|
2.0%
|
29,239
|
8.6%
|
$33.27
|
7.3%
|
21.0%
|
||||||||
2016
|
2
|
9,092
|
2.7%
|
38,331
|
11.3%
|
$17.11
|
4.9%
|
26.0%
|
||||||||
2017
|
1
|
11,536
|
3.4%
|
49,867
|
14.7%
|
$10.00
|
3.7%
|
29.7%
|
||||||||
2018
|
6
|
31,768
|
9.3%
|
81,635
|
24.0%
|
$16.10
|
16.3%
|
45.9%
|
||||||||
2019
|
2
|
5,988
|
1.8%
|
87,623
|
25.7%
|
$29.39
|
5.6%
|
51.5%
|
||||||||
2020
|
1
|
42,101
|
12.4%
|
129,724
|
38.1%
|
$10.25
|
13.7%
|
65.3%
|
||||||||
2021
|
0
|
0
|
0.0%
|
129,724
|
38.1%
|
$0.00
|
0.0%
|
65.3%
|
||||||||
2022
|
1
|
3,957
|
1.2%
|
133,681
|
39.3%
|
$19.88
|
2.5%
|
67.8%
|
||||||||
2023
|
1
|
4,599
|
1.4%
|
138,280
|
40.6%
|
$30.00
|
4.4%
|
72.1%
|
||||||||
2024
|
1
|
6,400
|
1.9%
|
144,680
|
42.5%
|
$27.50
|
5.6%
|
77.7%
|
||||||||
Thereafter
|
2
|
166,716
|
49.0%
|
311,396
|
91.5%
|
$4.20
|
22.3%
|
100.0%
|
||||||||
Vacant
|
NAP
|
28,956
|
8.5%
|
340,352
|
100.0%
|
NAP
|
NAP
|
|||||||||
Total / Wtd. Avg.
|
35
|
340,352
|
100.0%
|
$10.10
|
100.0%
|
(1)
|
Certain tenants have lease termination options that may become exercisable prior to the originally stated expiration date of the tenant lease and that are not considered in the lease rollover schedule or the site plan.
|
105 Town Center Road
King of Prussia, PA 19406
|
Collateral Asset Summary – Loan No. 10
Valley Forge Shopping Center
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$35,000,000
71.9%
1.33x
8.6%
|
Sources and Uses
|
||||||
Sources
|
Proceeds
|
% of Total
|
Uses
|
Proceeds
|
% of Total
|
|
Loan Amount
|
$35,000,000
|
100.0%
|
Loan Payoff
|
$22,813,897
|
65.2%
|
|
Reserves
|
$3,122,686
|
8.9%
|
||||
Closing Costs
|
$425,954
|
1.2%
|
||||
Return of Equity
|
$8,637,463
|
24.7%
|
||||
Total Sources
|
$35,000,000
|
100.0%
|
Total Uses
|
$35,000,000
|
100.0%
|
105 Town Center Road
King of Prussia, PA 19406
|
Collateral Asset Summary – Loan No. 10
Valley Forge Shopping Center
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$35,000,000
71.9%
1.33x
8.6%
|
Competitive Set(1)
|
|||||||||||||
Name
|
Valley Forge Shopping
Center Property |
King of Prussia
Center |
Henderson
Square |
Dekalb Plaza
|
Courtside Square
|
Gateway Shopping
Center |
|||||||
Distance from Subject
|
NAP
|
0.6 miles
|
2.7 miles
|
7.0 miles
|
1.3 miles
|
2.0 miles
|
|||||||
Property Type
|
Anchored Retail
|
Strip Center
|
Anchored Retail
|
Anchored Retail
|
Mixed Use
|
Shopping Center
|
|||||||
Year Built / Renovated
|
1956 / 2012-2014
|
1995/2003/2010
|
2000
|
1993
|
1961
|
1970 / 1999
|
|||||||
Total Occupancy(2)
|
91.5%
|
100.0%
|
98.2%
|
95.1%
|
90.5%
|
99.4%
|
|||||||
Size (Sq. Ft.)(2)
|
340,352
|
106,774
|
107,431
|
102,002
|
119,108
|
223,258
|
|||||||
Anchors / Major Tenants
|
Target, Bed Bath and Beyond, Michaels
|
Petco Grocery Store
|
GIANT Grocery
|
ACME Grocery
|
None
|
Five Below, TJ Maxx,
Staples
|
(1)
|
Source: Appraisal
|
(2)
|
Total Occupancy and Size (Sq. Ft.) for the Valley Forge Shopping Center Property is as of the December 31, 2013 rent roll.
|
105 Town Center Road
King of Prussia, PA 19406
|
Collateral Asset Summary – Loan No. 10
Valley Forge Shopping Center
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$35,000,000
71.9%
1.33x
8.6%
|
Cash Flow Analysis
|
|||||
U/W
|
U/W PSF
|
||||
Base Rent(1)
|
$2,490,925
|
$7.32
|
|||
Target Rent
|
700,000
|
2.06
|
|||
Value of Vacant Space
|
352,371
|
1.04
|
|||
Gross Potential Rent
|
$3,543,297
|
$10.41
|
|||
Total Recoveries
|
1,666,812
|
4.90
|
|||
Less: Vacancy(2)
|
(352,371)
|
(1.04)
|
|||
Effective Gross Income
|
$4,857,738
|
$14.27
|
|||
Total Operating Expenses
|
1,832,995
|
5.39
|
|||
Net Operating Income
|
$3,024,743
|
$8.89
|
|||
TI/LC
|
71,384
|
0.21
|
|||
Capital Expenditures
|
26,303
|
0.08
|
|||
Net Cash Flow
|
$2,927,056
|
$8.60
|
|||
(1)
|
U/W Base Rent includes $46,628 of step rent and is based on rent steps through February 2015.
|
(2)
|
U/W Vacancy represents 6.8% of gross income, compared to the submarket vacancy rate of 6.3% and the trade area vacancy rate of 4.0%.
|
105 Town Center Road
King of Prussia, PA 19406
|
Collateral Asset Summary – Loan No. 10
Valley Forge Shopping Center
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$35,000,000
71.9%
1.33x
8.6%
|
105 Town Center Road
King of Prussia, PA 19406
|
Collateral Asset Summary – Loan No. 10
Valley Forge Shopping Center
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$35,000,000
71.9%
1.33x
8.6%
|
New York
|
Collateral Asset Summary – Loan No. 11
Tops Markets Grocery Anchored
Portfolio |
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$34,948,224
63.4%
1.72x
12.1%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
GACC
|
Single Asset / Portfolio:
|
Portfolio of six properties
|
|||
Loan Purpose:
|
Refinance
|
Property Type:
|
Anchored Retail
|
|||
Sponsor:
|
Cofinance, Inc.; James J. Maurer
|
Collateral:
|
Fee Simple
|
|||
Borrower:
|
TG-Cotops Youngmann NY LLC; TG-
|
Location:
|
Various, NY
|
|||
Cotops Tonawanda NY LLC; TG-
|
Year Built / Renovated:
|
1986-1997 / NAP
|
||||
Cotops Elmira NY LLC; TG-Cotops
|
Total Sq. Ft.:
|
593,295
|
||||
Arcade NY LLC; TG-Cotops Avon NY
|
Property Management:
|
Morgan Property Management LLC
|
||||
LLC; TG-Cotops Hamlin NY LLC
|
Underwritten NOI:
|
$4,231,035
|
||||
Original Balance:
|
$35,000,000
|
Underwritten NCF:
|
$3,877,466
|
|||
Cut-off Date Balance:
|
$34,948,224
|
Appraised Value:
|
$55,100,000
|
|||
% by Initial UPB:
|
2.8%
|
Appraisal Date:
|
July 2013
|
|||
Interest Rate:
|
5.0000%
|
|||||
Payment Date:
|
6th of each month
|
Historical NOI
|
||||
First Payment Date:
|
March 6, 2014
|
Most Recent NOI:
|
$5,533,575 (T-12 October 31, 2013)
|
|||
Maturity Date:
|
February 6, 2019
|
2012 NOI:
|
$5,665,911 (December 31, 2012)
|
|||
Amortization:
|
360 months
|
2011 NOI:
|
$5,645,763 (December 31, 2011)
|
|||
Additional Debt:
|
None
|
2010 NOI:
|
NAV
|
|||
Call Protection(1):
|
L(25), YM2(31), O(4)
|
|||||
Lockbox / Cash Management:
|
Hard / In Place
|
Historical Occupancy
|
||||
Current Occupancy:
|
90.6% (January 17, 2014)
|
|||||
Reserves
|
2012 Occupancy:
|
90.4% (December 31, 2012)
|
||||
Initial
|
Monthly
|
2011 Occupancy:
|
89.7% (December 31, 2011)
|
|||
Taxes:
|
$105,000
|
$87,548
|
2010 Occupancy:
|
NAV
|
||
Insurance(2):
|
$0
|
Springing
|
(1) On any date after the lockout period ends, the borrowers may obtain the release of any property upon a bona fide third-party sale of such property, provided, among other things, (i) the DSCR for the remaining properties is no less than the greater of the DSCR immediately preceding such sale and 1.72x, (ii) the LTV ratio for the remaining properties is no more than the lesser of the LTV ratio immediately preceding such sale and 63.5% and (iii) the payment of principal equal to the greater of (a) 100% of the net sales proceeds and (b) 125% of the allocated loan amount for such property, which in no event may be less than 94% of the gross sales price of such property, together with the applicable yield maintenance premium. In addition, the borrower may obtain the release of a non-income producing parcel at the Tops Plaza - Avon property.
(2) The borrower is required to deposit 1/12 of the estimated annual insurance premiums into an insurance reserve account if an acceptable blanket insurance policy is no longer in place.
(3) All excess cash will be deposited into the lease sweep reserve upon the first to occur of (i) an event of default, (ii) the DSCR falls below 1.30x on the last day of any calendar quarter, (iii) with respect to the Gander Mountain lease, the payment date in June 2015 (unless cash or a letter of credit in the amount of $22.00 PSF has been delivered) and, with respect to the Big Lots lease, the payment date in July 2016 (unless cash or a letter of credit in the amount of $19.00 PSF has been provided) or (iv) the date that Gander Mountain, Big Lots or any of the Tops Market tenants (a) surrenders, cancels or terminates its lease, (b) goes dark, (c) is in monetary default under its lease or (d) is party to an insolvency proceeding.
|
|||
Replacement:
|
$0
|
$16,810
|
||||
TI/LC:
|
$0
|
$15,621
|
||||
Lease Sweep(3):
|
$0
|
Springing
|
||||
Financial Information
|
||||||
Cut-off Date Balance / Sq. Ft.:
|
$59
|
|||||
Balloon Balance / Sq. Ft.:
|
$54
|
|||||
Cut-off Date LTV:
|
63.4%
|
|||||
Balloon LTV:
|
58.6%
|
|||||
Underwritten NOI DSCR:
|
1.88x
|
|||||
Underwritten NCF DSCR:
|
1.72x
|
|||||
Underwritten NOI Debt Yield:
|
12.1%
|
|||||
Underwritten NCF Debt Yield:
|
11.1%
|
|||||
|
TRANSACTION HIGHLIGHTS
|
§
|
Portfolio Diversity. The portfolio is comprised of six anchored shopping centers totaling 593,295 square feet. The properties are anchored by Tops Market, Gander Mountain, Big Lots and Family Dollar. As of January 17, 2014, the portfolio is 90.6% occupied by 36 tenants, with individual property occupancies ranging from 85.2% to 95.0%. No individual property accounts for more than 25.7% of underwritten NOI and, except for the Youngmann Plaza property which accounts for 35.1% of total square feet, no individual property accounts for more than 16.6% of total square feet.
|
§
|
Major Tenant. Tops Market is an anchor tenant at all six properties and totals 334,515 sq. ft., which represents approximately 56.4% of the portfolio net rentable area. The Tops Market leases have a weighted average remaining term of approximately 14 years. In August 2012, Tops Market exercised two early extension options, totaling 10 years, for each of the Tops Market leases.
|
§
|
Sponsor. James J. Maurer is the president of Cofinance, Inc., a subsidiary of Cofinance Group SA. Cofinance Group SA owns, operates, develops and manages commercial real estate properties, and is a provider of capital for direct investment in real estate assets. James J. Mauer joined Cofinance, Inc. in 2004 and under Mr. Maurer’s leadership, Cofinance, Inc. has acquired property in New York City, New Jersey and Florida.
|
Seneca, SC
|
Collateral Asset Summary – Loan No. 12
Clemson Student Housing
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$33,425,167
70.8%
1.27x
9.2%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
CCRE
|
Single Asset / Portfolio:
|
Portfolio of two properties
|
|||
Loan Purpose:
|
Refinance
|
Property Type:
|
Student Housing
|
|||
Sponsors:
|
Thomas P. Winkopp; William W.
|
Collateral:
|
Fee Simple
|
|||
Huss, Jr.; James N. Workman, Jr.
|
Location:
|
Seneca, SC
|
||||
Borrowers:
|
High Pointe of Clemson LLC; The Pier
|
Year Built / Renovated:
|
2008-2013 / NAP
|
|||
at Clemson LLC
|
Total Beds:
|
873
|
||||
Original Balance:
|
$33,500,000
|
Property Management:
|
Tom Winkopp Realtor/Developer, LLC
|
|||
Cut-off Date Balance:
|
$33,425,167
|
Underwritten NOI:
|
$3,077,180
|
|||
% by Initial UPB:
|
2.7%
|
Underwritten NCF:
|
$2,989,880
|
|||
Interest Rate:
|
5.7990%
|
Appraised Value:
|
$47,200,000
|
|||
Payment Date:
|
6th of each month
|
Appraisal Date:
|
August 13, 2013
|
|||
First Payment Date:
|
February 6, 2014
|
|||||
Maturity Date:
|
January 6, 2024
|
Historical NOI(4)
|
||||
Amortization:
|
360 months
|
Most Recent NOI:
|
$2,525,145 (T-12 September 30, 2013)
|
|||
Additional Debt(1):
|
$3,000,000 Mezzanine Loan
|
2012 NOI:
|
$2,100,744 (December 31, 2012)
|
|||
Call Protection:
|
L(26), YM1(91), O(3)
|
2011 NOI:
|
NAP
|
|||
Lockbox / Cash Management:
|
Soft / In Place
|
2010 NOI:
|
NAP
|
|||
Reserves
|
Historical Occupancy(4)
|
|||||
Initial
|
Monthly
|
Most Recent Occupancy:
|
95.3% (September 30, 2013)
|
|||
Taxes:
|
$47,817
|
$47,817
|
2012 Occupancy:
|
97.4% (December 31, 2012)
|
||
Insurance:
|
$53,098
|
$8,639
|
2011 Occupancy:
|
NAP
|
||
Immediate Repairs:
|
$19,375
|
NAP
|
2010 Occupancy:
|
NAP
|
||
Replacement:
|
$0
|
$7,275
|
(1) Additional Debt consists of a $3.0 million mezzanine loan that is currently held by Terra Capital Partners LLC. The mezzanine loan is coterminous with the Clemson Student Housing loan and accrues interest at a rate of 13.0000% per annum.
(2) The borrower is required to deposit monthly 1/12 of the contractual annual HOA dues related to the Highpointe property. The borrower owns 154 of the 221 units at the Highpointe property, which property is subject to a condominium regime pursuant to which the borrower controls approximately 67.8% of the voting rights. The remaining units, which are not collateral for the loan, are privately owned by individuals and entities, none of which control more than 2.3% of the voting rights.
(3) The Bridge Program students are required to make semi-annual payments for rent. As a result, the borrower is required to make semi-annual deposits into the Highpointe Rent reserve to coincide with the Fall and Spring rent payments. The borrower deposited $1,389,666 for the Fall 2014 semester’s rent.
(4) The Pier property was built in 2012. As a result, Historical NOI and Historical Occupancy are not applicable.
|
|||
HOA(2):
|
$37,563
|
$37,563
|
||||
Highpointe Rent(3):
|
$1,389,666
|
Springing
|
||||
Financial Information
|
||||||
Mortgage Loan
|
Total Debt
|
|||||
Cut-off Date Balance / Bed:
|
$38,288
|
$41,724
|
||||
Balloon Balance / Bed:
|
$32,342
|
$35,779
|
||||
Cut-off Date LTV:
|
70.8%
|
77.2%
|
||||
Balloon LTV:
|
59.8%
|
66.2%
|
||||
Underwritten NOI DSCR:
|
1.30x
|
1.12x
|
||||
Underwritten NCF DSCR:
|
1.27x
|
1.09x
|
||||
Underwritten NOI Debt Yield:
|
9.2%
|
8.4%
|
||||
Underwritten NCF Debt Yield:
|
8.9%
|
8.2%
|
||||
TRANSACTION HIGHLIGHTS
|
§
|
Properties. The Clemson Student Housing loan is collateralized by two student housing complexes offering 873 collateral beds and located in Seneca, South Carolina, approximately 2.0 miles from Clemson University. Built in phases from 2008-2013 for approximately $40.1 million, amenities at each property include a campus shuttle, study lounge, fitness center, gaming rooms, volleyball court, a pool, hot tub, tanning salon and indoor/outdoor event space.
|
§
|
Occupancy. The properties are 95.3% leased for the 2013-2014 academic year. The leases are structured as 12-month leases or 9-month leases for Bridge to Clemson Program students with more than 95.0% of leases backed by parental guarantees.
|
§
|
Bridge to Clemson Program. The Highpointe property serves as the sole housing complex for the Bridge to Clemson Program, a program designed to transition strong academic freshman students who narrowly missed undergraduate acceptance at Clemson University, from Tri-County Technical College to Clemson University. The Bridge to Clemson Program represents over 95.0% of the occupied collateral units at the Highpointe property. For the fall 2013 academic semester, the Bridge to Clemson Program occupied 46.3% of the non-collateral units at the Highpointe property.
|
§
|
Sponsors. The sponsors are the original developers of the Clemson Student Housing properties and have more than 40 years of experience in real estate in the Clemson community. James N. Workman, Jr. currently serves as the Chairman of Clemson’s Department of Architecture and Humanities Advisory Board and William W. Huss, Jr. serves on the City of Clemson Board of Zoning Appeals.
|
§
|
Clemson University. Clemson University is a public university comprised of five colleges that offer approximately 80 undergraduate majors and 110 graduate programs. As of 2013, total enrollment was approximately 21,303, reflecting a 21.1% increase since 2007. Nearly 60.0% of students live off-campus. Additionally in 2013, Kiplinger magazine rated Clemson University among the best values in public higher education in its ranking of the “100 Best Values in Public Colleges.”
|
30 Superior Drive
Natick, MA 01760
|
Collateral Asset Summary – Loan No. 13
FedEx Distribution - Natick
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$31,500,000
67.2%
1.31x
8.4%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
KeyBank
|
Single Asset / Portfolio:
|
Single Asset
|
|||
Loan Purpose:
|
Refinance
|
Property Type:
|
Industrial Warehouse / Distribution
|
|||
Sponsor:
|
Robert J. Scannell; Robert J. Scannell
|
Collateral:
|
Fee Simple
|
|||
Revocable Trust dated September 9,
|
Location:
|
Natick, MA
|
||||
2002
|
Year Built / Renovated:
|
2013 / NAP
|
||||
Borrower:
|
Scannell Properties #123, LLC
|
Total Sq. Ft.:
|
173,174
|
|||
Original Balance:
|
$31,500,000
|
Property Management:
|
Self-managed
|
|||
Cut-off Date Balance:
|
$31,500,000
|
Underwritten NOI:
|
$2,645,502
|
|||
% by Initial UPB:
|
2.5%
|
Underwritten NCF:
|
$2,628,185
|
|||
Interest Rate:
|
5.0600%
|
Appraised Value:
|
$46,900,000
|
|||
Payment Date:
|
1st of each month
|
Appraisal Date:
|
January 23, 2014
|
|||
First Payment Date:
|
April 1, 2014
|
|||||
Maturity Date:
|
March 1, 2024
|
Historical NOI
|
||||
Amortization(1):
|
Interest only for first 36 months; 360
|
Most Recent NOI:
|
NAP
|
|||
months thereafter
|
2012 NOI:
|
NAP
|
||||
Additional Debt(2):
|
$3,500,000 Mezzanine Debt
|
2011 NOI:
|
NAP
|
|||
Call Protection:
|
L(24), D(93), O(3)
|
2010 NOI:
|
NAP
|
|||
Lockbox / Cash Management(3):
|
Hard / In Place
|
|||||
Historical Occupancy
|
||||||
Reserves
|
Current Occupancy:
|
100.0% (February 7, 2014)
|
||||
Initial
|
Monthly
|
2012 Occupancy:
|
NAP
|
|||
Taxes(4):
|
$0
|
Springing
|
2011 Occupancy:
|
NAP
|
||
Insurance(4):
|
$0
|
Springing
|
2010 Occupancy:
|
NAP
|
||
Replacement:
|
$1,443
|
$1,443
|
(1) Following the initial 36-month interest only period, the FedEx Distribution – Natick loan is structured with a fixed amortization schedule provided in Annex I of the Free Writing Prospectus, which is based on a 360-month amortization period for the FedEx Distribution – Natick loan, together with the related mezzanine loan.
(2) The mezzanine loan is coterminous with the mortgage loan and accrues interest at a rate of 12.0000% per annum.
(3) Cash management will be triggered upon (i) an event of default, (ii) the DSCR based on the trailing three month period is less than 1.10x, (iii) the tenant vacates/goes dark or if FedEx Corporation’s senior unsecured rating drops below BB+, (iv) a Mezzanine Loan Default, or (v) the bankruptcy of borrower or an affiliated manager.
(4) Tax and Insurance escrows will be suspended provided that: (i) no event of default exists, (ii) FedEx Corporation’s senior unsecured rating is at least BB+, (iii) the tenant is required per the lease to pay taxes and insurance expenses directly and provides evidence of payment, and (iv) the current lease is in full force/effect.
(5) Based on the maximum annual debt service payments by loan year per the fixed amortization schedule. Using the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.64x and 1.63x for the mortgage loan respectively, and 1.30x and 1.29x for the total debt respectively.
|
|||
Financial Information
|
||||||
Mortgage Loan
|
Total Debt
|
|||||
Cut-off Date Balance / Sq. Ft.:
|
$182
|
$202
|
||||
Balloon Balance / Sq. Ft.:
|
$164
|
$182
|
||||
Cut-off Date LTV:
|
67.2%
|
74.6%
|
||||
Balloon LTV:
|
60.4%
|
67.1%
|
||||
Underwritten NOI DSCR(5):
|
1.32x
|
1.08x
|
||||
Underwritten NCF DSCR(5):
|
1.31x
|
1.07x
|
||||
Underwritten NOI Debt Yield:
|
8.4%
|
7.6%
|
||||
Underwritten NCF Debt Yield:
|
8.3%
|
7.5%
|
||||
|
TRANSACTION HIGHLIGHTS
|
§
|
Tenancy. The property is 100.0% leased to FedEx Ground Package System, Inc. (“FedEx Ground”), a wholly owned subsidiary of FedEx Corporation (Moody’s: Baa1; S&P: BBB), on a 15-year NNN lease which expires in July 2028 and allows for two 5-year extension options. FedEx Ground specializes in small-package shipping for business-to-business and residential delivery. In FY 2013, FedEx Ground had revenue and operating income of approximately $10.6 billion and $1.8 billion, respectively, both of which have exhibited year over year increases since FY 2010. FedEx Ground accounted for approximately 23.9% and 70.1% of FedEx Corporation’s revenue and operating income for FY 2013, respectively.
|
§
|
Location. The property is located in Natick, MA, approximately one mile south of the Massachusetts Turnpike (Interstate 90) and approximately 15 miles west of downtown Boston. I-90 is the primary east-west route throughout central Massachusetts and connects to Interstate-95 approximately six miles east of the property, which provides north-south access throughout the Northeast. Route 9, Route 27 and Route 30 are all within blocks of the subject, providing strong distribution access to the local region. Route 9 provides access to the local commercial corridor which contains over 3.0 million sq. ft. of destination retail and connects to downtown Boston to the east.
|
§
|
Asset Quality. The property was developed in 2013 as a build-to-suit facility for FedEx Ground at a reported cost of approximately $38.25 million. The property features 24’ clear ceiling heights, 43 dock-high doors, 13 drive-in doors, perimeter fencing and security gate. Since completion, FedEx Ground has invested over $20 million in the construction of a mechanized conveyor distribution system within the facility.
|
§
|
Experienced Sponsor. Scannell Properties (“Scannell”), an Indianapolis based build-to-suit developer with over 20 years’ experience, has developed over 76 properties in 37 states and Canada including industrial, office, retail, government and educational facilities. Scannell is the largest developer of FedEx facilities in the U.S. As of 6/30/2013 Robert J. Scannell owned 41 properties, of which, 28 are leased to FedEx Ground.
|
500 Jefferson Street
Houston, TX 77002
|
Collateral Asset Summary – Loan No. 14
500 Jefferson
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$31,200,000
68.3%
2.28x
11.9%
|
Mortgage Loan Information
|
Property Information
|
|||||||
Loan Seller:
|
UBSRES
|
Single Asset / Portfolio:
|
Single Asset
|
|||||
Loan Purpose:
|
Acquisition
|
Property Type:
|
CBD Office
|
|||||
Sponsor(1):
|
Corporate Property Associates 17-
|
Collateral:
|
Fee Simple
|
|||||
Global Incorporated
|
Location:
|
Houston, TX
|
||||||
Borrower:
|
500 Jefferson Tower (TX) LLC
|
Year Built / Renovated:
|
1963-1964 / 2004, 2005, 2007, 2013
|
|||||
Original Balance:
|
$31,200,000
|
Total Sq. Ft.:
|
390,479
|
|||||
Cut-off Date Balance:
|
$31,200,000
|
Property Management:
|
500 Jefferson Manager (DE) LLC;
|
|||||
% by Initial UPB:
|
2.5%
|
Brookfield Properties Management
|
||||||
Interest Rate:
|
4.9020%
|
LLC
|
||||||
Payment Date:
|
6th of each month
|
Underwritten NOI(4):
|
$3,712,970
|
|||||
First Payment Date:
|
February 6, 2014
|
Underwritten NCF:
|
$3,536,501
|
|||||
Anticipated Repayment Date(2):
|
January 6, 2024
|
Appraised Value:
|
$45,700,000
|
|||||
Maturity Date:
|
March 6, 2026
|
Appraisal Date:
|
November 25, 2013
|
|||||
Amortization:
|
Interest Only
|
|||||||
Additional Debt:
|
None
|
Historical NOI(4)
|
||||||
Call Protection:
|
L(26), D(87), O(7)
|
2012 NOI:
|
$2,750,084 (December 31, 2012)
|
|||||
Lockbox / Cash Management:
|
Hard / In Place
|
2011 NOI:
|
$2,814,660 (December 31, 2011)
|
|||||
2010 NOI:
|
$1,789,024 (December 31, 2010)
|
|||||||
Reserves
|
||||||||
Initial
|
Monthly
|
Historical Occupancy
|
||||||
Taxes(3):
|
$0
|
Springing
|
Most Recent Occupancy:
|
96.3% (October 1, 2013)
|
||||
Insurance(3):
|
$0
|
Springing
|
2012 Occupancy:
|
96.0% (December 31, 2012)
|
||||
Replacement(3):
|
$0
|
Springing
|
2011 Occupancy:
|
95.6% (December 31, 2011)
|
||||
TI/LC(3):
|
$170,384
|
Springing
|
2010 Occupancy:
|
95.6% (December 31, 2010)
|
||||
Utility Funds(3):
|
$0
|
Springing
|
(1) The sponsor is also the sponsor under the mortgage loan identified on Annex A-1 as Avnet Building, which has a Cut-off Date Balance of $14.8 million.
(2) If the 500 Jefferson loan is not repaid in full by the Anticipated Repayment Date, the interest rate will increase to 6.7500% per annum and all excess cash flow will be swept into a lender-controlled account.
(3) Upon the occurrence and continuation of (i) a monetary or material non-monetary event of default, (ii) a monetary or material non-monetary default by Kellogg Brown & Root, LLC (“KBR”) or a replacement tenant under its lease, (iii) a surrender, cancellation, or termination of the KBR or a replacement tenant lease before its then current expiration date, (iv) any bankruptcy action of KBR or a replacement tenant or its respective lease guarantor, or (v) the debt service coverage ratio falling below 1.30x after the occurrence and cure of clause (iii), on a monthly basis the borrower will be required to deposit (a) 1/12 of the estimated annual real estate taxes into a tax reserve account, (b) 1/12 of the estimated annual insurance premiums into an insurance reserve account, (c) $6,532 into a replacement reserve account, (d) $32,660 into a TI/LC reserve account, and (e) an amount equal to the next succeeding monthly utility costs as set forth in the annual budget.
(4) The increase from Historical NOI to Underwritten NOI is primarily a result of the 2013 rent bump for the largest tenant, KBR, and the net present value of the difference in KBR’s future rent steps through the lease term and its current rental rate.
|
|||||
Immediate Repairs:
|
$100,000
|
NAP
|
||||||
Financial Information
|
||||||||
Cut-off Date Balance / Sq. Ft.:
|
$80
|
|||||||
Balloon Balance / Sq. Ft.:
|
$80
|
|||||||
Cut-off Date LTV:
|
68.3%
|
|||||||
Balloon LTV:
|
68.3%
|
|||||||
Underwritten NOI DSCR:
|
2.39x
|
|||||||
Underwritten NCF DSCR:
|
2.28x
|
|||||||
Underwritten NOI Debt Yield:
|
11.9%
|
|||||||
Underwritten NCF Debt Yield:
|
11.3%
|
|||||||
TRANSACTION HIGHLIGHTS
|
■
|
Tenancy. As of the October 1, 2013 rent roll, the 500 Jefferson mortgaged property was 96.3% occupied with minimal tenant rollover consisting of 19,368 sq. ft. (5.0% of NRA) expected during the loan term. Further, in place rents at the 500 Jefferson mortgaged property, excluding storage and retail space, average $8.34 per square foot, well below the appraiser’s concluded market rent of $14.75 per square foot. Kellogg Brown & Root, LLC (“KBR”, NYSE: KBR) leases 355,993 sq. ft. (91.2% of NRA) at the mortgaged property and has been in occupancy since 1992. Since 2003, KBR has expanded its leased premises from 216,600 square feet to its current 355,993 square feet, and in 2010, KBR executed new twenty year leases at the 500 Jefferson mortgaged property and at its headquarters at 601 Jefferson Street, located across the street. KBR is a global engineering, construction and services company supporting energy, hydrocarbon, government services, mineral, infrastructure, power, industrial and commercial markets. As of February 18, 2014, KBR had a market capitalization of $4.7 billion.
|
■
|
Sponsorship. Corporate Property Associates 17-Global Incorporated is an affiliate of W.P. Carey Inc. (NYSE: WPC), which is a publicly traded real estate investment trust founded in 1973 that provides long-term sale-leaseback and build-to-suit leasing for companies worldwide. Per its 2012 annual report, W.P. Carey Inc. reported EBITDA of $170.6 million and net income of $62.1 million. As of the second quarter 2013, W.P. Carey Inc.’s holdings totaled 423 properties containing 39.5 million square feet with an occupancy of 98.9% and a weighted average remaining lease term of 8.8 years.
|
■
|
Location. The 500 Jefferson mortgaged property is located in Houston, Texas, within the Cullen Center complex, a Houston landmark which includes four office buildings, parking garages, a Crowne Plaza hotel and public spaces. KBR’s world headquarters is also located in the Cullen Center complex, and is connected to the 500 Jefferson mortgaged property via elevated walkways. Further, KBR’s largest private client, Chevron, is located one block north of the 500 Jefferson mortgaged property.
|
101-151 Mill Street
Gahanna, OH 43230
|
Collateral Asset Summary – Loan No. 15
Creekside Mixed Use Development
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$25,265,615
74.8%
1.42x
10.2%
|
Mortgage Loan Information
|
Property Information
|
|||||||
Loan Seller:
|
UBSRES
|
Single Asset / Portfolio:
|
Single Asset
|
|||||
Loan Purpose:
|
Refinance
|
Property Type:
|
Office / Retail / Multifamily Mixed Use
|
|||||
Sponsor:
|
Laura A. Chappelle; Abbott Road
|
Collateral(8):
|
Fee Simple / Leasehold
|
|||||
Commons, L.L.C.
|
Location:
|
Gahanna, OH
|
||||||
Borrower:
|
Creekside Equity Partners LLC
|
Year Built / Renovated:
|
2007 / 2012-2013
|
|||||
Original Balance:
|
$25,350,000
|
Total Sq. Ft.:
|
191,586
|
|||||
Cut-off Date Balance:
|
$25,265,615
|
Property Management:
|
Strathmore Development Company
|
|||||
% by Initial UPB:
|
2.0%
|
Michigan LLC
|
||||||
Interest Rate:
|
5.4475%
|
Underwritten NOI:
|
$2,571,353
|
|||||
Payment Date:
|
6th of each month
|
Underwritten NCF:
|
$2,437,169
|
|||||
First Payment Date:
|
January 6, 2014
|
Appraised Value(9):
|
$33,800,000
|
|||||
Maturity Date:
|
December 6, 2023
|
Appraisal Date(9):
|
April 18, 2014
|
|||||
Amortization:
|
360 months
|
|||||||
Additional Debt(1):
|
Future Mezzanine Debt Permitted
|
Historical NOI
|
||||||
Call Protection:
|
L(12), YM1(15), D or YM1(89), O(4)
|
Most Recent NOI:
|
$1,806,360 (T-12 October 31, 2013)
|
|||||
Lockbox / Cash Management(2):
|
Hard / Springing
|
2012 NOI:
|
NAV
|
|||||
Reserves
|
Historical Occupancy(10)
|
|||||||
Initial
|
Monthly
|
Most Recent Occupancy:
|
96.5% (October 31, 2013)
|
|||||
Taxes:
|
$216,898
|
$38,389
|
2012 Occupancy:
|
NAV
|
||||
Insurance(3):
|
$0
|
$10,880
|
(1) Future mezzanine debt that is coterminous with the term of the mortgage loan is permitted, subject to terms and conditions as specified in the loan documents, in an amount that results in (i) a combined LTV ratio of no greater than 84.0%, and (ii) a combined debt service coverage ratio of not less than 1.15x.
(2) Cash management will be triggered upon (i) an event of default, (ii) any bankruptcy action of borrower, guarantor, sponsor, or manager, or (iii) the debt service coverage ratio based on the trailing twelve month period falls below 1.20x.
(3) Commencing on January 6, 2014 and ending on May 6, 2014, the borrower shall deposit an amount equal to $10,880 into an insurance reserve account, thereafter the borrower shall deposit an amount equal to 1/12 of the estimated annual insurance premiums.
(4) The borrower is required to perform the interior renovation of all residential units that were vacant as of the closing date. The borrower caused the renovations to be completed and the lender disbursed the applicable portion of the Renovation Funds to the borrower in accordance with the loan documents.
(5) Lender shall disburse funds in the Achievement Funds account to the borrower provided the following conditions are met on or prior to December 5, 2015: (i) no event of default is occurring, (ii) the residential portion of the Creekside Mixed Use Development property has an occupancy rate of at least 95.0%, (iii) the debt service coverage ratio based upon the trailing twelve month period is greater than 1.30x for two consecutive quarters, and (iv) the debt yield based upon the trailing twelve month period is equal to or greater than 9.0% for two consecutive quarters. If the foregoing conditions are not satisfied prior to December 5, 2015, lender has the right to use such funds to prepay the loan, subject to the Yield Maintenance Premium.
(6) Rent abatement funds are attributable to Yoga Burn and Creekside Carwash.
(7) The borrower is required to pay all amounts due under the settlement agreement dated December 4, 2013 between Creekside Investment Partners, LLC, Strathmore Development Company Michigan LLC and Gahanna-Jefferson City School Board of Education. The borrower is obligated to make monthly deposits into the school district funds reserve account through August 6, 2017.
(8) Two of the three buildings at the property are subject to a ground lease from the City of Gahanna with an extended maturity approximately 83 years beyond the loan term. In addition, the property consists of three condominiums, and the borrower controls the board of all three.
(9) Appraised Value reflects the “As Stabilized” amount per the appraisal and the recent execution of leases satisfies the assumption in the appraisal for the “As Stabilized” value. Based on the “As Is” Appraised Value of $33,300,000, the Cut-off Date LTV and Balloon LTV ratios are 75.9% and 63.5%, respectively.
(10) Most Recent Occupancy is based on the total occupied square footage at the commercial and residential components of the property and reflects an increase from 47.4% in 2012 when the sponsor purchased the property out of receivership and has since invested approximately $19.2 million in capital improvements in the property.
|
|||||
Replacement:
|
$0
|
$3,206
|
||||||
TI/LC:
|
$0
|
$8,138
|
||||||
Renovation Funds(4) :
|
$405,081
|
$0
|
||||||
Achievement Funds(5):
|
$375,000
|
$0
|
||||||
Rent Abatement Funds(6):
|
$57,882
|
$0
|
||||||
School District Funds(7):
|
$16,667
|
$4,167
|
||||||
Ground Rent:
|
$86,520
|
1/12 of annual ground
|
||||||
rent
|
||||||||
Financial Information
|
||||||||
Cut-off Date Balance / Sq. Ft.:
|
$132
|
|||||||
Balloon Balance / Sq. Ft.:
|
$110
|
|||||||
Cut-off Date LTV(9):
|
74.8%
|
|||||||
Balloon LTV(9):
|
62.5%
|
|||||||
Underwritten NOI DSCR:
|
1.50x
|
|||||||
Underwritten NCF DSCR:
|
1.42x
|
|||||||
Underwritten NOI Debt Yield:
|
10.2%
|
|||||||
Underwritten NCF Debt Yield:
|
9.6%
|
|||||||
TRANSACTION HIGHLIGHTS
|
■
|
Property Condition and Amenities. The Creekside Mixed Use Development mortgaged property is a recently renovated award winning public-private mixed use project made up of 97,361 square feet of office and retail space and 84 residential apartment units, totaling 94,225 square feet, and features a lagoon, a limestone waterwall, two fountains, a performance stage and a public plaza. Residential units feature stainless steel appliances, wooden cabinets and granite countertops, and project amenities include a heated rooftop pool and sundeck, fitness room and garage parking.
|
■
|
Recent Leasing and Occupancy. The commercial component of the Creekside Mixed Use Development property is currently 96.9% leased and the residential units are 100.0% leased. Over 2013 and 2014 twelve commercial tenants signed leases totaling 41,363 square feet and 43.4% of underwritten commercial base rent.
|
■
|
Market. The Creekside Mixed Use Development property is located in Gahanna, Ohio, approximately 8.0 miles east of Columbus, Ohio. According to a market research report, as of the second quarter 2013 the Whitehall / Gahanna multifamily submarket contained 20,063 units with a vacancy rate of 5.8%, down from the second quarter 2012 vacancy rate of 7.4%, and an asking rent of $665 per unit, up from the second quarter 2012 asking rent of $655 per unit.
|
6974 Schantz Road
Allentown, PA 18106
|
Collateral Asset Summary – Loan No. 16
Amcor Rigid Plastics
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$24,039,352
65.0%
1.54x
10.4%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
CCRE
|
Single Asset / Portfolio:
|
Single Asset
|
|||
Loan Purpose:
|
Acquisition
|
Property Type:
|
Industrial Warehouse/Distribution
|
|||
Sponsor:
|
Gramercy Property Trust Inc.
|
Collateral:
|
Fee Simple
|
|||
Borrower:
|
GPT Allentown Owner LP
|
Location:
|
Allentown, PA
|
|||
Original Balance:
|
$24,100,000
|
Year Built / Renovated:
|
1998 / NAP
|
|||
Cut-off Date Balance:
|
$24,039,352
|
Total Sq. Ft.:
|
480,000
|
|||
% by Initial UPB:
|
1.9%
|
Property Management:
|
GPT Realty Management LP
|
|||
Interest Rate:
|
5.0715%
|
Underwritten NOI:
|
$2,489,911
|
|||
Payment Date:
|
6th of each month
|
Underwritten NCF:
|
$2,417,911
|
|||
First Payment Date:
|
February 6, 2014
|
Appraised Value:
|
$37,000,000
|
|||
Maturity Date:
|
January 6, 2024
|
Appraisal Date:
|
December 17, 2013
|
|||
Amortization:
|
360 months
|
|||||
Additional Debt:
|
None
|
Historical NOI(5)
|
||||
Call Protection:
|
L(26), D(90), O(4)
|
Most Recent NOI:
|
NAP
|
|||
Lockbox / Cash Management:
|
Hard / In Place
|
2012 NOI:
|
NAP
|
|||
2011 NOI:
|
NAP
|
|||||
Reserves
|
Historical Occupancy(5)
|
|||||
Initial
|
Monthly
|
Most Recent Occupancy:
|
100.0% (March 6, 2014)
|
|||
Taxes(1):
|
$0
|
Springing
|
2012 Occupancy:
|
NAP
|
||
Insurance(1):
|
$0
|
Springing
|
2011 Occupancy:
|
NAP
|
||
Replacement(2):
|
$0
|
Springing
|
(1) Borrower will be required to deposit 1/12 of annual required taxes and insurance upon (i) an event of default, (ii) if Amcor fails to pay taxes or insurance directly, (iii) if the borrower fails to provide lender with evidence that taxes and insurance were paid, (iv) if the Amcor lease is no longer in full force and effect, (v) if the Amcor tenant is no longer obligated to pay taxes or maintain insurance on the property, (vi) upon the bankruptcy of property manager, borrower or guarantor or (vii) during a Lease Sweep Period (as defined below).
(2) Borrower will be required to deposit monthly replacement reserves of $6,000 upon the earlier of (i) an event of default, (ii) if either (a) Amcor is no longer obligated to pay for and perform all repairs identified in the property condition report pursuant to its lease or (b) the guarantor no longer guarantees completion of all repairs identified in the property condition report, (iii) the Amcor lease is no longer in full force and effect, (iv) the bankruptcy of property manager, borrower or guarantor or (v) a Lease Sweep Period (as defined below). In addition, if the borrower has failed to perform necessary required repairs, the lender may trap all excess cash and deposit such excess cash into the replacement reserve until 115.0% of the amount recommended by the engineer has been deposited. Notwithstanding the foregoing, the borrower may deliver a letter of credit in an amount equal to the estimated costs of replacements in lieu of monthly replacement deposits or the excess cash trap described above.
(3) All excess cash will be swept into the TI/LC reserve if the unsecured debt rating of Amcor Limited (as defined below) falls below BBB as rated by S&P (“Amcor Ratings Cash Trap Trigger”). The TI/LC Reserve will be capped at $16,000 per month for each month that has passed from December 31, 2013 plus $16,000 per month for each month that has passed since the commencement of the Amcor Ratings Cash Trap Trigger until the earlier of (i) (a) the unsecured debt rating for Amcor Limited is increased to BBB or better as rated by S&P for six consecutive months or (b) the Amcor tenant lease is replaced by one more replacement leases acceptable to lender and (ii) January 6, 2024. Notwithstanding the foregoing, to avoid commencement of this cash trap, the borrower may post a letter of credit equal to $16,000 per month for each month that has passed commencing on December 31, 2013 until the Amcor Ratings Cash Trap Trigger is cured.
(4) All excess cash will be swept during a Lease Sweep Period which will occur upon the first payment date following (i) receipt by borrower or property manager of notice that Amcor is exercising its termination option, (ii) the date the (A) Amcor lease is surrendered, canceled or terminated prior to its then current expiration date or (B) borrower receives written notice from Amcor of its intent to surrender, cancel or terminate its lease, (iii) a material non-monetary default or any monetary default, (iv) the date Amcor goes dark or (v) the occurrence of an insolvency proceeding related to Amcor; provided, however, the borrower may terminate a cash trap related to the Lease Sweep Period by posting a letter of credit in an amount equal to $3,000,000.
(5) A new lease was executed at the closing of the Amcor Rigid Plastics loan. See “Tenancy” below.
|
|||
TI/LC(3):
|
$0
|
Springing
|
||||
Lease Sweep Reserve(4):
|
$0
|
Springing
|
||||
Financial Information
|
||||||
Cut-off Date Balance / Sq. Ft.:
|
$50
|
|||||
Balloon Balance / Sq. Ft.:
|
$41
|
|||||
Cut-off Date LTV:
|
65.0%
|
|||||
Balloon LTV:
|
53.7%
|
|||||
Underwritten NOI DSCR:
|
1.59x
|
|||||
Underwritten NCF DSCR:
|
1.54x
|
|||||
Underwritten NOI Debt Yield:
|
10.4%
|
|||||
Underwritten NCF Debt Yield:
|
10.1%
|
|||||
TRANSACTION HIGHLIGHTS
|
▪
|
Sponsorship. Gramercy Property Trust Inc. (“GPT”) (NYSE: GPT) is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing industrial and office properties net leased to high quality tenants in major markets throughout the United States. As of December 31, 2012, GPT owned directly or through joint ventures, a portfolio of 116 office and industrial buildings totaling 4.9 million sq. ft. In addition, GPT’s asset and property management business managed $1.7 billion of commercial properties leased primarily to regulated financial institutions across the United States.
|
▪
|
Tenancy. Amcor Rigid Plastics USA, Inc. (“Amcor”) is among the world’s largest manufacturers of plastic packaging for the beverage, food, spirits, personal and home care, and pharmaceutical industries with 60 facilities in 13 countries. Amcor Limited (ASX: AMC; rated NR/Baa2/BBB by Fitch/Moody’s/S&P) is a global leader in responsible packaging solutions, employing more than 35,000 people worldwide, operating in 43 countries across 300 sites. Amcor Limited supplies a broad range of plastic, fiber, metal, and glass packaging solutions and also provides packaging-related services. In conjunction with the sale-leaseback acquisition, Amcor executed a new 15-year triple net lease guaranteed by Amcor Limited. Amcor has invested approximately $140.0 million into the facility including facility upgrades and capital equipment since taking occupancy in 1998. The property is the east coast headquarters of Amcor and serves 26 production facilities nationwide.
|
▪
|
Location. The property is located in the I-81/I-78 Corridor industrial market that contains approximately 202.9 million sq. ft. of warehouse and distribution space across three submarkets supported by the regions’ distribution network, which connects Philadelphia, Pittsburgh and Northern New Jersey. As of 2Q 2013, the Lehigh Valley submarket within the I-81/I-78 Corridor had an overall vacancy of 6.9% and a weighted average net rent of $4.14. The appraiser concluded a market rent of $5.25 and the Amcor property lease has a current in-place rent of $5.20.
|
Lexington, KY
Antioch, TN
|
Collateral Asset Summary – Loan No. 17
LA Fitness Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$16,100,000
60.2%
1.59x
12.3%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
KeyBank
|
Single Asset / Portfolio:
|
Portfolio of three properties
|
|||
Loan Purpose:
|
Acquisition
|
Property Type:
|
Single Tenant Retail
|
|||
Sponsor:
|
STORE Capital Corporation
|
Collateral:
|
Fee Simple
|
|||
Borrower:
|
STORE SPE LA Fitness 2013-7, LLC
|
Lexington, KY
|
||||
Original Balance:
|
$16,100,000
|
Location:
|
Antioch, TN
|
|||
Cut-off Date Balance:
|
$16,100,000
|
Year Built / Renovated:
|
2002-2005 / NAP
|
|||
% by Initial UPB:
|
1.3%
|
Total Sq. Ft.:
|
137,552
|
|||
Interest Rate:
|
4.8300%
|
Property Management:
|
Self-managed
|
|||
Payment Date:
|
5th of each month
|
Underwritten NOI:
|
$1,972,918
|
|||
First Payment Date:
|
April 5, 2014
|
Underwritten NCF:
|
$1,769,968
|
|||
Maturity Date:
|
March 5, 2021
|
Appraised Value:
|
$26,750,000
|
|||
Amortization:
|
300 months
|
Appraisal Date:
|
December 2013
|
|||
Additional Debt:
|
None
|
|||||
Call Protection(1):
|
L(24), D(57), O(3)
|
Historical NOI
|
||||
Lockbox / Cash Management(2):
|
Soft Springing Hard / In Place
|
Most Recent NOI:
|
NAV
|
|||
2012 NOI:
|
NAV
|
|||||
Reserves
|
2011 NOI:
|
NAV
|
||||
Initial
|
Monthly
|
2010 NOI:
|
NAV
|
|||
Taxes:
|
$36,698
|
$13,950
|
||||
Insurance(3):
|
$0
|
Springing
|
Historical Occupancy
|
|||
TI/LC(4):
|
$0
|
Springing
|
Current Occupancy:
|
100.0% (February 12, 2014)
|
||
2012 Occupancy:
|
100.0% (December 31, 2012)
|
|||||
Financial Information
|
2011 Occupancy:
|
NAV
|
||||
Cut-off Date Balance / Sq. Ft.:
|
$117
|
2010 Occupancy:
|
NAV
|
|||
Balloon Balance / Sq. Ft.:
|
$98
|
(1) The loan documents permit the borrower to obtain a release of a property from the lien of the related mortgage after the lockout period, provided, among other things, (i) no event of default has occurred and is continuing, (ii) delivery of the defeasance collateral in an amount equal to the greater of 125.0% of the allocated loan amount or 80.0% of the proceeds from the sale of the applicable property, (iii) the DSCR after release based upon the trailing 12 month period is equal to the greater of (a) the DSCR prior to release and (b) 1.57x, and (iv) the LTV ratio after release is equal to the lesser of (a) the LTV ratio prior to release and (b) 60.2%.
(2) A cash sweep will be triggered (i) during the continuance of a monetary event of default (ii) the occurrence of a material non-monetary event of default (and the passage of 45 days following lender’s notice), (iii) the DSCR based on the trailing three month period is less than 1.30x, (iv) any bankruptcy action of borrower or manager, or (v) any bankruptcy action of or any monetary default or other material default by LA Fitness.
(3) Insurance escrows will be suspended provided, among other things, that: (i) no event of default exists, (ii) LA Fitness is required per the applicable lease to pay insurance expenses directly and provides evidence of payment (iii) the applicable LA Fitness lease is in full force/effect.
(4) In the event any tenant goes dark, vacates, or abandons the property, the borrower will be required to deposit $2.00 times the total rentable square footage covered by the vacated lease.
|
||||
Cut-off Date LTV:
|
60.2%
|
|||||
Balloon LTV:
|
50.2%
|
|||||
Underwritten NOI DSCR:
|
1.78x
|
|||||
Underwritten NCF DSCR:
|
1.59x
|
|||||
Underwritten NOI Debt Yield:
|
12.3%
|
|||||
Underwritten NCF Debt Yield:
|
11.0%
|
|||||
TRANSACTION HIGHLIGHTS
|
▪
|
Sponsorship. STORE Capital Corporation (“STORE”) is a private REIT formed in May 2011 to invest in NNN leased single tenant properties. As of 09/30/2013, STORE owned 545 properties throughout the United States with an aggregate investment of approximately $1.427 billion.
|
▪
|
New Cash Equity. STORE contributed approximately $10.3 million in cash equity to acquire the property for approximately $26.4 million.
|
▪
|
Tenancy. The LA Fitness Portfolio is 100.0% leased to Fitness Sports Clubs, LLC (“LA Fitness”), under three separate NNN leases expiring between December 2022 and December 2025, with each lease allowing for one 10-year renewal option. The leases are guaranteed by the parent company, Fitness International, LLC. LA Fitness is a privately-held fitness club chain based out of Irvine, California and as of January 2014 had 615 locations in North America. According to International Health, Racquet & Sportsclub Association, LA Fitness had year-end 2012 revenues of approximately $1.7 billion. The LA Fitness Portfolio properties were part of LA Fitness’ October 2012 acquisition of 36 Urban Active clubs in Ohio, Kentucky, Tennessee, Georgia, Nebraska, North Carolina and Pennsylvania. Urban Active was previously headquartered in Lexington, Kentucky.
|
▪
|
Amenities. All properties in the LA Fitness Portfolio feature strength and cardio equipment, racquetball courts, childcare, saunas, group fitness rooms and personal training. Additional amenities offered within the portfolio include juice bars, swimming pools, running tracks, a cinema-cardio room and a basketball court.
|
Chicago, IL
|
Collateral Asset Summary – Loan No. 18
Sherman Multifamily Portfolio
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$15,500,000
74.3%
1.23x
8.2%
|
Mortgage Loan Information
|
Property Information
|
||||||
Loan Seller:
|
UBSRES
|
Single Asset / Portfolio:
|
Portfolio of three properties
|
||||
Loan Purpose:
|
Refinance
|
Property Type:
|
Mid-Rise Multifamily
|
||||
Sponsor:
|
Lyrical-Antheus Realty Partners II, L.P.
|
Collateral:
|
Fee Simple
|
||||
Borrower:
|
5326-5336 S. Greenwood Holdings,
|
Location:
|
Chicago, IL
|
||||
LLC, 4850 S. Drexel Holdings, LLC,
|
Year Built / Renovated:
|
Various
|
|||||
5416 S. Woodlawn Holdings, LLC
|
Total Units:
|
120
|
|||||
Original Balance:
|
$15,500,000
|
Property Management:
|
Mac Property Management, L.L.C.
|
||||
Cut-off Date Balance:
|
$15,500,000
|
Underwritten NOI:
|
$1,269,395
|
||||
% by Initial UPB:
|
1.3%
|
Underwritten NCF:
|
$1,244,669
|
||||
Interest Rate:
|
5.1110%
|
Appraised Value:
|
$20,850,000
|
||||
Payment Date:
|
6th of each month
|
Appraisal Date:
|
October 21, 2013
|
||||
First Payment Date:
|
February 6, 2014
|
||||||
Maturity Date:
|
January 6, 2024
|
Historical NOI
|
|||||
Interest only for first 36 months; 360
|
Most Recent NOI:
|
$1,097,996 (T-12 October 31, 2013)
|
|||||
Amortization:
|
months thereafter
|
2012 NOI
|
$1,175,045 (December 31, 2012)
|
||||
Additional Debt:
|
None
|
2011 NOI:
|
$1,109,628 (December 31, 2011)
|
||||
Call Protection(1):
|
L(26), D(93), O(1)
|
2010 NOI:
|
$986,845 (December 31, 2010)
|
||||
Lockbox / Cash Management(2):
|
Springing Soft / Springing
|
||||||
Historical Occupancy
|
|||||||
Reserves
|
Most Recent Occupancy:
|
93.3% (November 20, 2013)
|
|||||
Initial
|
Monthly
|
2012 Occupancy(4):
|
96.9% (December 31, 2012)
|
||||
Taxes:
|
$53,380
|
$7,024
|
2011 Occupancy(4):
|
83.0% (December 31, 2011)
|
|||
Insurance:
|
$23,784
|
$2,244
|
2010 Occupancy(4):
|
93.7% (December 31, 2010)
|
|||
Replacement:
|
$0
|
$2,061
|
(1) On any date after the lockout period ends, the borrowers may obtain the release of an individual property provided, among other conditions as specified in the loan documents, (i) the borrowers defease an amount of principal equal to the release price for such property, (ii) the debt service coverage ratio for the remaining properties is equal to or greater than the greater of 1.24x or the debt service coverage ratio for all properties immediately prior to the release, and (iii) the LTV for the remaining properties does not exceed the lesser of 74.3%and the LTV for all properties immediately prior to the release.
(2) A soft lockbox with cash management will be triggered (i) during the continuance of an event of default and (ii) by any bankruptcy action of borrower, guarantor, or manager.
(3) Based on a 30-year amortization schedule. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.58x and 1.55x, respectively.
(4) 2012, 2011, and 2010 Occupancy figures reflect two out of the three properties. The omitted property underwent extensive renovations totaling $5.5 million ($130,423 per unit) which were completed in 2013.
|
||||
Required Repairs:
|
$5,625
|
NAP
|
|||||
Financial Information
|
|||||||
Cut-off Date Balance / Unit:
|
$129,167
|
||||||
Balloon Balance / Unit:
|
$114,596
|
||||||
Cut-off Date LTV:
|
74.3%
|
||||||
Balloon LTV:
|
66.0%
|
||||||
Underwritten NOI DSCR(3):
|
1.26x
|
||||||
Underwritten NCF DSCR(3):
|
1.23x
|
||||||
Underwritten NOI Debt Yield:
|
8.2%
|
||||||
Underwritten NCF Debt Yield:
|
8.0%
|
||||||
TRANSACTION HIGHLIGHTS
|
▪
|
Sponsorship. The sponsor of the borrower is Lyrical-Antheus Realty Partners II, L.P. (“LARP II”), a fund raised by Antheus Capital, LLC (“Antheus”). Antheus was formed in 2002 to acquire, redevelop and develop multifamily and commercial real estate and currently owns a portfolio consisting of 6,500 apartments and 200,000 square feet of commercial space in Chicago, Illinois and Kansas City, Missouri. The Sherman Multifamily Portfolio mortgaged properties are located in Hyde Park, Chicago. LARP II and affiliates own 4,481 multifamily units making up 31.0% of the Hyde Park multifamily market. According to financial statements dated December 31, 2012, LARP II reported total assets of $301.4 million and liquidity of $3.0 million.
|
▪
|
Market. According to a market research report, the Sherman Multifamily Portfolio mortgaged properties are located in the South Shore submarket. As of Q3 2013, the overall vacancy rate was 4.5%, which represented a decrease of 10 basis points over the previous quarter’s rate of 4.6%, and a decrease of 20 basis points from the year-over-year comparison of 4.7%. The average asking rate for the submarket in Q3 2013 was $1,003 per unit, which represented a $2 per unit increase over the previous quarter’s rate of $1,001 per unit and a $14 per unit or 1.4% year-over-year increase.
|
▪
|
Location. The Sherman Multifamily Portfolio mortgaged properties are located within 1.0 mile of each other in the Hyde Park area of Chicago, Illinois, home to the University of Chicago and approximately 6.0 miles south of the central business district of Chicago. The University of Chicago is composed of more than 2,200 full-time and 500 part-time academic staff, 7,891 non-faculty staff, 5,369 undergraduate students and about 10,000 graduate students.
|
5300 West Sam Houston Parkway North
Houston, TX 77041
|
Collateral Asset Summary – Loan No. 19
Beltway 8 Corporate Centre I
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$15,300,000
70.7%
1.44x
10.4%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
GACC
|
Single Asset / Portfolio:
|
Single Asset
|
|||
Loan Purpose:
|
Acquisition
|
Property Type:
|
Suburban Office
|
|||
Sponsor(1):
|
Gulf United Investments Corporation
|
Collateral:
|
Fee Simple
|
|||
Borrower:
|
5300 BW8, Ltd.
|
Location:
|
Houston, TX
|
|||
Original Balance:
|
$15,300,000
|
Year Built / Renovated:
|
2002 / NAP
|
|||
Cut-off Date Balance:
|
$15,300,000
|
Total Sq. Ft.:
|
100,719
|
|||
% by Initial UPB:
|
1.2%
|
Property Management:
|
Tanglewood Property Management
|
|||
Interest Rate:
|
5.0000%
|
Company L.L.C.
|
||||
Payment Date:
|
6th of each month
|
Underwritten NOI:
|
$1,596,843
|
|||
First Payment Date:
|
March 6, 2014
|
Underwritten NCF:
|
$1,414,990
|
|||
Maturity Date:
|
February 6, 2024
|
Appraised Value:
|
$21,650,000
|
|||
Amortization:
|
Interest only for the first 36 months;
|
Appraisal Date:
|
January 1, 2014
|
|||
360 months thereafter
|
||||||
Additional Debt:
|
None
|
Historical NOI(7)
|
||||
Call Protection:
|
L(25), D(91), O(4)
|
Most Recent NOI:
|
$1,826,606 (T-12 September 30, 2013)
|
|||
Lockbox / Cash Management(2):
|
Hard / Springing
|
2012 NOI:
|
NAV
|
|||
2011 NOI:
|
NAV
|
|||||
Reserves
|
2010 NOI:
|
NAV
|
||||
Initial
|
Monthly
|
|||||
Taxes:
|
$38,218
|
$28,102
|
Historical Occupancy(7)
|
|||
Insurance:
|
$12,014
|
$6,007
|
Current Occupancy(8):
|
100.0% (January 1, 2014)
|
||
Replacement:
|
$0
|
$2,854
|
2012 Occupancy:
|
NAV
|
||
TI/LC(3):
|
$0
|
$10,492
|
2011 Occupancy:
|
NAV
|
||
Cameron Holdback(4):
|
$516,210
|
$0
|
2010 Occupancy:
|
NAV
|
||
Lease Sweep(5):
|
$0
|
Springing
|
(1) Gulf United Investments Corporation is an entity under common control with the borrower, and does not have a direct or indirect interest in the borrower.
(2) Cash management will be triggered (i) during the occurrence of an event of default, (ii) if the DSCR is less than 1.20x on the last day of any calendar quarter, until the DSCR is at least 1.20x for two consecutive calendar quarters or (iii) during a Lease Sweep Period. A “Lease Sweep Period” will commence upon the first to occur of (i) Cameron International Corporation, SAVA Senior Care or any replacement tenant (“each a Lease Sweep Tenant”) (a) terminates its lease, (b) gives notice to terminate its lease, (c) goes dark, (d) defaults under its lease or (e) is party to an insolvency proceeding, (ii) 12 months prior to the expiration of a Lease Sweep Tenant lease, or (iii) the date a Lease Sweep Tenant is required to renew its lease and such lease is not renewed, provided a Lease Sweep Period will terminate if the borrower delivers cash or a letter of credit in the amount of $20.00 PSF based on the Lease Sweep Tenant space.
(3) The TI/LC reserve is subject to a cap of $500,000.
(4) The Cameron Holdback represents the remaining portion of the Cameron International Corporation TI allowance and will be released to the borrower upon satisfaction of certain conditions as set forth in the Cameron lease.
(5) All excess cash will be deposited into the lease sweep reserve during a Lease Sweep Period.
(6) Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 2.06x and 1.82x, respectively.
(7) As this is an acquisition loan, Historical NOI and Occupancy were not provided.
(8) Cameron International Corporation began its lease term in September 2013 and is anticipated to take occupancy in March 2014.
|
|||
Financial Information
|
||||||
Cut-off Date Balance / Sq. Ft.:
|
$152
|
|||||
Balloon Balance / Sq. Ft.:
|
$134
|
|||||
Cut-off Date LTV:
|
70.7%
|
|||||
Balloon LTV:
|
62.5%
|
|||||
Underwritten NOI DSCR(6):
|
1.62x
|
|||||
Underwritten NCF DSCR(6):
|
1.44x
|
|||||
Underwritten NOI Debt Yield:
|
10.4%
|
|||||
Underwritten NCF Debt Yield:
|
9.2%
|
|||||
TRANSACTION HIGHLIGHTS
|
§
|
Tenancy. Beltway 8 Corporate Centre I is a 100,719 sq. ft. Class A suburban office building located approximately 13 miles northwest of the Houston central business district. The property is currently 100.0% leased to two tenants, Cameron International Corporation (“Cameron”) and SAVA Senior Care (“SAVA”). Cameron (51.3% of NRA; February 2021 lease expiration)(NYSE: CAM), rated Baa1/BBB+ by Moody’s/S&P, is headquartered in Houston, Texas and is a manufacturer, provider, and servicer of oil and gas equipment worldwide. Cameron is estimated to take occupancy on March 1, 2014 and began paying full unabated rent in January 2014. SAVA (48.7% of NRA; April 2018 lease expiration) is one of the largest providers of short-term and long-term health care services in the United States.
|
§
|
Location. The property is located in the Northwest submarket of Houston, Texas. The 2013 population within a 3-mile radius of the property was 65,693 with estimated average household income of $80,977. The 2013 Houston unemployment rate was 6.2%, down from the 2010 rate of 8.5%. The property is located within the Beltway 8 Commerce Centre, a 120-acre master-planned business park that consists of over 600,000 square feet of existing office developments. The business park was planned with strict protective covenants and development guidelines. The appraiser concluded market rent for the property of $19.00 PSF is equal to Cameron’s current rental rate and is higher than SAVA’s current rental rate of $15.66 PSF.
|
8700 South Price Road
Tempe, AZ 85284
|
Collateral Asset Summary – Loan No. 20
Avnet Building
|
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
|
$14,800,000
65.5%
1.52x
10.5%
|
Mortgage Loan Information
|
Property Information
|
|||||
Loan Seller:
|
UBSRES
|
Single Asset / Portfolio:
|
Single Asset
|
|||
Loan Purpose:
|
Acquisition
|
Property Type:
|
Suburban Office
|
|||
Sponsor(1):
|
Corporate Property Associates 17-
|
Collateral:
|
Leasehold
|
|||
Global Incorporated
|
Location:
|
Tempe, AZ
|
||||
Borrower:
|
AVASU (AZ) LLC
|
Year Built / Renovated:
|
2000 / NAP
|
|||
Original Balance:
|
$14,800,000
|
Total Sq. Ft.:
|
132,070
|
|||
Cut-off Date Balance:
|
$14,800,000
|
Property Management:
|
Self-managed
|
|||
% by Initial UPB:
|
1.2%
|
Underwritten NOI:
|
$1,556,753
|
|||
Interest Rate:
|
5.1345%
|
Underwritten NCF:
|
$1,471,419
|
|||
Payment Date:
|
6th of each month
|
Appraised Value:
|
$22,600,000
|
|||
First Payment Date:
|
February 6, 2014
|
Appraisal Date:
|
December 13, 2013
|
|||
Maturity Date:
|
January 6, 2024
|
|||||
Amortization:
|
Interest only for the first 36 months; 360
|
Historical NOI
|
||||
months thereafter
|
2012 NOI:
|
$1,528,661 (December 31, 2012)
|
||||
Additional Debt:
|
None
|
2011 NOI:
|
$1,537,424 (December 31, 2011)
|
|||
Call Protection:
|
L(26), D(87), O(7)
|
2010 NOI:
|
$872,786 (December 31, 2010)
|
|||
Lockbox / Cash Management(2):
|
Springing Hard / Springing
|
|||||
Historical Occupancy
|
||||||
Reserves
|
Most Recent Occupancy:
|
100.0% (March 6, 2014)
|
||||
Initial
|
Monthly
|
2012 Occupancy:
|
100.0% (December 31, 2012)
|
|||
Taxes(3):
|
$0
|
Springing
|
2011 Occupancy:
|
100.0% (December 31, 2011)
|
||
Insurance(3):
|
$0
|
Springing
|
2010 Occupancy:
|
100.0% (December 31, 2010)
|
||
Replacement(3):
|
$0
|
Springing
|
(1) The sponsor is also the sponsor under the mortgage loan identified on Annex A-1 as 500 Jefferson, which has a Cut-off Date Balance of $31.2 million.
(2) A hard lockbox with cash management will be triggered upon (i) an event of default, (ii) an event which results in the borrower no longer being controlled by the guarantor or an affiliate of the guarantor, (iii) a Lease Sweep Event (defined in the loan documents), or (iv) a Springing Reserve Event, which will occur upon (i) a monetary or material non-monetary event of default, (ii) a monetary or material non-monetary event of default by Avnet, Inc. or a replacement tenant under its lease, (iii) a surrender, cancellation, or termination of the Avnet, Inc. or replacement tenant lease before its then current expiration date, (iv) any bankruptcy action of Avnet, Inc. or a replacement tenant, or (v) the debt service coverage ratio falling below 1.30x.
(3) Upon the occurrence and continuation of Springing Reserve Event, on a monthly basis the borrower will be required to deposit (a) 1/12 of the estimated annual real estate taxes into a tax reserve account, (b) 1/12 of the estimated annual insurance premiums into an insurance reserve account, (c) $1,651 into a replacement reserve account, (d) $5,460 into a TI/LC reserve account, and (e) an amount equal to the next succeeding monthly ground rent payment into a ground rent reserve account.
(4) The borrower deposited $1,862,187 to cover rent abatements and free rent attributable to Avnet, Inc.
(5) Based on amortizing debt service payments. Based on the current interest only payments Underwritten NOI DSCR and Underwritten NCF DSCR are 2.02x and 1.91x, respectively.
|
|||
TI/LC(3):
|
$2,641,400
|
Springing
|
||||
Ground Rent Funds(3):
|
$0
|
Springing
|
||||
Free Rent Funds(4):
|
$1,862,187
|
$0
|
||||
Financial Information
|
||||||
Cut-off Date Balance / Sq. Ft.:
|
$112
|
|||||
Balloon Balance / Sq. Ft.:
|
$99
|
|||||
Cut-off Date LTV:
|
65.5%
|
|||||
Balloon LTV:
|
58.1%
|
|||||
Underwritten NOI DSCR(5):
|
1.61x
|
|||||
Underwritten NCF DSCR(5):
|
1.52x
|
|||||
Underwritten NOI Debt Yield:
|
10.5%
|
|||||
Underwritten NCF Debt Yield:
|
9.9%
|
|||||
TRANSACTION HIGHLIGHTS
|
§
|
Tenancy. The Avnet Building property is 100.0% occupied by Avnet, Inc. (NYSE: AVT, rated BBB-/Baa3/BBB- by Fitch/Moody’s/S&P). In addition to its core distribution services of electronic components, computer products and embedded technology, Avnet, Inc. provides service capabilities such as supply-chain and design-chain services, logistics solutions, product assembly, device programming, computer system configuration and integration, and technical seminars. The Avnet Building property was build-to-suit for Avnet, Inc., who has been in occupancy for over fourteen years. Avnet, Inc. extended its lease expiration out to 128 months in 2013. For the fiscal year ending June 29, 2013, Avnet, Inc. reported net income of $450.1 million on revenue of $25.5 billion. Avnet, Inc. held $10.5 billion in total assets, including approximately $1.0 billion in cash and equivalents, and its shareholders’ equity was $4.3 billion.
|
§
|
Sponsorship. Corporate Property Associates 17-Global Incorporated is an affiliate of W.P. Carey Inc. (NYSE: WPC), which is a publicly traded real estate investment trust founded in 1973 that provides long-term sale-leaseback and build-to-suit leasing for companies worldwide. Per its 2012 annual report, W.P. Carey Inc. reported EBITDA of $170.6 million and net income of $62.1 million. As of the second quarter 2013, W.P. Carey Inc.’s holdings totaled 423 properties containing 39.5 million square feet with an occupancy of 98.9% and a weighted average remaining lease term of 8.8 years.
|
§
|
Location. The Avnet Building is located in the Arizona State University Research Park, which is a 320-acre mixed-use master-planned business park situated along the west side of the Loop 101 freeway in Tempe, Arizona, approximately 17.0 miles southeast of the Phoenix, Arizona central business district. The park features more than 20 buildings, totaling approximately two million square feet. The Arizona State University Research Park is home to approximately 50 companies employing over 4,000 people, including US Foods, Go Daddy, General Motors, Intel, eBay/PayPal, Orbital Sciences, Bank of America, Wells Fargo, Chandler Regional Medical Center, Verizon Wireless, Iridium, Isagenix, Honeywell, Global Crossing, AT&T Corporation, and Alaska Airlines.
|
IMPORTANT NOTICE RELATING TO AUTOMATICALLY GENERATED EMAIL DISCLAIMERS
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