FWP 1 n307_ts-x1.htm FREE WRITING PROSPECTUS Unassociated Document
 
 
   
FREE WRITING PROSPECTUS
   
FILED PURSUANT TO RULE 433
   
REGISTRATION FILE NO.: 333-193376-05
     
 
     
April 23, 2014
  
   
FREE WRITING PROSPECTUS
 
STRUCTURAL AND COLLATERAL TERM SHEET
 
$1,192,446,107
 (Approximate Total Mortgage Pool Balance)
 
$1,034,446,000
 (Approximate Offered Certificates)
 
  
    COMM 2014-CCRE17  
 
 
Deutsche Mortgage & Asset Receiving Corporation
Depositor
 
Cantor Commercial Real Estate Lending, L.P.
German American Capital Corporation
Jefferies LoanCore LLC
General Electric Capital Corporation
Sponsors and Mortgage Loan Sellers
 
  
 
Deutsche Bank Securities
Jefferies
Cantor Fitzgerald & Co.
  
 
Joint Bookrunning Managers and Co-Lead Managers
  
     
 
CastleOak Securities, L.P.
  
KeyBanc Capital Markets
  
 
Co-Managers
  
     
 
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.
  
     
 
 
 
 
 
 
 
 
 
 
 
 
COMM 2014-CCRE17 Mortgage Trust  
 
Capitalized terms used but not defined herein have the meanings assigned to them in the other Free Writing Prospectus expected to be dated April 23, 2014, relating to the offered certificates (hereinafter referred to as the “Free Writing Prospectus”).
 
KEY FEATURES OF SECURITIZATION
 
Offering Terms:
Joint Bookrunners & Co-Lead Managers:
Deutsche Bank Securities Inc.
Cantor Fitzgerald & Co.
Jefferies LLC
   
Co-Managers:
CastleOak Securities, L.P. and KeyBanc Capital Markets Inc.
   
Mortgage Loan Sellers:
Cantor Commercial Real Estate Lending, L.P. (“CCRE”) (40.3%), German American Capital Corporation* (“GACC”) (34.4%), Jefferies LoanCore LLC (“JLC”) (15.6%) and General Electric Capital Corporation (“GECC”) (9.6%)
*An indirect wholly owned subsidiary of Deutsche Bank AG.
   
Master Servicer:
Midland Loan Services, a division of PNC Bank, National Association
   
Operating Advisor:
Park Bridge Lender Services LLC
   
Special Servicer:
Midland Loan Services, a division of PNC Bank, National Association
   
Trustee:
U.S. Bank National Association
   
Certificate Administrator:
Deutsche Bank Trust Company Americas
   
Rating Agencies:
Fitch Ratings, Inc., Kroll Bond Rating Agency, Inc. and Moody’s Investors Service, Inc.
   
Determination Date:
The 6th day of each month, or if such 6th day is not a business day, the following business day, commencing in June 2014.
   
Distribution Date:
4th business day following the Determination Date in each month, commencing in June 2014.
   
Cut-off Date:
Payment Date in May 2014 (or related origination date, if later). Unless otherwise noted, all Mortgage Loan statistics are based on balances as of the Cut-off Date.
   
Settlement Date:
On or about May 13, 2014
   
Settlement Terms:
DTC, Euroclear and Clearstream, same day funds, with accrued interest.
   
ERISA Eligible:
All of the Offered Certificates are expected to be ERISA eligible.
   
SMMEA Eligible:
None of the Offered Certificates will be SMMEA eligible.
   
Day Count:
30/360
   
Tax Treatment:
REMIC
   
Rated Final Distribution Date:
May 2047
   
Minimum Denominations:
$10,000 (or $100,000 with respect to Class X-A) and in each case in multiples of $1 thereafter.
   
Clean-up Call:
1%
 
Distribution of Collateral by Property Type
 
 
(PIE CHART)
 
 
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.
 
 
3
 
 
COMM 2014-CCRE17 Mortgage Trust  
 
TRANSACTION HIGHLIGHTS
 
Mortgage Loan Sellers
Number of
Mortgage
Loans
Number of
Mortgaged
Properties
Aggregate
Cut-off Date
Balance
% of Outstanding
Pool Balance
Cantor Commercial Real Estate Lending, L.P.
12
29
$434,477,792
36.4%
German American Capital Corporation
15
18
$317,333,611
26.6%
Jefferies LoanCore LLC
19
26
$186,584,397
15.6%
Cantor Commercial Real Estate Lending, L.P./  
German American Capital Corporation
1
1
$140,000,000
11.7%
General Electric Capital Corporation
12
12
$114,050,307
9.6%
Total:
59
86
$1,192,446,107
100.0%
 
Pooled Collateral Facts:
Initial Outstanding Pool Balance:
$1,192,446,107
Number of Mortgage Loans:
59
Number of Mortgaged Properties:
86
Average Mortgage Loan Cut-off Date Balance:
$20,210,951
Average Mortgaged Property Cut-off Date Balance:
$13,865,652
Weighted Average Mortgage Loan Original Term to Maturity (months):
112
Weighted Average Mortgage Loan Remaining Term to Maturity (months):
111
Weighted Average Mortgage Loan Seasoning (months):
1
% of Mortgaged Properties Leased to a Single Tenant:
3.7%
 
Credit Statistics(1):
  
Weighted Average Mortgage Loan U/W NCF DSCR:
1.66x
Weighted Average Mortgage Loan Cut-off Date LTV(2):
65.6%
Weighted Average Mortgage Loan Maturity Date LTV(2):
58.5%
Weighted Average U/W NOI Debt Yield:
10.5%
 
Amortization Overview:
  
% Mortgage Loans with Amortization for Full Term:
35.2%
% Mortgage Loans with Partial Interest Only:
37.1%
% Mortgage Loans with Full Interest Only(3):
27.7%
Weighted Average Original Amortization Term (months)(4):
348
Weighted Average Remaining Amortization Term (months)(4):
347
   
Loan Structural Features:
  
% Mortgage Loans with Upfront or Ongoing Tax Reserves:
84.7%
% Mortgage Loans with Upfront or Ongoing Replacement Reserves(5):
85.5%
% Mortgage Loans with Upfront or Ongoing Insurance Reserves:
58.9%
% Mortgage Loans with Upfront or Ongoing TI/LC Reserves(6):
71.7%
% Mortgage Loans with Upfront Engineering Reserves:
47.6%
% Mortgage Loans with Upfront or Ongoing Other Reserves:
43.7%
% Mortgage Loans with In Place Hard Lockboxes:
67.2%
% Mortgage Loans with Cash Traps Triggered at Levels ≥ 1.05x:
77.0%
% Mortgage Loans with Defeasance Only After a Lockout Period and Prior to an Open Period:
99.4%
% Mortgage Loans with Prepayment Only After a Lockout Period and Prior to an Open Period with a Yield Maintenance Charge:
0.6%
 
(1)  
With respect to the Bronx Terminal Market Loan and the 25 Broadway Loan, LTV, DSCR and Debt Yield calculations include the related pari passu companion loans.
(2)  
With respect to the 330 South Tryon Office Loan, the Cut-off Date LTV and Maturity Date LTV have been calculated based on the “As Complete” appraised value of $16.15 million. The “As-is” Cut-off Date LTV and “As-is” Maturity Date LTV are 79.5% and 69.0%, respectively. With respect to the Kunkel Portfolio Loan, the Cut-off Date LTV and Maturity Date LTV have been calculated based on the “As Stabilized” appraised value of $17.55 million. The “As-is” Cut-off Date LTV and “As-is” Maturity Date LTV are 60.7% and 52.0%, respectively.
(3)  
Interest only through the maturity date.
(4)  
Excludes loans which are interest only for the full loan term.
(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.

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.
 
 
4
 
 
COMM 2014-CCRE17 Mortgage Trust  
 
SUMMARY OF THE CERTIFICATES
 
OFFERED CERTIFICATES
 
Class(1)
Ratings
(Moody’s/Fitch/KBRA)
Initial Certificate 
Balance or
Notional
Amount(2)
Initial
Subordination
Levels
Weighted 
Average Life (years)(3)
Principal
Window
(months)(3)
Certificate
Principal to
Value Ratio(4)
Underwritten
NOI Debt Yield(5)
Class A-1
Aaa(sf) / AAAsf / AAA(sf)
$49,750,000
30.000%(6)
2.67
1 - 55
45.9%
15.0%
Class A-2
Aaa(sf) / AAAsf / AAA(sf)
$149,000,000
30.000%(6)
4.86
55 - 60
45.9%
15.0%
Class A-3
Aaa(sf) / AAAsf / AAA(sf)
$12,376,000
30.000%(6)
6.91
83 - 83
45.9%
15.0%
Class A-SB
Aaa(sf) / AAAsf / AAA(sf)
$69,850,000
30.000%(6)
7.40
60 - 115
45.9%
15.0%
Class A-4
Aaa(sf) / AAAsf / AAA(sf)
$220,000,000
30.000%(6)
9.76
112 - 119
45.9%
15.0%
Class A-5
Aaa(sf) / AAAsf / AAA(sf)
$333,736,000
30.000%(6)
9.91
119 - 119
45.9%
15.0%
Class X-A(7)
Aaa(sf) / AAAsf / AAA(sf)
$900,296,000(8)
N/A
N/A
N/A
N/A
N/A
Class A-M(9)
Aaa(sf) / AAAsf / AAA(sf)
$65,584,000(10)
24.500%
9.98
119 - 120
49.5%
13.9%
Class B(9)
Aa3(sf) / AA-sf / AA-(sf)
$81,980,000(10)
17.625%
9.99
120 - 120
54.0%
12.7%
Class PEZ(9)
A1(sf) / A-sf / A-(sf)
$199,734,000(10)
13.250%(6)
9.99
119 - 120
56.9%
12.1%
Class C(9)
A3(sf) / A-sf / A-(sf)
$52,170,000(10)
13.250%(6)
9.99
120 - 120
56.9%
12.1%
 
NON-OFFERED CERTIFICATES
 
Class(1)
Ratings
(Moody’s/Fitch/KBRA)
Initial Certificate
Balance or
Notional
Amount(2)
Initial
Subordination
Levels
Weighted 
Average
Life
(years)(3)
Principal 
Window
(months)(3)
Certificate Principal to
Value Ratio(4)
Underwritten
NOI Debt Yield(5)
Class X-B(7)
Baa1(sf) / BBB-sf / AAA(sf)
$184,829,000(8)
N/A
N/A
N/A
N/A
N/A
Class X-C(7)
NR / BB-sf / BB(sf)
$44,717,000(8)
N/A
N/A
N/A
N/A
N/A
Class X-D(7)
NR / NR / NR
$62,604,107(8)
N/A
N/A
N/A
N/A
N/A
Class D
Baa3(sf) / BBB-sf / BBB-(sf)
        $50,679,000      
9.000%
9.99
120 - 120
59.7%
11.5%
Class E
Ba2(sf) / BBB-sf / BBB-(sf)
        $14,906,000      
7.750%
9.99
120 - 120
60.5%
11.4%
Class F
NR / BB-sf / BB(sf)
        $29,811,000      
5.250%
9.99
120 - 120
62.2%
11.1%
Class G
NR / NR / B(sf)
        $20,868,000      
3.500%
9.99
120 - 120
63.3%
10.9%
Class H
NR / NR / NR
        $41,736,107      
0.000%
9.99
120 - 120
65.6%
10.5%
(1)  
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 B, Class C, Class D, Class E, Class F, Class G and Class H 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.
(2)  
Approximate; subject to a permitted variance of plus or minus 5%. In addition, the notional amount of the Class X-A, Class X-B, Class X-C and Class X-D Certificates may vary depending upon the final pricing of the classes of certificates and/or trust components whose Certificate Balances comprise such notional amounts, and, if as a result of such pricing the pass-through rate of the Class X-A, Class X-B, Class X-C or Class X-D Certificates, as applicable, would be equal to zero, such class of certificates will not be issued on the closing date of this securitization.
(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.
(4)  
“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.
(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.
(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 Certificates 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 $52,170,000.
(7)  
The pass-through rate applicable to the Class X-A, Class X-B, Class X-C and Class X-D 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, (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
 
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.
 
 
5
 
 
COMM 2014-CCRE17 Mortgage Trust  
 
SUMMARY OF THE CERTIFICATES
 
 
Class C Certificates for Class PEZ Certificates), as further described in the Free Writing Prospectus, (C) with respect to the Class X-C Certificates, the weighted average of the pass-through rates of the Class E and Class F Certificates (based on their Certificate Balances), as further described in the Free Writing Prospectus and (D) with respect to the Class X-D Certificates, the weighted average of the pass-through rates of the Class G and Class H Certificates (based on their Certificate Balances), as further described in the Free Writing Prospectus.
(8)  
The Class X-A, Class X-B, Class X-C and Class X-D Certificates (the “Class X Certificates”) will not have Certificate Balances.  None of the Class X-A, Class X-B, Class X-C and Class X-D 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). The interest accrual amounts on the Class X-C Certificates will be calculated by reference to a notional amount equal to the sum of the total Certificate balance of each of the Class E and Class F Certificates. The interest accrual amounts on the Class X-D Certificates will be calculated by reference to a notional amount equal to the sum of the total Certificate Balances of each of the Class G and Class H Certificates.
(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.
(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 $65,584,000, $81,980,000 and $52,170,000, 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; such initial Certificate Balance is not included in the aggregate certificate principal balance of the offered certificates set forth on the cover page of this Term Sheet. 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
JLC
Hilton Garden Inn Sarasota
Hospitality
$9,143,665
  
55
69.3%
1.86x
13.5%
A-1/A-2
JLC
Hampton Inn Sarasota
Hospitality
$8,249,176
  
55
69.9%
1.79x
13.0%
A-2
JLC
Buschwood I & II
Office
$13,500,000
  
57
71.4%
1.56x
11.2%
A-2
GECC
Lamplighter MHC
Manufactured Housing Community
$4,407,345
  
57
74.7%
1.55x
9.9%
A-2
GECC
The Seekonk Crossing
Retail
$23,000,000
  
58
68.7%
1.47x
8.7%
A-2
GACC
ARC Marriott Hotel Portfolio
Hospitality
$45,500,000
  
59
59.5%
2.69x
13.4%
A-2
GACC
Marketplace at Lake Boone
Various
$11,640,000
  
59
74.6%
1.73x
11.7%
A-2
CCRE
DC Mixed Use Portfolio V
Various
$35,000,000
  
60
65.5%
1.31x
9.2%
A-3
GECC
North Medical Center
Office
$14,032,388
  
83
72.3%
1.37x
9.6%
(1)
This table identifies loans with balloon payments due during the principal paydown window assuming 0% CPR and no losses or extensions for the indicated Certificates. See “Yield and Maturity Considerations - Yield Considerations” in the Free Writing Prospectus.
 
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.
 
 
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COMM 2014-CCRE17 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, Class G and Class H 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, Class C trust component and the Certificate Balances of the Class D through Class H 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-4, Class A-5 and Class A-SB 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, Class G and Class H 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, Class X-B, Class X-C and Class X-D 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); (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); (iii) the notional amount of the Class X-C Certificates will be reduced by the principal distributions and realized losses allocated to the Class E and Class F Certificates; and (iv) the notional amount of the Class X-D Certificates will be reduced by the principal distributions and realized losses allocated to the Class G and Class H Certificates.
 
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.
 
 
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COMM 2014-CCRE17 Mortgage Trust  
 
STRUCTURE OVERVIEW
 
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, Class X-B, Class X-C and Class X-D 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 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, Class G and Class H 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, Class G and Class H 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, Class X-B, Class X-C and Class X-D 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, (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, (C) with respect to the Class X-C Certificates, the weighted average of the pass-through rates of the Class E and Class F Certificates (based on their Certificate Balances), as further described in the Free Writing Prospectus and (D) with respect to the Class X-D Certificates, the weighted average of the pass-through rates of the Class G and Class H Certificates (based on their Certificate Balances), as further described in the Free Writing Prospectus.
 
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.
 
 
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COMM 2014-CCRE17 Mortgage Trust  
 
STRUCTURE OVERVIEW
 
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 H 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 any 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, Class D and Class E 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, Class D and Class E 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)  X
The percentage of the principal
distribution amount to such
Class or trust component as
described in (a) above
 
 (Mortgage Rate - Discount Rate)
   
 
 
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
  
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.
 
 
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COMM 2014-CCRE17 Mortgage Trust  
 
STRUCTURE OVERVIEW
 
 
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.
   
Loan Combinations:
The Mortgaged Property identified on Annex A-1 to the Free Writing Prospectus as Bronx Terminal Market secures a Mortgage Loan with an outstanding principal balance as of the
Cut-off Date of $140,000,000, collectively evidenced by Note A-1 and Note A-2 (the “Bronx Terminal Market Loan”), representing approximately 11.7% of the Initial Outstanding Pool Balance, and also secures on a pari passu basis four companion loans that have an aggregate outstanding principal balance as of the Cut-off Date of $240,000,000, evidenced by Note A-3, Note A-4, Note A-5 and Note A-6, of which Note A-3 and Note A-5 are held by GACC and Note A-4 and Note A-6 are held by CCRE and may be sold or further divided at any time (subject to compliance with the terms of the related intercreditor agreement). The Bronx Terminal Market Loan and related companion loans are pari passu in right of payment and are collectively referred to herein as the “Bronx Terminal Market Loan Combination”.
 
The Bronx Terminal Market 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 Bronx Terminal Market Loan Combination, see “Description of the Mortgage Pool—Loan Combinations—The Bronx Terminal Market Loan Combination” in the Free Writing Prospectus.
 
The Mortgaged Property identified on Annex A-1 to the Free Writing Prospectus as 25 Broadway secures a Mortgage Loan with an outstanding principal balance as of the Cut-off Date of $130,000,000, evidenced by Note A-1 (the “25 Broadway Loan”), representing approximately 10.9% 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 $120,000,000, evidenced by Note A-2, which is currently included in the COMM 2014-CCRE16 Mortgage Trust securitization. The 25 Broadway Loan and related companion loan are pari passu in right of payment and are collectively referred to herein as the “25 Broadway Loan Combination.”
 
The 25 Broadway 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 25 Broadway Loan Combination, see “Description of the Mortgage Pool—Loan Combinations—The 25 Broadway 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 and the Bronx Terminal Market Loan Combination and 25 Broadway 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.
 
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.
 
 
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COMM 2014-CCRE17 Mortgage Trust  
 
STRUCTURE OVERVIEW
 
Control Eligible Certificates:
Class F, Class G and Class H 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 H Certificates.
 
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 expected that Ellington Management Group, LLC or an affiliate will be the initial Directing Holder as of the Settlement Date.
 
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.
 
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.
 
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.
 
 
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COMM 2014-CCRE17 Mortgage Trust  
 
STRUCTURE OVERVIEW
 
 
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 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 will occur based on a vote of holders of all voting eligible Classes of Certificates as described below.
 
Replacement of Special Servicer
by Vote of Certificateholders:
 
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 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 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. The Operating Advisor’s recommendation to replace the Special Servicer 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.

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.
 
 
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COMM 2014-CCRE17 Mortgage Trust  
 
STRUCTURE OVERVIEW
 
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  and prior to the occurrence of a Control Termination 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 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.
 
 
13
 
 
COMM 2014-CCRE17 Mortgage Trust  
 
STRUCTURE OVERVIEW
 
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.
 
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.
 
 
14
 
 
COMM 2014-CCRE17 Mortgage Trust
 
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS
 
Distribution of Cut-off Date Balances(1)
 
                     
Weighted Averages
                 
% of Initial
                    
                 
Outstanding
      
Stated
  
U/W
      
LTV
       
Number of
  
Aggregate
  
Pool
      
Remaining Term
  
NCF
  
Cut-off Date
  
Ratio at
  Range of Cut-off Date Balances
  
Mortgage Loans
  
Cut-off Date Balance
  
Balance
  
Mortgage Rate
  
(Mos.)
  
DSCR
  
LTV Ratio(2)
  
Maturity(2)
$1,696,583
-
$7,499,999
  
18
    
$88,505,299
    
7.4%
    
5.2300%
  
114
  
1.55x
  
67.5%
  
56.6%
$7,500,000
-
$14,999,999
  
21
    
$229,996,414
    
19.3%
    
5.2095%
  
104
  
1.44x
  
68.0%
  
59.0%
$15,000,000
-
$24,999,999
  
6
    
$111,825,000
    
9.4%
    
4.6730%
  
107
  
1.60x
  
66.2%
  
58.8%
$25,000,000
-
$49,999,999
  
10
    
$330,749,920
    
27.7%
    
4.6674%
  
105
  
1.65x
  
65.7%
  
56.6%
$50,000,000
-
$74,999,999
  
1
    
$56,500,000
    
4.7%
    
4.8770%
  
119
  
1.78x
  
62.6%
  
55.3%
$75,000,000
-
$140,000,000
  
3
    
$374,869,473
    
31.4%
    
4.6681%
  
119
  
1.82x
  
63.9%
  
60.9%
Total/Weighted Average
  
59
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
  
1.66x
  
65.6%
  
58.5%
 
Distribution of Mortgage Rates(1)
 
                     
Weighted Averages
                 
% of Initial
                    
                 
Outstanding
      
Stated
          
LTV
       
Number of
  
Aggregate
  
Pool
      
Remaining Term
  
U/W NCF
  
Cut-off Date
  
Ratio at
  Range of Mortgage Rate
  
Mortgage Loans
  
Cut-off Date Balance
  
Balance
  
Mortgage Rate
  
(Mos.)
  
DSCR
  
LTV Ratio(2)
  
Maturity(2)
3.8900%
-
4.4999%
  
5
    
$120,230,961
    
10.1%
    
4.2005%
  
79
    
2.00x
  
59.4%
  
52.2%
4.5000%
-
4.7499%
  
10
    
$430,723,275
    
36.1%
    
4.6201%
  
114
    
1.71x
  
65.3%
  
62.3%
4.7500%
-
4.9999%
  
19
    
$408,158,699
    
34.2%
    
4.8664%
  
115
    
1.63x
  
66.4%
  
56.6%
5.0000%
-
6.3238%
  
25
    
$233,333,171
    
19.6%
    
5.4495%
  
114
    
1.43x
  
67.9%
  
58.2%
Total/Weighted Average
  
59
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
    
1.66x
  
65.6%
  
58.5%
 
Property Type Distribution(1)(3)
 
                   
Weighted Averages
Property Type
  
Number of
Mortgaged
Properties
  
Aggregate
Cut-off
Date Balance
  
% of Initial
Outstanding
Pool
Balance
  
Number
of Units,
Rooms, Pads
or NRA
  
Cut-off Date
Balance per
Unit/Room/Pad
/NRA
  
Mortgage
Rate
  
Stated
Remaining
Term
(Mos.)
  
Occupancy
  
U/W NCF
DSCR
  
Cut-off
Date LTV
Ratio(2)
  
LTV
Ratio at
Maturity(2)
Retail
  
16
    
$395,687,333
    
33.2%
    
2,599,024
    
$281
    
4.6173%
  
114
    
98.0%
    
1.70x
  
62.0%
  
55.3%
Anchored(4)
  
12
    
$377,286,548
    
31.6%
    
2,516,054
    
$280
    
4.6189%
  
116
    
98.0%
    
1.71x
  
61.7%
  
55.0%
Unanchored
  
4
    
$18,400,785
    
1.5%
    
82,970
    
$293
    
4.5841%
  
77
    
97.3%
    
1.53x
  
68.1%
  
60.6%
Multifamily
  
29
    
$229,263,976
    
19.2%
    
42,606
    
$53,246
    
5.1256%
  
119
    
93.3%
    
1.41x
  
69.5%
  
60.7%
Garden
  
15
    
$149,513,257
    
12.5%
    
3,458
    
$53,925
    
5.0379%
  
119
    
92.5%
    
1.42x
  
70.5%
  
61.6%
Mid Rise
  
11
    
$62,350,000
    
5.2%
    
38,408
    
$59,722
    
5.0450%
  
120
    
94.6%
    
1.28x
  
73.6%
  
65.4%
Flexible Apartments
  
3
    
$17,400,719
    
1.5%
    
740
    
$24,212
    
6.1677%
  
112
    
95.0%
    
1.86x
  
47.0%
  
37.0%
Hospitality
  
9
    
$204,842,842
    
17.2%
    
1,842
    
$126,725
    
4.7859%
  
101
    
73.1%
    
1.92x
  
65.0%
  
57.2%
Limited Service
  
7
    
$156,392,842
    
13.1%
    
1,252
    
$140,466
    
4.7060%
  
95
    
72.3%
    
2.03x
  
62.8%
  
57.5%
Full Service
  
2
    
$48,450,000
    
4.1%
    
590
    
$82,373
    
5.0441%
  
120
    
75.8%
    
1.59x
  
72.0%
  
56.0%
Office
  
9
    
$187,082,388
    
15.7%
    
1,565,808
    
$218
    
4.8088%
  
111
    
94.3%
    
1.76x
  
68.0%
  
65.9%
CBD
  
5
    
$147,550,000
    
12.4%
    
1,169,028
    
$246
    
4.7968%
  
119
    
94.9%
    
1.83x
  
68.0%
  
66.9%
Medical
  
2
    
$22,032,388
    
1.8%
    
167,388
    
$140
    
4.7990%
  
95
    
92.6%
    
1.52x
  
66.5%
  
59.4%
Suburban
  
2
    
$17,500,000
    
1.5%
    
229,392
    
$77
    
4.9218%
  
58
    
91.7%
    
1.50x
  
70.1%
  
65.4%
Manufactured Housing Community
  
9
    
$55,110,306
    
4.6%
    
1,899
    
$37,184
    
4.8334%
  
113
    
93.6%
    
1.63x
  
65.5%
  
54.8%
Self Storage
  
5
    
$50,325,033
    
4.2%
    
376,496
    
$174
    
4.9422%
  
119
    
80.3%
    
1.37x
  
66.2%
  
55.4%
Mixed Use
  
6
    
$46,329,065
    
3.9%
    
322,593
    
$191
    
5.1940%
  
100
    
92.3%
    
1.42x
  
70.1%
  
60.4%
Retail/Office
  
5
    
$36,965,519
    
3.1%
    
205,820
    
$219
    
5.2659%
  
95
    
92.7%
    
1.43x
  
68.9%
  
60.1%
Retail/Multifamily/Office
  
1
    
$9,363,547
    
0.8%
    
116,773
    
$80
    
4.9100%
  
119
    
90.9%
    
1.38x
  
74.9%
  
61.5%
Other
  
1
    
$15,500,000
    
1.3%
    
69,735
    
$222
    
4.5160%
  
60
    
100.0%
    
1.31x
  
65.5%
  
59.5%
Industrial
  
2
    
$8,305,165
    
0.7%
    
254,166
    
$34
    
5.4181%
  
116
    
100.0%
    
1.52x
  
62.9%
  
51.5%
Total/Weighted Average
  
86
    
$1,192,446,107
    
100.0%
                
4.8244%
  
111
    
91.1%
    
1.66x
  
65.6%
  
58.5%
 
Geographic Distribution(1)(3)
 
                     
Weighted Averages
  State/Location
  
Number of
Mortgaged
Properties
  
Aggregate Cut-off
Date Balance
  
% of Initial
Outstanding
Pool
Balance
  
Mortgage Rate
  
Stated
Remaining Term
(Mos.)
  
U/W NCF
DSCR
  
Cut-off Date
LTV Ratio(2)
  
LTV
Ratio at
Maturity(2)
New York
  
8
    
$382,933,349
    
32.1%
    
4.6344%
  
118
    
1.69x
  
63.8%
  
60.2%
New York City
  
4
    
$301,500,000
    
25.3%
    
4.6201%
  
120
    
1.75x
  
65.2%
  
64.1%
Remaining New York State
  
4
    
$81,433,349
    
6.8%
    
4.6873%
  
112
    
1.47x
  
58.7%
  
45.6%
Texas
  
9
    
$158,149,349
    
13.3%
    
4.8590%
  
117
    
1.61x
  
68.4%
  
58.1%
Florida
  
13
    
$122,400,011
    
10.3%
    
4.9818%
  
103
    
1.53x
  
68.1%
  
58.4%
New Mexico
  
1
    
$104,869,473
    
8.8%
    
4.8155%
  
119
    
1.89x
  
59.9%
  
49.0%
California
  
12
    
$80,578,940
    
6.8%
    
4.9794%
  
119
    
1.46x
  
67.2%
  
59.0%
Southern(5)
  
9
    
$41,882,357
    
3.5%
    
5.0344%
  
119
    
1.25x
  
69.8%
  
62.4%
Northern(5)
  
3
    
$38,696,583
    
3.2%
    
4.9198%
  
120
    
1.67x
  
64.3%
  
55.4%
Ohio
  
9
    
$68,882,419
    
5.8%
    
4.9545%
  
119
    
1.36x
  
74.3%
  
65.5%
Other
  
34
    
$274,632,566
    
23.0%
    
4.9245%
  
93
    
1.74x
  
64.9%
  
58.3%
Total/Weighted Average
  
86
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
    
1.66x
  
65.6%
  
58.5%
(1)  
With respect to the Bronx Terminal Market Loan and 25 Broadway Loan, LTV, DSCR and Cut-off Date Balance Per Unit/Room/Pad/NRA calculations include the related pari passu companion loans.
(2)  
With respect to the 330 South Tryon Office Loan, the Cut-off Date LTV Ratio and LTV Ratio at Maturity have been calculated based on the “As Complete” appraised value of $16.15 million. The “As-is” Cut-off Date LTV Ratio and “As-is” LTV Ratio at Maturity are 79.5% and 69.0%, respectively. With respect to the Kunkel Portfolio Loan, the Cut-off Date LTV Ratio and LTV Ratio at Maturity have been calculated based on the “As Stabilized” appraised value of $17.55 million. The “As-is” Cut-off Date LTV Ratio and “As-is” LTV Ratio at Maturity are 60.7% and 52.0%, respectively.
(3)  
Reflects allocated loan amount for properties securing multi-property mortgage loans.
(4)  
Includes anchored and single tenant properties.
(5)  
Northern California properties have a zip code greater than 93600. Southern California properties have a zip code less than or equal to 93600.
 
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.
 
 
15
 
 
COMM 2014-CCRE17 Mortgage Trust
 
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS
 
Distribution of Cut-off Date LTV Ratios(1)(2)
 
                     
Weighted Averages
Range of Cut-off Date LTV
Ratios
  
Number of
Mortgage Loans
  
Aggregate Cut-off
Date Balance
  
% of Initial
Outstanding
Pool Balance
  
Mortgage Rate
  
Stated
Remaining Term
(Mos.)
  
U/W NCF
DSCR
  
Cut-off Date
LTV Ratio
  
LTV Ratio
at Maturity
43.1%
-
54.9%
  
4
    
$57,491,681
    
4.8%
    
4.7827%
  
117
    
1.69x
  
48.8%
  
33.0%
55.0%
-
59.9%
  
6
    
$214,768,432
    
18.0%
    
4.7334%
  
106
    
2.04x
  
59.6%
  
52.1%
60.0%
-
64.9%
  
10
    
$323,247,124
    
27.1%
    
4.7563%
  
119
    
1.63x
  
63.1%
  
58.2%
65.0%
-
69.9%
  
13
    
$265,762,911
    
22.3%
    
4.7712%
  
102
    
1.69x
  
67.7%
  
63.6%
70.0%
-
74.9%
  
23
    
$290,118,540
    
24.3%
    
4.9798%
  
111
    
1.40x
  
72.9%
  
64.0%
75.0%
-
76.6%
  
3
    
$41,057,419
    
3.4%
    
5.1408%
  
119
    
1.50x
  
75.3%
  
58.9%
Total/Weighted Average
  
59
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
    
1.66x
  
65.6%
  
58.5%
 
Distribution of LTV Ratios at Maturity(1)(2)
 
                     
Weighted Averages
Range of LTV Ratios
at Maturity
  
Number of
Mortgage Loans
  
Aggregate Cut-off
Date Balance
  
% of Initial
Outstanding
Pool Balance
  
Mortgage Rate
  
Stated
Remaining Term
(Mos.)
  
U/W NCF
DSCR
  
Cut-off Date
LTV Ratio
  
LTV Ratio
at Maturity
30.0%
-
49.9%
  
7
    
$207,817,470
    
17.4%
    
4.7868%
  
118
    
1.77x
  
56.8%
  
44.6%
50.0%
-
54.9%
  
10
    
$95,428,375
    
8.0%
    
5.1194%
  
119
    
1.45x
  
62.9%
  
52.5%
55.0%
-
59.9%
  
15
    
$300,533,711
    
25.2%
    
4.8887%
  
103
    
1.77x
  
65.2%
  
57.4%
60.0%
-
71.0%
  
27
    
$588,666,552
    
49.4%
    
4.7570%
  
111
    
1.60x
  
69.4%
  
65.0%
Total/Weighted Average
  
59
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
    
1.66x
  
65.6%
  
58.5%
 
Distribution of Underwritten NCF Debt Service Coverage Ratios(1)
 
                     
Weighted Averages
Range of Underwritten NCF
Debt Service Coverage Ratios
  
Number of
Mortgage Loans
  
Aggregate Cut-off
Date Balance
  
% of Initial
Outstanding
Pool Balance
  
Mortgage Rate
  
Stated
Remaining Term
(Mos.)
  
U/W NCF
DSCR
  
Cut-off Date
LTV Ratio(2)
  
LTV Ratio
at Maturity(2)
1.21x
-
1.24x
  
3
    
$53,403,548
    
4.5%
    
5.4205%
  
118
    
1.23x
  
71.7%
  
64.7%
1.25x
-
1.29x
  
5
    
$48,130,965
    
4.0%
    
5.2128%
  
119
    
1.28x
  
68.0%
  
55.8%
1.30x
-
1.39x
  
17
    
$228,224,767
    
19.1%
    
4.9244%
  
108
    
1.34x
  
69.9%
  
60.9%
1.40x
-
1.49x
  
5
    
$56,987,783
    
4.8%
    
4.7642%
  
94
    
1.45x
  
67.2%
  
60.3%
1.50x
-
1.74x
  
18
    
$405,417,916
    
34.0%
    
4.6987%
  
115
    
1.65x
  
64.8%
  
57.1%
1.75x
-
1.99x
  
9
    
$339,656,127
    
28.5%
    
4.8510%
  
115
    
1.87x
  
63.3%
  
57.6%
2.00x
-
2.69x
  
2
    
$60,625,000
    
5.1%
    
4.3624%
  
74
    
2.61x
  
59.6%
  
59.6%
Total/Weighted Average
  
59
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
    
1.66x
  
65.6%
  
58.5%
 
Distribution of Original Terms to Maturity(1)
 
                     
Weighted Averages
Range of Original Terms
to Maturity
  
Number of
Mortgage Loans
  
Aggregate Cut-off
Date Balance
  
% of Initial
Outstanding
Pool Balance
  
Mortgage Rate
  
Stated
Remaining Term
(Mos.)
  
U/W NCF
DSCR
  
Cut-off Date
LTV Ratio(2)
  
LTV Ratio
at Maturity(2)
60
-
60
  
8
    
$150,440,186
    
12.6%
    
4.4393%
  
58
    
1.87x
  
66.1%
  
62.7%
84
-
84
  
1
    
$14,032,388
    
1.2%
    
4.7700%
  
83
    
1.37x
  
72.3%
  
63.8%
120
-
126
  
50
    
$1,027,973,533
    
86.2%
    
4.8815%
  
119
    
1.63x
  
65.4%
  
57.8%
Total/Weighted Average
  
59
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
    
1.66x
  
65.6%
  
58.5%
 
Distribution of Remaining Terms to Maturity(1)
 
                     
Weighted Averages
Range of Original Terms
to Maturity
  
Number of
Mortgage Loans
  
Aggregate Cut-off
Date Balance
  
% of Initial
Outstanding
Pool Balance
  
Mortgage Rate
  
Stated
Remaining Term
(Mos.)
  
U/W NCF
DSCR
  
Cut-off Date
LTV Ratio(2)
  
LTV Ratio
at Maturity(2)
55
-
60
  
8
    
$150,440,186
    
12.6%
    
4.4393%
  
58
    
1.87x
  
66.1%
  
62.7%
83
-
83
  
1
    
$14,032,388
    
1.2%
    
4.7700%
  
83
    
1.37x
  
72.3%
  
63.8%
112
-
120
  
50
    
$1,027,973,533
    
86.2%
    
4.8815%
  
119
    
1.63x
  
65.4%
  
57.8%
Total/Weighted Average
  
59
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
    
1.66x
  
65.6%
  
58.5%
(1)  
With respect to the Bronx Terminal Market Loan and the 25 Broadway Loan, LTV and DSCR calculations include the related pari passu companion loans.
(2)  
With respect to the 330 South Tryon Office Loan, the Cut-off Date LTV Ratio and LTV Ratio at Maturity have been calculated based on the “As Complete” appraised value of $16.15 million. The “As-is” Cut-off Date LTV Ratio and “As-is” LTV Ratio at Maturity are 79.5% and 69.0%, respectively. With respect to the Kunkel Portfolio Loan, the Cut-off Date LTV Ratio and LTV Ratio at Maturity have been calculated based on the “As Stabilized” appraised value of $17.55 million. The “As-is” Cut-off Date LTV Ratio and “As-is” LTV Ratio at Maturity are 60.7% and 52.0%, respectively.
 
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.
 
 
16
 
 
COMM 2014-CCRE17 Mortgage Trust
 
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS
 
Distribution of Underwritten NOI Debt Yields(1)
 
                     
Weighted Averages
Range of Underwritten NOI
Debt Yields
  
Number of
Mortgage Loans
  
Aggregate Cut-off
Date Balance
  
% of Initial
Outstanding
Pool Balance
  
Mortgage Rate
  
Stated
Remaining Term
(Mos.)
  
U/W NCF
DSCR
  
Cut-off Date
LTV Ratio(2)
  
LTV Ratio at
Maturity(2)
8.0%
-
8.9%
  
12
    
$330,707,357
    
27.7%
    
4.7046%
  
115
    
1.48x
  
66.9%
  
62.4%
9.0%
-
9.9%
  
14
    
$266,058,443
    
22.3%
    
4.8490%
  
108
    
1.61x
  
69.4%
  
64.7%
10.0%
-
12.4%
  
24
    
$393,285,785
    
33.0%
    
4.9477%
  
115
    
1.69x
  
65.3%
  
55.1%
12.5%
-
14.9%
  
7
    
$184,993,803
    
15.5%
    
4.6146%
  
98
    
1.96x
  
60.1%
  
52.1%
15.0%
-
16.3%
  
2
    
$17,400,719
    
1.5%
    
6.1677%
  
112
    
1.86x
  
47.0%
  
37.0%
Total/Weighted Average
  
59
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
    
1.66x
  
65.6%
  
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.)
  
U/W NCF
DSCR
  
Cut-off Date
LTV Ratio(2)
  
LTV Ratio at
Maturity(2)
Interest Only, then Amortizing
  
25
    
$442,585,000
    
37.1%
    
4.8581%
  
108
    
1.48x
  
68.3%
  
60.8%
Amortizing Balloon
  
30
    
$419,236,107
    
35.2%
    
4.9932%
  
114
    
1.62x
  
63.8%
  
51.5%
Interest Only
  
4
    
$330,625,000
    
27.7%
    
4.5653%
  
111
    
1.95x
  
64.4%
  
64.4%
Total/Weighted Average
  
59
    
$1,192,446,107
    
100.0%
    
4.8244%
  
111
    
1.66x
  
65.6%
  
58.5%
(1)  
With respect to the Bronx Terminal Market Loan and the 25 Broadway Loan, LTV, DSCR and Debt Yield calculations include the related pari passu companion loans.
(2)  
With respect to the 330 South Tryon Office Loan, the Cut-off Date LTV Ratio and LTV Ratio at Maturity have been calculated based on the “As Complete” appraised value of $16.15 million. The “As-is” Cut-off Date LTV Ratio and “As-is” LTV Ratio at Maturity are 79.5% and 69.0%, respectively. With respect to the Kunkel Portfolio Loan, the Cut-off Date LTV Ratio and LTV Ratio at Maturity have been calculated based on the “As Stabilized” appraised value of $17.55 million. The “As-is” Cut-off Date LTV Ratio and “As-is” LTV Ratio at Maturity are 60.7% and 52.0%, respectively.
 
Ten Largest Mortgage Loans(1)
 
Mortgage Loan
  
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
Bronx Terminal Market
  
GACC/CCRE
  
Bronx, NY
  
Retail
  
$140,000,000
  
11.7%
    
$417
    
63.3%
  
     1.70x
  
8.0%
25 Broadway
  
GACC
  
New York, NY
  
Office
  
$130,000,000
  
10.9%
    
$261
    
67.8%
  
     1.90x
  
9.6%
Cottonwood Mall
  
CCRE
  
Albuquerque, NM
  
Retail
  
$104,869,473
  
8.8%
    
$255
    
59.9%
  
     1.89x
  
12.4%
Hyatt Place Austin Downtown
  
CCRE
  
Austin, TX
  
Hospitality
  
$56,500,000
  
4.7%
    
$190,878
    
62.6%
  
     1.78x
  
12.7%
ARC Marriott Hotel Portfolio
  
GACC
  
Various
  
Hospitality
  
$45,500,000
  
3.8%
    
$108,076
    
59.5%
  
     2.69x
  
13.4%
Silicon Valley Hotel Portfolio
  
CCRE
  
Various
  
Hospitality
  
$37,000,000
  
3.1%
    
$123,746
    
64.1%
  
     1.69x
  
12.0%
Yonkers Gateway Center
  
CCRE
  
Yonkers, NY
  
Retail
  
$36,900,961
  
3.1%
    
$84
    
49.2%
  
     1.60x
  
12.7%
DC Mixed Use Portfolio V
  
CCRE
  
Various
  
Various
  
$35,000,000
  
2.9%
    
$191
    
65.5%
  
     1.31x
  
9.2%
Indigo on Forest
  
CCRE
  
Dallas, TX
  
Multifamily
  
$33,500,000
  
2.8%
    
$27,527
    
70.2%
  
     1.54x
  
10.8%
Casa del Monte MHC
  
GECC
  
West Palm Beach, FL
  
MHC
  
$30,923,959
  
2.6%
    
$47,068
    
59.5%
  
     1.73x
  
10.8%
Total/Weighted Average
              
$650,194,394
  
54.5%
          
62.9%
  
     1.81x
  
10.7%
 
(1)  
With respect to the Bronx Terminal Market Loan and the 25 Broadway 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 Loan
  
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
Bronx Terminal Market
  
$140,000,000
  
$240,000,000
  
$380,000,000
  
COMM 2014-CCRE17
  
Midland Loan Services
  
Midland Loan Services
  
COMM 2014-CCRE17
25 Broadway
  
$130,000,000
  
$120,000,000
  
$250,000,000
  
COMM 2014-CCRE17
  
Midland Loan Services
  
Midland Loan Services
  
COMM 2014-CCRE17
 
Existing Mezzanine Debt Summary
 
Mortgage Loan
  
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
Brookwood on the Green
  
$16,000,000
  
$2,000,000
    
1.49x
  
1.19x
  
63.5%
  
71.4%
  
10.2%
  
9.0%
  
Deerpath Plaza
  
$12,000,000
  
$2,250,000
    
1.40x
  
1.06x
  
66.5%
  
78.9%
  
10.4%
  
8.8%
  
Siegel Suites Tropicana/Boulder II
  
$10,681,551
  
$3,656,101
    
1.88x
  
1.40x
  
49.5%
  
66.5%
  
16.2%
  
12.1%
  
Hilton Garden Inn Sarasota(1)
  
$9,143,665
  
$1,096,000
    
1.86x
  
1.50x
  
69.3%
  
77.6%
  
13.5%
  
11.9%
  
Hampton Inn Sarasota(1)
  
$8,249,176
  
$904,000
    
1.79x
  
1.50x
  
69.9%
  
77.6%
  
13.0%
  
11.9%
  
Siegel Suites Swenson
  
$6,719,168
  
$1,984,418
    
1.82x
  
1.40x
  
43.1%
  
55.8%
  
16.3%
  
12.6%
  
(1)  
The $1,096,000 Mezzanine Debt Cut-off Date Balance shown for the Hilton Garden Inn Sarasota Mortgage Loan and the $904,000 Mezzanine Debt Cut-off Date Balance shown for the Hampton Inn Sarasota Mortgage Loan represent the respective allocated portions of the $2,000,000 crossed mezzanine loan for presentation purposes only, as there are no allocated mezzanine loan balances. Total Debt U/W NCF DSCR, Total Debt Cut-off Date LTV Ratio and Total Debt U/W NOI Debt Yield are based on the mortgage loans and the crossed mezzanine loan in the aggregate. Total Debt U/W NCF DSCR is calculated using an assumed 1-month LIBOR of 0.1875% for the mezzanine loan.
 
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.
 
 
17
 
 
COMM 2014-CCRE17 Mortgage Trust
 
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS
 
Previous Securitization History(1)
 
                   
% of Initial
    
   
Mortgage
          
Cut-off Date
  
Outstanding
    
Mortgage Loan
  
Loan Seller
  
City, State
  
Property Type
  
Balance
  
Pool Balance
  
Previous Securitization
ARC Marriott Hotel Portfolio
  
GACC
  
Various
  
Hospitality
  
$45,500,000
  
3.8%
    
BSCMS 2007-BBA8
Yonkers Gateway Center
  
CCRE
  
Yonkers, NY
  
Retail
  
$36,900,961
  
3.1%
    
MSC 2005-HQ6
Casa del Monte MHC
  
GECC
  
West Palm Beach, FL
  
MHC
  
$30,923,959
  
2.6%
    
GECMC 2004-C3
Northeast Ohio Multifamily Portfolio
  
CCRE
  
Various
  
Multifamily
  
$30,200,000
  
2.5%
    
Various(2)
ART Florida Multifamily Portfolio 2
  
CCRE
  
Various
  
Multifamily
  
$20,000,000
  
1.7%
    
MLMT 2007-C1
North Medical Center
  
GECC
  
Liverpool, NY
  
Office
  
$14,032,388
  
1.2%
    
GECMC 2004-C2
330 South Tryon Office
  
CCRE
  
Charlotte, NC
  
Office
  
$12,000,000
  
1.0%
    
JPMCC 2004-C2
Deerpath Plaza
  
JLC
  
Lake Forest, IL
  
Mixed Use
  
$12,000,000
  
1.0%
    
CSMC 2007-C1
University Centre West III
  
JLC
  
Coral Springs, FL
  
Mixed Use
  
$10,733,211
  
0.9%
    
MSC 2004-IQ7
Kunkel Portfolio
  
JLC
  
Evansville, IN
  
Various
  
$10,350,000
  
0.9%
    
ARCLO 2013-1(3)
Hilton Garden Inn Sarasota
  
JLC
  
Sarasota, FL
  
Hospitality
  
$9,143,665
  
0.8%
    
BACM 2005-5
Hampton Inn Sarasota
  
JLC
  
Sarasota, FL
  
Hospitality
  
$8,249,176
  
0.7%
    
BACM 2005-5
25 Crossroads Drive
  
GECC
  
Owings Mills, MD
  
Office
  
$8,000,000
  
0.7%
    
GECMC 2004-C3
Arrowhead MHC Portfolio
  
JLC
  
Various
  
MHC
  
$6,557,419
  
0.5%
    
GECMC 2007-C1
Home MHC
  
GECC
  
Hallandale Beach, FL
  
MHC
  
$6,025,000
  
0.5%
    
GECMC 2004-C3
Harbourtown MHC
  
GECC
  
Vermilion, OH
  
MHC
  
$5,500,000
  
0.5%
    
JPMCC 2004-C1
2675 Patrick & 6145 Harrison
  
JLC
  
Las Vegas, NV
  
Industrial
  
$2,090,397
  
0.2%
    
GCCFC 2004-GG1
Total
              
$268,206,177
  
22.5%
      
(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 depositor, the mortgage loan sellers or any other underwriter.
(2)  
The most recent financings of the Village at Wyoga Lake and Towers at Wyoga Lake properties were previously securitized in the BACM 2006-6 transaction. The most recent financing of the Richmond Hills property was included in the WFRBS 2011-C3 transaction.
(3)  
The most recent financing of the Kunkel Square property was previously securitized in the ARCLO 2013-1 transaction. The most recent financings of the Hulman Building, Court Building and Fendrich Plaza were not included in securitizations.
 
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.
 
 
18
 

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19
 


 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
(GRAPHIC)
 
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.
 
 
20
 
 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
Mortgage Loan Information
Loan Seller:
GACC/CCRE
Loan Purpose:
Refinance
Sponsor:
The Related Companies, L.P.
Borrower:
BTM Development Partners, LLC
Original Balance(1):
$140,000,000
Cut-off Date Balance(1):
$140,000,000
% by Initial UPB:
11.7%
Interest Rate:
4.5280%
Payment Date:
6th of each month
First Payment Date:
June 6, 2014
Maturity Date:
May 6, 2024
Amortization:
Interest Only
Additional Debt(1)(2)(3):
$240,000,000 Pari Passu Debt;
Future Mezzanine Debt Permitted
Call Protection(4):
L(24), D(91), O(5)
Lockbox / Cash Management:
Hard / In Place
 
Reserves(5)
 
Initial
Monthly  
Taxes:
$0
Springing  
Insurance:
$0
Springing  
Replacement:
$0
Springing  
TI/LC:
$0
Springing  
Ground Rent:
$0
Springing  
 
Financial Information(6)
Cut-off Date Balance / Sq. Ft.:
$417
  
Balloon Balance / Sq. Ft.:
$417
  
Cut-off Date LTV:
63.3%
  
Balloon LTV:
63.3%
  
Underwritten NOI DSCR(7):
1.75x
  
Underwritten NCF DSCR(7):
1.70x
  
Underwritten NOI Debt Yield:
8.0%
  
Underwritten NCF Debt Yield:
7.8%
  
Underwritten NOI Debt Yield at Balloon:
8.0%
  
Underwritten NCF Debt Yield at Balloon:
7.8%
  
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Anchored Retail
Collateral:
Leasehold
Location:
Bronx, NY
Year Built / Renovated:
2009 / NAP
Total Sq. Ft.:
912,333
Property Management:
Related BTM Development Partners, LLC
Underwritten NOI:
$30,553,869
Underwritten NCF:
$29,572,268
Appraised Value:
$600,000,000
Appraisal Date:
January 7, 2014
 
Historical NOI(8)
2013 NOI:
$28,228,794 (December 31, 2013)
2012 NOI:
$27,601,540 (December 31, 2012)
2011 NOI:
$26,088,738 (December 31, 2011)
2010 NOI:
$27,356,741 (December 31, 2010)
2009 NOI:
NAP
 
Historical Occupancy(8)
Most Recent Occupancy(9):
99.3% (April 1, 2014)
2013 Occupancy:
99.3% (December 31, 2013)
2012 Occupancy:
94.4% (December 31, 2012)
2011 Occupancy:
86.1% (December 31, 2011)
2010 Occupancy:
92.8% (December 31, 2010)
2009 Occupancy:
NAP
(1)
The Original Balance and Cut-off Date Balance of $140.0 million represent both the controlling Note A-1 and Note A-2 of the $380.0 million Bronx Terminal Market Loan Combination evidenced by six pari passu notes. The pari passu companion loans are comprised of the non-controlling Note A-3, Note A-4, Note A-5 and Note A-6, with an aggregate original principal balance of $240.0 million. For additional information on the pari passu companion loans, see “The Loan” herein.
(2)
See “Future Mezzanine or Subordinate Indebtedness Permitted” herein.
(3)
An indirect non-managing member of the borrower incurred additional tax credit financing in connection with the development of the Bronx Terminal Market Property. See “Historic Tax Credit Loan” herein.
(4)
The lockout period will be at least 24 payments beginning with and including the first payment date of June 6, 2014. Defeasance of the full $380.0 million Bronx Terminal Market Loan Combination is permitted after the earlier to occur of (i) two years after the closing date of the securitization that includes the last pari passu companion loan to be securitized and (ii) April 15, 2017.
(5)
See “Initial Reserves” and “Ongoing Reserves” herein.
(6)
DSCR, LTV, Debt Yield and Balance / Sq. Ft. calculations are based on the aggregate Bronx Terminal Market Loan Combination.
(7)
Underwritten NOI DSCR and Underwritten NCF DSCR are based on the interest only debt service payment. Based on a 30-year amortization schedule, the Underwritten NOI DSCR and Underwritten NCF DSCR would be 1.32x and 1.28x, respectively.
(8)
The Bronx Terminal Market Property was constructed in 2009 and opened for business in Q4 2009. As such, partial year 2009 NOI and 2009 Occupancy are not applicable.
(9)
Most Recent Occupancy includes Michaels, which leases 23,204 sq. ft. (2.5% of NRA) and is currently dark but paying full contractual rent, and CUNY Hostos, which recently executed leases for 18,276 sq. ft. (2.0% of NRA) of expansion space but is not yet paying rent or in occupancy of the expansion space.
 

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.
 
 
21
 
 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
Tenant Summary
   
Ratings
(Fitch/Moody’s/S&P)(1)
  
Total
Sq. Ft.
  
% of Total
Sq. Ft.
  
Lease
Expiration
  
Annual UW
Base Rent
PSF
  
Total Sales
(000s)
  
Sales
PSF(2)
   Occupancy
Cost
(% of Sales)(2)
Anchor Tenants
                                  
Target
  
A-/A2/A
  
188,446
  
20.7%
  
10/1/2033
  
$5.54
  
$80,000
  
$425(3)
   3.8%
(3)
BJ’s Wholesale Club
  
NR/B3/B-
  
130,099
  
14.3%
  
8/1/2029
  
$37.50
  
$134,973
  
$1,037(4)
    4.9%
(4)
Home Depot
  
A-/A2/A
  
124,955
  
13.7%
  
2/1/2034
  
$44.00
  
NAV
  
NAV
    NAV
 
Subtotal
      
443,500
  
48.6%
      
$25.75
  
$214,973
  
$675
  
4.2%
 
                                   
Major Tenants
                                  
Toys ‘R’ Us / Babies ‘R’ Us
  
CCC/Caa2/B-
  
76,921
  
8.4%
  
1/31/2020(5)
  
$23.00
  
$13,555
  
$176
  
13.1%
 
Burlington Coat Factory
  
NR/B2/B
  
74,329
  
8.1%
  
1/1/2028
  
$26.00
  
$17,815
  
$240
  
16.4%
 
Best Buy
  
BB-/Baa2/BB
  
52,086
  
5.7%
  
1/1/2020
  
$45.00
  
NAV
  
NAV
  
NAV
 
Raymour & Flanigan
  
NR/NR/NR
  
46,814
  
5.1%
  
10/1/2024
  
$40.00
  
NAV
  
NAV
  
NAV
 
Marshalls
  
NR/A3/A+
  
37,401
  
4.1%
  
8/1/2019
  
$35.00
  
$9,974
  
$267(4)
   16.8%
(4)
Subtotal
      
287,551
  
31.5%
      
$32.09
  
$41,344
  
$219
  
15.1%
 
Other Major Tenants(6)
      
111,198
  
12.2%
      
$42.31
      
NAV
  
NAV
  
Total Major Tenants
      
398,749
  
43.7%
      
$34.94
              
                                   
Other In-line Tenants
      
36,151
  
4.0%
      
$53.46
      
$230
  
16.0%
  
Restaurant / Food Court
      
27,870
  
3.1%
      
$42.91
      
$749
  
10.8%
  
Total Occupied Collateral
      
906,270
  
99.3%
                      
                                   
Vacant
      
6,063
  
0.7%
                      
Total / Wtd. Avg.
      
912,333
  
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 most recent year-end reported.
(3)
Target’s Sales PSF and Occupancy Cost (% of Sales) are estimates provided by the borrower.
(4)
Sales PSF and Occupancy Cost (% of Sales) for BJ’s Wholesale Club are as of year-end 2011. BJ’s Wholesale Club was only required to report sales for the first two years of its lease and is no longer required to report sales. Sales PSF and Occupancy Cost (% of Sales) for Marshalls are as of year-end 2012.
(5)
Toys ‘R’ Us / Babies ‘R’ Us has a termination option on May 1, 2016 and on each year thereafter through May 1, 2019 if its gross sales do not exceed $14.0 million for the preceding twelve month period, provided such termination notice may not be given later than 120 days after the expiration of the twelve month period.
(6)
Other Major Tenants includes Michaels, which is currently dark but paying full rent per its contractual lease agreement. Michaels originally closed its store and went into a tolling period beginning in January 2012 to accommodate the reconstruction of the adjacent tenant Burlington Coat Factory, which was completed in the fourth quarter of 2013. Michaels’ tolling period ended on January 15, 2014, at which time it resumed paying full rent.
 
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
1,518
0.2%
  
1,518
  
0.2%
  
$90.00
  
0.5%
  
0.5%
2015
  
0
0
0.0%
  
1,518
  
0.2%
  
$0.00
  
0.0%
  
0.5%
2016
  
1
1,893
0.2%
  
3,411
  
0.4%
  
$48.49
  
0.3%
  
0.8%
2017
  
0
0
0.0%
  
3,411
  
0.4%
  
$0.00
  
0.0%
  
0.8%
2018
  
0
0
0.0%
  
3,411
  
0.4%
  
$0.00
  
0.0%
  
0.8%
2019
  
5
46,896
5.1%
  
50,307
  
5.5%
  
$45.10
  
7.4%
  
8.2%
2020
  
6
158,033
17.3%
  
208,340
  
22.8%
  
$31.74
  
17.6%
  
25.8%
2021
  
2
25,715
2.8%
  
234,055
  
25.7%
  
$41.21
  
3.7%
  
29.6%
2022
  
0
0
0.0%
  
234,055
  
25.7%
  
$0.00
  
0.0%
  
29.6%
2023
  
0
0
0.0%
  
234,055
  
25.7%
  
$0.00
  
0.0%
  
29.6%
2024
  
4
67,387
7.4%
  
301,442
  
33.0%
  
$43.81
  
10.4%
  
39.9%
Thereafter
  
10
604,828
66.3%
  
906,270
  
99.3%
  
$28.29
  
60.1%
  
100.0%
Vacant
  
NAP
6,063
0.7%
  
912,333
  
100.0%
  
NAP
  
NAP
    
Total / Wtd. Avg.
  
29
912,333
100.0%
          
$31.43
  
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.
 
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.
 
 
22
 
 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
The Loan.    The Bronx Terminal Market loan (the “Bronx Terminal Market Loan”) consists of the controlling Note A-1 and Note A-2 in the aggregate original principal amount of $140.0 million of a fixed rate loan in the aggregate principal amount of $380.0 million (the “Bronx Terminal Market Loan Combination”). The Bronx Terminal Market Loan Combination is secured by the borrower’s leasehold interest in a 912,333 sq. ft., Class A, anchored retail power center located at 658 River Avenue in the Bronx, New York (the “Bronx Terminal Market Property”). The Bronx Terminal Market Loan Combination was co-originated by GACC and CCRE and is evidenced by six pari passu notes. Only the controlling Note A-1 and Note A-2, with an aggregate original principal balance of $140.0 million, will be included in the COMM 2014-CCRE17 mortgage trust. The remaining notes are described in the chart below and are expected to be contributed to future securitizations. GACC and CCRE have reserved the right to further split Note A-3, Note A-4, Note A-5 and Note A-6 into multiple notes. The Bronx Terminal Market Loan Combination has a 10-year term and accrues interest at a fixed rate equal to 4.5280% for the loan term.

The proceeds of the Bronx Terminal Market Loan Combination were used to retire existing debt of approximately $332.9 million and pay closing costs of approximately $4.9 million, giving the borrower a return of equity of approximately $42.2 million. Based on the appraised value of $600.0 million as of January 7, 2014, the cut-off date LTV of the Bronx Terminal Market Loan Combination is 63.3% and the remaining implied equity is $220.0 million. The most recent prior financing of the Bronx Terminal Market Property was not included in a securitization.

The relationship between the holders of Note A-1, Note A-2, Note A-3, Note A-4, Note A-5 and Note A-6 is governed by an intercreditor agreement which is described under “Description of the Mortgage Pool—Loan Combinations—The Bronx Terminal Market Loan Combination” in the Free Writing Prospectus.

Loan Combination Summary
 
  
Original Balance
  
Cut-off Date Balance
  
Note Holder
  
Controlling Piece
Note A-1 & Note A-2
  
$140,000,000
    
$140,000,000
    
COMM 2014-CCRE17
  
Yes
Note A-3
  
$80,000,000
    
$80,000,000
    
GACC
  
No
Note A-4
  
$40,000,000
    
$40,000,000
    
CCRE
  
No
Note A-5
  
$80,000,000
    
$80,000,000
    
GACC
  
No
Note A-6
  
$40,000,000
    
$40,000,000
    
CCRE
  
No
Total
  
$380,000,000
    
$380,000,000
          
 
Sources and Uses
  
Sources
Proceeds
% of Total
  
Uses
Proceeds
  % of
Total
  
Loan Amount
$380,000,000
100.0%
  
Loan Payoff
$332,896,354
87.6
 % 
       
Closing Costs
$4,948,626
1.3
 % 
       
Return of Equity
$42,155,020
11.1
 %
Total Sources
$380,000,000
100.0%
  
Total Uses
$380,000,000
100.0
 % 

The Borrower / Sponsor.    The borrower, BTM Development Partners, LLC is a single purpose New York limited liability company structured to be bankruptcy-remote, with a single purpose Delaware limited liability company as its managing member and two independent managers in its organizational structure.  The sponsor of the borrower and the nonrecourse carve-out guarantor is The Related Companies, L.P. (“Related”). Founded in 1972 by Stephen Ross, Related is a privately-owned, vertically integrated real estate firm that develops, acquires, manages, finances and markets real estate developments both within the United States and internationally.

Related’s real estate portfolio is currently valued in excess of $15.0 billion and includes luxury residential, affordable and workforce apartments, commercial office, retail and mixed-use developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Abu Dhabi and Sao Paolo. Notable Related properties include Time Warner Center at Columbus Circle and Tribeca Green in Manhattan, New York, CityPlace in West Palm Beach, Florida and The Century in Los Angeles, California. Related is also developing the Hudson Yards project on Manhattan’s west side, a 28-acre, 17.4 million sq. ft. mixed-use development which is expected to be completed in 2018. Since its founding, Related has developed or acquired over $22.0 billion of real estate and currently employs over 2,500 employees across seven offices in the United States and two international offices located in Abu Dhabi, United Arab Emirates and Shanghai, China.
 
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.
 
 
23
 
 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
The Property.     The Bronx Terminal Market Property is a 912,333 sq. ft. multi-level anchored retail power center located on a 16.8 acre site in the Bronx which is bounded generally by 149th Street to the south, River Avenue and the Major Deegan Expressway to the west, the Metro-North rail road tracks to the north and Exterior Street to the east. The Bronx Terminal Market Property consists of a four-level south tower and three-level north tower which are connected via a six-level parking garage consisting of 2,610 spaces, for a parking ratio of 2.86 per 1,000 sq. ft., along with two adjacent one-story buildings. The Bronx Terminal Market Property was developed by Related in 2009 for a reported cost of $360.1 million and opened for business in the fourth quarter of 2009.

The Bronx Terminal Market Property features 27 tenants, including national anchor tenants Target (rated A-/A2/A by Fitch/Moody’s/S&P), Home Depot (rated A-/A2/A by Fitch/Moody’s/S&P) and BJ’s Wholesale Club (rated B3/B- by Moody’s/S&P), and national major tenants such as Marshalls, Best Buy, Toys ‘R’ Us / Babies ‘R’ Us, Michaels and Staples, among others. National in-line tenants include Gamestop, AT&T, T-Mobile, Sprint, JP Morgan Chase and Payless Shoe Source. As of April 1, 2014, the Bronx Terminal Market Property was 99.3% occupied.

Historical sales for all tenants reporting sales at the Bronx Terminal Market Property are presented in the subsequent chart.

 
Historical Sales PSF(1)
     
2010
  
2011
  
2012
  
2013
 
Anchor Tenant
                
 
Target(2)
  
NAV
  
NAV
  
NAV
  
$425
 
BJ’s Wholesale Club(3)
  
$990
  
$1,037
  
NAV
  
NAV
                   
 
Major Tenants
                
 
Toys ‘R’ Us / Babies ‘R’ Us
  
$225
  
$214
  
$197
  
$176
 
Burlington Coat Factory
  
NAV
  
NAV
  
$209
  
$240
 
Marshalls
  
$229
  
$233
  
$267
  
NAV
                   
 
Other In-Line / Restaurant
                
 
Skechers
  
NAV
  
$169
  
$178
  
$217
 
Payless Shoe Source
  
$146
  
$143
  
$134
  
NAV
 
Applebee’s
  
$600
  
$652
  
$717
  
$749
 
GNC
  
$176
  
$237
  
$274
  
$287
(1)
Historical Sales PSF is based on historical operating statements provided by the borrower.
(2)
Historical Sales PSF for Target is based on a borrower estimate.
(3)
BJ’s Wholesale Club was required to report sales for the first two years of its lease and is no longer required to report sales.
 
Environmental Matters.    The Phase I environmental report dated January 8, 2014 recommended no further action at the Bronx Terminal Market Property other than the development and implementation of an asbestos operation and maintenance plan for the southernmost building at the property which is the only remaining structure from the original development on the site, which is in place.

The Market.     The Bronx Terminal Market Property is located in the Bronxchester neighborhood of the Bronx, directly to the south of the new Yankee Stadium. The Bronxchester neighborhood has been the subject of multiple revitalization initiatives including the Yankee Stadium Area Redevelopment Project, which includes the construction of four new public baseball fields, a skating park, 18 new tennis courts and a new esplanade providing access from Yankee Stadium to the Bronx Terminal Market Property. Other proposed developments include a 28,000-seat Major League Soccer stadium that is proposed to be completed by 2019. Subway access to the Bronx Terminal Market Property is provided via the 2, 4 and 5 lines at the Grand Concourse station located three blocks to the east, as well as the 4, B and D lines at the 161st Street-Yankee Stadium station eight blocks to the north. The area is also served by numerous bus routes including the BXM1, BXM2, BXM3, BXM18, BX11 and BX13 lines and the Metro-North rail station immediately to the north of the Bronx Terminal Market Property. The Bronx Terminal Market Property is directly accessible via car from exits 4 and 6 on the Major Deegan Expressway. Pedestrian traffic in the area exceeds 250,000 per day.

The appraiser determined a primary trade area that encompasses the three-mile radius around the Bronx Terminal Market Property. This primary trade area included approximately 1.2 million people and 456,401 households as of year-end 2013, with an average household income of $51,737, above the Bronx County average of $46,664. The appraiser determined a primary competitive set that includes four other anchored retail shopping centers within Upper Manhattan and the Bronx. The appraiser also identified three proposed competitive properties: Bay Plaza Mall, Riverdale Crossings and Throggs Neck Shopping Center, all of which will be located five or more miles to the north of the Bronx Terminal Market Property, outside of its primary trade area.
 
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.
 
 
24
 
 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
The primary competitive set for the Bronx Terminal Market Property is presented in the following chart.

Bronx Terminal Market Competitive Set(1)
  
Name
  
Bronx Terminal
Market
  
Bay Plaza Power
Center
  
East River Plaza
  
River Plaza
  
Bruckner Plaza
Shopping Center
  
Distance from Subject
  
NAP
  
9.7 miles
  
2.4 miles
  
4.2 miles
  
6.4 miles
  
City, State
  
Bronx, NY
  
Bronx, NY
  
New York, NY
  
Bronx, NY
  
Bronx, NY
  
Property Type
  
Power Center
  
Power Center
  
Power Center
  
Regional Center
  
Community Center
  
Year Built / Renovated
  
2009 / NAP
  
1988 / 2004
  
2010 / NAP
  
2004 / NAP
  
1965 / 1989
  
Total Occupancy(2)
  
99.3%
  
96.0%
  
95.0%
  
98.0%
  
96.0%
  
Anchor Size (Sq. Ft.)
  
443,500
  
370,000
  
280,211
  
164,638
  
186,584
  
Total Size (Sq. Ft.)
  
912,333
  
1,200,000
  
524,498
  
235,000
  
449,941
  
Anchor Tenants
  
Target
BJ’s Wholesale Club
Home Depot
  
Pathmark
AMC Theaters
Raymour & Flanigan
  
Target
Costco
Burlington Coat Factory
Marshall’s
  
Target
Best Buy
Marshall’s
 
  
Kmart
Toys ‘R’ Us
Marshall’s
Old Navy
  
(1)
Source: Appraisal
(2)
Total Occupancy for the Bronx Terminal Market Property is as of April 1, 2014.
 
Cash Flow Analysis.

Cash Flow Analysis
  
 
2010
2011
2012
2013
U/W
U/W PSF
  
Base Rent(1)
$25,634,042
$25,534,402
$26,224,542
$26,651,657
$31,493,521
$34.52
  
Overflow Parking Income
237,225
398,270
344,899
200,762
0
0.00
  
Value of Vacant Space
0
0
0
0
$376,929
0.41
  
Gross Potential Rent
$25,871,267
$25,932,672
$26,569,441
$26,852,419
$31,870,450
$34.93
  
Total Recoveries
8,471,377
7,560,692
8,921,104
9,882,405
10,637,817
11.66
  
Total Other Income
4,898,128
4,381,748
4,624,299
4,460,101
4,250,002
4.66
  
Less: Vacancy & Credit Loss(2)
0
0
12,562
(277,129)
(3,135,914)
(3.44)
  
Effective Gross Income
$39,240,773
$37,875,112
$40,127,406
$40,917,796
$43,622,355
$47.81
  
Total Operating Expenses
11,884,032
11,786,374
12,525,866
12,689,002
13,068,486
14.32
  
Net Operating Income
$27,356,741
$26,088,738
$27,601,540
$28,228,794
$30,553,869
$33.49
  
TI/LC
0
0
0
0
707,901
0.78
  
Capital Expenditures
0
0
0
0
273,700
0.30
  
Net Cash Flow
$27,356,741
$26,088,738
$27,601,540
$28,228,794
$29,572,268
$32.41
  
               
Average Effective Annual Rent PSF
$30.29
$32.51
$30.45
$29.42
$32.83
    
               
(1)
U/W Base Rent includes $1,005,727 in rent steps through March 2015 and $737,972 in straight line rent attributable to credit tenants from March 2015 through March 2024.
(2)
U/W Vacancy represents 2.0% of gross income. Vacancy & Credit Loss includes $2,217,876 in concessions granted to Toys ‘R’ Us / Babies ‘R’ Us. Toys ‘R’ Us / Babies ‘R’ Us negotiated a reduced rent period which is scheduled to commence in May 2015 for an annualized reduced rent of $1,269,192 and a $948,684 CAM holiday for the second half of 2015 in exchange for a landlord termination option. The U/W Base Rent for Toys ‘R’ Us / Babies ‘R’ Us presented in the Tenant Summary chart is net of rent concessions.
 
Property Management.    The Bronx Terminal Market Property is managed by Related BTM Development Partners, LLC, a borrower affiliate.

Lockbox / Cash Management.    The Bronx Terminal Market Loan is structured with a hard lockbox and in place cash management. The borrower sent tenant direction letters to all tenants instructing them to deposit all rents and other payments into the lockbox account controlled by the lender. All funds in the lockbox account are swept daily to a lender-controlled cash management account and disbursed in accordance with the Bronx Terminal Market Loan Combination documents. Provided no Trigger Period (as defined herein) exists, all funds remaining in the cash management account after the payment of all required monthly debt service and reserve amounts (if any) will be remitted to the borrower on a daily basis.
 
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.
 
 
25
 
 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
A “Trigger Period” will commence (i) upon the occurrence of an event of default, (ii) if, as of any quarterly testing date, the DSCR for the trailing 12-month period is less than 1.10x (a “Low DSCR Trigger Period”), or (iii) upon an event of default under any mezzanine loan documents, and will end, (A) with respect to a Trigger Period continuing due to clause (i) above, upon the cure of such event of default and acceptance of such cure by lender, (B) with respect to a Trigger Period continuing due to clause (ii) above, if the DSCR for the trailing 12-month period is at least 1.15x for two consecutive calendar quarters, or (C) with respect to a Trigger Period continuing due to clause (iii) above, when such event of default is no longer continuing.

Initial Reserves.    None.

Ongoing Reserves.    During a Trigger Period, the borrower is required to deposit on a monthly basis (i) 1/12 of the estimated annual real estate taxes, which currently equates to $119,045, into a tax reserve account, (ii) 1/12 of the estimated annual insurance premiums, which currently equates to $33,652, into an insurance reserve account, (iii) $22,808 into a capital expenditure account, subject to a cap of $547,400 so long as no Low DSCR Trigger Period exists, (iv) $70,672 into a rollover reserve account, subject to a cap of $1,696,118 so long as no Low DSCR Trigger Period exists and (v) an amount equal to the ground rent due for the following month into a ground rent reserve account. Notwithstanding the foregoing, if an acceptable blanket insurance policy is in place, deposits into the insurance reserve account will be suspended.

Current Mezzanine or Subordinate Indebtedness.    None.
 
Historic Tax Credit Loan.  Bronx Terminal Market Fund, LLC (the “Fund”), the owner of a 99.99% non-managing membership interest in RCDG Sub-CDE I, LLC (“RCDG Sub”), itself the owner of a .01% non-managing membership interest in the borrower, has pledged its interest in RCDG Sub as security for a $99.5 million loan (the “Fund Loan”) made by U.S. Bancorp Community Development Corporation for the purpose of preserving certain historic tax credits allocated in connection with the development of the Bronx Terminal Market Property.  The documents evidencing the Fund Loan required RCDG Sub to deposit $99.5 million into a blocked account with an affiliate of the Fund Loan lender and provided that, on December 18, 2014, such amount will be released to RCDG Sub, used by RCDG Sub to make $99.5 million distribution to the Fund, and used by the Fund to repay the Fund Loan.
 
Future Mezzanine or Subordinate Indebtedness Permitted.    The borrower is permitted one time during the loan term to have an affiliate of the borrower obtain a mezzanine loan after April 15, 2017, from an approved mezzanine lender secured by a pledge of the direct or indirect equity interests in the borrower, provided, among other things per the Bronx Terminal Market Loan Combination documents, that (i) no more than one tranche of approved mezzanine debt shall be permitted at any time during the loan term and (ii) that the maximum principal amount of the approved mezzanine loan shall not exceed the lesser of the following (A) $50,000,000 or (B) the amount which would result in (x) a combined LTV ratio as of the closing of the mezzanine loan being no greater than 65.0% and (y) a combined DSCR as of the closing of the approved mezzanine loan being no less than 1.30x.

Ground Lease.   The Bronx Terminal Market Property is subject to a long term ground lease. The lessor on the ground lease is the City of New York. The ground lease commenced in September 2006 and has an initial expiration date of September 13, 2055, with five consecutive 10-year renewal options with written notice due no later than one year before the applicable expiration date. Ground rent due under the lease is calculated as the greater of (a) $341,183 per year, with 5.0% increases every five years beginning in August 2014, and (b) 2.0% of gross revenue from the Bronx Terminal Market Property, which increases to 3.0% in August 2014, 4.0% in August 2019 and 5.0% in August 2024. In addition, pursuant to the terms of the ground lease, in the event of certain sales or financings of the Bronx Terminal Market Property, the ground lessor is entitled to share in a portion of the net proceeds of such sale or financing in an amount equal to 7.5% of such net proceeds (if on or prior to the expiration of the initial term of the ground lease) or 15% of such net proceeds (if after the expiration of the initial term of the ground lease).

Partial Release.   The borrower has the right after April 15, 2016 to obtain a release of a parcel managed by an unaffiliated parking lot manager that is currently used for overflow parking for events at Yankees Stadium provided, among other conditions, that (i) no event of default exists at the time of such release, (ii) the release parcel is a legally subdivided parcel separate from the remainder of and is on a separate tax lot from the remainder of the Bronx Terminal Market Property and (iii) the release parcel is severed from the ground lease in accordance with the terms thereof and leased by the ground lessor to another tenant other than the borrower.

PILOT Program.   The Bronx Terminal Market Property is currently subject to a 25-year PILOT program, ending in 2035. Taxes are payable on the Bronx Terminal Market Property based on the actual property taxes (or, if the Bronx Terminal Market Property or the owner, including the City of New York, is exempt from real property taxes, the amount that would be assessed if not for such exemption), provided, however, the improvements are fully exempt from real estate taxes for the first 16 years following the date the first building permit was issued for the Bronx Terminal Market Property. Taxes on the improvements phase in at 10.0% increments from year 17 through year 25 when the exemption for improvements ends in tax year 2035.
 
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.
 
 
26
 
 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
(graphic)
 
Stacking plan based on information provided by the borrower.
 
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.
 
 
27
 
 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
(graphic)
 
Site plans based on information provided by the borrower.
 
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.
 
 
28
 
 
658 River Avenue
Bronx, NY 10451
Collateral Asset Summary – Loan No. 1
Bronx Terminal Market
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$140,000,000
63.3%
1.70x
9.6%
 
(graphic)
 
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.
 
 
29
 
 

 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
(GRAPHIC)
 
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.
 
 
30
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
Mortgage Loan Information
Loan Seller:
GACC
Loan Purpose:
Refinance
Sponsor:
BF&W Realty Company
Borrower:
25 Broadway Office Properties, LLC
Original Balance(1):
$130,000,000
Cut-off Date Balance(1):
$130,000,000
% by Initial UPB:
10.9%
Interest Rate:
4.7000%
Payment Date:
6th of each month
First Payment Date:
May 6, 2014
Maturity Date:
April 6, 2024
Amortization:
Interest Only
Additional Debt(1):
$120,000,000 Pari Passu Debt
Call Protection:
L(25), D(91), O(4)
Lockbox / Cash Management:
Hard / In Place
 
Reserves(2)
 
Initial
Monthly  
Taxes:
$1,693,530
$423,383  
Insurance:
$422,627
$46,959  
Replacement:
$0
$15,943  
TI/LC:
$20,420,098
$79,713  
Required Repairs(3):
$165,000
NAP  
Rent Concession:
$10,622,058
$0  
Additional Rollover:
$0
Springing  
 
Financial Information(4)
Cut-off Date Balance / Sq. Ft.:
$261
  
Balloon Balance / Sq. Ft.:
$261
  
Cut-off Date LTV:
67.8%
  
Balloon LTV:
67.8%
  
Underwritten NOI DSCR(5):
2.02x
  
Underwritten NCF DSCR(5):
1.90x
  
Underwritten NOI Debt Yield:
9.6%
  
Underwritten NCF Debt Yield:
9.0%
  
Underwritten NOI Debt Yield at Balloon:
9.6%
  
Underwritten NCF Debt Yield at Balloon:
9.0%
  
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
CBD Office
Collateral:
Fee Simple
Location:
New York, NY
Year Built / Renovated:
1917-1921 / 2010
Total Sq. Ft.:
956,554
Property Management:
ACTA Realty Corp.
Underwritten NOI(6):
$24,008,387
Underwritten NCF:
$22,578,990
Appraised Value:
$369,000,000
Appraisal Date:
January 16, 2014
 
Historical NOI
2013 NOI:
$19,504,228 (December 31, 2013)
2012 NOI:
$20,659,714 (December 31, 2012)
2011 NOI:
$23,023,021 (December 31, 2011)
2010 NOI:
$15,954,082 (December 31, 2010)
2009 NOI:
$10,208,063 (December 31, 2009)
 
Historical Occupancy
Most Recent Occupancy(7):
95.8% (March 13, 2014)
2013 Occupancy:
73.3% (December 31, 2013)
2012 Occupancy:
68.7% (December 31, 2012)
2011 Occupancy:
73.7% (December 31, 2011)
2010 Occupancy:
81.2% (December 31, 2010)
2009 Occupancy:
75.9% (December 31, 2009)
(1)
The Original Balance and Cut-off Date Balance of $130.0 million represent the controlling Note A-1 of the $250.0 million 25 Broadway Loan Combination evidenced by two pari passu notes. The pari passu companion loan is the non-controlling Note A-2 with an original principal balance of $120.0 million. For additional information on the pari passu companion loan, see “The Loan” herein.
(2)
See “Initial Reserves” and “Ongoing Reserves” herein.
(3)
The initial deposit of $165,000 into the required repairs reserve will be made on the first monthly payment date.
(4)
DSCR, LTV, Debt Yield and Balance / Sq. Ft. calculations are based on the aggregate 25 Broadway Loan Combination.
(5)
Underwritten NOI DSCR and Underwritten NCF DSCR are based on the interest only debt service payment. Based on a 30-year amortization schedule, the Underwritten NOI DSCR and Underwritten NCF DSCR would be 1.54x and 1.45x, respectively.
(6)
The increase in 2013 NOI to Underwritten NOI is primarily the result of six newly executed or renewed leases since October 2013 comprising 347,552 sq. ft. (36.3% of NRA) and representing approximately $11.3 million of in place U/W Base Rent (34.6% of U/W Base Rent).
(7)
Most Recent Occupancy includes 129,827 sq. ft. leased to Teach For America, 43,163 sq. ft. leased to WeWork and 39,962 sq. ft. leased to Cipriani USA, Inc., each of which have executed leases for and accepted possession of but are not yet in occupancy of their respective spaces. Teach For America and Cipriani USA, Inc. are expected to be in occupancy of their respective spaces no later than September 2014. WeWork is expected to be in occupancy of its 43,163 sq. ft. of expansion space no later than June 2014.

 
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.
 
 
31
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
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
 Léman Manhattan Preparatory School
NR/B3/B-
179,885(2)  
18.8%  
  
$34.48
19.1%
9/30/2030(2)
 Teach For America
NR/NR/NR
129,827(3)  
13.6%  
  
$31.00
12.4%
1/31/2032(3)
 WeWork
NR/NR/NR
129,485  
13.5%  
  
$30.00
12.0%
Various(4)
 Deloitte LLP
NR/NR/NR
121,368  
12.7%  
  
$51.43
19.2%
12/31/2016
 City University of New York
AA/Aa2/AA
87,405  
9.1%  
  
$36.51
9.8%
Various(5)
Total Major Tenants
  
647,970  
67.7%  
  
$36.34
72.4%
 
Remaining Tenants
  
268,740  
28.1%  
  
$33.34
27.6%
 
Total Occupied Collateral
  
916,710  
95.8%  
  
$35.46
100.0%
 
Vacant
  
39,844  
4.2%  
      
 
Total
  
956,554  
100.0%  
      
 
     
 
    
 
(1)
Certain ratings are those of the parent company whether or not the parent company guarantees the lease.
(2)
Léman Manhattan has no early termination options and has one ten-year extension option with 24 months prior notice at the greater of (i) fair market rent and (ii) an amount equal to the annual fixed rent in effect during the final year of the initial lease term. Léman Manhattan is required to take 20,306 sq. ft. of space currently occupied by Deloitte LLP (“Deloitte”) on the 3rd floor after the expiration of the Deloitte lease on December 31, 2016.
(3)
Teach For America has no early termination options and has one five-year extension option with 18 months prior notice at the greater of (i) fair market rent and (ii) an amount equal to the annual fixed rent in effect during the final year of the initial lease term. Teach For America is required to take 42,946 sq. ft. of space currently occupied by Deloitte on the 14th floor after the expiration of the Deloitte lease on December 31, 2016.
(4)
WeWork has no early termination options and has one five-year extension option with 18 months prior notice at the greater of (i) fair market rent and (ii) an amount equal to the annual fixed rent in effect during the final year of the initial lease term plus $5.00 PSF. WeWork occupies 86,322 sq. ft. of space through December 31, 2034 and 43,163 sq. ft. of space through September 30, 2034.
(5)
City University of New York occupies 43,785 sq. ft. of space through January 31, 2022 and 43,620 sq. ft. of space through May 1, 2024.
 
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
PSF
% 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
555
0.1%
555
0.1%
$9.05
0.0%
0.0%
2015
0
0
0.0%
555
0.1%
$0.00
0.0%
0.0%
2016
3
121,368
12.7%
121,923
12.7%
$51.43
19.2%
19.2%
2017
0
0
0.0%
121,923
12.7%
$0.00
0.0%
19.2%
2018
0
0
0.0%
121,923
12.7%
$0.00
0.0%
19.2%
2019
1
11,027
1.2%
132,950
13.9%
$31.29
1.1%
20.3%
2020
1
1
0.0%
132,951
13.9%
$42,890.00(2)
0.1%
20.4%
2021
0
0
0.0%
132,951
13.9%
$0.00
0.0%
20.4%
2022
1
43,785
4.6%
176,736
18.5%
$35.86
4.8%
25.2%
2023
0
0
0.0%
176,736
18.5%
$0.00
0.0%
25.2%
2024
1
43,620
4.6%
220,356
23.0%
$37.18
5.0%
30.2%
Thereafter
14
696,354
72.8%
916,710
95.8%
$32.57
69.8%
100.0%
Vacant
NAP
39,844
4.2%
956,554
100.0%
NAP
NAP
  
Total / Wtd. Avg.
22
956,554
100.0%
    
$35.46
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 stacking plan.
(2)
Represents income from a telecommunications antenna lease that expires in May 2020.
 
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.
 
 
32
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
The Loan.  The 25 Broadway loan (the “25 Broadway Loan”) is the controlling Note A-1 portion, with original and cut-off date principal balances of $130.0 million, of a fixed rate loan in the aggregate original and cut-off date principal amounts of $250.0 million (the “25 Broadway Loan Combination”). The 25 Broadway Loan Combination is secured by the borrower’s fee simple interest in a landmark 22-story Class B office building with multi-level retail space totaling 956,554 sq. ft. located at 25 Broadway in the Financial District neighborhood in Downtown Manhattan, New York City (the “25 Broadway Property”). The 25 Broadway Loan Combination is evidenced by two pari passu notes. Only the Note A-1 will be included in the COMM 2014-CCRE17 mortgage trust. The non-controlling Note A-2, with original and cut-off date principal balances of $120.0 million, was contributed to the COMM 2014-CCRE16 transaction. The 25 Broadway Loan Combination has a 10-year term and pays interest only for its entire term.

The proceeds of the 25 Broadway Loan Combination were used to retire approximately $96.7 million of existing mortgage loan debt, fund upfront reserves of approximately $33.2 million, pay closing costs of approximately $6.7 million and return approximately $113.5 million of equity to the sponsor. Based on the appraised value of $369.0 million as of January 16, 2014, the cut-off date LTV ratio of the 25 Broadway Loan Combination is 67.8% and the remaining implied equity is $119.0 million. The most recent prior financing of the 25 Broadway Property was not included in a securitization.

The relationship between the holders of Note A-1 and Note A-2 are governed by an intercreditor agreement to be described under “Description of the Mortgage Pool―Loan Combinations―The 25 Broadway Loan Combination” in the free writing prospectus.

Loan Combination Summary
 
Original Balance
Cut-off Date Balance
Note Holder
Controlling Piece
Note A-1
$130,000,000
$130,000,000
COMM 2014-CCRE17
Yes
Note A-2
$120,000,000
$120,000,000
COMM 2014-CCRE16
No
Total
$250,000,000
$250,000,000
    
 
Sources and Uses
Sources
Proceeds
% of Total
  
Uses
Proceeds
% of Total  
Loan Amount
$250,000,000
100.0%
 
Loan Payoff
$96,719,846
38.7%  
       
Reserves
$33,158,314
13.3%  
       
Closing Costs
$6,669,652
2.7%  
       
Return of Equity
$113,452,188
45.4%  
Total Sources
$250,000,000
100.0%
 
Total Uses
$250,000,000
100.0%  
 
The Borrower / Sponsor.    The borrower, 25 Broadway Office Properties, LLC, is a single purpose Delaware limited liability company structured to be bankruptcy-remote, with two independent directors in its organizational structure. The sponsor of the borrower and nonrecourse carve-out guarantor is BF&W Realty Company, an entity ultimately controlled by The Wolfson Group, a family investment and real estate firm founded by Zev Wolfson and operated by his sons Abraham and Aaron Wolfson. The Wolfson family owns and operates in excess of 2.0 million sq. ft. in New York City.

The Property.    The 25 Broadway Property consists of a 22-story Class B office building totaling 956,554 sq. ft. located at 25 Broadway in the Financial District neighborhood of Downtown Manhattan in New York City. The 25 Broadway Property occupies an irregular shaped block and is bounded by Greenwich Street to the west, Broadway to the east, and Morris Street to the north, with entrances on Broadway and Morris Street. The main entrance on Broadway faces Bowling Green Park and the Charging Bull sculpture by Arturo Di Modica, a popular tourist destination. Constructed from 1917-1921, the 25 Broadway Property was formerly known as the Cunard Building and served as the ticket office of the Cunard Passenger Ship Line and was designated in 1995 as a historic landmark by the New York City Landmarks Preservation Commission.

The 25 Broadway Property features floor plates ranging from 21,893 sq. ft. to 44,236 sq. ft. for the above ground floors and as of March 13, 2014 was 95.8% leased under 22 separate leases. The building contains six self-service passenger elevators and two freight elevators. The 2nd through 22nd floors contain office space and the ground and lower levels along Broadway and Greenwich Street contain retail tenants. The borrower acquired the property in June 1998 and since 2004 the borrower has invested $65.8 million in capital expenditures at the 25 Broadway Property, including $13.2 million in improvements to the building’s heating and cooling systems, $7.4 million for façade restoration and over $45.2 million for tenant improvements.

Environmental Matters.    The Phase I environmental report dated January 24, 2014 did not identify any recognized environmental conditions or require any remedial action other than the recommended continued implementation of the existing asbestos operations and maintenance plan at the 25 Broadway Property.
 
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.
 
 
33
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
Major Tenants.    

Léman Manhattan Preparatory School (179,885 sq. ft., 18.8% of NRA, 19.1% of U/W Base Rent) Léman Manhattan Preparatory School (“Léman Manhattan”), formerly known as Claremont Preparatory School, was founded in September 2005 and is the first independent nonsectarian school below Canal Street in Manhattan. In 2009, Léman Manhattan took occupancy of its space at the 25 Broadway Property and in 2011 became part of the Meritas Family of Schools, an international group of ten schools located on three continents that provide college preparatory education to over 12,000 students worldwide. Léman Manhattan offers small class sizes of 18 or less per class and maintains a 5 to 1 student-to-teacher ratio. Léman Manhattan utilizes its space at the 25 Broadway Property as its Middle School and High School (5th through 12th grades). Amenities at the school include a two-floor library, art and music studios, an aquatics center, regulation-size gymnasium and workout room, a rock climbing wall, café, theater and computer labs.

Léman Manhattan has no early termination options and has one ten-year renewal option with 24 months prior notice at the greater of (i) fair market rent and (ii) an amount equal to the annual fixed rent in effect during the final year of the initial lease term. Léman Manhattan is required to take 20,306 sq. ft. of space currently occupied by Deloitte on the 3rd floor after the expiration of the Deloitte lease on December 31, 2016.

Teach For America (129,827 sq. ft., 13.6% of NRA, 12.4% of U/W Base Rent) Teach For America is a non-profit organization which recruits recent college graduates for two-year teaching commitments in public schools nationwide. Teach For America’s mission is to train and develop corps members so that they have an immediate positive impact on their students and promote the goal that all children in the United States will have the opportunity to attain an excellent education. Since 1990, over 33,000 participant teachers have reached more than three million students. During the 2013-2014 school year, 11,000 corps members will reach more than 750,000 students, and in 2013 Teach For America was named one of Fortune magazine’s 100 Best Companies to Work For.

Teach For America signed its lease in January 2014 and has free rent due for its entire space through June 2015, all of which was reserved for at closing. Teach For America has accepted possession of its space and is expected to complete build out and be in occupancy no later than September 2014. Teach For America has no early termination options and has one five-year extension option with 18 months prior notice at the greater of (i) fair market rent and (ii) an amount equal to the annual fixed rent in effect during the final year of the initial lease term. Teach For America is required to take 42,946 sq. ft. of space currently occupied by Deloitte on the 14th floor after the expiration of the Deloitte lease on December 31, 2016.

WeWork (129,485 sq. ft., 13.5% of NRA, 12.0% of U/W Base Rent) Founded in 2010, WeWork is a provider of collaborative workplaces for innovative entrepreneurs, growing early-stage startups and successful small businesses. WeWork members include Waze, AirBNB, Imgur, Reddit, Lululemon and Buzzfeed. WeWork offers 16 locations in six cities, including eight offices in New York City, two offices in San Francisco and two offices in Washington D.C. Business benefits offered by WeWork to its tenants include health insurance, credit card processing, Zipcar discounts and access to investors. Office amenities include high speed internet and WiFi, bike storage, event space, production suites, recording studios, unique interior design, fresh fruit and purified water. WeWork’s standard membership pricing ranges from $45 per month for a single desk to $700 per month for a one-person office up to $3,450 per month for a six-person office.

WeWork signed a lease for 43,163 sq. ft. of its space on the 5th floor in January 2014 and has free rent due for its 9th and 10th floor space through December 2014 and free rent due for its 5th floor space through September 2015, all of which was reserved for at closing. WeWork has accepted possession of its 5th floor space and is expected to complete build out and be in occupancy of the space no later than June 2014. WeWork is already in occupancy of its 9th and 10th floor space. WeWork has no early termination options and has one five-year extension option with 18 months prior notice at the greater of (i) fair market rent and (ii) an amount equal to the annual fixed rent in effect during the final year of the initial lease term plus $5.00 PSF.

The Market.    The 25 Broadway Property is located in the Financial District neighborhood of Downtown Manhattan. The Financial District is served by the 1/2/3/4/5/A/C/E/R/J/Z subway lines, 30 bus routes, the PATH train to New Jersey and six ferry terminals. Forty-four of the nation’s Fortune 500 companies are headquartered in New York City, including Verizon Communications, J.P. Morgan Chase & Co., Citigroup, Time Warner, MetLife and New York Life Insurance. New York City is the largest regional economy in the United States and the second largest city economy in the world, behind Tokyo, Japan. The financial, insurance, health care and real estate industries form the basis of New York’s economy, with high-tech industries such as internet services growing rapidly.
 
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.
 
 
34
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
The 25 Broadway Property is located in the Downtown Manhattan office market within the Financial West office submarket. The Financial West submarket is the smallest office market in Downtown Manhattan and has traditionally been the beneficiary of overflow demand for office space in the Financial East and World Trade submarkets. The Financial West submarket is bounded by Battery Park, Albany Street, Greenwich Street, Liberty Street and Broadway. As of Q3 2013, the Financial West office submarket consisted of eight Class B buildings totaling 3,387,600 sq. ft. of rentable space.

As of Q3 2013, the Class B direct vacancy rate in the Financial West submarket was 11.8% with a direct rental rate of $35.79 PSF with 311,212 sq. ft. of net absorption YTD. Since Q3 2012, the direct rental rate increased by $2.98 PSF while direct vacancy decreased by 2.4% over the same time period. Total available space for rent fell 43.6% from Q3 2012 to Q3 2013. For the Downtown Manhattan office market as a whole, Class B direct vacancy was 6.6% as of Q3 2013 with a direct rental rate of $36.88 PSF and 1,686,366 sq. ft. of net absorption YTD.

The appraiser identified ten office lease comparables, which are presented in the following chart.

Office Lease Comparables(1)
  
Property
Tenant
Year Built
Lease Area
(Sq. Ft.)(2)
Base Rent
(PSF)(2)
Workletter
(PSF)
Free Rent
(mos)
Lease Term
(yrs)(2)   
  
25 Broadway Property(2)
Various
1917-1921
652,355
$36.08
$40.00
10
17.6  
  
75 Broad Street
North South Productions
1928
27,000
$33.00
$50.00
6
10.5  
  
40 Wall Street
Hadassah
1930
46,175
$34.00
$60.00
9
20.0  
  
14 Wall Street
Regus Workplaces
1932/1997
37,031
$34.00
$20.00
5
10.0  
  
80 Broad Street
Labelium
1931/2007
4,365
$35.00
$25.00
3
7.3  
  
100 Church Street
TRINITY
1958
13,772
$38.00
$0.00
7
15.6  
  
30 Wall Street
Capstone Executive
1955
10,900
$32.50
$65.00
10
10.8  
  
120 Wall Street
Success Academy
Chartered Schools
1930
53,908
$35.00
$65.00
8
15.0  
  
120 Wall Street
PICO
1930
10,418
$35.00
$31.45
0
12.0  
  
110 William Street
PCOM
1958/1999
42,000
$33.00
$65.00
6
15.0  
  
17 Battery Place North
Exponents
1972/2001
23,343
$35.00
$45.00
4
10.4  
  
(1)
Source: Appraisal
(2)
Based on rent roll dated March 13, 2014. For the 25 Broadway Property, Lease Area (Sq. Ft.), Base Rent (PSF) and Lease Term (yrs) represent the amount of space at the property classified as office space and the in-place base rent and lease term for such space.
 
The appraiser identified eight school lease comparables, which are presented in the following chart.
 
School Lease Comparables(1)
  
Property
Tenant
Year Built
Lease Area
(Sq. Ft.)(2)
Base Rent
(PSF)(2)
Workletter
(PSF)
Free Rent
(mos)
Lease Term (yrs)(2)
  
25 Broadway Property(2)
Various
1917-1921
179,885
$34.48  
$40.00
10
21.3
  
747 Amsterdam Avenue
Montclare Children’s School
1927
24,000
$37.00  
$0.00
0
7.0
  
110 William Street
Pacific College
1958/1999
42,000
$33.00  
$65.00
6
15.0
  
17 Battery Place North
Nyack College
1972/2001
166,385
$32.00  
$0.00
12
20.0
  
136 Madison Avenue
Syracuse University
1916
20,323
$50.00  
$50.00
8
10.0
  
218 West 18th Street
SAE Institute of
Technology
1912
27,008
$51.98  
$0.00
0
10.5
  
925 9th Avenue and
400 West 59th Street
Speyer Legacy School
1891/1997
85,754
$35.00  
$0.00
0
20.0
  
400 West 59th Street
Bright Horizons Family
Solutions
1997
17,288
$40.49  
$20.00
14
20.0
  
259 10th Avenue
The Avenues School
1928
240,000
$25.00  
$0.00
12
49.0
  
(1)
Source: Appraisal
(2)
Based on rent roll dated March 13, 2014. For the 25 Broadway Property, Lease Area (Sq. Ft.), Base Rent (PSF) and Lease Term (yrs) represent the amount of space at the property classified as school space and the in-place base rent and lease term for such space.
 
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.
 
 
35
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
The appraiser identified six retail lease comparables, which are presented in the following chart.

Retail Lease Comparables(1)
  
Property
Tenant
Frontage
Lease Area
(Sq. Ft.)(2)
Base Rent
(PSF)(2)
Workletter
(PSF)
Free Rent
(mos)
Lease Term (yrs)(2)
  
25 Broadway Property(2)
Various
Various
78,559
$32.52
$0.00
3
20.0
  
100 Wall Street
Gregory’s Coffee
Wall Street
1,000
$100.00
$0.00
3
10.0
  
111 Fulton Street
Bare Burger
Fulton Street
2,120
$113.00
$0.00
3
10.0
  
10 Hanover Square
Lenny’s
Hanover Square
8,300
$50.00
$0.00
3
10.0
  
100 Broadway
TD Ameritrade
Broadway
9,509
$131.68
$0.00
3
10.0
  
100 Washington Street
Verizon
Washington Street
4,536
$87.50
$0.00
3
10.0
  
174 Broadway
Aldo Shoes
Broadway & Maiden Lane
4,400
$102.27
$0.00
3
10.0
  
(1)
Source: Appraisal
(2)
Based on rent roll dated March 13, 2014. For the 25 Broadway Property, Lease Area (Sq. Ft.), Base Rent (PSF) and Lease Term (yrs) represent the amount of space at the property classified as retail and gym space and the in-place base rent and lease term for such space.
 
The appraiser determined the following market rents for the 25 Broadway Property, which are presented in the following chart.

Conclusion of Market Rents(1)
  
Tenant Category
Base Rent
(PSF)
Lease
Term (yrs)
Workletter
(PSF)
Free Rent
(mos)
Lease
Type
  
Floors 2-10
$34.00
10.0
$40.00
10
Gross
  
Floors 11-18
$37.00
10.0
$40.00
10
Gross
  
School Space
$40.00
10.0
$40.00
10
Gross
  
Retail-Broadway
$100.00
10.0
$0.00
3
Gross
  
Retail-Landmark former Grand Hall
$60.00
10.0
$0.00
3
Gross
  
Retail-Newsstand
$35.00
10.0
$0.00
3
Gross
  
Retail-Lower Level
$35.00
10.0
$0.00
3
Gross
  
(1)
Source: Appraisal

The appraiser identified thirteen recent office sales in the market, which are presented in the following chart.
 
Recent Office Sales (1)
  
Property
Year Built
Lease Area
(Sq. Ft.)
Sale Date
Sale Price
Price/
Sq. Ft.
OAR
Occupancy
  
25 Broadway Property
1917-1921
956,554
NAP
NAP
NAP
NAP
95.8%(2)
  
One North End Avenue
1997
568,895
Dec-2013
$200,000,000
$352
6.04%
100%
  
195 Broadway
1913/1985
1,047,287
Dec-2013
$498,450,000
$476
3.99%
86%
  
One Chase Manhattan Plaza
1961/2009
2,212,930
Dec-2013
$725,000,000
$328
7.31%
98%
  
100 William Street
1973
422,406
Nov-2013
$166,500,000
$394
4.53%
95%
  
180 Water Street
1971
568,565
Jul-2013
$151,000,000
$266
6.67%
100%
  
100 Broadway
1897/1998
394,790
Jul-2013
$155,000,000
$393
6.26%
97%
  
5 Hanover Square
1962
334,211
Jul-2013
$105,000,000
$314
5.00%
93%
  
123 William Street
1957
569,160
Jul-2013
$134,000,000
$235
2.24%
52%
  
2 Rector Street
1909/1990
460,186
Apr-2013
$140,000,000
$304
2.68%
73%
  
222 Broadway
1961
786,931
Apr-2012
$230,000,000
$292
3.62%
79%
  
4 New York Plaza
1969
1,121,753
Apr-2012
$270,000,000
$241
4.23%
95%
  
14 Wall Street
1912
1,016,723
Apr-2012
$303,000,000
$298
4.39%
82%
  
33 Maiden Lane
1984
624,124
Jan-2012
$207,500,000
$332
4.74%
86%
  
(1)
Source: Appraisal
(2)
Based on rent roll dated March 13, 2014.

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.
 
 
36
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
Cash Flow Analysis.

Cash Flow Analysis
 
2010
2011
2012
2013
U/W
U/W PSF  
Base Rent(1)
$21,396,435
$25,485,955
$24,148,993
$24,001,192
$32,945,545
$34.44  
Value of Vacant Space
0
0
0
0
1,792,980
1.87  
Gross Potential Rent
$21,396,435
$25,485,955
$24,148,993
$24,001,192
$34,738,525
$36.32  
Total Recoveries
11,101,555
7,083,368
5,489,042
6,004,526
5,348,566
5.59  
Total Other Income
0
5,849,724
5,143,739
4,945,578
3,588,587
3.75  
Less: Mark to Market(2)
0
0
0
0
(1,703,351)
(1.78)  
Less: Vacancy(3)
0
0
0
0
(1,792,980)
(1.87)  
Effective Gross Income
$32,497,990
$38,419,047
$34,781,774
$34,951,296
$40,179,347
$42.00  
Total Operating Expenses(4)
16,543,908
15,396,026
14,122,060
15,447,068
16,170,960
16.91  
Net Operating Income
$15,954,082
$23,023,021
$20,659,714
$19,504,228
$24,008,387
$25.10  
Non-Recurring Items(5)
584,000
584,000
0
0
0
0.00  
TI/LC
0
0
0
0
1,238,086
1.29  
Capital Expenditures
0
0
0
0
191,311
0.20  
Net Cash Flow
$15,370,082
$22,439,021
$20,659,714
$19,504,228
$22,578,990
$23.60  
             
Average Effective Annual Rent PSF
$27.55
$36.15
$36.75
$34.23
$35.95
  
             
(1)
U/W Base Rent includes $441,225 in contractual step rent through February 2015. U/W Base Rent is approximately $8.5 million higher than 2013 Base Rent, net of rent steps, due primarily to leases signed since October 2013 by Cipriani USA, Inc., WeWork, Teach For America and Cogent, which contribute approximately $11.3 million in aggregate Base Rent.
(2)
U/W Mark to Market was applied to Deloitte, which pays annual U/W Base Rent PSF of $51.43, above the appraiser’s concluded market rent for office space of $34.00 to $37.00 PSF.
(3)
U/W Vacancy represents 4.1% of gross income.
(4)
The 25 Broadway Property is subject to two tax abatements within the New York City 12-year Industrial & Commercial Incentive Program. One of the abatements is in its final year, while the other begins to phase out at 20% per year starting in the fourth year of the 25 Broadway Loan term and burns off completely by the ninth year of the 25 Broadway Loan term. Taxes were underwritten at an unabated level less the net present value of the tax abatement, a benefit of $371,882.
(5)
2010 and 2011 Effective Gross Income includes $584,000 in income from film shoots, which is non-recurring.
 
Property Management. The 25 Broadway Property is managed by ACTA Realty Corp., a borrower affiliate.

Lockbox / Cash Management. The 25 Broadway Loan Combination is structured with a hard lockbox and in place cash management. The borrower sent tenant direction letters to all tenants instructing them to deposit all rents and other payments directly into the lockbox account controlled by the lender. All funds in the lockbox account are swept daily to a cash management account under the control of the lender and disbursed in accordance with the 25 Broadway Loan Combination documents.

Additionally, all excess cash will be swept into a lender controlled account (i) upon an event of default or (ii) if there exists a Low Debt Service Period (as defined herein).

A “Low Debt Service Period” commences if the debt service coverage ratio (as reasonably determined by lender in accordance with the definition of such ratio set forth in the loan documents) is less than 1.10x and ends if such debt service coverage ratio is at least 1.15x for two consecutive calendar quarters.

Initial Reserves. At closing, the borrower deposited (i) $1,693,530 into a tax reserve account, (ii) $422,627 into an insurance reserve account, (iii) $20,420,098 into an account for tenant improvements and leasing commissions, of which $10,012,578 was reserved for existing obligations due to Teach For America, $7,148,825 was reserved for existing obligations due to WeWork, $1,999,263 was reserved for existing obligations due to Cipriani USA, Inc., $1,000,000 was reserved for existing obligations due to Cogent and $259,433 was reserved for existing obligations due to Planet Fitness and (iv) $10,622,058 into an account for free rent obligations (which shall be disbursed into the lockbox account on a monthly basis), of which $4,704,635 was reserved for existing free rent due to Teach For America, $3,364,291 was reserved for existing free rent due to WeWork, $2,314,081 was reserved for existing free rent due to Cipriani USA, Inc., and $239,051 was reserved for existing free rent due to Cogent. In addition, on the first monthly payment date, the borrower will be required to deposit $165,000 into a reserve for immediate repairs. At the borrower’s option and provided, among other things per the loan documents, no event of default is continuing, the borrower may deliver to lender one or more letters of credit to replace all or a portion of the initial $20,420,098 TI/LC deposit.
 
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.
 
 
37
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
Ongoing Reserves.    On a monthly basis, the borrower is required to deposit reserves of (i) 1/12 of the estimated annual real estate taxes, which currently equates to $423,383 per month, into a tax reserve account, (ii) 1/12 of the estimated annual insurance premiums, which currently equates to $46,959 per month, into an insurance reserve account, (iii) $15,943 into a replacement reserve account and (iv) $79,713 into an account for tenant improvements and leasing commissions. The tenant improvements and leasing commissions account will initially be capped at $3,000,000 and, once such initial cap is reached, will remain suspended until such time that the balance in the reserve drops below $1,000,000 and after such date the monthly tenant improvements and leasing commissions deposit amount will be reduced to $39,856 and capped at $2,000,000 thereafter.

Beginning on the first monthly payment date from and after July 1, 2016 (regardless of the occurrence of an event of default or Low Debt Service Period), all excess cash flow will be swept into a separate rollover reserve (the “Additional Rollover Reserve”) until such time that $3,655,692 has been deposited into the Additional Rollover Reserve. Deposits into the Additional Rollover Reserve will be suspended if (i) the borrower deposits $3,655,692 into the Additional Rollover Reserve on or before June 30, 2016 or (ii) the borrower delivers a letter of credit in the amount of $3,655,692 on or before June 30, 2016. Funds on deposit in the Additional Rollover Reserve are required to be used by the borrower for tenant improvements for the Deloitte space on the 14th floor that is required to be occupied by Teach For America and the Deloitte space on the 3rd floor that is required to be occupied by Léman Manhattan after the expiration of Deloitte’s lease in December 2016.

Current Mezzanine or Subordinate Indebtedness.    None.

Future Mezzanine or Subordinate Indebtedness Permitted.    None.
 
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.
 
 
38
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
 
(GRAPHIC)

 
Stacking plan based on information provided by the borrower.
 
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.
 
 
39
 
 
25 Broadway
New York, NY 10004
Collateral Asset Summary – Loan No. 2
25 Broadway
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$130,000,000
67.8%
1.90x
9.6%
 
(MAP)
 
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.
 
 
40
 
 
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41
 
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
(GRAPHIC)
 
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.
 
 
42
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
Mortgage Loan Information
Loan Seller:
CCRE
Loan Purpose(1):
Recapitalization
Sponsor(2):
Simon Property Group, L.P.
Borrower:
Mall at Cottonwood, LLC
Original Balance:
$105,000,000
Cut-off Date Balance:
$104,869,473
% by Initial UPB:
8.8%
Interest Rate:
4.8155%
Payment Date:
6th of each month
First Payment Date:
May 6, 2014
Maturity Date:
April 6, 2024
Amortization:
360 months
Additional Debt:
None
Call Protection(3):
L(25), D(88), O(7)
Lockbox / Cash Management:
Hard / Springing
 
Reserves(4)
  
 
Initial  
Monthly
  
Taxes:
 $66,667 
$66,667
  
Insurance:
$0 
Springing
  
Replacement:
$0  
$8,551
  
TI/LC:
$0  
$34,204
  
 
Financial Information
Cut-off Date Balance / Sq. Ft.(5):
$255
  
Balloon Balance / Sq. Ft.(5):
$209
  
Cut-off Date LTV:
59.9%
  
Balloon LTV:
49.0%
  
Underwritten NOI DSCR:
1.96x
  
Underwritten NCF DSCR:
1.89x
  
Underwritten NOI Debt Yield:
12.4%
  
Underwritten NCF Debt Yield:
11.9%
  
Underwritten NOI Debt Yield at Balloon:
15.2%
  
Underwritten NCF Debt Yield at Balloon:
14.6%
  
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Super Regional Mall
Collateral:
Fee Simple
Location:
Albuquerque, NM
Year Built / Renovated:
1996 / 2013
Total Sq. Ft.:
1,060,744
Total Collateral Sq. Ft.(6):
410,452
Property Management:
SPG Management Associates III, LLC
Underwritten NOI:
$13,002,290
Underwritten NCF:
$12,489,225
Appraised Value:
$175,000,000
Appraisal Date:
February 25, 2014
 
Historical NOI
Most Recent NOI:
$13,583,944 (T-12 January 31, 2014)
2013 NOI:
$13,422,915 (December 31, 2013)
2012 NOI:
$12,955,672 (December 31, 2012)
2011 NOI:
$12,899,427 (December 31, 2011)
2010 NOI:
$12,691,595 (December 31, 2010)
 
Historical Occupancy(5)(7)
Most Recent Occupancy(7):
96.0% (March 31, 2014)
2013 Occupancy:
98.0% (December 31, 2013)
2012 Occupancy:
96.0% (December 31, 2012)
2011 Occupancy:
96.0% (December 31, 2011)
2010 Occupancy:
95.0% (December 31, 2010)
(1)  
The Cottonwood Mall Property was previously unencumbered.
(2)  
Washington Prime Group Inc. is a pre-approved replacement guarantor of the loan. See “The Borrower / Sponsor” herein.
(3)  
Partial release of a non-income producing parcel is permitted. See “Partial Release and Substitution” herein.
(4)  
See “Initial Reserves” and “Ongoing Reserves” herein.
(5)  
Based on Total Collateral Sq. Ft. of 410,452.
(6)  
Excludes Dillard’s (170,610 sq. ft.), Macy’s (164,978 sq. ft.), JC Penney (124,656 sq. ft.), Sears (106,000 sq. ft.), Conn’s HomePlus (42,024 sq. ft.) and a vacant space (42,024 sq. ft.), which are non-collateral.
(7)  
Historical Occupancy includes temporary tenants, which totaled approximately 12,074 sq. ft. as of March 31, 2014. Most Recent Occupancy excluding temporary tenants is 93.1%. Most Recent Occupancy, including temporary tenants, based on Total Sq. Ft. of 1,060,744 is 94.5%.

 
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.
 
 
43
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
Tenant Summary(1)
 Tenant
Ratings 
(Fitch/Moody’s/S&P)(2)
Total
Sq. Ft.
% of Total Collateral
Sq. Ft.
Lease 
Expiration
Annual U/W Base
Rent PSF(3)
Total Sales (000s)(4)
Sales PSF(4)
Occupancy
Cost 
(% of Sales)(4)
                 
 Non-Collateral Anchor Tenants
                
 Dillard’s
BBB-/Ba2/BB+
170,610
NAP
NAP
NAP
$20,200
$122
 NAP          
 Macy’s
NR/Baa2/BBB+
164,978
NAP
NAP
NAP
$12,300
  $76
 NAP          
 JC Penney
NR/Caa1/CCC+
124,656
NAP
NAP
NAP
$16,800
$139
 NAP          
 Sears
B-/Caa1/CCC+
106,000
NAP
NAP
NAP
$11,300
$110
 NAP          
 Conn’s HomePlus
NR/NR/NR
84,048(5)
NAP
NAP
NAP
NAP
 NAP
 NAP          
 Subtotal
  
650,292
            
                 
 Collateral Anchor Tenants
                
 Regal Cinema
BB/B2/B+
80,360 
19.6%
12/31/2016
$13.00
$6,493
$405,827(6)    
21.0%
                 
 Major Tenants (≥ 10,000 sq. ft.)
                
 Old Navy
BBB-/Baa3/BBB-
14,915 
3.6%
4/30/2023
$22.62
$4,911
$329
6.9%
 Ulta Beauty
NR/NR/NR
10,163 
2.5%
10/31/2020
$22.94
$3,796
$374
8.0%
 Subtotal
  
25,078 
6.1%
    
$8,707
$347
  
                 
 In-line Tenants (<10,000 sq. ft.)(7)
  
288,681 
70.3%
  
$32.79
$74,493
$330
14.5%
                 
 Total Occupied Collateral
  
394,119 
96.0%
          
                 
 Vacant
  
16,333 
4.0%
          
 Total Collateral
  
410,452 
100.0%
          
                 
(1)  
Based on rent roll as of March 31, 2014.
(2)  
Certain ratings may be those of the parent company whether or not the parent company guarantees the lease.
(3)  
Annual U/W Base Rent PSF includes rent steps through June 2015 and excludes temporary tenant income.
(4)  
Total Sales (000s) and Sales PSF were provided by the borrower as of December 31, 2013 and only include tenants which reported sales for a minimum of 12 months (78.2% of occupied in-line NRA). Total Sales (000s) and Sales PSF for Non-Collateral Anchor Tenants were estimates provided by the borrower as of December 31, 2012. Occupancy Cost (% of Sales) is based on Annual U/W Base Rent PSF and U/W expense recoveries.
(5)  
Conn’s HomePlus occupies 42,024 sq. ft. on the ground floor of a two-level, 84,048 sq. ft. non-collateral anchor box owned by Macerich. The remaining 42,024 sq. ft. is currently vacant.
(6)  
Shown as sales per screen. Regal Cinema contains 16 screens.
(7)  
In-line tenants include food court, kiosk, outparcel and temporary tenants.
 
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.
 
 
44
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
Lease Rollover Schedule(1)(2)
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
PSF
% U/W
Base Rent
Rolling
Cumulative %
of U/W
Base Rent
  Temporary Tenants
11
12,074
2.9%
12,074
2.9%
NAP
NAP
NAP
2014
3
3,385
0.8%
15,459
3.8%
$61.48
1.9%
1.9%
2015
15
39,277
9.6%
54,736
13.3%
$26.85
9.9%
11.8%
2016(3)
13
113,450
27.6%
168,186
41.0%
$18.03
19.1%
31.0%
2017
37
81,545
19.9%
249,731
60.8%
$35.16
26.8%
57.8%
2018
16
42,005
10.2%
291,736
71.1%
$38.13
15.0%
72.8%
2019
12
30,874
7.5%
322,610
78.6%
$34.59
10.0%
82.8%
2020
4
19,870
4.8%
342,480
83.4%
$23.13
4.3%
87.1%
2021
1
740
0.2%
343,220
83.6%
$71.42
0.5%
87.6%
2022
3
15,738
3.8%
358,958
87.5%
$18.83
2.8%
90.4%
2023
6
28,894
7.0%
387,852
94.5%
$27.60
7.5%
97.8%
2024
4
6,267
1.5%
394,119
96.0%
$37.22
2.2%
100.0%
Thereafter
0
0
0.0%
394,119
96.0%
$0.00
0.0%
100.0%
Vacant
NAP
16,333
4.0%
410,452
100.0%
NAP
NAP
  
Total / Wtd. Avg.
125
   410,452        
100.0%
    
  $27.11        
100.0%
  
(1)  
Based on rent roll as of March 31, 2014.
(2)  
Certain tenants have lease termination options 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.
(3)  
Leases expiring in 2016 include Regal Cinema, which has been a tenant at the Cottonwood Mall Property since 1996 and has two, five-year renewal options remaining.
 
The Loan.  The Cottonwood Mall loan (the “Cottonwood Mall Loan”) is a fixed rate loan secured by the borrower’s fee simple interest in a portion of a two-story, enclosed super regional mall located in Albuquerque, New Mexico. Cottonwood Mall is a 1,060,744 sq. ft. mall with six anchor tenants, including Dillard’s, Macy’s, JC Penney, Sears, Conn’s HomePlus (all non-owned and not part of the collateral) and a 16-screen Regal Cinema movie theater (owned and part of the collateral). The collateral (the “Cottonwood Mall Property”) for the Cottonwood Mall Loan consists of 410,452 sq. ft. and includes the theater tenant and all major and in-line tenants.
 
The Cottonwood Mall Loan has an original principal balance of $105.0 million, with a 10-year term and amortizes on a 30-year schedule. The Cottonwood Mall Loan accrues interest at a fixed rate equal to 4.8155% and has a cut-off date balance of approximately $104.9 million. The Cottonwood Mall Loan proceeds were used to recapitalize the sponsor and fund closing costs and reserves. Based on the appraised value of $175.0 million as of February 25, 2014, the cut-off date LTV ratio is 59.9% with remaining implied equity of approximately $70.1 million. The Cottonwood Mall Property was previously unencumbered.
 
Sources and Uses
Sources
Proceeds
% of Total
  
Uses
Proceeds
% of Total  
Loan Amount
$105,000,000
100.0%
  
Recapitalization(1)
$103,560,050
  98.6%
       
Reserves
$66,667
    0.1%
       
Closing Costs
$1,373,283
    1.3%
Total Sources
$105,000,000
100.0%
  
Total Uses
$105,000,000
100.0%
(1)  
The Cottonwood Mall Property was previously unencumbered. The borrower’s cost basis is approximately $91.5 million.
 
The Borrower / Sponsor.  The borrower, Mall at Cottonwood, LLC, is a single purpose Delaware limited liability company structured to be bankruptcy remote with two independent directors in its organizational structure. The sponsor of the borrower and nonrecourse carve-out guarantor is Simon Property Group, L.P., a subsidiary of Simon Property Group, Inc. (“SPG”) (NYSE: SPG). Liability of the guarantor is capped at $15,750,000 in the aggregate. Borrower may replace the guarantor for liabilities accruing after the date of such replacement with an entity controlled by any key principal provided certain conditions set forth in the loan agreement are met.
 
SPG is an S&P 100 company and currently owns or has an interest in more than 325 retail real estate properties, totaling approximately 243 million sq. ft., in North America and Asia, including 156 regional malls. SPG has the right to transfer sponsorship to its proposed spin-off REIT, to be known as Washington Prime Group Inc. (“WPG”) at which time SPG will no longer own any indirect interest in the borrower. WPG is expected to own or have an interest in 54 strip centers and 44 malls totaling 53.0 million sq. ft. in 23 states. As of September 30, 2013, occupancy at these prospective strip centers and malls was 94.2% and 90.4%, respectively. WPG will be led by
  
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.
 
 
45
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
CEO Mark Ordan, who held prior leadership roles with Fresh Fields, Federal Realty Investment Trust, Sunrise Senior Living and The Mills Corporation.
 
The Property. The Cottonwood Mall is a two-story, enclosed super regional mall containing 1,060,744 sq. ft. of total leasable area, 410,452 sq. ft. of which is collateral for the Cottonwood Mall Loan. The Cottonwood Mall Property is located on Coors Bypass Northwest in Albuquerque, New Mexico, the most populated city in the state. The Cottonwood Mall Property was constructed in 1996 by the sponsor and since 2008 has undergone nearly $4.9 million in capital expenditures and tenant improvement costs.
 
The Cottonwood Mall contains six anchor tenants, Dillard’s, Macy’s, JC Penney, Sears, Conn’s HomePlus (all non-owned and not part of the collateral) and Regal Cinema (collateral). Dillard’s, Macy’s (via the acquisition of Foley’s) and JC Penney are original anchors at the Cottonwood Mall. The Cottonwood Mall is laid out in a traditional manner with the two largest anchors, Dillard’s and Macy’s, located on each end. The Cottonwood Mall Property (collateral) is 96.0% occupied as of March 31, 2014 by 122 in-line tenants, none of which account for more than 2.3% of collateral sq. ft, two major tenants and a 16-screen Regal Cinema movie theater. Temporary tenants, totaling approximately 12,074 sq. ft., represent approximately 2.9% of collateral sq. ft. and approximately 4.0% of in-line sq. ft. National in-line tenants include Aeropostale, American Eagle Outfitters, Champs Sports, Foot Locker, Forever 21, GNC, Payless Shoesource, Victoria’s Secret and Zales Jewelers. Since 2012, approximately 30 new or renewal leases have been executed at the Cottonwood Mall Property, the majority of which are with base rents at or greater than their prior rental rates.
 
In 2013, in-line tenants in occupancy that reported sales for a minimum of 12 months reported annual sales of $330 PSF with an occupancy cost of 14.5%. Since 2004, in-line tenant sales have grown approximately 12.2%. Additionally, sales have remained stable since 2009 with an average of approximately $330 PSF.
 
In-Line Historical Sales PSF(1)
 
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Sales PSF
$294
$311
$333
$317
$299
$339
$324
$326
$330
$330
Occupancy Cost
13.8%
13.5%
12.8%
13.9%
15.0%
13.4%
14.0%
14.2%
13.4%
14.5%
(1)  
As provided by borrower. In-line tenant sales include all tenants occupying less than 10,000 sq. ft., which have been in occupancy and reported sales for a minimum of 12 months.
 
 
Historical Sales PSF
   
2010
2011
2012
2013
 
Non-Collateral Anchors(1)
        
 
Dillard’s
$119
$119
$122
NAV
 
Macy’s
$71
$74
$76
NAV
 
JC Penney
$164
$164
$139
NAV
 
Sears
$115
$112
$110
NAV
           
 
Collateral Tenants(2)
        
 
Regal Cinema(3)
$614,250
$494,355
$413,926
$405,827
 
Old Navy(4)
$220
$214
$210
$329
 
Ulta Beauty
NAP
$277
$336
$374
           
(1)  
 Non-Collateral Anchors’ Historical Sales PSF are estimates as provided by the borrower.
(2)  
 Collateral Tenants’ Historical Sales PSF are based on historical operating statements provided by the borrower.
(3)  
Shown as sales per screen. Regal Cinema contains 16 screens. The movie theater operated without direct competition until 2011 when Premiere Cinemas opened less than two miles from the Cottonwood Mall Property.
(4)  
In April 2013, Old Navy remodeled its space and eliminated underutilized back office/storage space, resulting in a decrease from its previous size of 23,246 sq. ft. to 14,915 sq. ft. In 2012 and 2013, gross sales were $4,839,605 and $4,910,615, respectively.
 
Environmental Matters.    The Phase I environmental report dated March 20, 2014 recommended no further action at the Cottonwood Mall Property.
  
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.
 
 
46
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
The Market.    The Cottonwood Mall Property is located in the western portion of the Albuquerque, New Mexico MSA. In 2013, the Albuquerque MSA had a population of approximately 902,797, an increase of approximately 23.7% since 2000. As the most populated city in the state, Albuquerque has been cited multiple times in “Forbes’ Best Cities for Business.” Approximately 60.0 miles from the state capital of Santa Fe, the Cottonwood Mall anchors the retail hub for the west side of Albuquerque, serving the area west of Interstate 25 and Rio Grande River, including Rio Rancho and residential developments flanking the Coors Boulevard Corridor. Interstate 25 and Interstate 40 are located within 7.7 and 11.0 miles of the Cottonwood Mall Property, respectively. Interstate 25 serves as the main north-south expressway connecting Colorado and Texas while Interstate 40 is the third-longest east-west expressway in the United States, offering access to Arizona, California, Texas and Oklahoma. Additionally, the Cottonwood Mall Property can be accessed via the Rail Runner train line, which has a connecting bus system slightly north of the Cottonwood Mall Property.
 
Located in the commercial/retail hub for the northwesterly section of Albuquerque, the Cottonwood Mall Property is surrounded by big-box, strip and community centers that include tenants such as Costco, Home Depot, Walmart, Staples and Best Buy. The Cottonwood Mall Property draws from both the suburban population of western Albuquerque as well as Rio Rancho, the fastest growing community in New Mexico. Since the 1990s, Rio Rancho has benefited from Albuquerque’s major expansion and growth in the twentieth century. From 2000 to 2012, the Rio Rancho population of 90,818 individuals and median household income of $60,125 grew by approximately 75.4% and 27.5%, respectively. Additionally, Rio Rancho has a strong existing business climate anchored by Intel Corporation and complemented by the back-office and manufacturing operations of Hewlett-Packard Company, Bank of America and Alliance Data, among others. Within the six-mile trade area as determined by the appraiser, the population and average household income in 2014 is 239,131 and $71,140, respectively.
 
With a location that is west of the Rio Grande River and Interstate 25, the Cottonwood Mall Property is located outside of the competitive eastern retail hub of Albuquerque. The appraiser analyzed a set of three competitive properties for the Cottonwood Mall Property. The appraiser’s competitive set is detailed below:
 
Cottonwood Mall Competitive Set(1)(2)
Name
Cottonwood Mall
Coronado Center
ABQ Uptown
Winrock Town Center
Distance from Subject
NAP
13 miles
13 miles
13 miles
City, State
Albuquerque, NM
Albuquerque, NM
Albuquerque, NM
Albuquerque, NM
Property Type
Super Regional Mall
Super Regional Mall
Lifestyle Center
Super Regional Center
Year Built / Renovated
1996 / NAP
1964 / 2013-2014
2006 / NAP
1961 / 2013
Total Occupancy(3)
94.5%
98.6%
96.1%
52.4%
Anchor Size (Sq. Ft.)(3)
730,652
717,000
16,818
559,000
Total Size (Sq. Ft.)(3)
1,060,744
1,102,000
231,573
877,000
Anchor Tenants
Dillard’s, Macy’s, JC
Penney, Sears,
Conn’s HomePlus,
Regal Cinema
Macy’s, Sears, JC
Penney, Kohl’s,
Dick’s, Gordman’s
Trader Joe’s
Dillard’s, Sports
Authority, Toys R Us,
Bed Bath & Beyond,
Regal Cinema
(1)  
Source: Appraisal
(2)  
The Cottonwood Mall is located in the northwestern hub of Albuquerque, serving both the western Albuquerque and Rio Rancho populations. The three competitive properties, which are adjacent to each other, are located in the eastern retail hub of Albuquerque and generally serve the eastern portion of the Albuquerque MSA.
(3)  
Total Occupancy, Anchor Size (Sq. Ft.) and Total Size (Sq. Ft.) for the Cottonwood Mall are based on the entire mall square footage of 1,060,744 as of March 31, 2014. Total Occupancy includes temporary tenants.
 
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.
 
 
47
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
Cash Flow Analysis.
 
Cash Flow Analysis
  
 
2010
2011
2012
2013
T-12 1/31/2014
U/W
U/W PSF
 Base Rent(1)
$9,151,088
$9,405,922
$10,140,901
$10,595,947
$10,636,759
$10,499,917
$25.58
  
 Temporary Tenant Income
1,571,519
1,697,981
1,481,303
1,470,689
1,491,946
1,491,946
3.63
  
 Value of Vacant Space
0
0
0
0
0
962,801
2.35
  
 Gross Potential Rent
$10,722,607
$11,103,903
$11,622,204
$12,066,636
$12,128,705
$12,954,664
$31.56
  
 Total Recoveries
5,916,790
6,336,404
6,187,163
6,088,755
6,218,354
6,218,354
15.15
  
 Total % Rents
635,744
432,246
119,515
104,843
100,102
83,000
0.20
  
 Total Other Income
464,443
410,832
380,035
354,556
384,873
384,873
0.94
  
 Less: Vacancy & Credit Loss(2)
0
0
0
0
0
(962,801)
(2.35)
  
 Effective Gross Income
$17,739,584
$18,283,385
$18,308,917
$18,614,790
$18,832,034
$18,678,090
$45.51
  
 Total Operating Expenses
5,047,989
5,383,958
5,353,245
5,191,875
5,248,090
5,675,801
13.83
  
 Net Operating Income
$12,691,595
$12,899,427
$12,955,672
$13,422,915
$13,583,944
$13,002,290
$31.68
  
 TI/LC
0
0
0
0
0
410,452
1.00
  
 Capital Expenditures
0
0
0
0
0
102,613
0.25
  
 Net Cash Flow
$12,691,595
$12,899,427
$12,955,672
$13,422,915
$13,583,944
$12,489,225
$30.43
  
                 
(1)  
U/W Base Rent includes $192,846 in contractual rent steps through June 2015.
(2)  
U/W Vacancy & Credit Loss is based on actual in-place economic vacancy of 5.0% of Gross Potential Rent, Total Recoveries and Total % Rents.
 
Property Management.    The Cottonwood Mall Property is managed by SPG Management Associates III, LLC, which is an affiliate of the sponsor.
 
Lockbox / Cash Management.    The Cottonwood Mall Loan is structured with a hard lockbox and springing cash management. In place cash management and a full excess cash flow sweep will occur upon (i) an event of default or (ii) the failure by the borrower after the end of two consecutive calendar quarters to maintain a DSCR of 1.25x until the DSCR is at least equal to 1.25x for two consecutive calendar quarters.
 
Initial Reserves.    At closing, the borrower deposited $66,667 into a tax reserve account.
 
Ongoing Reserves.    On a monthly basis, the borrower is required to deposit reserves of (i) 1/12 of the estimated annual real estate taxes, which currently equates to $66,667, into a tax reserve account, (ii) $8,551 into a replacement reserve account, subject to a cap of $513,065 and (iii) $34,204 into a rollover reserve account, subject to a cap of $2,052,260. Additionally, 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.
 
Current Mezzanine or Subordinate Indebtedness.    None.
 
Future Mezzanine or Subordinate Indebtedness Permitted.    None.
 
Partial Release and Substitution.    The borrower may, without lender’s consent, transfer any non-income producing portion of the Cottonwood Mall Property to a third party or affiliate of the borrower subject to the satisfaction of conditions in the Cottonwood Mall Loan documents.
 
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.
 
 
48
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
 
(MAP)

Site plans based on information provided by the borrower.
 
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.
 
 
49
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
 
(MAP)
 
Site plans based on information provided by the borrower.
 
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.
 
 
50
 
 
10000 Coors Bypass Northwest
Albuquerque, NM 87114
Collateral Asset Summary – Loan No. 3
Cottonwood Mall
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$104,869,473
59.9%
1.89x
12.4%
 
(MAP)
 
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.
 
 
51
 
 
 
211 East 3rd Street
Austin, TX 78701
Collateral Asset Summary – Loan No. 4
Hyatt Place Austin Downtown
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$56,500,000
62.6%
1.78x
12.7%
 
(GRAPHIC)
 
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.
 
 
52
 
 
211 East 3rd Street
Austin, TX 78701
Collateral Asset Summary – Loan No. 4
Hyatt Place Austin Downtown
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$56,500,000
62.6%
1.78x
12.7%
             
Mortgage Loan Information
  
Property Information
Loan Seller:
CCRE
  
Single Asset / Portfolio:
Single Asset
Loan Purpose:
Acquisition
  
Property Type:
Select Service Hospitality
Sponsor:
Carey Watermark Investors,
  
Collateral:
Fee Simple
 
Incorporated
  
Location:
Austin, TX
Borrower:
CWI Austin Hotel, LLC; Austin CBD
  
Year Built / Renovated:
2013 / NAP
 
Hotel Operator, Inc.
  
Total Rooms:
296
Original Balance:
$56,500,000
  
Property Management:
White Lodging Services
Cut-off Date Balance:
$56,500,000
    
Corporation
% by Initial UPB:
4.7%
  
Underwritten NOI:
$7,194,428
Interest Rate:
4.8770%
  
Underwritten NCF:
$6,384,225
Payment Date:
6th of each month
  
“As-is” Appraised Value:
$90,200,000
First Payment Date:
May 6, 2014
  
“As-is” Appraisal Date:
March 1, 2014
Maturity Date:
April 6, 2024
  
“As Stabilized” Appraised Value(3):
$103,200,000
Amortization:
Interest only for first 36 months; 360
  
“As Stabilized” Appraisal Date(3):
March 1, 2017
months thereafter
      
Additional Debt:
None
  
Historical NOI(5)
Call Protection:
L(25), D(91), O(4)
  
Most Recent NOI:
$7,586,944 (T-12 March 31, 2014)
Lockbox / Cash Management:
Hard / Springing
  
2013 NOI:
NAP
     
2012 NOI:
NAP
Reserves(1)
  
2011 NOI:
NAP
 
Initial
  
Monthly   
      
Taxes:
$397,850
  
$99,462   
  
Historical Occupancy(5)
Insurance:
$0
  
Springing   
  
Most Recent Occupancy:
66.4% (March 31, 2014)
FF&E(2):
$30,460
2.0% of prior month’s   
  
2013 Occupancy:
NAP
gross revenues   
  
2012 Occupancy:
NAP
         
2011 Occupancy:
NAP
Financial Information
  
(1)       See “Initial Reserves” and “Ongoing Reserves” herein.
(2)       The FF&E reserve percentage will be (i) 2.0% of prior month’s gross revenues for 2014 and 2015, (ii) 3.0% of prior month’s gross revenues for 2016, (iii) 4.0% of prior month’s gross revenues for 2017 and (iv) 5.0% of prior month’s gross revenues thereafter.
(3)       The Cut-off Date LTV and Balloon LTV are based on the “As-is” Appraised Value of $90,200,000.  The appraiser concluded an “As Stabilized” Appraised Value for the Hyatt Place Austin Downtown Property of $103,200,000 as of March 1, 2017, resulting in an “As Stabilized” Cut-off Date LTV of 54.7% and “As Stabilized” Balloon LTV of 48.3%.  The “As Stabilized” Appraised Value is based on the appraiser’s concluded stabilized NOI achieved in 2017.
(4)       Based on amortizing debt service payments.  Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 2.58x and 2.29x, respectively.
(5)       The Hyatt Place Austin Downtown Property opened in March 2013.  As such, Historical NOI and Historical Occupancy are not applicable.
Cut-off Date Balance / Room:
  
$190,878
    
Balloon Balance / Room:
  
$168,525
    
Cut-off Date LTV(3):
  
62.6%
    
Balloon LTV(3):
  
55.3%
    
Underwritten NOI DSCR(4):
  
2.00x
    
Underwritten NCF DSCR(4):
  
1.78x
    
Underwritten NOI Debt Yield:
  
12.7%
    
Underwritten NCF Debt Yield:
  
11.3%
    
Underwritten NOI Debt Yield at Balloon:
14.4%
    
Underwritten NCF Debt Yield at Balloon:
12.8%
    
         
         
         
             
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.
 
 
53
 
 
211 East 3rd Street
Austin, TX 78701
Collateral Asset Summary – Loan No. 4
Hyatt Place Austin Downtown
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$56,500,000
62.6%
1.78x
12.7%
 
The Loan.    The Hyatt Place Austin Downtown loan (the “Hyatt Place Austin Downtown Loan”) is a fixed rate loan secured by the borrowers’ fee simple interest in a newly-constructed 296-room, 18-story, select service hotel located in Austin, Texas with an original principal balance of $56.5 million (the “Hyatt Place Austin Downtown Property”). The collateral also includes a five-level parking garage containing 133 spaces located on the first through fifth floors. The Hyatt Place Austin Downtown Loan has a 10-year term and amortizes on a 30-year schedule after an initial 36-month interest only period. The Hyatt Place Austin Downtown Loan accrues interest at a fixed rate equal to 4.8770% and has a cut-off date balance of $56.5 million. Loan proceeds along with approximately $31.6 million of sponsor equity were used to acquire the Hyatt Place Austin Downtown Property for $87.0 million, pay closing costs and fund upfront reserves. Based on the appraised value of $90.2 million as of March 1, 2014, the cut-off date LTV is 62.6%.  The most recent prior financing of the Hyatt Place Austin Downtown Property was not included in a securitization.
 
Sources and Uses
Sources
Proceeds
% of Total
  
Uses
Proceeds
% of Total   
Loan Amount
$56,500,000
64.2%
  
Purchase Price
$87,000,000
98.8%   
Sponsor Equity
$31,564,460
35.8%
  
Closing Costs
$636,150
0.7%   
       
Reserves
$428,310
0.5%   
Total Sources
$88,064,460
100.0%
  
Total Uses
$88,064,460
100.0%   
 
The Borrower / Sponsor.    The borrowers, CWI Austin Hotel, LLC as fee owner and Austin CBD Hotel Operator, Inc. as operating lessee, are a single purpose Delaware limited liability company and a single purpose Delaware corporation, respectively, structured to be bankruptcy-remote with two independent directors in their organizational structures.  The sponsor of the borrowers and nonrecourse carve-out guarantor is Carey Watermark Investors, Incorporated. Carey Watermark Investors, Incorporated (“CWI”) is a publicly registered real estate investment trust (REIT) formed in March 2008 to make investments primarily in the lodging and lodging-related sectors. CWI conducts the majority of its investment activities through an operating partnership with Carey Watermark Holdings, LLC, which is indirectly owned by W.P. Carey Inc., and Watermark Capital Partners, LLC.
 
As of December 31, 2013, CWI’s portfolio was comprised of full or partial ownership in 18 hotels with 3,967 guest rooms across the United States.  CWI’s hotels operate under the following brands: Autograph Collection, Courtyard by Marriott, Fairmont, Hampton Inn, Hilton Garden Inn, Holiday Inn, Hyatt, Marriott, Renaissance and Westin.
 
The Property.    The Hyatt Place Austin Downtown Property is an 18-story 296-room select service hotel located in downtown Austin, Texas that sits on top of a 133-space, five-level parking garage. Constructed in 2013, the Hyatt Place Austin Downtown Property is comprised of 154 king rooms (52.0% of total rooms) and 142 double queen rooms (48.0% of total rooms).  Amenities include a restaurant, coffee bar, fitness center, indoor swimming pool and three meeting rooms comprising 1,800 sq. ft.  The Hyatt Place Austin Downtown Property guest rooms include city views, HD flat-panel televisions, complimentary WiFi and granite countertops.  The Hyatt Place brand was ranked best in its category in both 2012 and 2013 and was awarded “Highest in Guest Satisfaction Among Upscale Hotel Chains” by J.D. Power in 2013.
 
In connection with the acquisition of the Hyatt Place Austin Downtown Property, the sponsor executed a new franchise agreement with Hyatt Place Franchising, L.L.C., effective March 27, 2014, with a term of 20 years expiring March 27, 2034.
 
Environmental Matters.    The Phase I environmental report dated March 1, 2014 recommended no further action at the Hyatt Place Austin Downtown Property.
 
The Market.    The Hyatt Place Austin Downtown Property is located in downtown Austin, Texas, one block west of the Austin Convention Center.  Austin, Texas, recognized by Forbes Magazine as one of the fastest growing cities in America in 2013, is expected to add more than 3,200 guest rooms over the next three years to its current supply of approximately 8,000 rooms in order to facilitate Austin’s growing convention business.  Specifically, the current manager of the Hyatt Place Austin Downtown Property, White Lodging Services Corporation, is developing a 1,012 room JW Marriott Hotel adjacent to the Austin Convention Center that is scheduled to open in early 2015.  The JW Marriott Hotel is expected to attract new conventions to Austin that its previous hotel supply could not accommodate.  In addition, Austin is home to a number of annual music festivals, including South by Southwest and Austin City Limits, that draw numerous tourists to the city.
 
The Hyatt Place Austin Downtown Property is located proximate to several demand drivers and a number of large corporate offices including Dell, Apple, Samsung, National Instruments, IBM and Sematech.  Specifically, the Hyatt Place Austin Downtown Property is located three blocks from the 6th Street Entertainment District, nine blocks from the Texas State Capitol, 1.5 miles from the University of Texas’ main campus and 15 minutes from the Austin-Bergstrom International Airport.
 
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.
 
 
54
 
 
211 East 3rd Street
Austin, TX 78701
Collateral Asset Summary – Loan No. 4
Hyatt Place Austin Downtown
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$56,500,000
62.6%
1.78x
12.7%
 
Nearly eight million people have attended more than 3,000 events, including over 700 conventions, at the Austin Convention Center since it opened in 1992.  The Austin Convention Center is a LEED Gold-certified building located proximate to the Hyatt Place Austin Downtown Property that stretches over six city blocks and 881,400 sq. ft., and offers 246,097 sq. ft. of column-free exhibit space divisible into five contiguous halls.  The Austin Convention Center’s upper level grand ballroom is one of the largest in Texas, encompassing 43,300 sq. ft.  Additionally, the 6th Street Entertainment District is lined with historical houses and commercial buildings that now house numerous bars, live entertainment venues, art galleries, cafes and upscale restaurants.  The University of Texas at Austin’s current enrollment includes over 38,000 undergraduate students and 12,000 graduate students.
 
The Hyatt Place Austin Downtown Property 2014 hotel market contains 1,954 hotel rooms, including the Hyatt Place Austin Downtown Property.  As of February 2014, the Hyatt Place Austin Downtown Property was reported as having occupancy, ADR and RevPAR of 63.7%, $202.44 and $128.87, respectively, which resulted in a RevPAR penetration rate of nearly 100.0% in its first year of operations.  As of February 2014, the Hyatt Place Austin Downtown Property reported occupancy segmentation of 50.0% transient and 32.6% group.  The local competitive set includes the following hotels: the Radisson Hotel & Suites Austin Downtown, Hilton Garden Inn Austin Downtown Convention Center, Sheraton Hotel Austin @ The Capitol, Doubletree Austin University Area, Hampton Inn & Suites Austin Downtown Convention Center and Courtyard Austin Downtown Convention Center.
 
Historical Occupancy, ADR, RevPAR – Local Competitive Set(1)
 
Hyatt Place Austin Downtown Property
Competitive Set
Penetration Factor
Year
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
T-12 February 2014
63.7%
$202.44
$128.87
77.8%
$166.39
$129.42
  81.8%
    121.7%
    99.6%
   (1)  
Source: Hospitality research report
 
T-10 Occupancy, ADR, RevPAR – Local Competitive Set(1)
 
Hyatt Place Austin Downtown Property
Competitive Set
Penetration Factor
Year
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
April 2013
63.4%
$204.84
$129.87
88.1%
$163.30
$143.88
72.0%
125.4%
90.3%
May 2013
58.4%
$199.09
$116.19
84.6%
$160.54
$135.78
69.0%
124.0%
85.6%
June 2013
66.1%
$172.10
$113.77
82.8%
$147.89
$122.52
79.8%
116.4%
92.9%
July 2013
53.4%
$157.07
$83.91
72.6%
$132.77
$96.37
73.6%
118.3%
87.1%
August 2013
67.6%
$142.84
$96.57
68.9%
$132.78
$91.51
98.1%
107.6%
105.5%
September 2013
69.7%
$201.17
$140.14
74.4%
$171.09
$127.28
93.6%
117.6%
110.1%
October 2013
77.4%
$218.21
$168.89
84.4%
$184.71
$155.98
91.7%
118.1%
108.3%
November 2013
77.6%
$243.05
$188.53
75.9%
$207.58
$157.62
102.2%
117.1%
119.6%
December 2013
39.6%
$171.83
$67.99
57.9%
$146.57
$84.80
68.4%
117.2%
80.2%
January 2014
56.0%
$178.16
$99.70
72.7%
$149.60
$108.71
77.0%
119.1%
91.7%
   (1)
Source: Hospitality research report
 
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.
 
 
55
 
 
211 East 3rd Street
Austin, TX 78701
Collateral Asset Summary – Loan No. 4
Hyatt Place Austin Downtown
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$56,500,000
62.6%
1.78x
12.7%
 
Cash Flow Analysis.
 
Cash Flow Analysis(1)
 
T-12 3/31/2014(2)
Appraiser Stabilized
Projection(3)
 U/W
U/W per Room(4)
Occupancy
66.4%
76.0%
66.4%
  
ADR
$205.05
$213.75
$205.05
  
RevPAR
$136.07
$162.45
$136.07
  
         
Room Revenue
$14,701,407
$17,551,000
$14,701,407
$49,667
F&B Revenue
536,304
697,000
536,304
1,812
Other Revenue
966,352
958,000
966,352
3,265
Total Revenue
$16,204,063
$19,206,000
$16,204,063
$54,743
Operating Expenses
3,036,675
3,885,000
3,036,675
  10,259
Undistributed Expenses(5)(6)
4,524,922
5,193,000
4,682,926
15,821
Gross Operating Profit
$8,642,466
$10,128,000
$8,484,462
$28,664
Total Fixed Charges
1,055,523
1,194,000
   1,290,034
4,358
Net Operating Income
$7,586,944
$8,934,000
$7,194,428
$24,306
FF&E(7)
355,674
768,000
810,203
2,737
Net Cash Flow
$7,231,270
$8,166,000
$6,384,225
$21,568
(1)  
The Hyatt Place Austin Downtown Property opened in March 2013.  As such, historical Net Cash Flow is not applicable.
(2)  
T-12 3/31/2014 is comprised of 11 months of actual cash flows for April 2013 through February 2013 and budgeted cash flows for March 2014.
(3)  
Appraiser Stabilized Projection is as of T-12 2/28/2017, which is the appraiser’s year three “As Stabilized” cash flow.
(4)  
U/W per Room is based on a total of 296 rooms.
(5)  
U/W Undistributed Expenses includes a combined marketing, management and franchise fee percentage of approximately 15.0% of U/W Total Revenue.
(6)  
The increase in Undistributed Expenses is primarily based on an increase in the underwritten franchise fee as a result of the newly executed franchise agreement.
(7)  
U/W FF&E represents approximately 5.0% of U/W Total Revenue.
 
Property Management.    The Hyatt Place Austin Downtown Property is managed by White Lodging Services Corporation.  White Lodging Services Corporation was established in 1985 and is a fully integrated hotel ownership, development and operations company.  White Lodging Services Corporation’s portfolio consists of more than 160 hotels in 21 states and includes representation of the following brands: Preferred Hotel Group, Marriott International, Inc., Hilton Worldwide, Hyatt Global, Starwood Hotels and Resorts, InterContinental Hotel Group and Carlson Hotels Worldwide.  Additionally, 20 of the 160 hotels in White Lodging Services Corporation’s portfolio are located in the Austin market.
 
Lockbox / Cash Management.    The Hyatt Place Austin Downtown Loan is structured with a hard lockbox and springing cash management. In place cash management is required upon (i) an event of default or (ii) the failure of the borrowers after the end of one calendar quarter to maintain a debt service coverage ratio of 1.25x. In addition, a full excess cash sweep (“Cash Trap Period”) will occur upon an event of default.
 
Initial Reserves.    At closing, the borrowers deposited (i) $397,850 into a tax reserve account and (ii) $30,460 into an upfront FF&E reserve.
 
Ongoing Reserves.    On a monthly basis, the borrowers are required to make deposits of (i) 1/12 of the required annual taxes, which currently equates to $99,462, into a tax reserve account and (ii) the FF&E Reserve Percentage of the prior month’s gross revenues from operations into a FF&E reserve account.  Additionally, the borrowers are required to deposit 1/12 of the estimated insurance premiums into an insurance reserve account if an acceptable blanket insurance policy is no longer in place.
 
“FF&E Reserve Percentage” will mean (i) 2.0% for years 2014 and 2015, (ii) 3.0% for the year 2016, (iii) 4.0% for the year 2017 and (iv) 5.0% thereafter.
 
Current Mezzanine or Subordinate Indebtedness.    None.
 
Future Mezzanine or Subordinate Indebtedness Permitted.    None.
 
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.
 
 
56
 
 
211 East 3rd Street
Austin, TX 78701
Collateral Asset Summary – Loan No. 4
Hyatt Place Austin Downtown
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$56,500,000
62.6%
1.78x
12.7%
 
(MAP)
 
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.
 
 
57
 
Maryland and Rhode Island
Collateral Asset Summary – Loan No. 5
ARC Marriott Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$45,500,000
59.5%
2.69x
13.4%
 
(IMAGE)
 
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.
 
 
58
 
 
Maryland and Rhode Island
Collateral Asset Summary – Loan No. 5
ARC Marriott Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$45,500,000
59.5%
2.69x
13.4%
 
Mortgage Loan Information
Loan Seller:
GACC
Loan Purpose:
Acquisition
Sponsor(1):
American Realty Capital Hospitality Operating Partnership, L.P.
Borrower:
ARC Hospitality Baltimore, LLC;
ARC Hospitality Providence, LLC
Original Balance:
$45,500,000
Cut-off Date Balance:
$45,500,000
% by Initial UPB:
3.8%
Interest Rate:
4.3000%
Payment Date:
6th of each month
First Payment Date:
May 6, 2014
Maturity Date:
April 6, 2019
Amortization:
Interest Only
Additional Debt(2):
None
Call Protection(3):
L(25), D(31), O(4)
Lockbox / Cash Management:
Hard / In Place
 
Reserves(4)
 
Initial
Monthly 
Taxes:
$619,028
$167,606 
Insurance:
$0
Springing 
FF&E:
$0
4.0% of prior month’s 
gross revenues 
PIP:
$1,775,000
$0 
 
Financial Information
Cut-off Date Balance / Room:
$108,076
  
Balloon Balance / Room:
$108,076
  
Cut-off Date LTV:
59.5%
  
Balloon LTV:
59.5%
  
Underwritten NOI DSCR(5):
3.07x
  
Underwritten NCF DSCR(5):
2.69x
  
Underwritten NOI Debt Yield:
13.4%
  
Underwritten NCF Debt Yield:
11.7%
  
Underwritten NOI Debt Yield at Balloon:
13.4%
  
Underwritten NCF Debt Yield at Balloon:
11.7%
  
 
Property Information
Single Asset / Portfolio:
Portfolio of two properties
Property Type:
Limited Service Hospitality
Collateral:
Fee Simple
Location:
Baltimore, MD and Providence, RI
Year Built / Renovated:
2000 / 2012-2013
Total Rooms:
421
Property Management:
Crestline Hotels & Resorts, LLC
Underwritten NOI:
$6,092,685
Underwritten NCF:
$5,336,075
“As-is” Appraised Value:
$76,500,000
“As-is” Appraisal Date:
March 1, 2014
“As Stabilized” Appraised Value(6):
$84,500,000
“As Stabilized” Appraisal Date(6):
March 1, 2016
 
Historical NOI
Most Recent NOI:
$5,978,697 (T-12 January 31, 2014)
2013 NOI:
$5,848,725 (December 31, 2013)
2012 NOI:
$5,967,563 (December 31, 2012)
2011 NOI:
$5,269,900 (December 31, 2011)
 
Historical Occupancy
Most Recent Occupancy:
74.8% (January 31, 2014)
2013 Occupancy:
74.5% (December 31, 2013)
2012 Occupancy:
73.5% (December 31, 2012)
2011 Occupancy:
72.3% (December 31, 2011)
(1)  
The sponsor is also related to the sponsor under the mortgage loan identified on Annex A-1 to this Free Writing Prospectus as Westin Virginia Beach, which has a Cut-off Date Balance of $20,700,000.
(2)  
In connection with the acquisition of the ARC Marriott Hotel Portfolio Properties and other properties, the sponsor incurred subordinate unsecured debt. See “Other Unsecured Debt of the Sponsor” herein.
(3)  
Partial release is permitted. See “Partial Release” herein.
(4)  
See “Initial Reserves” and “Ongoing Reserves” herein.
(5)  
Underwritten NOI DSCR and Underwritten NCF DSCR are based on the actual interest only debt service payment. Based on a 30-year amortization schedule, the Underwritten NOI DSCR and Underwritten NCF DSCR would be 2.25x and 1.97x, respectively.
(6)  
The “As Stabilized” LTV is 53.8% based on the Courtyard by Marriott Baltimore Property achieving a stabilized ADR and occupancy of $190.00 and 71.0%, respectively, and the Courtyard by Marriott Providence Property achieving a stabilized ADR and occupancy of $157.98 and 78.0%, respectively.

 
Property Summary
Property Name
Location
Rooms
Year Built / Renovated
Allocated
Loan Amount
Appraised Value
Occupancy(1)
Courtyard by Marriott Baltimore
Baltimore, MD
205
2000 / 2012-2013
$24,980,392
$42,000,000
69.5%
Courtyard by Marriott Providence
Providence, RI
216
2000 / 2012-2013
$20,519,608
$34,500,000
79.9%
Total / Wtd. Avg.
  
421
  
$45,500,000
$76,500,000
74.8%
(1)  
As of January 31, 2014.
 
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.
 
 
59
 
 
Maryland and Rhode Island
Collateral Asset Summary – Loan No. 5
ARC Marriott Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$45,500,000
59.5%
2.69x
13.4%
 
Courtyard by Marriott Baltimore – Historical Occupancy, ADR, RevPAR(1)
 
Courtyard by Marriott Baltimore Property
Competitive Set
Penetration Factor
Year
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
2011
72.4%
$153.45
$111.07
59.1%
$123.26
$72.82
122.5%
124.5%
152.5%
2012
69.9%
$161.00
$112.47
59.0%
$121.23
$71.47
118.5%
132.8%
157.4%
2013
68.5%
$172.58
$118.18
59.2%
$122.82
$72.72
115.6%
140.5%
162.5%
T-12 January 2014
69.2%
$172.66
$119.45
59.5%
$122.70
$72.97
116.3%
140.7%
163.7%
(1)  
Source: Hospitality research reports
 
Courtyard by Marriott Providence – Historical Occupancy, ADR, RevPAR(1)
 
Courtyard by Marriott Providence Property
Competitive Set
Penetration Factor
Year
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
2011
71.5%
$126.49
$90.43
64.4%
$122.29
$78.74
111.0%
103.4%
114.8%
2012
75.3%
$129.70
$97.68
66.9%
$127.73
$85.47
112.6%
101.5%
114.3%
2013
78.8%
$135.80
$106.95
70.5%
$128.58
$90.66
111.7%
105.6%
118.0%
T-12 January 2014
79.0%
$135.89
$107.42
70.2%
$128.87
$90.51
112.5%
105.4%
118.7%
(1)  
Source: Hospitality research reports
 
The Loan.   The ARC Marriott Hotel Portfolio loan (the “ARC Marriott Hotel Portfolio Loan”) is a fixed rate loan secured by the borrowers’ fee simple interest in two limited service hotels totaling 421 rooms located in Baltimore, Maryland and Providence, Rhode Island (the “Courtyard by Marriott Baltimore Property” and the “Courtyard by Marriott Providence Property”, together, the “ARC Marriott Hotel Portfolio Properties”) with original principal and cut-off date balances of $45.5 million. The ARC Marriott Hotel Portfolio Loan has a five-year term and is interest only for the loan term. The ARC Marriott Hotel Portfolio Loan accrues interest at a fixed rate equal to 4.3000%. Loan proceeds, together with approximately $35.9 million in equity from the sponsor, were used to acquire the properties for $76.5 million, pay closing costs of approximately $2.5 million and fund reserves of approximately $2.4 million. Based on the “As-is” appraised value of $76.5 million as of March 1, 2014, the cut-off date LTV is 59.5%. Based on the “As Stabilized” appraised value of $84.5 million as of March 1, 2016, the “As Stabilized” LTV is 53.8%. The most recent financing of the ARC Marriott Hotel Portfolio Properties was included in the BSCMS 2007-BBA8 transaction.
 
Sources and Uses
Sources
Proceeds
% of Total
  
Uses
Proceeds
% of Total 
Loan Amount
$45,500,000
55.9%
  
Acquisition Cost
$76,500,000
94.0%
Sponsor Equity(1)
$35,911,465
44.1%
  
Closing Costs
$2,517,437
3.1%
       
Reserves
$2,394,028
2.9%
             
Total Sources
$81,411,465
100.0%
  
Total Uses
$81,411,465
100.0%
(1)  
The $35,911,465 of Sponsor Equity will not become equity until the sponsor, American Realty Capital Hospitality Operating Partnership, L.P., repays a $63,074,057 unsecured loan. The unsecured loan is required to be paid in full on or before the date that is the earlier to occur of (a) 10 days after the date the sponsor or its parent raises $150,000,000 of common equity or (b) ten years after the origination of the unsecured loan. See “Other Unsecured Debt of the Sponsor” herein.
 
The Borrower / Sponsor.    The borrowers, ARC Hospitality Baltimore, LLC and ARC Hospitality Providence, LLC, are each single purpose Delaware limited liability companies structured to be bankruptcy-remote, with two independent directors in their respective organizational structures.  The sponsor of the borrowers is American Realty Capital Hospitality Operating Partnership, L.P. (“ARC Hospitality”), and the nonrecourse carve-out guarantors are Nicholas S. Schorsch, William M. Kahane, Edward M. Weil, Jr., Brian S. Block and Peter M. Budko (each, an “Individual Guarantor” and collectively, the “Individual Guarantors”), ARC Hospitality and AR Capital, LLC (“AR Capital”), jointly and severally. The aggregate liability of the Individual Guarantors is capped at $8,780,000. Once (i) ARC Hospitality has a net worth at least equal to $44,000,000 and liquidity at least equal to $2,000,000 and (ii) the Subordinate Debt (defined herein) has been repaid in full, then AR Capital will be released as a guarantor. Additionally, once ARC Hospitality and/or AR Capital (so long as AR Capital has not yet been released as a guarantor) have an aggregate combined net worth at least equal to $44,000,000 and combined liquidity equal to at least $2,000,000, then each Individual Guarantor will be released as a guarantor. The guarantors will be required to maintain a combined net worth at least equal to $44,000,000 and combined liquidity at least equal to $2,000,000 for the loan term.
 
ARC Hospitality is designed to be a publicly registered non-traded REIT which seeks to acquire a diversified portfolio of strategically-located hotel properties throughout North America within the select-service and full-service markets of the hospitality sector. AR Capital,
 
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.
 
 
60
 
 
Maryland and Rhode Island
Collateral Asset Summary – Loan No. 5
ARC Marriott Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$45,500,000
59.5%
2.69x
13.4%
  
the sponsor of ARC Hospitality, currently sponsors five other public non-traded real estate securities offerings. Each of the Individual Guarantors is a member of the executive group of AR Capital and/or its related entities.
 
The Properties.   The ARC Marriott Hotel Portfolio Properties consist of two limited service hotels totaling 421 rooms, located in the downtown central business districts of Baltimore, Maryland and Providence, Rhode Island. The sponsor purchased the ARC Marriott Hotel Portfolio Properties as part of a portfolio of interests in six hotels for a total of $107.0 million. Both of the ARC Marriott Hotel Portfolio Properties are operated under the Courtyard by Marriott franchise flag through franchise agreements with Marriott International, Inc. that run through January 31, 2027.
 
The Courtyard by Marriott Baltimore Property is an 11-story, 205-room limited service hotel located at 1000 Aliceanna Street in the Harbor East neighborhood of Baltimore, Maryland, and is part of a larger mixed-use development which includes a Whole Foods, other restaurants, office tenants and luxury apartments, which do not serve as collateral for the ARC Marriott Hotel Portfolio Loan. Amenities at the Courtyard by Marriott Baltimore Property include a 72-seat Bistro dining/lounge outlet, a Starbucks coffee bar, complimentary WiFi, an indoor swimming pool, fitness center, market and sundry shop, business center and 2,610 sq. ft. of meeting space across five rooms. The unit mix at the Courtyard by Marriott Baltimore Property includes 115 king rooms, 80 double/double rooms and 10 suites. The Courtyard by Marriott Baltimore Property was originally constructed in 2000 and most recently renovated from 2012-2013 for approximately $2.6 million dollars ($12,700 per key). The renovations included updates to the guestrooms, including refurbished bathrooms and new soft goods such as wallpaper, bedding, artwork and drapes, as well as renovations to the lobby, public spaces, meeting rooms and installation of the Bistro restaurant. Onsite parking at the Courtyard by Marriott Baltimore Property is provided via a 365-space parking garage for a ratio of 1.78 spaces per room. A summary of group bookings for the 10 largest accounts at the Courtyard by Marriott Baltimore Property for the last two years and projection for 2014 is presented below.
 
Courtyard by Marriott Baltimore – Group Bookings(1)
 
2014 Projected
2013
2012
Account
Room Nights
ADR
Revenue
Room Nights
ADR
Revenue
Room Nights
ADR
Revenue
Johns Hopkins
2,200
$155
$341,000
1,900
$151
$286,900
2,800
$149
$417,200
Epic
1,600
$175
$280,000
1,800
$169
$304,200
800
$175
$140,000
Laureate
1,500
$174
$261,000
1,450
$170
$246,500
1,963
$164
$321,932
JHU Carey Business School
650
$156
$101,400
500
$155
$77,500
395
$153
$60,238
ETS/Prometric
500
$179
$89,500
475
$174
$82,650
675
$156
$105,300
Vulcan
550
$164
$90,200
500
$159
$79,500
500
$169
$84,500
Exelon
500
$185
$92,500
400
$182
$72,800
350
$175
$61,250
Ernst & Young
300
$189
$56,700
225
$185
$41,625
180
$182
$32,760
Pearson
225
$189
$42,525
200
$185
$37,000
100
$165
$16,500
Morgan Stanley
250
$189
$47,250
200
$185
$37,000
250
$182
$45,500
Total / Wtd. Avg.
8,275
$169
$1,402,075
7,650
$165
$1,265,675
8,013
$160
$1,285,180
(1)  
As provided by borrower.
 
The Courtyard by Marriott Providence Property is a 7-story, 216-room limited service hotel located at 32 Exchange Terrace in downtown Providence, Rhode Island, in close proximity to major demand generators such as the Rhode Island Convention Center, Providence Plaza Mall and the Dunkin Donuts Center. Amenities at the Courtyard by Marriott Providence Property include a 90-seat Bistro dining/lounge outlet, a Starbucks coffee bar, complimentary WiFi, an indoor swimming pool, fitness center, market and sundry shop, business center and 3,500 sq. ft. of meeting space across four rooms. Guestroom amenities include 32” flat screen televisions, work desk and chair, pull-out sofa beds, mini fridge and wet-bar, and microwaves upon request. The unit mix at the Courtyard by Marriott Providence Property includes 132 king rooms, 72 queen/queen rooms and 12 suites. The Courtyard by Marriott Providence Property was originally constructed in 2000 and most recently renovated from 2012-2013 for approximately $856,250 ($3,964 per key). The renovations included updates to the lobby, front desk and the addition of the Bistro restaurant. A summary of group bookings for the 14 largest accounts at the Courtyard by Marriott Providence Property for the last two years and a projection for 2014 is presented in the subsequent chart.
 
The Courtyard by Marriott Providence Property is built above an above ground parking garage.  The parking garage and the land on which the parking garage and the Courtyard by Marriott Providence Property are situated are not part of the collateral for the ARC Marriott Hotel Portfolio Loan.  Only the borrowers’ fee simple interest in the airspace parcel above the parking garage serves as collateral for the ARC Marriott Hotel Portfolio Loan.  There is a reciprocal easement agreement in place which provides for access, structural support, and maintenance obligations for the borrowers and the owner of the parking garage.
 
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.
 
 
61
 
 
Maryland and Rhode Island
Collateral Asset Summary – Loan No. 5
ARC Marriott Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$45,500,000
59.5%
2.69x
13.4%
 
Courtyard by Marriott Providence – Group Bookings(1)
 
2014 Projected
2013
2012
Account
Room Nights
ADR
Revenue
Room Nights
ADR
Revenue
Room Nights
ADR
Revenue
IBM
850
$119
$83,300
850
$113
$96,050
795
$103
$81,885
Fidelity Investments
800
$147
$117,600
700
$145
$101,500
370
$141
$52,170
Computer Sciences Corporation
150
$134
$20,100
730
$132
$96,360
1428
$129
$184,212
Bank Of America
750
$124
$93,000
720
$119
$85,680
482
$119
$57,358
RBS Citizens Bank
750
$134
$100,500
680
$126
$85,680
483
$119
$57,477
Boston Consulting
800
$150
$120,000
750
$150
$114,000
0
$0
$0
GTECH
800
$141
$112,800
600
$141
$84,600
460
$139
$63,940
CVS Pharmacy
650
$137
$89,050
600
$133
$79,800
442
$128
$56,576
Minor League Baseball
0
$0
$0
1643
$81
$133,083
1976
$79
$156,104
Fidelity Investments Group
375
$139
$52,125
333
$135
$44,927
0
$0
$0
Corvias Military Living
350
$140
$49,000
289
$139
$40,171
0
$0
$0
SRO Entertainment
300
$112
$33,600
292
$111
$32,412
532
$110
$58,520
JLC Live
290
$133
$38,280
271
$129
$34,959
268
$129
$34,572
Taco
200
$147
$29,400
150
$145
$21,750
189
$145
$27,405
Total / Wtd. Avg.
7,065
$135
$938,755
8,608
$122
$1,050,972
7,425
$112
$830,219
(1)  
As provided by borrower.
 
Environmental Matters. The Phase I environmental reports dated February 17, 2014 and February 18, 2014 recommended no further action at the ARC Marriott Hotel Portfolio Properties.
 
The Market.   The Courtyard by Marriott Baltimore Property is located in the Harbor East neighborhood of the Inner Harbor area of Baltimore. Access to the hotel via car is provided by Interstates 83, 395 and 95, and the property is also easily accessible via the Maryland MTA bus services. Inner Harbor is located approximately 2 miles south of Baltimore Pennsylvania Station, which provides rail service via Amtrak and bus service via numerous lines including Greyhound and Bolt Bus. Additionally, the Baltimore/Washington International Thurgood Marshall Airport (“BWI”) is located approximately 10 miles southwest of the subject. Harbor East has become a leading destination in the Baltimore area for national employers, local residents and visitors. As of Q1 2014, Harbor East encompasses approximately 5.5 million sq. ft. of mixed use development along the waterfront. The area around the hotel has developed into a pedestrian-friendly neighborhood, with modern residential apartments, hotels, offices, branded retail and dining outlets.
 
The demand segmentation for the Courtyard by Marriott Baltimore Property consists of 60% commercial, 15% meeting and group and 25% leisure demand, in line with the competitive set. Commercial demand within the immediate Harbor East neighborhood is driven by the presence of companies including Laureate, Morgan Stanley, Johns Hopkins Medicine, Oppenheimer & Co., Anthem Energy, Hogan Lovells, and the global headquarters for Legg Mason. Popular tourist attractions in the Inner Harbor area and neighboring areas include the Maryland Science Center, the Baltimore Maritime museum, Camden Yards and M&T Stadium. The primary competitive set for the Courtyard by Marriott Baltimore Property consists of four hotels which collectively contain an aggregate of 553 rooms, which are presented in the below chart.
 
Primary Competitive Set(1)
Property
# of
Rooms
Year Opened
Meeting Space
(Sq. Ft.)
2013 Occupancy
2013 ADR
2013 RevPAR
Courtyard by Marriott Baltimore Property
205
2000
2,610
68.5%
$172.58
$118.18
Fairfield Inn & Suites Baltimore Downtown Inner Harbor
155
2009
2,542
75%
$135.00
$101.25
Hampton Inn & Suites Baltimore Inner Harbor
116
2004
    931
77%
$155.00
$119.35
Hilton Garden Inn Baltimore Inner Harbor
183
2007
2,000
73%
$165.00
$120.45
SpringHill Suites Baltimore Inner Harbor
99
2007
   500
77%
$145.00
$111.65
(1)  
Source: Appraisal and hospitality research report
 
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.
 
 
62
 
 
Maryland and Rhode Island
Collateral Asset Summary – Loan No. 5
ARC Marriott Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$45,500,000
59.5%
2.69x
13.4%
 
The Courtyard by Marriott Providence Property is located in downtown Providence, Rhode Island. Access to the hotel via car is provided by Memorial Boulevard in downtown Providence, and the property is also accessible via public transit through Rhode Island Public Transit Authority (“RIPTA”), which operates a system of trolleys available throughout the city and the InterLink system. InterLink is directly connected to T.F. Green Airport, located 9 miles to the south of Providence. Other modes of transportation available include Amtrak and bus service via the Greyhound and Peter Pan bus lines at Kennedy Plaza in downtown Providence.
 
The demand segmentation for the Courtyard by Marriott Providence Property consists of 50% commercial, 35% meeting and group and 15% leisure demand, in line with the competitive set. Commercial demand within downtown Providence is driven as a result of Providence’s position as the economic hub of the southern New England region. Several nationally and globally known companies are based in providence, including GTECH Corporation, Citizens Bank, Textron, Gilbane Inc. and RDW Group. Other organizations with a substantial presence in the area include Bank of America, Verizon and Boston Consulting Group. Meeting and group demand is driven by the hotel’s close proximity to the Dunkin Donuts Center and Rhode Island Convention Center, as well as by groups traveling to and from one of the area’s colleges, which include Brown University, Johnson & Wales and Providence College, among others. Providence’s historic nature draws visitors from destinations within driving distance, such as Boston and New York, and other leisure attractions include Providence Children’s Museum, Roger Williams Park Zoo and the Providence Place Mall. The primary competitive set for the Courtyard by Marriott Providence Property consists of four hotels which collectively contain an aggregate of 1,053 rooms, which are presented in the below chart.
 
Primary Competitive Set(1)
Property
# of
Rooms
Year Opened
Meeting Space
(Sq. Ft.)
2013 Occupancy
2013 ADR
2013 RevPAR
Courtyard by Marriott Providence Property
216
2000
3,500            
78.8%
$135.80
$106.95
Hilton Providence
274
1969
8,500            
73%
$135.00
$98.55
Marriott Providence Downtown
351
1975
11,000            
75%
$145.00
$108.75
Providence Biltmore Hotel
292
1922
19,000            
65%
$125.00
$81.25
Wyndham Garden Hotel Providence India Point
136
1989
2,000            
62%
$110.00
$68.20
(1)  
Source: Appraisal and hospitality research report
 
Cash Flow Analysis.
 
Cash Flow Analysis
 
2011
2012
2013
T-12 1/31/2014
U/W
U/W
per Room
Occupancy
72.3%
73.5%
74.5%
74.8%
74.8%
  
ADR
$138.92
$143.00
$150.94
$151.42
$151.42
  
RevPAR
$100.48
$105.17
$112.42
$113.27
$113.27
  
             
Room Revenue
$15,440,885
$16,161,209
$17,274,562
$17,405,956
$17,405,956
$41,344
F&B Revenue
1,386,850
1,406,140
1,195,077
1,250,337
1,358,544
3,227
Other Revenue
228,400
168,821
147,222
150,736
150,736
358
Total Revenue
$17,056,135
$17,736,170
$18,616,861
$18,807,029
$18,915,236
$44,929
Operating Expenses
4,055,239
4,361,352
4,794,142
4,804,858
4,833,582
11,481
Undistributed Expenses
4,960,868
4,952,382
5,288,281
5,314,295
5,314,295
12,623
Gross Operating Profit
$8,040,028
$8,422,436
$8,534,438
$8,687,876
$8,767,359
$20,825
Total Fixed Charges
2,770,128
2,454,873
2,685,713
2,709,179
2,674,674
6,353
Net Operating Income
$5,269,900
$5,967,563
$5,848,725
$5,978,697
$6,092,685
$14,472
FF&E
512,000
532,000
551,000
560,000
756,609
1,797
Net Cash Flow
$4,757,900
$5,435,563
$5,297,725
$5,418,697
$5,336,075
$12,675
             
 
Property Management.    The ARC Marriott Hotel Portfolio Properties are managed by Crestline Hotels & Resorts, LLC, under a sub-management agreement with American Realty Capital Hospitality Properties, LLC. Both Crestline Hotels & Resorts, LLC, which is partially owned by AR Capital, and American Realty Capital Hospitality Properties, LLC are borrower affiliates.
 
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.
 
 
63
 
 
Maryland and Rhode Island
Collateral Asset Summary – Loan No. 5
ARC Marriott Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$45,500,000
59.5%
2.69x
13.4%
 
Lockbox / Cash Management.    The ARC Marriott Hotel Portfolio Loan is structured with a hard lockbox and in place cash management. All credit card receipts shall be deposited by credit card processing companies directly into the clearing account controlled by the lender, and all non-credit card receipts are required to be deposited into the clearing account by the borrowers within three business days of receipt. All funds in the clearing account are swept daily to a cash management account under the control of the lender and disbursed during each interest period of the loan term in accordance with the loan documents.
 
Additionally, all excess cash will be swept into a lender controlled account upon an event of default or upon the commencement of a Low Debt Service Period. A “Low Debt Service Period” will commence if at the end of any calendar quarter the debt service coverage ratio is less than 1.40x, and will end if the debt service coverage ratio is at least 1.45x for two consecutive calendar quarters.
 
Initial Reserves.    At closing, the borrowers deposited (i) $619,028 into a tax reserve account and (ii) $1,775,000 into a PIP reserve account.
 
Ongoing Reserves.    On a monthly basis, the borrowers are required to deposit reserves of (i) 1/12 of the estimated annual real estate taxes, which currently equates to $167,606, into a tax reserve account and (ii) 4.0% of the prior month’s gross revenues into a monthly FF&E reserve account. The borrowers will also be required to deposit 1/12 of the annual insurance premiums into an insurance reserve on a monthly basis if an acceptable blanket insurance policy is no longer in place.
 
Current Mezzanine or Subordinate Indebtedness.    None.
 
Future Mezzanine or Subordinate Indebtedness Permitted.   None.
 
Other Unsecured Debt of the Sponsor.   In connection with its acquisition of the ARC Marriott Hotel Portfolio Properties, and certain other interests in other properties, the sponsor has outstanding unsecured promissory notes in the aggregate original principal amount of $63,074,057 payable to the seller of the ARC Marriott Hotel Portfolio Properties (the “Subordinate Debt”), which are subject to a subordination and standstill agreement providing no enforcement rights for the benefit of the seller prior to the Trigger Date (hereinafter defined). The unsecured promissory notes are required to be repaid by the sponsor within 10 business days after the sponsor raises common equity in an aggregate amount equal to at least $150,000,000 (such date, the “Trigger Date”).
 
Partial Release.   After the prepayment lockout expiration date, the borrowers may in conjunction with an arm’s length sale to an unrelated third party (or any proposed purchaser that (y) does not own, directly or indirectly, 10% or more of the direct or indirect equity interests in any borrower or guarantor and (z) is not otherwise an affiliate of any borrower or guarantor), obtain the release of either the Courtyard by Marriott Baltimore Property or the Courtyard by Marriott Providence Property, provided, among other things set forth in the ARC Marriott Hotel Portfolio Loan documents, (i) the debt service coverage ratio after giving effect to such release is no less than the greater of (a) the debt service coverage ratio immediately preceding such sale and (b) 2.69x, (ii) the LTV ratio after giving effect to such release is no more than the lesser of (a) the LTV ratio immediately preceding such sale and (b) 59.5%, (iii) the borrowers provide defeasance collateral in an amount equal to the greater of (a) 100% of the net sales proceeds with respect to such released property and (b) 115% of the allocated loan amount for such property and (iv) no event of default under the ARC Marriott Hotel Portfolio Loan documents has occurred and is continuing.
 
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.
 
 
64
 
 
Maryland and Rhode Island
Collateral Asset Summary – Loan No. 5
ARC Marriott Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$45,500,000
59.5%
2.69x
13.4%
 
(MAP)
 
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.
 
 
65
 

Sunnyvale, California
Mountain View, California
Collateral Asset Summary – Loan No. 6
Silicon Valley Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$37,000,000
64.1%
1.69x
12.0%
 
(GRAPHIC)
 
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.
 
 
66
 
 
Sunnyvale, California
Mountain View, California
Collateral Asset Summary – Loan No. 6
Silicon Valley Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$37,000,000
64.1%
1.69x
12.0%
 
Mortgage Loan Information
Loan Seller:
CCRE
Loan Purpose:
Refinance
Sponsor:
Stephen T. Conley, Jr.; Jeffrey Eisenberg
Borrower:
Mountain View Holdings, LP; Sunnyvale Holdings, LP
Original Balance:
$37,000,000
Cut-off Date Balance:
$37,000,000
% by Initial UPB:
3.1%
Interest Rate:
4.8900%
Payment Date:
6th of each month
First Payment Date:
June 6, 2014
Maturity Date:
May 6, 2024
Amortization:
Interest only for first 24 months; 360 months thereafter
Additional Debt:
None
Call Protection(1):
L(24), D(92), O(4)
Lockbox / Cash Management:
Hard / Springing

Reserves(2)
 
Initial
Monthly  
Taxes:
$97,333
$24,333  
Insurance:
$0
Springing  
FF&E:
$0
           1/12 of 4.0% of annual  
gross income  
Required Repairs:
$50,396
NAP  
Other(3):
$80,000
NAP  

Financial Information
Cut-off Date Balance / Room:
$123,746
  
Balloon Balance / Room:
$106,778
  
Cut-off Date LTV:
64.1%
  
Balloon LTV:
55.3%
  
Underwritten NOI DSCR(4):
1.89x
  
Underwritten NCF DSCR(4):
1.69x
  
Underwritten NOI Debt Yield:
12.0%
  
Underwritten NCF Debt Yield:
10.8%
  
Underwritten NOI Debt Yield at Balloon:
14.0%
  
Underwritten NCF Debt Yield at Balloon:
12.5%
  

 
Property Information
Single Asset / Portfolio:
Portfolio of two properties
Property Type:
Limited Service Hospitality
Collateral:
Fee Simple
Location:
Sunnyvale & Mountain View, California
Year Built / Renovated:
1977, 1984 / 2014
Total Rooms:
299
Property Management:
Joie de Vivre Hospitality, LLC
Underwritten NOI:
$4,456,873
Underwritten NCF:
$3,985,234
Appraised Value:
$57,700,000
Appraisal Date:
March 11, 2014
 
Historical NOI(5)
Most Recent NOI:
$4,539,746 (T-12 March 31, 2014)
2013 NOI:
$4,157,165 (December 31, 2013)
2012 NOI:
$3,683,750 (December 31, 2012)
2011 NOI:
$2,811,678 (December 31, 2011)
 
Historical Occupancy
Most Recent Occupancy:
76.7% (March 31, 2014)
2013 Occupancy:
74.3% (December 31, 2013)
2012 Occupancy:
74.1% (December 31, 2012)
2011 Occupancy:
68.8% (December 31, 2011)
(1)  
Partial Release is permitted. See “Partial Release” herein.
(2)  
See “Initial Reserves” and “Ongoing Reserves” herein.
(3)  
The other reserve is for Zoning Protection Insurance (“ZPI”). See “Initial Reserves” herein.
(4)  
Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and the Underwritten NCF DSCR are 2.43x and 2.17x, respectively.
(5)  
From 2011 to T-12 February 2014, as provided by the hospitality research reports, the portfolio RevPAR grew approximately 42.7% while the competitive set grew approximately 33.3%. Additionally the Silicon Valley Hotel Portfolio Properties are currently undergoing an approximately $1.4 million renovation (approximately $4,565 per room).

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.
 
 
67
 
 
Sunnyvale, California
Mountain View, California
Collateral Asset Summary – Loan No. 6
Silicon Valley Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$37,000,000
64.1%
1.69x
12.0%
 
Property Summary
Property
Location
# of Rooms
Year Built /
Renovated
Allocated Loan
Amount
Allocated
Loan %
Appraised
Value
       Occupancy(1)
Wild Palms Hotel
Sunnyvale, CA
208
1977 / 2014
$21,225,000
57.4%
$33,100,000
73.9%
Hotel Avante
Mountain View, CA
91
1984 / 2014
$15,775,000
42.6%
$24,600,000
83.2%
Total / Wtd. Avg.
  
299
  
$37,000,000
100.0%
$57,700,000
76.7%
(1)  
Occupancy based on the borrowers’ operating statements as of March 31, 2014.
 
Historical Occupancy, ADR, RevPAR(1)
 
2012
2013
T-12 3/31/2014
Property
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Wild Palms Hotel
71.5%
$102.07
$72.93
71.0%
$117.72
$83.61
73.9%
$119.74
$88.43
Hotel Avante
80.3%
$167.14
$134.18
81.8%
$174.27
$142.52
83.2%
$177.09
$147.27
Total / Wtd. Avg.
74.1%
$121.87
$91.57
74.3%
$134.93
$101.54
76.7%
$137.20
$106.34
(1)  
 Source: borrower provided operating statements

The Loan.    The Silicon Valley Hotel Portfolio loan (the “Silicon Valley Hotel Portfolio Loan”) is a fixed rate loan secured by the borrowers’ fee simple interests in two limited service hotel properties located in Sunnyvale, California and Mountain View, California (the “Silicon Valley Hotel Portfolio Properties”)  with an original principal balance of $37.0 million. The Silicon Valley Hotel Portfolio Loan has a 10-year term and amortizes on a 30-year schedule after an initial 24 month interest only period.  The Silicon Valley Hotel Portfolio Loan accrues interest at a fixed rate equal to 4.8900% and has a cut-off date balance of $37.0 million.  Loan proceeds were used to retire existing debt of approximately $31.4 million, fund upfront reserves, pay closing costs and return approximately $5.0 million of equity to the sponsors. Based on the appraised value of $57.7 million as of March 11, 2014, the cut-off date LTV is 64.1% with remaining implied equity of $20.7 million.  The most recent financing of the Silicon Valley Hotel Portfolio Properties was not included in a securitization.

Sources and Uses
 
Sources
Proceeds
% of Total
  
Uses
Proceeds
% of Total   
Loan Amount
$37,000,000
100.0%
  
Loan Payoff
$31,376,175
84.8%   
       
Reserves
$227,729
0.6%   
       
Closing Costs
$426,269
1.2%   
       
Return of Equity
$4,969,827
13.4%   
Total Sources
$37,000,000
100.0%
  
Total Uses
$37,000,000
100.0%   

The Borrower / Sponsor.    The borrowers, Mountain View Holdings, LP and Sunnyvale Holdings, LP are each Delaware limited partnerships structured to be bankruptcy-remote, each with two independent directors in their organizational structures. The sponsors of the borrowers and the nonrecourse carveout guarantors are Stephen T. Conley, Jr and Jeffrey Eisenberg.

Stephen T. Conley, Jr. is the founder and former CEO of Joie de Vivre Hospitality, LLC, a manager and owner of boutique hotels. During his 24 years as CEO, Joie de Vivre Hospitality, LLC grew to become the largest boutique hotel company in the United States. Mr. Conley was honored in 2012 with the Pioneer Award by the International Society of Hospitality Consultants, which recognizes individuals making an outstanding contribution, achievement and or improvement in the hospitality industry.
 
Jeffrey Eisenberg is the founder and CEO of Eisenberg Partners, LLC. Eisenberg Partners, LLC currently owns a portfolio of six boutique hotels in San Francisco and the surrounding area. Mr. Eisenberg was previously a Partner at AREA Property Partners, a leading global alternative asset manager with approximately $74.0 billion of assets under management. Prior to joining AREA Property Partners, he was a Partner and Managing Director in the Acquisitions Group of Starwood Capital Group, where he originated and completed several transactions ranging from $375-$600 million in size.
 
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.
 
 
68
 
 
Sunnyvale, California
Mountain View, California
Collateral Asset Summary – Loan No. 6
Silicon Valley Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$37,000,000
64.1%
1.69x
12.0%
 
The Properties.  The Silicon Valley Hotel Portfolio Properties consist of two limited service hotel properties totaling 299 rooms. The Wild Palms Hotel property is located in Sunnyvale, California while the Hotel Avante property is located in Mountain View, California.  The Wild Palms Hotel property was built in 1977 and currently undergoing renovation, while the Hotel Avante property was built in 1984 and is also currently undergoing renovation.  The Silicon Valley Hotel Portfolio Properties were acquired by the sponsors in 2000. The Wild Palms Hotel property was purchased for approximately $15.5 million and the Hotel Avante property was purchased for approximately $7.7 million, for a total of approximately $23.2 million. Subsequent to the acquisition, the borrowers invested approximately $6.8 million and $1.9 million into the Wild Palms Hotel property and the Hotel Avante property, respectively, to renovate and reposition the Silicon Valley Hotel Portfolio Properties to a Joie de Vivre Hospitality, LLC brand.

The Silicon Valley Hotel Portfolio Properties are located in close proximity to El Camino Real which is one of Silicon Valley’s primary thoroughfares and runs from San Francisco south to the California border. Each guest room at both hotels include LCD television, iPad docking station with alarm clock, high speed internet access, a mini refrigerator, Sleep Number Beds and a work desk. The Silicon Valley Hotel Portfolio Properties also include corporate meeting space, a full-service business center, fitness center, complimentary breakfast, an outdoor pool, laundry and dry cleaning.
 
Wild Palms Hotel - The Wild Palms Hotel is a 208 room limited service hotel in Sunnyvale, California. The room mix consists of five different room types, with the rooms averaging approximately 397 sq. ft. The ADR at the Wild Palms Hotel property has increased 32.9% from year end 2011 to its current ADR as of March 31, 2014 of $119.74, while the RevPAR and occupancy have increased 54.8% to $88.43 and 16.5% to 73.9% respectively. Currently the Wild Palms Hotel property is undergoing a renovation of approximately $500,000 to install new carpet in common areas and guest rooms, as well as replacement of soft goods in the guest rooms. Since 2011 and including the current renovation, the borrower has invested over $900,000 (approximately $4,394 per room) into upgrades at the Wild Palms Hotel property.

The Wild Palms Hotel property realizes 71.2% of its occupied room nights from corporate clients, which accounts for 67.9% of the revenue at the Wild Palms Hotel property for fiscal year 2013. Corporate clients at the property include large public companies such as Google, Yahoo!, HP, Apple, Juniper Networks and Amazon. The remaining demand segmentation consists of transient (18.4%) and groups (10.4%).

Hotel Avante - The Hotel Avante is a 91 room limited service hotel in Mountain View, California. The room mix consists of six different room types, with the rooms averaging approximately 442 sq. ft. The ADR at the Hotel Avante property has increased 15.1% from year end 2011 to its current ADR as of March 31, 2014 of $177.09, while the RevPAR and occupancy have increased 18.0% to $147.27 and 2.6% to 83.2% respectively. Currently the Hotel Avante property is undergoing a renovation of approximately $865,000 to install new carpet in common area and guest rooms, as well as replacement of all case and soft goods in the guest rooms. Since 2011 and including the current renovation, the borrower has invested over $1.1 million (approximately $12,472 per room) into upgrades at the Hotel Avante property.

The Hotel Avante property realizes 78.7% of its occupied room nights from corporate clients, which results in 76.8% of the revenue at the Hotel Avante property for fiscal year 2013. Corporate clients at the property include large public companies such as Google, Intuit, Symantec, LinkedIn, Microsoft, Yahoo and AOL. The remaining demand segmentation consists of transient (12.4%) and groups (8.9%).

The chart below depicts the top 10 corporate accounts at the Hotel Avante property and the Wild Palms Hotel property.
 
Top Corporate Accounts(1)
Wild Palms Hotel
Hotel Avante
 Rank
Client
# of   
Nights  
% of   
Total  
Nights 
ADR     
 Rank
Client
# of    
Nights  
% of   
Total   
Nights  
ADR
1
Google
5,644
7.4%
$112.00
1
Google
5,644
17.0%
$189.00
2
Yahoo!
2,657
3.5%
$109.00
2
Intuit
2,296
6.9%
$185.00
3
HP
1,609
2.1%
$99.00
3
Google Recruiting
2,020
6.1%
$189.00
4
Apple
1,286
1.7%
$119.00
4
Symantec
847
2.6%
$192.00
5
Ooyala
1,205
1.6%
$109.00
5
LinkedIn
568
1.7%
$199.00
6
Juniper Networks
964
1.3%
$119.00
6
Mozilla
238
0.7%
$199.00
7
Amazon
741
1.0%
$104.00
7
Microsoft
293
0.9%
$157.00
8
NetApp
658
0.9%
$109.00
8
Yahoo
153
0.5%
$189.00
9
Arista Networks
613
0.8%
$109.00
9
AOL
138
0.4%
$189.00
10
Broadcom
555
0.7%
$115.00
10
Neustar
101
0.3%
$209.00
(1)    Source: borrower provided information for year end 2013.
 
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.
 
 
69
 
 
Sunnyvale, California
Mountain View, California
Collateral Asset Summary – Loan No. 6
Silicon Valley Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$37,000,000
64.1%
1.69x
12.0%
 
Environmental Matters. The Phase I environmental reports dated March 21, 2014 recommended no further action at the Silicon Valley Hotel Portfolio Properties except for the development and implementation of Asbestos Operation and Maintenance Plans at the Silicon Valley Hotel Portfolio Properties, which are already in place.

The Market. The Silicon Valley Hotel Portfolio Properties consist of the Avante Hotel property located in Mountain View, California and the Wild Palms Hotel property located in Sunnyvale, California. The Silicon Valley Hotel Portfolio Properties are located approximately three miles apart in Santa Clara County, in the center of Silicon Valley. The Silicon Valley Hotel Portfolio Properties are centrally located in close proximity to El Camino Real, which serves as Silicon Valley’s primary thoroughfare. The Silicon Valley Hotel Portfolio Properties are located on the San Francisco Peninsula, 10 miles northwest of downtown San Jose and 40 miles south of San Francisco. Santa Clara County is served by several major freeways including Interstates 280, 680, and 880, and Highways 85, 87, 101 and 237, providing access to San Jose, San Francisco and Los Angeles. The Silicon Valley Hotel Portfolio Properties are both less than eight miles from the San Jose International Airport.

Silicon Valley is home to 14 Fortune 500 technology firms, seven of which are in the Fortune 100, including Cisco, Apple, Google, Hewlett-Packard, Oracle, Intel, Symantec, eBay, and Yahoo. The portfolio’s largest corporate accounts include Yahoo!, Google and Symantec, which are all located within five miles of each property. In addition, other major companies with national or regional headquarters located near the properties include: Lockheed Martin (5.0 miles), Honeywell (5.0 miles) and Northrop Grumman (3.0 miles).

Wild Palms Hotel - The Wild Palms Hotel property is located in Sunnyvale, California, which as of 2012 had a total population of 146,200 with a median household income of $96,884. The competitive set for the Wild Palms Hotel property consists of seven hotels totaling 817 rooms, within six miles of the Wild Palms Hotel property. The Wild Palms Hotel property competes with hotels located in Sunnyvale, Santa Clara and San Jose. The competitive hotels are generally midscale properties, accommodating primarily commercial demand. The local competitive set includes hotels such as Maple Tree Inn Sunnyvale, Country Inn & Suites Sunnyvale, Holiday Inn Express & Suites Santa Clara Silicon Valley, Quality Inn & Suites Sunnyvale and Quality Inn Sunnyvale Civic Center. As of March 31, 2014, the Wild Palms Hotel property was reported as having occupancy, ADR and RevPAR of 73.9%, $119.74 and $88.43, respectively.

Historical Occupancy, ADR, RevPAR – Local Competitive Set(1)
 
Wild Palms Hotel
Competitive Set
Penetration Factor
Year
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
T-12 February 2014
73.7%
$119.61
$88.17
73.4%
$116.02
$85.21
100.4%
103.1%
103.5%
2013
72.1%
$118.04
$85.10
73.9%
$113.23
$83.64
97.6%
104.2%
101.7%
2012
72.4%
$102.56
$74.28
70.4%
$102.91
$72.44
102.8%
99.7%
102.5%
2011
62.8%
$91.06
$57.22
65.8%
$95.79
$63.07
95.4%
95.1%
90.7%
(1)  
 Source: Hospitality research reports

Hotel Avante - The Hotel Avante property is located in Mountain View, California, which as of 2012 had a total population of 76,600 with a median household income of $92,987, approximately 63.0% above the national average. The competitive set for the Hotel Avante property consists of five hotels totaling 731 rooms, within four miles of the Hotel Avante property. The Hotel Avante property competes with hotels located in Mountain View, Palo Alto and Los Altos. The competitive hotels are a combination of midscale and extended-stay properties, accommodating primarily commercial demand. The local competitive set includes hotels such as Hilton Garden Inn Mountain View, Residence Inn Palo Alto Los Altos, Crowne Plaza Palo Alto and Dinah’s Garden Hotel Palo Alto. As of March 31, 2014, the Hotel Avante property was reported as having occupancy, ADR and RevPAR of 83.2%, $177.09 and $147.27, respectively.

Historical Occupancy, ADR, RevPAR – Local Competitive Set(1)
 
Hotel Avante
Competitive Set
Penetration Factor
Year
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
T-12 February 2014
81.8%
$177.71
$145.34
81.7%
$199.08
$162.67
100.1%
89.3%
89.3%
2013
81.2%
$175.40
$142.41
81.1%
$195.33
$158.48
100.1%
89.8%
89.9%
2012
79.6%
$168.36
$133.95
80.4%
$177.39
$142.55
99.0%
94.9%
94.0%
2011
80.2%
$155.51
$124.76
78.0%
$161.35
$125.84
102.8%
96.4%
99.1%
(1)  
Source: Hospitality research reports
 
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.
 
 
70
 
 
Sunnyvale, California
Mountain View, California
Collateral Asset Summary – Loan No. 6
Silicon Valley Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$37,000,000
64.1%
1.69x
12.0%
 
Cash Flow Analysis.

 
Cash Flow Analysis(1)
   
2011
2012
2013
T-12 3/31/2014
U/W
U/W per Room
 
Occupancy
68.8%
74.1%
74.3%
76.7%
73.0%
  
 
ADR
$113.00
$123.51
$136.67
$138.67
$145.18
  
 
RevPAR
$77.71
$91.57
$101.54
$106.34
$106.05
  
               
 
Room Revenue
$8,481,263
$10,020,735
$11,081,196
$11,605,093
$11,573,623
$38,708
 
F&B Revenue
95,150
$97,909
116,553
117,634
111,876
374
 
Other Revenue
52,336
89,528
89,633
110,292
105,470
353
 
Total Revenue
$8,628,749
$10,208,172
$11,287,381
$11,833,018
$11,790,969
$39,435
 
Operating Expenses
2,883,913
3,208,808
3,387,066
3,454,657
3,438,173
11,499
 
Undistributed Expenses(2)
2,933,158
3,315,613
3,743,150
3,838,616
3,895,922
13,030
 
Net Operating Income
$2,811,678
$3,683,750
$4,157,165
$4,539,746
$4,456,873
$14,906
 
FF&E(3)
345,150
408,327
451,495
473,321
471,639
1,577
 
Net Cash Flow(4)
$2,466,528
$3,275,423
$3,705,670
$4,066,425
$3,985,234
$13,329
(1)  
All fields in the Cash Flow Analysis represent all 299 rooms at both the Wild Palms Hotel property and the Hotel Avante property.
(2)  
The Silicon Valley Hotel Portfolio Properties do not have a franchise agreement or associated fee. The aggregate U/W marketing and management expenses total 11.6% of gross revenue.
(3)  
An FF&E reserve of 4.0% of total revenue was applied to each of the historical cash flows and the U/W cash flow.
(4)  
From 2011 to T-12 February 2014, as provided by the hospitality research reports, the portfolio RevPAR grew approximately 42.7% while the competitive set grew approximately 33.3%. Additionally the Silicon Valley Hotel Portfolio Properties are currently undergoing an approximately $1.4 million renovation (approximately $4,565 per room).

Property Management.    The Silicon Valley Hotel Portfolio Properties are managed by Joie de Vivre Hospitality, LLC. Joie de Vivre Hospitality, LLC, which was founded in 1987 by Stephen T. Conley, Jr. (one of the sponsors of the Silicon Valley Hotel Portfolio Loan) and represents California’s largest boutique hotel collection. Currently, Joie de Vivre Hospitality, LLC manages over 30 hotels in 19 cities.

Lockbox / Cash Management.    The Silicon Valley Hotel Portfolio Loan is structured with a hard lockbox and springing cash management. In place cash management is required upon (i) an event of default or (ii) the failure by the borrowers after the end of two consecutive calendar quarters to maintain a debt service coverage ratio of at least 1.10x until the debt service coverage ratio is at least equal to 1.15x for two consecutive calendar quarters.

Initial Reserves.    At closing, the borrowers deposited (i) $97,333 into a tax reserve account, (ii) $50,396 into a required repairs reserve account and (iii) $80,000 into a Zoning Protection Insurance (“ZPI”) reserve account.

The ZPI reserve account was established to enable the lender to purchase zoning protection insurance in the event the borrowers do not obtain a conditional use permit (as required in connection with the rebuilding of the Hotel Avante property in the event of a significant casualty) by April 17, 2015.

Ongoing Reserves.    On a monthly basis, the borrowers are required to deposit reserves of (i) 1/12 of the estimated annual real estate taxes, which currently equates to $24,333, into a tax reserve account and (ii) 1/12 of 4.0% of annual gross income as determined by lender, which currently equates to $38,777, into an FF&E reserve account. Additionally, the borrowers will be required to deposit monthly insurance reserves upon (i) an event of default, (ii) the failure by the borrowers to maintain an acceptable blanket insurance policy, (iii) the failure by the borrowers to pay annual insurance premiums in advance or (iv) the failure by the borrowers to provide evidence of a renewal policy two days prior to its then current expiration date.
 
Current Mezzanine or Subordinate Indebtedness.    None.

Future Mezzanine or Subordinate Indebtedness Permitted.    None.
 
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.
 
 
71
 
 
Sunnyvale, California
Mountain View, California
Collateral Asset Summary – Loan No. 6
Silicon Valley Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$37,000,000
64.1%
1.69x
12.0%
 
Partial Release.  After the expiration of the prepayment lockout period and in connection with an arm’s length sale to an independent third party, the borrower may obtain the release of either property  provided that, among other things, the loan is partially defeased in an aggregate amount equal to the greatest of (i) 90.0% of the net sales proceeds of the released property, (ii) $21,050,000 for the Hotel Avante property (133.4% of the allocated loan amount), (iii) $23,350,000 for the Wild Palms Hotel property (110.0% of the allocated loan amount) and (iv) the amount necessary to satisfy (a) a NCF debt yield, after giving effect to such release, equal to or exceeding the greater of 11.0% and the NCF debt yield immediately prior to such release, (b) an LTV ratio, after giving effect to such release, that is less than or equal to the lesser of 64.1% and the LTV ratio immediately prior to such release and (iii) a DSCR, after giving effect to such release, that is equal to or exceeding the greater of 1.74x and the DSCR immediately prior to such release. Notwithstanding the foregoing, the borrowers are prohibited from obtaining the release of the Wild Palms Hotel property if a casualty of the Hotel Avante property has occurred (i) before April 17, 2015 or (ii) prior to the borrower obtaining a conditional use permit or lender obtaining zoning protection insurance.

New Construction. The borrowers may construct a free standing conference center on the Wild Palms Hotel property provided, among other things, (i) the cost does not exceed $2,000,000, (ii) the borrowers provide lender with a construction budget, construction schedule and plans and specifications, (iii) the borrowers post with lender a letter of credit or completion bond in an amount equal to 115% of the construction budget, (iv) the construction will not materially and adversely affect the Wild Palms Hotel property including the income from such property and the borrowers’ ability to satisfy the debt service and (v) construction must be completed within two years of commencement and at least 12 months prior to the maturity date.
 
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.
 
 
72
 
 
Sunnyvale, California
Mountain View, California
Collateral Asset Summary – Loan No. 6
Silicon Valley Hotel Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$37,000,000
64.1%
1.69x
12.0%
 
(MAP)
 
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.
 
 
73
 
 

2500 Central Park Avenue
Yonkers, NY 10710
Collateral Asset Summary – Loan No. 7
Yonkers Gateway Center
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$36,900,961
49.2%
1.60x
12.7%
 
(GRAPHIC)
 
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.
 
 
74
 
 
2500 Central Park Avenue
Yonkers, NY 10710
Collateral Asset Summary – Loan No. 7
Yonkers Gateway Center
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$36,900,961
49.2%
1.60x
12.7%
 
Mortgage Loan Information
Loan Seller:
CCRE
Loan Purpose:
Refinance
Sponsor:
Irwin Ackerman
Borrower:
Acklinis Yonkers Realty, LLC
Original Balance:
$37,000,000
Cut-off Date Balance:
$36,900,961
% by Initial UPB:
3.1%
Interest Rate:
4.1635%
Payment Date:
6th of each month
First Payment Date:
May 6, 2014
Maturity Date:
April 6, 2024
Amortization:
240 months
Additional Debt:
None
Call Protection:
L(25), D(91), O(4)
Lockbox / Cash Management:
Hard / Springing
 
Reserves(1)
 
Initial
Monthly
Taxes:
$0
Springing  
Insurance:
$0
Springing  
Replacement(2):
$0
$7,282  
Required Repairs(3):
$104,664
NAP  
Recent Leasing(4):
$360,000
$0  
Other:
$82,500
$834  
Ground Rent:
$0
Springing  
 
Financial Information
Cut-off Date Balance / Sq. Ft.:
$84
  
Balloon Balance / Sq. Ft.:
$52
  
Cut-off Date LTV:
49.2%
  
Balloon LTV:
30.0%
  
Underwritten NOI DSCR:
1.72x
  
Underwritten NCF DSCR:
1.60x
  
Underwritten NOI Debt Yield:
12.7%
  
Underwritten NCF Debt Yield:
11.8%
  
Underwritten NOI Debt Yield at Balloon:
20.8%
  
Underwritten NCF Debt Yield at Balloon:
19.4%
  
 
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Anchored Retail
Collateral(5):
Leasehold
Location:
Yonkers, NY
Year Built / Renovated:
1953, 1968 / 2005
Total Sq. Ft.:
436,906
Property Management:
Ackerman Property Management, L.L.C.
Underwritten NOI:
$4,684,364
Underwritten NCF:
$4,365,015
Appraised Value:
$75,000,000
Appraisal Date:
February 27, 2014
 
Historical NOI(6)
Most Recent NOI:
$5,600,869 (T-12 January 31, 2014)
2013 NOI:
$6,009,814 (December 31, 2013)
2012 NOI:
$5,272,568 (December 31, 2012)
2011 NOI:
$6,012,749 (December 31, 2011)
 
Historical Occupancy(6)
Most Recent Occupancy(7):
99.5% (March 5, 2014)
2013 Occupancy:
100.0% (December 31, 2013)
2012 Occupancy:
93.2% (December 31, 2012)
2011 Occupancy:
100.0% (December 31, 2011)
(1)  
See “Initial Reserves” and “Ongoing Reserves” herein.
(2)  
Subject to a cap of $150,000.
(3)  
Required Repairs represents 125.0% of the immediate required repairs identified by the property condition report including asphalt pavement, sidewalk and ramp repair and roof repair.
(4)  
Recent Leasing reserve includes $300,000 for owed tenant improvements and $60,000 of free rent outstanding under the Alamo Drafthouse Cinema lease.
(5)  
The Yonkers Gateway Center Property is subject to a ground lease expiring May 31, 2060.  See “Ground Lease” herein.
(6)  
The decrease in Historical NOI and Historical Occupancy from 2011 to 2012 was primarily due to four tenants that vacated their spaces in 2012, resulting in occupancy decreasing from 100.0% in 2011 to 93.2% in 2012.  All vacant spaces were re-tenanted in 2012 and 2013 resulting in occupancy increasing to 100.0% for 2013.  The decrease in NOI from 2013 to T-12 January 31, 2014 was primarily the result of a contractual increase in ground rent.  The decrease in NOI from T-12 January 31, 2014 to Underwritten NOI was primarily the result of a renegotiated ground lease resulting in an increase in ground rent and a 5.0% underwritten vacancy.
(7)  
Most Recent Occupancy includes one tenant, Ashley Stewart, which filed for bankruptcy protection in March 2014 and has been underwritten as vacant.  The Yonkers Gateway Center Property is currently 98.7% occupied excluding Ashley Stewart.

 
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.

 
75
 
 
2500 Central Park Avenue
Yonkers, NY 10710
Collateral Asset Summary – Loan No. 7
Yonkers Gateway Center
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$36,900,961
49.2%
1.60x
12.7%
 
Tenant Summary
Tenant Mix
Ratings 
(Fitch/Moody’s/S&P)(1)
Net Rentable
Area (Sq. Ft.)
% of Net
Rentable Area
  
Annual U/W
Base Rent
PSF
% Total of U/W
Base Rent
Lease Expiration
                   
Collateral Anchors
                  
Burlington Coat Factory
NR/B3/NR
196,000(2)       
44.9%
    
$3.00
  
8.4%  
6/29/2034
Pathmark
NR/NR/NR
50,085    
11.5%
    
$14.22
  
10.1%  
3/31/2015(3)
Best Buy
BB-/Baa2/BB
42,226    
9.7%
    
$32.00
  
19.3%  
1/31/2017(4)
                   
Theater
                  
Alamo Drafthouse Cinema
NR/NR/NR
25,596    
5.9%
    
$17.98
  
6.6%  
6/30/2023(5)
                   
Major Tenants
                  
DSW(6)
NR/NR/NR
22,000    
5.0%
    
$33.88
  
10.6%  
11/30/2018(7)
PetSmart
NR/NR/BB+
19,056    
4.4%
    
$25.30
  
6.9%  
1/31/2021(8)
Pier One
NR/NR/NR
11,250    
2.6%
    
$35.00
  
5.6%  
2/28/2023(9)
Subtotal
  
52,306    
12.0%
    
$30.99
  
23.1%  
  
                   
In-line Tenants (<10,000 sq. ft.)
  
68,693    
15.7%
    
$33.26
  
32.6%  
  
Total Occupied Collateral(10)
  
434,906    
99.5%
    
$16.14
  
100.0%  
  
                   
Vacant
  
2,000    
0.5%
            
Total Collateral
  
436,906    
100.0%
            
                   
(1)     
Certain ratings may be those of the parent company whether or not the parent company guarantees the lease.
(2)     
Bob’s Discount Furniture of NY, LLC currently subleases 62,930 sq. ft. located on the second level of the Burlington Coat Factory space for $15.89 PSF, which will increase to $18.27 PSF commencing May 1, 2014.  In addition, Starbucks Corporation subleases 1,500 sq. ft. located on the northwest corner of the ground floor level of the Burlington Coat Factory space for $57.50 PSF.
(3)     
Pathmark has three, five-year renewal options with nine months prior notice.
(4)     
Best Buy has three, five-year renewal options with 13 months prior notice.
(5)     
Alamo Drafthouse Cinema has two, five-year renewal options with 12 months prior notice.
(6)     
DSW reported 2013 gross sales of $11.7 million, or approximately $534 PSF, 114.5% above DSW’s reported national average sales per store of $249 PSF for the trailing 12 months ended November 2, 2013.
(7)     
DSW has two, five-year renewal options with 12 months notice.
(8)     
PetSmart has three, five-year year renewal options with approximately six months prior notice.
(9)     
Pier One has two, five-year renewal options with approximately nine months prior notice and additional renewal option expiring July 30, 2034 with approximately nine months prior notice.
(10)   
Total Occupied Collateral includes one tenant, Ashley Stewart, which filed for bankruptcy protection in March 2014 and has been underwritten as vacant.  The Yonkers Gateway Center Property is currently 98.7% occupied excluding Ashley Stewart.
 
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.
 
 
76
 
 
2500 Central Park Avenue
Yonkers, NY 10710
Collateral Asset Summary – Loan No. 7
Yonkers Gateway Center
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$36,900,961
49.2%
1.60x
12.7%
 
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   
3,024   
0.7%   
3,024   
0.7%   
$22.00   
0.9%   
0.9%   
2015(2)
3   
54,245   
12.4%   
57,269   
13.1%   
$15.85   
12.3%   
13.2%   
2016
2   
7,800   
1.8%   
65,069   
14.9%   
$42.76   
4.8%   
18.0%   
2017
6   
56,358   
12.9%   
121,427   
27.8%   
$34.12   
27.4%   
45.4%   
2018
5   
31,933   
7.3%   
153,360   
35.1%   
$34.58   
15.7%   
61.1%   
2019
1   
2,600   
0.6%   
155,960   
35.7%   
$22.00   
0.8%   
61.9%   
2020
1   
9,114   
2.1%   
165,074   
37.8%   
$38.00   
4.9%   
66.8%   
2021
1   
19,056   
4.4%   
184,130   
42.1%   
$25.30   
6.9%   
73.7%   
2022(3)
2   
11,490   
2.6%   
195,620   
44.8%   
$23.46   
3.8%   
77.5%   
2023
3   
39,846   
9.1%   
235,466   
53.9%   
$23.24   
13.2%   
90.7%   
2024
0   
0   
0.0%   
235,466   
53.9%   
$0.00   
0.0%   
90.7%   
Thereafter
2   
199,440   
45.6%   
434,906   
99.5%   
3.26   
9.3%   
100.0%   
Vacant
NAP   
2,000   
0.5%   
436,906   
100.0%   
NAP   
NAP   
  
Total / Wtd. Avg.
27   
436,906   
100.0%   
    
$16.14   
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.
(2)  
Tenants expiring in 2015 include Pathmark (11.5% of NRA; 10.1% of U/W Base Rent), which is currently 59.4% below the appraiser’s concluded market rent of $35.00 per sq. ft.
(3)  
The year 2022 includes one tenant, Ashley Stewart, which filed for bankruptcy protection in March 2014 and has been underwritten as vacant.  The Yonkers Gateway Center Property is currently 98.7% occupied excluding Ashley Stewart.
 
The Loan.    The Yonkers Gateway Center loan (the “Yonkers Gateway Center Loan”) is a fixed rate loan secured by the borrower’s leasehold interest in a 436,906 sq. ft. anchored retail center located at 2500 Central Park Avenue in Yonkers, New York (the “Yonkers Gateway Center Property”) with an original principal balance of $37.0 million.  The Yonkers Gateway Center Loan has a 10-year term and amortizes on a 20-year schedule.  The Yonkers Gateway Center Loan accrues interest at a rate of 4.1635% and has a cut-off date balance of approximately $36.9 million.  Loan proceeds, along with approximately $1.1 million in equity from the sponsor, were used to retire existing debt of approximately $36.9 million, pay closing costs and fund upfront reserves.  Based on the appraised value of $75.0 million as of February 27, 2014, the cut-off date LTV ratio is 49.2%.  The most recent financing of the Yonkers Gateway Center Property was included in the MSC 2005-HQ6 transaction.
 
Sources and Uses
Sources
Proceeds
% of Total
  
Uses
Proceeds
% of Total  
Loan Amount
$37,000,000
97.2%
  
Loan Payoff
$36,915,874
96.9%  
Sponsor Equity
$1,084,037
2.8%
  
Closing Costs
$620,998
1.6%  
       
Reserves
$547,164
1.4%  
Total Sources
$38,084,037
100.0%
  
Total Uses
$38,084,037
100.0%  
 
The Borrower / Sponsor.    The borrower, Acklinis Yonkers Realty, LLC, is a single purpose New York limited liability company structured to be bankruptcy-remote, with two independent directors in its organizational structure. The sponsor of the borrower is Irwin Ackerman, a New Jersey based real estate developer who has controlled, managed and developed approximately 1.0 million sq. ft. of commercial properties in New York and New Jersey and has 40 years of real estate experience,  including four anchored retail centers totaling over 1.0 million sq. ft. located throughout New Jersey.  The sponsor purchased the Yonkers Gateway Center Property in 1983.
 
The Property.    The Yonkers Gateway Center Property is comprised of two multi-tenant buildings and two free-standing buildings totaling 436,906 sq. ft.  The front two-story retail building contains 311,139 sq. ft. and is occupied by Burlington Coat Factory, Best Buy, DSW and a variety of national in-line tenants.  Burlington Coat Factory occupies the first level of the building and subleases the upper level to Bob’s Discount Furniture of NY, LLC, which has two grade level entrances.  The rear building contains 81,115 sq. ft. and is currently occupied by Pathmark and a variety of smaller retail and food service tenants.  The fourth largest tenant, Alamo Drafthouse Cinema, occupies a 25,596 sq. ft. free-standing building located on the northeast corner of the Yonkers Gateway Center Property that was renovated in 2012 and 2013.  The sixth largest tenant, PetSmart, occupies a 19,056 sq. ft. free-standing building located between the front and rear building on the south side of the Yonkers Gateway Center Property that was redeveloped in 2012.
 
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.
 
 
77
 
 
2500 Central Park Avenue
Yonkers, NY 10710
Collateral Asset Summary – Loan No. 7
Yonkers Gateway Center
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$36,900,961
49.2%
1.60x
12.7%
 
Vehicular access to the Yonkers Gateway Center Property is provided by three entrances from Central Park Avenue, which has an average daily traffic count of 50,913.  Additionally, the Yonkers Gateway Center Property contains 1,690 parking spaces.
 
The Yonkers Gateway Center Property has averaged an occupancy rate of approximately 99.0% since 2000.  Nine tenants comprising 273,456 sq. ft. (62.6% of NRA) have been at the Yonkers Gateway Center Property for more than 20 years, specifically Burlington Coat Factory and Pathmark, which have been the Yonkers Gateway Center Property for 37 years and 29 years, respectively.  Six in-line tenants at the Yonkers Gateway Center Property reported sales for 2013, which yielded weighted average sales of $387 PSF.  Below is a summary of the Yonkers Gateway Center Property annual occupancy since 2004.
 
Historical Occupancy
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
99.7%
96.3%
98.9%
100.0%
100.0%
100.0%
99.0%
100.0%
93.2%
100.0%
 
Environmental Matters.    The Phase I environmental report dated March 10, 2014 recommended the continuation of the current semi-annual groundwater monitoring program and vapor extraction system operation already in place at the Yonkers Gateway Center Property in accordance with New York State Department of Environmental Conservation approval and the implementation of an asbestos operations and maintenance plan, which is already in place.  The estimated cost of the semi-annual groundwater monitoring program and the continuation of the vapor extraction system operation is $10,000 per year, which has been underwritten.  See “Ongoing Reserves” herein.
 
The Market.    The Yonkers Gateway Center Property is located on Central Park Avenue in the city of Yonkers, New York, the primary retail corridor of Westchester County and fourth largest city in New York State.  Yonkers benefits from a diverse network of public transportation including four train stations along the Metro-North line and the Bee-line bus system that travels in and around Yonkers and to White Plains and New York City.  The city contains Westchester’s largest mall, the Cross County Shopping Center, a 1.2 million sq. ft. open-air and enclosed retail center located 4.2 miles south of the Yonkers Gateway Center Property, and an abundance of retail establishments located north and south of the mall.  The Yonkers Gateway Center Property is also located proximate to mid- and high-density residential and retail developments that reside adjacent to main roadways that provide access to the Yonkers Gateway Center Property.
 
The Yonkers Gateway Center Property is located on Central Park Avenue (Route 100), a densely populated shopping corridor extending north through the cities of Yonkers, Greensburg and White Plains.  It comprises the second greatest concentration of retail development in southern Westchester County with more than 2.5 million sq. ft. of retail development.  At the base of Central Park Avenue is the Yonkers Raceway – Empire City Casino.  The appraiser concluded a trade area encompassing three miles around the Yonkers Gateway Center Property, which contains a 2013 population of 122,038 and a 2013 average household income of $157,507.
 
The City of Yonkers is located in the Southwest submarket of the Westchester retail market.  As of Q4 2013, the Southwest retail submarket contained a total inventory of approximately 11.5 million sq. ft. with a vacancy rate and quoted asking rental rate of 4.8% and $30.55 PSF, respectively.  The Yonkers Gateway Center Property is 99.5% occupied as of March 5, 2014 with an underwritten base rent of $16.14 PSF. Burlington Coat Factory and Pathmark’s in place rents of $3.00 PSF and $14.22 PSF, respectively, are approximately 70.0% and 59.4%, respectively, below the appraiser’s concluded market rents of $10.00 PSF and $35.00 PSF, respectively.  The chart below summarizes four competitive properties within the appraiser’s concluded competitive set excluding properties below 100,000 sq. ft. and above 1.0 million sq. ft.
 
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.
 
 
78
 
 
2500 Central Park Avenue
Yonkers, NY 10710
Collateral Asset Summary – Loan No. 7
Yonkers Gateway Center
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$36,900,961
49.2%
1.60x
12.7%
 
Yonkers Gateway Center Property Competitive Set(1)
Name
  
Yonkers Gateway Center
  
Central Plaza
Shopping Center
  
Kohls Shopping
Center
  
Midway Shopping
Center
  
Highridge Plaza
                     
Distance from Subject
  
NAP
  
0.2 miles
  
0.4 miles
  
0.5 miles
  
1.9 miles
City, State
  
Yonkers, NY
  
Yonkers, NY
  
Yonkers, NY
  
Scarsdale, NY
  
Yonkers, NY
Property Type
  
Anchored Retail
  
Neighborhood Center
  
Community Center
  
Community Center
  
Neighborhood Center
Year Built / Renovated
  
1953, 1968 / 2005
  
1970 / NAP
  
1982 / NAP
  
1958 / 2003
  
1977 / 1994
Total Occupancy(2)(3)
  
99.5%
  
98.5%
  
100.0%
  
100.0%
  
93.1%
Anchor Size (Sq. Ft.)(2)
  
366,213
  
177,000
  
154,591
  
69,821
  
41,767
Total Size (Sq. Ft.)(2)
  
436,906
  
269,053
  
154,591
  
267,400
  
100,092
Anchor Tenants(2)
  
Burlington Coat Factory, Pathmark, Best Buy, Alamo Drafthouse Cinema, DSW, PetSmart, Pier One
  
Barnes & Noble
Booksellers,
Mandee, Modell’s
  
Kohl’s, Petco
  
Shop Rite Supermarket, CVS Pharmacy, Planet Fitness Gym
  
Pathmark
(1)  
Source: Appraisal
(2)  
Based on the underwritten rent roll dated March 5, 2014.
(3)  
Total Occupancy includes one tenant, Ashley Stewart, which filed for bankruptcy protection in March 2014 and has been underwritten as vacant.  The Yonkers Gateway Center Property is currently 98.7% occupied excluding Ashley Stewart.
 
Cash Flow Analysis.
 
Cash Flow Analysis
 
2011
2012
2013
T-12 1/31/2014
U/W
U/W PSF
Base Rent
$6,462,105
$6,167,925
$6,810,441
$6,889,944
$7,018,129
$16.06
Value of Vacant Space
0
0
0
0
44,000
0.10
Gross Potential Rent
$6,462,105
$6,167,925
$6,810,441
$6,889,944
$7,062,129
$16.16
Total Recoveries
3,418,032
2,994,980
3,147,843
3,224,600
3,184,756
7.29
Total Other Income
87,233
71,707
95,031
97,174
95,000
0.22
Less: Vacancy(1)
0
0
0
0
(512,344)
(1.17)
Effective Gross Income
$9,967,370
$9,234,612
$10,053,315
$10,211,718
$9,829,540
$22.50
Total Operating Expenses(2)
3,954,621
3,962,044
4,043,501
4,610,849
5,145,177
11.78
Net Operating Income(3)
$6,012,749
$5,272,568
$6,009,814
$5,600,869
$4,684,364
$10.72
TI/LC
0
0
0
0
230,891
0.53
Capital Expenditures
0
0
0
0
88,458
0.20
Net Cash Flow
$6,012,749
$5,272,568
$6,009,814
$5,600,869
$4,365,015
$9.99
             
(1)  
U/W Vacancy represents 5.0% of Gross Potential Rent and Total Recoveries.  The Yonkers Gateway Center Property is 99.5% physically occupied and has maintained an average occupancy of 99.0% since 2000.
(2)  
U/W ground rent based on the average ground lease payment over the term of the Yonkers Gateway Center Loan.  In place ground rent is currently $1.8 million per year through December 31, 2023, which increases to $2.4 million per year commencing January 1, 2024.  See “Ground Lease” herein.
(3)  
The decrease in Net Operating Income from 2011 to 2012 was primarily due to four tenants that surrendered their spaces in 2012, resulting in occupancy decreasing from 100.0% in 2011 to 93.2% in 2012.  All vacant spaces were re-tenanted in 2012 and 2013 resulting in occupancy increasing to 100.0% for 2013.  The decrease in Net Operating Income from 2013 to T-12 January 31, 2014 was primarily the result of a contractual increase in ground rent.  The decrease in Net Operating Income from T-12 January 31, 2014 to U/W Net Operating Income was primarily the result of a renegotiated ground lease resulting in an increase in ground rent and a 5.0% underwritten vacancy.
 
Property Management.    The Yonkers Gateway Center Property is managed by Ackerman Property Management, L.L.C., an affiliate of the borrower.
 
Lockbox / Cash Management.    The Yonkers Gateway Center Loan is structured with a hard lockbox and springing cash management. All rents and other payments are required to be deposited directly into a clearing account controlled by the lender and are then transferred to an account controlled by the borrower until the occurrence of a Cash Trap Period (as defined below).
 
All excess cash will remain in the lender controlled account after the application of cash management and held as additional collateral for the Yonkers Gateway Center Loan during a Cash Trap Period. A “Cash Trap Period” will exist (i) during an event of default under the loan documents, (ii) upon a bankruptcy action of the borrower, principal, guarantor or property manager or (iii) upon the failure by the borrower to maintain a DSCR of at least 1.20x for two consecutive calendar quarters.
 
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.
 
 
79
 
 
2500 Central Park Avenue
Yonkers, NY 10710
Collateral Asset Summary – Loan No. 7
Yonkers Gateway Center
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$36,900,961
49.2%
1.60x
12.7%
 
Initial Reserves.    At closing, the borrower deposited (i) $104,664 into an immediate repairs reserve, (ii) $300,000 into an Alamo TI reserve for outstanding tenant improvement obligations owed to the Alamo Drafthouse Cinema tenant, (iii) $82,500 into a condemnation insurance reserve account to be used by the borrower to purchase condemnation insurance as required under the ground lease and (iv) $60,000 into a free rent reserve for outstanding free rent owed to the Alamo Drafthouse Cinema tenant.
 
Ongoing Reserves.    On a monthly basis, the borrower is required to deposit (i) $7,282 into a replacement reserve escrow, subject to a cap of $150,000 and (ii) $834 into an environmental monitoring escrow to be used for previously enacted ongoing groundwater monitoring.  Additionally, the borrower will be required to deposit 1/12 of annual real estate taxes, 1/12 of annual insurance premiums and the monthly ground rent due for the following month upon (i) an event of default, (ii) the ground lease is no longer in full force and effect, (iii) with respect only to real estate tax and insurance premium deposits, the borrower is no longer required to pay all taxes or fails to maintain an insurance policy acceptable to lender, (iv) the borrower has not provided evidence of payment prior to each escrow’s required respective delivery date or (v) the commencement of a Cash Trap Period.
 
Current Mezzanine Indebtedness.    None.
 
Future Mezzanine or Subordinate Indebtedness Permitted.    None.
 
Ground Lease.   There are two parcels of land that comprise the Yonkers Gateway Center Property – Parcel A and Parcel B.  Parcel A is subject to a ground lease with G & C Yonkers Realty, LLC, New York limited liability company (“G & C Yonkers”), an unaffiliated third party (the “Ground Lease”). Parcel B is subject to (i) the Ground Lease and (ii) an over lease between G & C Yonkers, as lessee, and an affiliate of the borrower, as lessor.  Lender has a fee and leasehold mortgage on Parcel B at the Yonkers Gateway Center Property, which mortgage is executed by both the borrower and the borrower-affiliate. The Ground Lease commenced August 1, 1959, was amended March 1, 2014 for an additional 26 year term with no extension options and expires May 31, 2060. The annual ground rent is currently $1.8 million through December 31, 2023.  Annual ground rent will then increase to approximately $2.365 million through December 31, 2033 and reset every ten years thereafter to the greater of fair market value or the minimum guaranteed rent from the previous period.
 
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.
 
 
80
 

 
2500 Central Park Avenue
Yonkers, NY 10710
Collateral Asset Summary – Loan No. 7
Yonkers Gateway Center
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$36,900,961
49.2%
1.60x
12.7%
 
(GRAPHIC)

Site plans based on information provided by the borrower.
 
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.

 
81
 
 
2500 Central Park Avenue
Yonkers, NY 10710
Collateral Asset Summary – Loan No. 7
Yonkers Gateway Center
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$36,900,961
49.2%
1.60x
12.7%

(GRAPHIC)
 
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.
 
 
82
 
 
 
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83
 
 
 
 

Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
GRAPHICS
 
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.
 
 
84
 
 
Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
Mortgage Loan Information
Loan Seller:
CCRE
Loan Purpose:
Refinance
Sponsor:
Norman Jemal; Douglas Jemal
Borrower(1):
Various
Original Balance:
$35,000,000
Cut-off Date Balance:
$35,000,000
% by Initial UPB:
2.9%
Interest Rate:
4.5160%
Payment Date:
6th of each month
First Payment Date:
June 6, 2014
Maturity Date:
May 6, 2019
Amortization:
Interest only first 12 months; 300 months thereafter
Additional Debt(2):
Future Mezzanine Debt Permitted
Call Protection(3):
L(24), D(31), O(5)
Lockbox / Cash Management:
Hard / In Place
 
Reserves(4)
 
Initial
Monthly
Taxes:
$249,728
$62,432  
Insurance:
$17,963
$1,283  
Replacement:
$0
$3,977  
TI/LC:
$0
$7,648  
Required Repairs:
$18,938
NAP  
Leasing(5):
$1,626,056
Springing  
Initial Common Charge:
$26,322
Springing  
Tenant Cash Trap:
$0
Springing  
 
Financial Information
Cut-off Date Balance / Sq. Ft.:
$191
  
Balloon Balance / Sq. Ft.:
$173
  
Cut-off Date LTV:
65.5%
  
Balloon LTV:
59.5%
  
Underwritten NOI DSCR(6):
1.37x
  
Underwritten NCF DSCR(6):
1.31x
  
Underwritten NOI Debt Yield:
9.2%
  
Underwritten NCF Debt Yield:
8.8%
  
Underwritten NOI Debt Yield at Balloon:
10.1%
  
Underwritten NCF Debt Yield at Balloon:
9.7%
  
Property Information
Single Asset / Portfolio:
Portfolio of five properties
Property Type:
School / Office / Retail
Collateral:
Fee Simple
Location:
Washington, DC; Bladensburg, MD; Landover, MD
Year Built / Renovated(7):
Various / Various
Total Sq. Ft.:
183,557
Property Management:
Douglas Development Corp.; Michael Management, Inc.
Underwritten NOI:
$3,209,136
Underwritten NCF:
$3,072,302
Appraised Value:
$53,410,000
Appraisal Date:
January 2014
 
Historical NOI(8)
2013 NOI:
$1,245,884 (December 31, 2013)
2012 NOI:
$1,091,512 (December 31, 2012)
2011 NOI:
$815,956 (December 31, 2011)
 
Historical Occupancy
Most Recent Occupancy:
98.2% (March 31, 2014)
2013 Occupancy:
98.2% (December 31, 2013)
2012 Occupancy:
NAP
2011 Occupancy:
NAP
(1)  
See “The Borrower / Sponsor” herein for a description of the borrowers.
(2)  
See “Future Mezzanine or Subordinate Indebtedness Permitted” herein.
(3)  
Partial release is permitted. See “Partial Release” herein.
(4)  
See “Initial Reserves” and “Ongoing Reserves” herein.
(5)  
Leasing reserves include tenant obligations, rent collections and tenant occupancy reserves.
(6)  
Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 2.00x and 1.92x, respectively.
(7)  
Since 2012, three of the five properties have been built or renovated.
(8)  
The 6896 Laurel Street NW Property was acquired and renovated in 2013-2014 by the sponsors. EF International executed a lease in December 2013 to operate at the property as an international language school and is expected to open for business by May 2014. The 711 D Street NW Property was reconstructed in 2012. As such, 2013 NOI excludes the 6896 Laurel Street NW Property and 2011-2012 NOI excludes the 6896 Laurel Street NW Property and 711 D Street NW Property.

 
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.
 
 
85
 
 
Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
Property Summary
 Property Name
 Location
Property Type
Total Sq. Ft.
Year Built / Renovated
Allocated Loan Amount
Appraised
Value
Occupancy(1)
 6896 Laurel Street NW
 Washington, DC
School
69,735   
1939 / 2013-2014
$15,500,000
$22,090,000
100.0%
 711 D Street NW
 Washington, DC
Office / Retail
14,007   
2012 / NAP
$5,950,000
$9,190,000
100.0%
 4821 Annapolis Road
 Bladensburg, MD
Retail
34,179   
1944 / 2013
$5,050,000
$8,860,000
90.2%
 910 F Street NW
 Washington, DC
Retail
7,410   
2006 / NAP
$4,500,000
$6,250,000
100.0%
 425 Brightseat Road
 Landover, MD
Office
58,226   
1987 / NAP
$4,000,000
$7,020,000
100.0%
 Total / Wtd. Avg.
    
183,557   
  
$35,000,000
$53,410,000
98.2%
(1)  
As of March 31, 2014.
 
Tenant Summary
 
 Tenant
Ratings
(Fitch/Moody’s/S&P)(1)
Property
Net Rentable
Area (Sq. Ft.)
% of Net
Rentable Area
  
U/W Base 
Rent PSF
% of Total
U/W Base Rent
Lease
Expiration
                 
 Major Tenant
                
 EF International Language Schools, Inc.(2)
NR/NR/NR
6896 Laurel Street NW
69,735
38.0%
  
$24.54
38.9%
4/30/2024
                  
 Office Tenants
                
 State of Maryland(3)
AAA/Aaa/AAA
425 Brightseat Road
45,000
24.5%
  
$16.65
17.0%
2/28/2020
 Prince George’s County Maryland(4)
AAA/Aaa/AAA
425 Brightseat Road
13,226
7.2%
  
$20.34
6.1%
6/30/2014
 The Public Policy Fund, Inc.(5)
NR/NR/NR
711 D Street NW
5,860
3.2%
  
$52.79
7.0%
2/28/2023
 Total Major Office Tenants
    
64,086
34.9%
  
$20.72
30.2%
  
 Remaining Office Tenants(6)
    
4,517
2.5%
  
$47.11
4.8%
  
 Total Office Tenants
    
68,603
37.4%
  
$22.45
35.0%
  
                 
 Retail Tenants
                  
 Gussini Fashion & Shoes
NR/NR/NR
4821 Annapolis Road
10,500
5.7%
  
$12.36
2.9%
8/31/2017
 Value Furniture
NR/NR/NR
4821 Annapolis Road
6,994
3.8%
  
$12.24
1.9%
6/30/2021
 District of Pi Restaurant(7)
NR/NR/NR
910 F Street NW
5,960
3.2%
  
$56.78
7.7%
12/31/2021
 Total Major Retail Tenants
    
23,454
12.8%
  
$23.61
12.6%
  
 Remaining  Retail Tenants(8)
    
18,413
10.0%
  
$32.40
13.6%
  
 Total Retail Tenants
    
41,867
22.8%
  
$27.48
26.1%
  
                 
 Total Occupied Collateral
    
180,205
98.2%
         
 Vacant
    
3,352
1.8%
        
 Total
    
183,557
100.0%
        
                 
(1)  
Certain ratings are those of the parent company whether or not the parent company guarantees the lease.
(2)  
EF International has one, seven-year extension option. A full excess cash flow sweep will occur if (i) EF International is the subject of a bankruptcy action, (ii) EF International “goes dark,” vacates or discontinues its operations at its space or (iii) EF International is delinquent on rent payment for a period greater than 30 days.
(3)  
State of Maryland has one, five-year extension option and has the option to terminate its lease at any time. A full excess cash flow sweep will occur if State of Maryland exercises its termination option due to non-appropriation of funds.
(4)  
Prince George’s County is in negotiation with the borrower to renew its lease. The borrowers deposited $268,982 into a Prince George’s County tenant reserve account, which represents one year of base rent.
(5)  
The Public Policy Fund, Inc. has one, five-year extension option.
(6)  
Comprised of one tenant located at the 711 D Street NW Property.
(7)  
District of Pi has one, five-year extension option.
(8)  
Comprised of nine tenants located at three of the five DC Mixed Use Portfolio V Properties.
 
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.
 
 
86
 
 
Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
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(2)
1
13,226
7.2%
13,226
7.2%
$20.34
6.1%
6.1%
2015
1
1,843
1.0%
15,069
8.2%
$25.65
1.1%
7.2%
2016
0
0
0.0%
15,069
8.2%
$0.00
0.0%
7.2%
2017
2
11,781
6.4%
26,850
14.6%
$14.36
3.8%
11.0%
2018
2
3,012
1.6%
29,862
16.3%
$28.60
2.0%
13.0%
2019
3
7,851
4.3%
37,713
20.5%
$36.14
6.4%
19.4%
2020(3)
2
46,450
25.3%
84,163
45.9%
$17.84
18.8%
38.2%
2021
2
12,954
7.1%
97,117
52.9%
$32.73
9.6%
47.9%
2022
0
0
0.0%
97,117
52.9%
$0.00
0.0%
47.9%
2023
2
9,723
5.3%
106,840
58.2%
$39.02
8.6%
56.5%
2024(4)
2
73,365
40.0%
180,205
98.2%
$26.10
43.5%
100.0%
Thereafter
0
0
0.0%
180,205
98.2%
$0.00
0.0%
100.0%
Vacant
NAP
3,352
1.8%
183,557
100.0%
NAP
NAP
  
Total / Wtd. Avg.
17
183,557
100.0%
    
$24.43
100.0%
  
                 
(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)  
Prince George’s County’s lease expires in 2014. The tenant is in negotiation with the borrower to renew its lease. The borrowers deposited $268,982 into a Prince George’s County tenant reserve account, which represents one year of base rent.
(3)  
Leases expiring in 2020 include State of Maryland, which has one, five-year extension option and the option to terminate its lease at any time. A full excess cash flow sweep will occur upon State of Maryland exercising its termination option due to non-appropriation of funds.
(4)  
Leases expiring in 2024 include EF International, which has one, seven-year extension option. A full excess cash flow sweep will occur if (i) EF International is the subject of a bankruptcy action, (ii) EF International “goes dark,” vacates or discontinues its operations at its space or (iii) EF International is delinquent on rent payment for a period greater than 30 days.
 
The Loan.  The DC Mixed Use Portfolio V loan (the “DC Mixed Use Portfolio V Loan”) is a fixed rate loan secured by the borrowers’ fee simple interest in five properties consisting of a mixed use property occupied by an international school focusing on language training, a mixed use office/retail property, two retail properties and an office property located in Washington, DC, Bladensburg, Maryland and Landover, Maryland (each a “Property” and collectively, the “DC Mixed Use Portfolio V Properties”) with an original principal balance of $35.0 million.  The DC Mixed Use Portfolio V Loan has a five-year term and amortizes on a 25-year schedule after an initial one-year interest only period. The DC Mixed Use Portfolio V Loan accrues interest at a fixed rate equal to 4.5160% and has a cut-off date balance of $35.0 million. Loan proceeds along with approximately $0.9 million of sponsor equity were used to retire existing debt of approximately $32.0 million, fund reserves and pay closing costs. Based on the appraised value of approximately $53.4 million as of January 2014, the cut-off date LTV is 65.5% and the remaining implied equity is approximately $18.4 million. The most recent prior financing of the DC Mixed Use Portfolio V Properties was not included in a securitization.
 
Sources and Uses
Sources
Proceeds
% of Total
  
Uses
Proceeds
% of Total  
Loan Amount
$35,000,000
97.4%     
  
Loan Payoff
$32,036,455
89.1%     
Sponsor Equity
$936,143
2.6%     
  
Closing Costs
$1,960,680
5.5%     
       
Reserves
$1,939,008
5.4%     
Total Sources
$35,936,143
100.0%     
  
Total Uses
$35,936,143
100.0%     
 
The Borrower / Sponsor.    The borrowers, Jemal’s WTU L.L.C, Jemal’s Hardware Store L.L.C., Jemal’s Ventana Retail L.L.C., Jemal’s 425 Brightseat L.L.C. and Jemal’s Bladensburg Limited Partnership are structured to be bankruptcy-remote, each with two independent directors in its organizational structure.  The sponsors of the borrowers and the nonrecourse carve-out guarantors are Norman Jemal and Douglas Jemal.
 
Norman Jemal and Douglas Jemal are the principals of Douglas Development Corporation, a Washington, DC based local real estate owner/operator since 1985.  Between 1990 and 2007, Douglas Development Corporation expanded its commercial portfolio from less than 250,000 sq. ft. to nearly 9.0 million sq. ft. and its portfolio from 15 properties to more than 180 in the Washington, DC metropolitan area.
 
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.
 
 
87
 
 
Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
The Properties. The DC Mixed Use Portfolio V Properties consist of five properties, including a mixed use property occupied by an international school focused on language training, a mixed use office/retail property, two retail properties and an office property, totaling 183,557 sq. ft. located in Washington, DC, Bladensburg, Maryland and Landover, Maryland leased to 17 tenants. Office space represents approximately 37.4% of the total occupied net rentable area (“NRA”) (68,603 sq. ft.) and retail represents approximately 22.8% of the total occupied NRA (41,867 sq. ft.). Excluding EF International (38.0% of NRA) and the State of Maryland (24.5% of NRA), no individual tenant occupies more than 7.2% of the total DC Mixed Use Portfolio V Properties’ NRA. The DC Mixed Use Portfolio V Property’s largest office tenant, State of Maryland, currently leases 45,000 sq. ft. and the largest retail tenant, Gussini Fashion & Shoes, currently leases 10,500 sq. ft. (5.7% of NRA).
 
Property Overview
 
6896 Laurel Street NW (38.0% of NRA, 38.9% of U/W Base Rent)
The 6896 Laurel Street NW Property is a four-story, 69,735 sq. ft. mixed use property comprised of classrooms on the first two floors and dormitory-style residential suites on the upper two floors. Renovated in 2013-2014, the sponsor invested approximately $2.1 million and has a total cost basis of approximately $20.4 million. According to the borrower, EF International has invested approximately $3.0 million into the space.
 
711 D Street NW (7.6% of NRA, 16.5% of U/W Base Rent)
The 711 D Street NW Property is a four-story, 14,007 sq. ft. mixed use office/retail property occupied by three tenants. Having acquired the property in 2004, the sponsor reconstructed the property in 2012 into a four-story structure with ground floor retail and office space on the upper floors. Since 2011, the sponsor has spent in excess of $3.0 million on building renovations and tenant improvements and has a total cost basis of approximately of $9.9 million.
 
4821 Annapolis Road (18.6% of NRA, 12.0% of U/W Base Rent)
The 4821 Annapolis Road Property is a 34,179 sq. ft. retail strip center property occupied by nine tenants. Originally built in 1944, the sponsor acquired the property in 1994 and most recently renovated the property in 2013. The sponsor’s total cost basis is approximately $1.4 million. Since 2008, the property has maintained an average occupancy of approximately 89.5%.
 
910 F Street NW (4.0% of NRA, 9.5% of U/W Base Rent)
The 910 F Street NW Property is a 7,410 sq. ft. retail center occupied by two tenants. The sponsor acquired the property in 2004 and reconstructed the property in 2006. The sponsor has a total cost basis of approximately $5.1 million. The property is a condominium unit as the ground level retail portion of The Ventana, a 63-unit, 12-story residential and commercial condominium building.
 
425 Brightseat Road (31.7% of NRA, 23.1% of U/W Base Rent)
The 425 Brightseat Road Property is a two-story, 58,226 sq. ft. suburban office property occupied by two tenants. The sponsor acquired the property in 1997 and has a total cost basis of approximately $2.9 million.
 
Environmental Matters. The Phase I environmental reports completed in January 2014 recommended the development and implementation of Asbestos Operation and Maintenance Plans at all DC Mixed Use Portfolio V Properties, which are in place.  The Phase I environmental report for the 6896 Laurel Street NW Property recommended the investigation of an underground storage tank at the property.  The borrower purchased a $3.0 million environmental policy in order to address potential environmental concerns and conditions at the 6896 Laurel Street NW Property.
 
Major Tenants.    
 
School Tenancy
 
EF International Language Schools, Inc. (69,735 sq. ft., 38.0% of NRA, 38.9% of U/W Base Rent)
EF International Language Schools, Inc. (“EF International”) is a wholly owned subsidiary of EF Education First (“EF”), an international educational company offering programs such as language training, educational travel, academic degrees and cultural exchanges. Founded in 1965, EF operates 500 schools and offices in over 52 countries with over 35,000 employees. In particular, EF International operates 13 schools in the United States, including the EF US flagship location in Tarrytown, New York that has an annual enrollment of over 2,000 students. EF International is located at the 6896 Laurel Street NW Property and occupies 100.0% of the property NRA. EF International executed a 10.4-year lease in December 2013 with one, seven-year extension option.
 
Office Tenancy
 
The DC Mixed Use Portfolio V Properties contain 68,603 sq. ft. of office space (37.4% of NRA), which is 100.0% occupied by four tenants. U/W office rent accounts for 35.0% of U/W Base Rent.
 
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.
 
 
88
 
 
Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
State of Maryland (45,000 sq. ft., 24.5% of NRA, 17.0% of U/W Base Rent)
The State of Maryland operates Maryland’s Department of Human Resources at the 425 Brightseat Road Property and occupies 77.3% of the property NRA. The state utilizes the space to offer a variety of social service programs, including food stamps, as the sole location in Prince George’s County. The 425 Brightseat Road Property represents one of the agency’s 24 offices. The State of Maryland has been a tenant at the 425 Brightseat Road Property since 2000 and most recently executed a 10-year lease in March 2010 with one, five-year extension option. The State of Maryland may terminate its lease at any time.
 
Prince George’s County Maryland (13,226 sq. ft., 7.2% of NRA, 6.1% of U/W Base Rent)
Prince George’s County Maryland (“Prince George’s County”) operates its Department of Social Services and Health Departments at the 425 Brightseat Road Property and occupies 22.7% the property NRA. The space serves as one of three offices for Family Investment Services and is the only office for Community Services. Prince George’s County has been a tenant at the 425 Brightseat Road Property since 2000 and most recently executed a five-year lease in July 2009.
 
The Public Policy Fund, Inc. (5,860 sq. ft., 3.2% of NRA, 7.0% of U/W Base Rent)
The Public Policy Fund, Inc. operates as The Alliance for American Manufacturing (“AAM”) at the 711 D Street NW Property and occupies 41.8% of the property NRA. AAM is a non-profit, non-partisan advocacy group for the American manufacturing sector and United Steelworkers. The Public Policy Fund, Inc. executed a 10.3-year lease in July 2012 with one, five-year extension option.
 
Retail Tenancy
 
The DC Mixed Use Portfolio V Properties contain 41,867 sq. ft. of occupied retail space (22.8% of NRA).  The retail space is currently 92.6% occupied by 12 tenants with U/W retail rent accounting for 26.1% of U/W Base Rent. No tenant represents more than 5.7% of NRA or 7.7% of U/W Base Rent.
 
Gussini Fashion & Shoes (10,500 sq. ft., 5.7% of NRA, 2.9% of U/W Base Rent)
Gussini Fashion & Shoes (“Gussini”) is part of a small chain of local stores specializing in affordable and trendy fashions. Gussini has been at the 4821 Annapolis Road Property since 1997 and currently occupies 30.7% of the property’s NRA.  Gussini executed a five-year extension option in September 2012.
 
Value Furniture (6,994 sq. ft., 3.8% of NRA, 1.9% of U/W Base Rent)
Value Furniture is a part of a family of furniture companies, which includes 125 stores in 18 states and five distribution centers. Value Furniture has been at the 4821 Annapolis Road Property since 2001 and currently occupies 20.5% of the property’s NRA. Value Furniture executed a 10-year extension option in July 2011.
 
District of Pi Restaurant (5,960 sq. ft., 3.2% of NRA, 7.7% of U/W Base Rent)
District of Pi Restaurant (“District of Pi”) is an award-winning pizzeria with an additional five restaurants in Missouri. District of Pi currently occupies 80.4% of the NRA at the 910 F Street NW Property. In December 2011, District of Pi executed a 10-year lease with one, five-year extension option.
 
The Market. The Washington Metropolitan Statistical Area (“MSA”) is one of the top ten largest MSAs in the country. In 2012, the MSA had a population of approximately 5.7 million. Additionally, the MSA reported an unemployment rate of 5.1% in February 2014, below the national rate of 7.0%. The Washington office market contained approximately 468.2 million sq. ft. of rentable building area with a vacancy rate of 14.1% and asking rents of $34.21 PSF as of Q4 2013. The Washington retail market contained approximately 220.5 million sq. ft. of rentable building area with a vacancy rate of 4.4% and asking rents of $24.26 PSF as of Q4 2013.
 
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.
 
 
89
 
 
Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
The DC Mixed Use Portfolio V Properties are located in three submarkets across the Washington MSA: the Takoma Park submarket, the East End submarket and the Landover/Capitol Heights submarket. Each property’s individual submarket is discussed in the table below.
 
Market Summary
 Property Name
Submarket
Property Type
Market Rent(1)
Actual Rent
Market Vacancy (Office / Retail)(2)
Actual Vacancy
(Office / Retail)
 6896 Laurel Street NW
Takoma Park
School
$24.00(3)
$24.00
6.8%(4) / NAP
0.0% / NAP
 711 D Street NW
East End
Office / Retail
$50.55(5)
$50.92(5)
9.9% / 5.7%
0.0% / 0.0%
 4821 Annapolis Road
Landover/Capitol Heights
Retail
$22.00
$16.85
NAP / 5.2%
NAP / 9.8%
 910 F Street NW
East End
Retail
$55.00
$54.93
NAP / 5.7%
NAP / 0.0%
 425 Brightseat Road
Landover/Capitol Heights
Office
$20.00
$16.33
20.8% / NAP
0.0% / NAP
(1)  
Source: Appraisal
(2)  
The appraiser concluded a vacancy rate of 5.0% for all of the properties, excluding the 425 Brightseat Road Property. For the 425 Brightseat Road Property, the appraiser concluded a vacancy rate of 10.0%.
(3)  
Based on four comparable charter school leases in the MSA.
(4)  
Represents office vacancy in the Takoma Park submarket.
(5)  
Represents weighted average of office and retail rents.
 
Property Submarkets
 
6896 Laurel Street NW
The 6896 Laurel Street NW Property is a single tenant school located in the Takoma Park neighborhood of Washington, DC, approximately 0.5 miles from the Takoma Park Metro Station. With the immediate area consisting of single family homes and office properties, the office submarket reported a vacancy rate of 6.8% in Q4 2013, outperforming the Washington MSA rate of 14.1%. Recent developments in the area include the $36.0 million Takoma Central project, a mixed use development with 156 apartments and ground-floor retail. Additionally, the appraiser concluded that the in-place rent for the school is in-line with market rent of $24.00 PSF based on comparable charter school leases.
 
711 D Street NW
The 711 D Street NW Property is a mixed use office/retail property located in the East End submarket of Washington, DC, approximately a half-block from the Archives Metro Station. Local attractions include The Verizon Center, a sports and entertainment arena, and City Center DC, a newly constructed 10-acre neighborhood that includes 2.5 million sq. ft. of mixed-use development. In 2013, the East End office submarket contained approximately 49.1 million sq. ft. of rentable building area with a vacancy rate of 9.9% and the East End retail submarket contained approximately 1.9 million sq. ft. of rentable building area with a vacancy rate of 5.7%. In 2013, the population and average household income within a three-mile radius of the property were 311,080 and $106,179, respectively. The appraiser concluded that the in-place rents for the retail and office spaces are in-line with market rents of $55.00 PSF and $49.00 PSF, respectively.
 
4821 Annapolis Road
The 4821 Annapolis Road Property is a retail strip center located in Bladensburg, Maryland within the Landover/Capitol Heights submarket. In Q4 2013, the Landover/Capitol Heights retail submarket had an inventory of approximately 3.9 million sq. ft. of rentable building area with a vacancy rate of 5.2%, lower than the prior year’s rate of 7.7%. The appraiser concluded that the in-place rents are approximately 23.4% below market rents of $22.00 PSF.
 
910 F Street NW
The 910 F Street NW Property is a retail center located in the East End submarket of Washington, DC, approximately one block from the Gallery Place Chinatown Metro Station. In 2013, the population and average household income within a three-mile radius of the property were 319,466 and $106,948, respectively. In Q4 2013, the East End retail submarket had an inventory of approximately 1.9 million sq. ft. of rentable building area with a vacancy rate of 5.7%. The appraiser concluded that the in-place rents are in-line with market rents of $55.00 PSF.
 
425 Brightseat Road
The 425 Brightseat Road Property is a suburban office property located in Landover, Maryland within the Landover/Capitol Heights submarket. Situated near the intersection of Interstate 495 (Capitol Beltway) and Route 50, the property is approximately 11.0 miles from the Washington, DC CBD. In Q4 2013, the Landover/Capitol Heights office submarket had an inventory of approximately 3.6 million sq. ft. of rentable building area with a vacancy rate of 20.8%. Since 2003, the 425 Brightseat Road Property has been 100.0% occupied. The appraiser concluded that the in-place rents are approximately 18.4% below market rents of $20.00 PSF.
 
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.
 
 
90
 

Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
Cash Flow Analysis.
 
Cash Flow Analysis(1)
 
2011
2012
2013
U/W
U/W PSF   
  
 Base Rent
$1,496,983
$1,786,612
$2,190,643
$4,020,395
$21.90
  
 Value of Vacant Space
0
0
0
458,777
2.50
  
 Gross Potential Rent
$1,496,983
$1,734,995
$2,042,589
$4,479,172
$24.40
  
 Total Recoveries
114,156
169,904
196,783
818,272
4.46
  
 Total Other Income
          1,723
5,258
1,727
0
0.00
  
 Less: Vacancy(2)
             0
            0
0
        (458,777)
(2.50)
  
 Effective Gross Income
$1,612,862
$1,910,157
$2,241,099
$4,838,667
$26.36
  
 Total Operating Expenses
796,906
818,645
995,216
1,629,530
8.88
  
 Net Operating Income
$815,956
$1,091,512
$1,245,884
$3,209,136
$17.48
  
 TI/LC
0
0
0
             91,779
0.50
  
 Capital Expenditures
16,106
0
25,648
45,056
0.25
  
 Net Cash Flow
 $799,850
 $1,091,512
 $1,220,236
 $3,072,302
$16.74
  
           
(1)  
The 6896 Laurel Street NW Property was acquired and renovated in 2013-2014 by the sponsors. EF International executed a lease in December 2013 to operate at the property as an international language school and is expected to open for business by May 2014. The 711 D Street NW Property was reconstructed in 2012. As such, the 2013 financials exclude the 6896 Laurel Street NW Property and 2011-2012 financials exclude the 6896 Laurel Street NW Property and 711 D Street NW Property.
(2)  
U/W vacancy represents an economic vacancy of 8.7% of Base Rent and Total Recoveries. The appraiser concluded a vacancy rate of 5.0% for all of the properties, excluding the 425 Brightseat Road Property. For the 425 Brightseat Road Property, the appraiser concluded a vacancy rate of 10.0%.
 
Property Management.    All of the DC Mixed Use Portfolio V Properties other than the 425 Brightseat Road Property are managed by Douglas Development Corp., an affiliate of the borrowers. The 425 Brightseat Road Property is managed by Michael Management, Inc.
 
Lockbox / Cash Management.    The DC Mixed Use Portfolio V Loan is structured with a hard lockbox and in place cash management.  All excess cash will be deposited into a lender controlled account upon a Cash Trap Period. A “Cash Trap Period” will occur upon (i) an event of default, (ii) the failure by the borrowers after two consecutive calendar quarters to maintain a DSCR of 1.10x or (iii) an EF Cash Trap Period, a PG County Cash Trap Period or a State of Maryland Cash Trap Period (item (iii), collectively, a “Tenant Cash Trap Period”). Funds swept in connection with a Tenant Cash Trap Period are deposited into a tenant cash trap reserve account, subject to a cap of (a) $900,000 if solely caused by a State of Maryland Cash Trap Period, (b) $264,520 if solely caused by a PG County Cash Trap Period, or (c) $1,164,520 if caused solely by a State of Maryland Cash Trap Period and PG County Cash Trap Period.
 
An “EF Cash Trap Period” will occur if (i) EF International is the subject of a bankruptcy action, (ii) EF International “goes dark,” vacates or discontinues its operations at its space or (iii) EF International is delinquent on rent payment for a period greater than 30 days.
 
A “PG County Cash Trap Period” will occur if the Prince George’s County tenant terminates its lease by exercising its termination right due to the non-appropriation of funds.
 
A “State of Maryland Cash Trap Period” will occur if the State of Maryland tenant terminates its lease by exercising its termination right due to the non-appropriation of funds.
 
Initial Reserves.    At closing, the borrowers deposited (i) $249,728 into a tax reserve account, (ii) $17,963 into an insurance reserve account, (iii) $18,938 into a required repairs reserve account, (iv) 278,940 into an EF International free rent reserve account, which represents the remaining four months of EF International’s partial rent abatement through August 2014, (v) $917,640 into an EF International occupancy reserve account, (vi) 268,982 into a Prince George’s County tenant reserve account, which represents one year of Prince George’s County’s base rent, (vii) $160,494 into a tenant obligations reserve account, which represents outstanding tenant improvement obligations related to the Neighborhood Restaurant Group XV, LLC tenant and (viii) $26,322 into an initial common charge reserve account, which represents six months of HOA dues at the 910 F Street NW Property.
 
Additionally, at closing, the borrower assigned a $956,000 EF International letter of credit to lender as additional collateral for the DC Mixed Use Portfolio V Loan. The letter of credit will be applied pursuant to the underlying lease and will be reduced as follows: $756,000 as of May 1, 2014, $556,000 as of June 1, 2014, $500,000 as of July 1, 2014, $300,000 as of July 1, 2017 and $0 as of December 1, 2023.
 
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.
 
91
 
 
Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
Ongoing Reserves.    On a monthly basis, the borrowers are required to deposit reserves of (i) 1/12 of the estimated annual real estate taxes, which currently equates to $62,432, into a tax reserve account, (ii) 1/12 of the estimated annual insurance premiums, which currently equates to $1,283, into an insurance reserve account, (iii) 3,977 into a capital expenditure account and (iv) $7,648 into a TI/LC reserve account. Upon the occurrence of a Cash Trap Period, failure to provide evidence of payment or the balance of the common charge reserve account falling below six months of HOA dues, the borrowers will be required to deposit 1/12 of the estimated annual HOA dues at the 910 F Street NW Property into a common charge reserve account.
 
In the event that a partial release of the 6896 Laurel Street NW Property occurs (as described below under “Partial Release”), the monthly deposit into the TI/LC reserve account will be adjusted to an amount equal to the aggregate sq. ft. of the remaining properties, multiplied by $1.00, divided by 12.
 
In the event that a release occurs (as described below under “Partial Release”), the monthly deposit into the replacement reserve account will be reduced by an amount equal to 1/12 of the product of (i) the sq. ft. of the property(s) being released and (ii) with respect to (1) 6896 Laurel Street NW Property - $0.20, (2) 711 D Street NW Property - $0.27, (3) 4821 Annapolis Road Property - $0.39, (4) 910 F Street NW Property -  $0.26 and (5) 425 Brightseat Road Property - $0.27.
 
In the event that the borrowers fail to satisfy the EF Completion Conditions (as defined below) on or before May 31, 2014, the borrowers will be required to make monthly deposits (commencing June 2014) into the EF International occupancy reserve account so that the balance of (a) the cash funds then on deposit in the EF International occupancy reserve account and (b) the total remaining amount available to be drawn under the EF International letter of credit equal $1,673,640. Upon satisfaction of the EF Completion Conditions, the borrowers will not be required to make additional deposits into the EF International occupancy reserve account.
 
The “EF Completion Conditions” will mean, among other things, (i) no event of default is occurring, (ii) lender has received an officer’s certificate indicating (a) the EF International lease is in full force and effect and no default has occurred under the lease, (b) the borrowers’ work in connection with the construction under the EF International lease has been completed, (c) tenant improvements payable to EF International have been paid in full, (d) EF International has taken possession of and is occupying all of the space under its lease and (e) there are no offsets due to EF International under its lease (other than rent abatements as set forth in its lease).
 
Current Mezzanine or Subordinate Indebtedness.  None.
 
Future Mezzanine or Subordinate Indebtedness Permitted.    Mezzanine debt is permitted provided, among other things, (i) the principal amount of the mezzanine loan will not exceed $5.0 million, (ii) the combined LTV is less than or equal to 65.3%, (iii) the combined DSCR is at least 1.316x, and (iv) the combined debt yield is at least 8.8%.
 
Partial Release. On any date after November 13, 2014 and prior to January 6, 2019, the borrowers may obtain the release of no more than two properties in conjunction with a bona fide third-party sale of such property, provided, among other things, (i) if two properties are released, one of the properties released is the 6896 Laurel Street NW Property, (ii) payment of the sum of (1) the yield maintenance premium and (2) the greatest of (x) (a) 100.0% of the amortized Allocated Loan Amount (as defined below) of the release property and (b) (i) 10.0% of the original Allocated Loan Amount with respect to such release property, if the aggregate released Allocated Loan Amount is less than or equal to 33.0% of the original principal amount of the loan, (ii) 20.0% of the Allocated Loan Amount with respect to such release property, if the aggregate released Allocated Loan Amount is greater than 33.0% and less than or equal to 66.0% of the original principal amount of the loan or (iii) 30.0% of the Allocated Loan Amount with respect to such release property, if the aggregate released Allocated Loan Amount is greater than 66.0% of the original principal amount of the loan, an amount such that, after giving effect to such partial release (y) the DSCR is the greater of (i) the DSCR immediately preceding the release and (ii) 1.35x and (z) the LTV ratio is no greater than the lesser of (i) the LTV immediately preceding the release and (ii) 60.3%. Notwithstanding the foregoing, the LTV test in clause (z) above will not apply in connection with the first partial release if the allocated loan amount with respect to such released property is less than 25.0% of the original principal amount of the loan. The “Allocated Loan Amounts” are as follows: 6896 Laurel Street NW - $15,500,000; 711 D Street NW - $5,950,000; 4821 Annapolis Road - $5,050,000; 910 F Street NW - $4,500,000; 425 Brightseat Road - $4,000,000.
 
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.
 
 
92
 
 
Washington, DC
Bladensburg, MD
Landover, MD
Collateral Asset Summary – Loan No. 8
DC Mixed Use Portfolio V
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$35,000,000
65.5%
1.31x
9.2%
 
MAP
 
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.
 
 
93
 
 
 
9669 Forest Lane
Dallas, TX 75243
Collateral Asset Summary – Loan No. 9
Indigo on Forest
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$33,500,000
70.2%
1.54x
10.8%
 
(GRAPHIC)
 
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.
 
 
94
 
 
9669 Forest Lane
Dallas, TX 75243
Collateral Asset Summary – Loan No. 9
Indigo on Forest
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$33,500,000
70.2%
1.54x
10.8%
 
Mortgage Loan Information
Loan Seller:
CCRE
Loan Purpose:
Refinance
Sponsor:
Donald Hartman; Danuel R. Stanger; Jonathan Slager
Borrower:
ROC TX Indigo, LLC
Original Balance:
$33,500,000
Cut-off Date Balance:
$33,500,000
% by Initial UPB:
2.8%
Interest Rate:
4.7290%
Payment Date:
6th of each month
First Payment Date:
June 6, 2014
Maturity Date:
May 6, 2024
Amortization:
Interest only for first 36 months; 360 months thereafter
Additional Debt:
None
Call Protection:
L(24), D(93), O(3)
Lockbox / Cash Management:
Soft / Springing
 
Reserves(1)
 
Initial
Monthly  
Taxes:
$370,833
$74,167  
Insurance:
$176,341
$14,695  
Replacement:
$0
$34,662  
Required Repairs(2):
$2,000,000
NAP  
 
Financial Information
Cut-off Date Balance / Unit:
$27,527
  
Balloon Balance / Unit:
$24,224
  
Cut-off Date LTV:
70.2%
  
Balloon LTV:
61.8%
  
Underwritten NOI DSCR(3):
1.73x
  
Underwritten NCF DSCR(3):
1.54x
  
Underwritten NOI Debt Yield:
10.8%
  
Underwritten NCF Debt Yield:
9.6%
  
Underwritten NOI Debt Yield at Balloon:
12.3%
  
Underwritten NCF Debt Yield at Balloon:
10.9%
  
 
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Garden Multifamily
Collateral:
Fee Simple
Location:
Dallas, TX
Year Built / Renovated:
1983 / 2011-2012
Total Units:
1,217
Property Management:
Bridge Property Management, L.C.
Underwritten NOI:
$3,628,233
Underwritten NCF:
$3,212,287
Appraised Value:
$47,700,000
Appraisal Date:
March 3, 2014
 
Historical NOI(4)
Most Recent NOI:
$3,623,492 (T-3 February 28, 2014 Ann.)
2013 NOI:
$3,224,034 (December 31, 2013)
2012 NOI:
$2,727,302 (December 31, 2012)
2011 NOI:
$1,214,256 (December 31, 2011)
 
Historical Occupancy(4)
Most Recent Occupancy:
86.9% (March 1, 2014)
2013 Occupancy:
84.9% (December 31, 2013)
2012 Occupancy:
83.8% (December 31, 2012)
2011 Occupancy:
70.3% (December 31, 2011)
(1)  
See “Initial Reserves” and “Ongoing Reserves” herein.
(2)  
Required Repairs represents $830,125 of required repairs and approximately $1.17 million of elective borrower capital improvements.
(3)  
Based on amortizing debt service payments.  Based on the current interest only payments, the Underwritten NOI DSCR and the Underwritten NCF DSCR are 2.26x and 2.00x, respectively.
(4)  
The Indigo on Forest Property has undergone more than $6.0 million of capital improvements since acquisition in 2010.  The increase in Historical NOI and Historical Occupancy is primarily the result of increased rents and occupancy resulting from newly renovated units and common area improvements.

 
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.
 
 
95
 
 
9669 Forest Lane
Dallas, TX 75243
Collateral Asset Summary – Loan No. 9
Indigo on Forest
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$33,500,000
70.2%
1.54x
10.8%
 
Unit Mix Summary(1)
Unit Type
# of Units
% of Total
Occupied Units
Occupancy
Average Unit Size
(Sq. Ft.)
Average Monthly
Rental Rate
Average Monthly
Rental Rate PSF
1 Bed / 1 Bath
697
  
57.3%
  
622
  
89.2%
683
$559
$0.82
1 Bed / 1.5 Bath
47
  
3.9%
  
30
  
63.8%
794
$658
$0.83
2 Bed / 1 Bath
92
  
7.6%
  
78
  
84.8%
867
$694
$0.80
2 Bed / 2 Bath
380
  
31.2%
  
326
  
85.8%
982
$739
$0.75
3 Bed / 2 Bath
1
  
0.1%
  
1
  
100.0%
1,220
$1,150
$0.94
Total / Wtd. Avg.
1,217
  
100.0%
  
1,057
  
86.9%
795
$630
$0.79
(1)  
Based on a rent roll dated March 1, 2014.
 
The Loan.    The Indigo on Forest loan (the “Indigo on Forest Loan”) is a fixed rate loan secured by the borrower’s fee simple interest in a 1,217-unit garden apartment complex located at 9669 Forest Lane in Dallas, Texas (the “Indigo on Forest Property”) with an original and cut-off date principal balance of $33.5 million. The Indigo on Forest Loan has a 10-year term and amortizes on a 30-year schedule after an initial interest only period of 36 months. The Indigo on Forest Loan accrues interest at a fixed rate equal to 4.7290%. Loan proceeds were used to retire existing debt of approximately $22.6 million, fund upfront reserves of approximately $2.5 million, pay closing costs of approximately $0.4 million and return equity of approximately $7.9 million. Based on the appraised value of $47.7 million as of March 3, 2014, the cut-off date LTV ratio is 70.2%. The most recent prior financing of the Indigo on Forest Property was not included in a securitization.
 
Sources and Uses
Sources
Proceeds
% of Total
  
Uses
Proceeds
% of Total   
Loan Amount
$33,500,000
100.0%
  
Loan Payoff
$22,645,656
67.6%  
       
Reserves
$2,547,174
7.6%  
       
Closing Costs
$431,927
1.3%  
       
Return of Equity
$7,875,243
23.5%  
Total Sources
$33,500,000
100.0%
  
Total Uses
$33,500,000
100.0%  
 
The Borrower / Sponsor.    The borrower, ROC TX Indigo, LLC, is a single purpose Delaware limited liability company structured to be bankruptcy-remote, with one independent director in its organizational structure.  The sponsors of the borrower and the nonrecourse carve-out guarantors are Danuel R. Stanger, Jonathan Slager and Donald Hartman.  Danuel R. Stanger, Jonathan Slager and Donald Hartman are principals of Bridge Investment Group Partners, LLC (“Bridge IGP”), an SEC registered investment advisory firm whose principals have 24 years of experience in the multifamily, commercial office and senior housing real estate sectors.  Bridge IGP has acquired approximately 32,000 apartments units and over 1.4 million sq. ft. of commercial space since inception.
 
The Property.    The Indigo on Forest Property is a Class B, 1,217-unit garden-style multifamily property constructed in 1983 and renovated in 2011-2012, located at 9669 Forest Lane in Dallas, Texas. The Indigo on Forest Property is comprised of 130 two-story residential buildings, four leasing and clubhouse buildings and 1,987 parking spaces on an approximately 44.2 acre site.  The Indigo on Forest Property offers five different unit configurations with an average unit size of 795 sq. ft.  Additionally, the Indigo on Forest Property offers 11 swimming pools, four spas, four soccer fields, eight laundry facilities, a community classroom, children’s playgrounds and mail collection/distribution facilities.
 
The Indigo on Forest Property is divided into four individual neighborhoods separated by a boulevard.  These neighborhoods include The Landing (314 units, one fitness center, two pools, two laundry rooms and a large playground), The Bluff (309 units, leasing office, three pools, two laundry rooms and a soccer field), The Bend (284 units, three pools, two laundry rooms, one playground and one maintenance shop) and The Run, (310 units, one club room with a business center, three pools, two laundry rooms and a soccer field).
 
The sponsors acquired the Indigo on Forest Property in 2010 for approximately $25.0 million when it was approximately 47.7% occupied.  After the acquisition, the sponsors invested over $6.0 million in capital improvements, resulting in a total cost basis of more than $31.0 million.  Capital improvements included $2.5 million for unit renovations, approximately $2.9 million for roof and exterior repairs and $400,000 for common area improvements.  In addition, the borrower reserved $2.0 million upfront of which $830,125 is allocated for immediate repairs and the remaining $1.17 million is allocated for the borrower’s remaining planned capital improvements.  Through the aforementioned capital improvements, the borrower was able to increase NOI over time to approximately $1.2 million, $2.7 million and $3.2 million and improve occupancy to 70.3%, 83.8% and 84.9% in 2011, 2012 and 2013, respectively.
 
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.
 
 
96
 
 
9669 Forest Lane
Dallas, TX 75243
Collateral Asset Summary – Loan No. 9
Indigo on Forest
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$33,500,000
70.2%
1.54x
10.8%
 
The Indigo on Forest Property is located proximate to Interstate Highway 635 and U.S. Highway 75, which provide direct access to the Dallas central business district located approximately 10 miles to the southwest.  The Indigo on Forest Property is also easily accessed by the Dallas Area Rapid Transit (“DART”) with five stations located in close proximity to the Indigo on Forest Property.  DART connects to the Dallas mass-transit system, a growing transit network that moves approximately 250,000 people per day via light-rail trains and buses.
 
Environmental Matters.    The Phase I environmental report dated March 12, 2014 recommended no further action at the Indigo on Forest Property other than the continued implementation of the existing asbestos operations & maintenance plan.
 
The Market.    The Indigo on Forest Property is located in Dallas, Texas, which has experienced upward trending multifamily performance metrics from Q1 2012 to Q4 2013.  Annual rent growth for the Dallas/Fort Worth area as of Q4 2013 was 3.4%, which marks 13 consecutive quarters of annual gains.  This increase was fueled primarily by the pre-2000 product age category, which experienced a 3.1% increase in quarter-over-quarter rents.  Units built in the 1970’s and 1980’s achieved year-over-year rent growth of 4.5% while units built in the 1990’s experienced year-over-year rent growth of 2.3%.
 
The Indigo on Forest Property is located in the Dallas multifamily market, which contains 493,961 apartments units with an average occupancy of 94.6%.  The Northeast Dallas submarket, where the Indigo on Forest Property is located, contains 31,770 units with an average occupancy of 91.5%.  Demand for apartments in the Northeast Dallas submarket remains strong with average occupancy increasing from 89.2% in Q1 2012 to 91.5% in Q4 2013.  The 2013 population within a five-mile radius of the Indigo on Forest Property is 400,990 with a median household income of $46,246.
 
The appraiser identified five competitive properties located within one mile of the Indigo on Forest Property in the Northeast Dallas submarket containing 1,460 units.  The Indigo on Forest Property’s competitive set exhibited a weighted average occupancy of 92.8% and an average rent of $617 per unit, in line with the Indigo on Forest Property’s average rent of $637 per unit.  The appraiser concluded a stabilized occupancy of 88.0% and a market rent of $685 per unit, in line with the Indigo on Forest Property’s current occupancy of 86.9% and average rent of $630.  The Indigo on Forest Property competitive set is summarized below.
 
Competitive Set(1)
Name
Indigo on Forest Property (2)
Deerfield
Forest Cove I
and II
Sienna Palms
Chesapeake
Hunting Ridge
Distance from Subject
NAP
0.3 miles
0.4 miles
0.6 miles
0.6 miles
0.9 miles
Year Built
1983
1979
1981
1980
1982
1982
Total Occupancy
86.9%
95%
90%
90%
94%
95%
No. of Units
1,217
256
456
152
128
468
Avg. Rent Per Unit
$630
$614
$620
$672
$755
$561
(1)  
Source: Appraisal
(2)  
Based on a rent roll dated March 1, 2014.
 
Cash Flow Analysis.
 
Cash Flow Analysis
 
2012
2013   
T-3 2/28/2014 Ann.
U/W
U/W per Unit
Gross Potential Rent
        $6,337,152
$7,236,269  
$7,651,456
        $9,386,328
$7,713
Total Other Income
916,108
948,425  
932,696
948,425
779
Less: Vacancy & Credit Loss (1)
0
0  
0
        (1,734,872)
(1,426)
Effective Gross Income
$7,253,260
$8,184,694  
$8,584,152
$8,599,881
$7,066
Total Operating Expenses
4,525,958
4,960,660  
4,960,660
4,971,648
4,085
Net Operating Income
$2,727,302
$3,224,034  
$3,623,492
$3,628,233
$2,981
Capital Expenditures
0
0  
0
415,946
342
Net Cash Flow(2)
 $2,727,302
$3,224,034  
$3,623,492
 $3,212,287
$2,640
           
(1)  
Vacancy & Credit Loss represents 18.5% of Gross Potential Rent and is based on physical vacancy T-3 annualized collections.  In place vacancy at the Indigo on Forest Property is 13.1%.
(2)  
The Indigo on Forest Property has undergone more than $6.0 million of capital improvements since acquisition in 2010.  The increase in Net Cash Flow is primarily the result of increased occupancy and rents resulting from newly renovated units and common area improvements.
 
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.
 
 
97
 
 
9669 Forest Lane
Dallas, TX 75243
Collateral Asset Summary – Loan No. 9
Indigo on Forest
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$33,500,000
70.2%
1.54x
10.8%
 
Property Management.    The Indigo on Forest Property is managed by Bridge Property Management, L.C., an affiliate of the sponsor.  Bridge Property Management, L.C. acts as Bridge-IGP’s in-house property management affiliate, which includes 75 property managers, 110 leasing agents and over 660 on-site personnel providing property maintenance and operations in over 40 submarkets across the United States.
 
Lockbox / Cash Management.    The Indigo on Forest Loan is structured with a soft lockbox and springing cash management. The borrower is required to deposit all rents and other payments into the lockbox account controlled by the lender.  The funds are then returned to an account controlled by the borrower.  Upon the occurrence of a Cash Management Period, all funds in the lockbox account are to be swept daily to a cash management account under the control of the lender and disbursed during each interest period of the loan term in accordance with the loan documents.  A “Cash Management Period” will occur upon (i) the commencement of a Cash Trap Period (as defined below) or (ii) if the debt service coverage ratio falls below 1.20x for two preceding calendar quarters.
 
A “Cash Trap Period” will commence upon (i) any event of default or (ii) if the debt service coverage ratio falls below 1.25x for two preceding calendar quarters.
 
Initial Reserves.    At closing, the borrower deposited (i) $370,833 into a tax reserve account, (ii) $176,341 into an insurance reserve account and (iii) $2,000,000 into a required repairs reserve account for $830,125 of immediate required repairs and approximately $1.17 million of elective borrower capital improvements.
 
Ongoing Reserves.    On a monthly basis, the borrower is required to deposit reserves of (i) 1/12 of the estimated annual real estate taxes, which currently equates to $74,167, into a tax reserve account, (ii) 1/12 of the annual insurance premiums, which currently equates to $14,695, into an insurance reserve account and (iii) $34,662 into a capital expenditure account.
 
Current Mezzanine or Subordinate Indebtedness.    None.
 
Future Mezzanine or Subordinate Indebtedness Permitted.    None.
 
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.
 
 
98
 
 
9669 Forest Lane
Dallas, TX 75243
Collateral Asset Summary – Loan No. 9
Indigo on Forest
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$33,500,000
70.2%
1.54x
10.8%

(MAP)

 
Site plans based on information provided by the borrower.
 
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.
 
 
99
 
 
9669 Forest Lane
Dallas, TX 75243
Collateral Asset Summary – Loan No. 9
Indigo on Forest
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$33,500,000
70.2%
1.54x
10.8%
 
(MAP)
 
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.
 
 
100
 
 
(THIS PAGE INTENTIONALLY LEFT BLANK)
 
 
101
 
 
 
 
 
 
6151 Forest Hill Boulevard
West Palm Beach, FL 33415
Collateral Asset Summary – Loan No. 10
Casa del Monte MHC
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$30,923,959
59.5%
1.73x
10.8%
 
(GRAPHIC)
 
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.
 
 
102
 
 
6151 Forest Hill Boulevard
West Palm Beach, FL 33415
Collateral Asset Summary – Loan No. 10
Casa del Monte MHC
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$30,923,959
59.5%
1.73x
10.8%
 
             
Mortgage Loan Information
  
Property Information
Loan Seller:
GECC
  
Single Asset / Portfolio:
Single Asset
Loan Purpose:
Refinance
  
Property Type:
Manufactured Housing Community
Sponsor:
James L. Bellinson
  
Collateral:
Fee Simple
Borrower:
Casa Del Monte MHP, LLC
  
Location:
West Palm Beach, FL
Original Balance:
$31,000,000
  
Year Built / Renovated:
1974 / NAP
Cut-off Date Balance:
$30,923,959
  
Total Pads:
657
% by Initial UPB:
2.6%
  
Property Management:
Riverstone Communities, LLC
Interest Rate:
4.6200%
  
Underwritten NOI:
$3,330,735
Payment Date:
1st of each month
  
Underwritten NCF:
$3,297,885
First Payment Date:
April 1, 2014
  
Appraised Value:
$52,000,000
Maturity Date:
March 1, 2024
  
Appraisal Date:
January 15, 2014
Amortization:
360 months
      
Additional Debt:
None
  
Historical NOI
Call Protection:
L(26), D(91), O(3)
  
2013 NOI:
$3,314,650 (December 31, 2013)
Lockbox / Cash Management:
Springing Soft / Springing
  
2012 NOI:
$3,389,775 (December 31, 2012)
     
2011 NOI:
$3,161,135 (December 31, 2011)
Reserves(1)
      
 
Initial
  
Monthly   
  
Historical Occupancy
Taxes:
$263,800
  
$52,760   
  
Most Recent Occupancy:
99.5% (February 10, 2014)
Insurance:
$16,564
  
$4,141   
  
2013 Occupancy:
96.1% (December 31, 2013)
Replacement:
$0
  
$2,738   
  
2012 Occupancy:
96.5% (December 31, 2012)
Required Repairs:
$122,813
  
NAP   
  
2011 Occupancy:
94.3% (December 31, 2011)
         
(1)   See “Initial Reserves” and “Ongoing Reserves” herein.
Financial Information
  
Cut-off Date Balance / Pad:
$47,068
    
Balloon Balance / Pad:
$38,312
    
Cut-off Date LTV:
59.5%
    
Balloon LTV:
48.4%
    
Underwritten NOI DSCR:
1.74x
    
Underwritten NCF DSCR:
1.73x
    
Underwritten NOI Debt Yield:
10.8%
    
Underwritten NCF Debt Yield:
10.7%
    
Underwritten NOI Debt Yield at Balloon:
13.2%
    
Underwritten NCF Debt Yield at Balloon:
13.1%
        
             
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.
 
 
103
 
 
6151 Forest Hill Boulevard
West Palm Beach, FL 33415
Collateral Asset Summary – Loan No. 10
Casa del Monte MHC
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$30,923,959
59.5%
1.73x
10.8%
 
The Loan.    The Casa del Monte MHC loan (the “Casa del Monte MHC Loan”) is a fixed rate loan secured by the borrower’s fee simple interest in a 657-pad manufactured housing community located at 6151 Forest Hill Boulevard in West Palm Beach, Florida (the “Casa del Monte MHC Property”) with an original principal balance of $31.0 million. The Casa del Monte MHC Loan has a 10-year term and amortizes on a 30-year schedule. The Casa del Monte MHC Loan accrues interest at a fixed rate equal to 4.6200% and has a cut-off date balance of approximately $30.9 million. Loan proceeds were used to pay off the existing loan’s outstanding principal balance of approximately $20.7 million, fund upfront reserves of approximately $0.4 million, pay closing costs of approximately $0.2 million and return equity to the sponsor. Based on the appraised value of $52.0 million as of January 15, 2014, the cut-off date LTV ratio is 59.5%. The most recent prior financing of the Casa del Monte Property was included in the GECMC 2004-C3 transaction.
 
Sources and Uses
Sources
Proceeds
% of Total
  
Uses
Proceeds
% of Total   
Loan Amount
$31,000,000
100.0%
  
Payoff of Existing Debt
$20,707,586
66.8%   
       
Reserves
$403,177
1.3%   
       
Closing Costs
$164,359
0.5%   
       
Return of Equity
$9,724,878
31.4%   
Total Sources
$31,000,000
100.0%
  
Total Uses
$31,000,000
100.0%   
 
The Borrower / Sponsor.    The borrower, Casa Del Monte MHP, LLC is a single purpose Delaware limited liability company structured to be bankruptcy-remote with one independent director in its organizational structure. Casa Del Monte Mobile Home Park, LLC, a single purpose Florida limited liability company is the sole equity member and Riverstone Communities, LLC, a Michigan limited liability company acts as the managing member. James L. Bellinson is the sponsor and nonrecourse carve-out guarantor and owner of Riverstone Communities, LLC.  The borrower acquired the property in May 2003.
 
The Property.    The Casa del Monte MHC Property is an all-age manufactured housing community consisting of 657 pads on 92.99 acres and is located in West Palm Beach, Florida.  The Casa del Monte MHC Property was developed in 1974 and all pad sites can accommodate multi-section homes. Casa del Monte MHC Property amenities include two clubhouses, two swimming pools, a children’s playground, a vehicle storage lot, a basketball court, shuffleboard courts and a laundry facility.  General improvements consist of paved asphalt drives and one asphalt or concrete parking space at the manufactured home lot. All manufactured home lots have water, sewer, electrical, telephone, and cable TV hook-ups. The Casa del Monte MHC Property is serviced by municipal water and sanitary sewer. As of February 10, 2014, the Casa del Monte MHC Property was 99.5% occupied.
 
Environmental Matters.    The Phase I environmental report dated January 14, 2014 did not identify any recognized environmental condition or require further action other than the recommended removal of two aboveground petroleum storage tanks and implementation of an asbestos and lead based paint operation and maintenance plan. Borrower is obligated to remove the aboveground storage tanks and implement the O&M plan within 90 days following the closing of the Casa del Monte MHC Loan.
 
The Market.    The Casa del Monte MHC Property is located within the South Florida metropolitan statistical area, also known as the Miami metropolitan area, Florida metropolitan area (the “South Florida MSA”). The South Florida MSA is the most populous metropolis in the southeastern United States and the eighth most populous metropolitan area in the United States. The largest employers in the South Florida MSA include healthcare employers such as HCA East Florida Division and Baptist Health South Florida, retail employers such as the Publix Super Markets and Winn-Dixie Stores and education employers such as University of Miami. All modes of transportation converge in the South Florida MSA, providing both domestic and international access. The three major airports, Miami International Airport, Fort-Lauderdale Hollywood International Airport and Palm Beach International Airport, combine to make the fourth largest domestic origin and destination in the United States. Miami is the primary transportation hub of the United States to the Caribbean Islands and Latin America.  In addition to the three international airports, Miami is also supported by numerous municipal airports in close proximity, four seaports as well as a considerable number of highways, U.S. routes and state roads as well as several public transportation systems.
 
In 2012, the South Florida MSA had a reported population of over 5.5 million and has experienced population growth of 0.3% per year over the past decade, a rate which is projected to continue through 2017. Approximately 29.4% of Florida’s total population lives within the South Florida MSA. In 2012, the South Florida MSA had a 32.8% renter occupied market, which is higher than the state of Florida at 28.4%.
 
The Casa del Monte MHC Property is located approximately three miles north of Palm Beach International Airport, six miles east of local area beaches and five miles west of the Mall at Wellington Green. The 2013 population within a three-mile radius of the Casa del Monte MHC Property was 122,598 and the average household income was $50,185. From 2013 to 2018, the population and average household income within the three-mile radius are projected to increase by approximately 5.2% and approximately 14.7%, respectively.
 
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.
 
 
104
 
 
6151 Forest Hill Boulevard
West Palm Beach, FL 33415
Collateral Asset Summary – Loan No. 10
Casa del Monte MHC
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$30,923,959
59.5%
1.73x
10.8%
 
The subsequent chart displays historical occupancies for the Casa del Monte MHC Property along with a comparison of average actual and market rent.
 
Historical Occupancy and Market Rent Summary
Property Name
City
Number
of Pads
2012
Occupancy
2013
Occupancy
Current
Occupancy(1)
Avg.
Monthly
Rent per
Pad(1)
Comparable
Property Avg.
Occupancy(2)
Comparable
Property
Rent(2)
Market Rent(2)
Casa del Monte MHC
West Palm Beach
657
96.5%
96.1%
99.5%
$611
94.5%
$460 - $649
$615   
(1)  
Based on occupied units as of February 10, 2014.
(2)  
Source: Appraisal
 
Cash Flow Analysis.
 
   
Cash Flow Analysis
      
 
2011
2012
2013
U/W
U/W per Pad
Gross Potential Rent(1)
$4,365,979
$4,551,080
$4,614,607
$4,848,660
$7,380    
Other Income
262,813
173,578
124,559
124,559
190    
Utility Reimbursements
343,900
385,081
416,782
416,782
634    
Less: Vacancy
0
0
0
(290,920)
(443)    
Effective Gross Income
$4,972,692
$5,109,739
$5,155,948
$5,099,081
$7,761    
Total Operating Expenses
1,811,557
1,719,964
1,841,298
1,768,346
2,692    
Net Operating Income
$3,161,135
$3,389,775
$3,314,650
$3,330,735
$5,070    
Capital Expenditures
0
0
0
32,850
50    
Net Cash Flow
$3,161,135
$3,389,775
$3,314,650
$3,297,885
$5,020    
           
(1)
U/W Gross Potential Rent is based on the in-place rent roll annualized.
 
Property Management.    The Casa del Monte MHC Property is managed by Riverstone Communities, LLC, an affiliate of the borrower. Riverstone Communities, LLC is a private company and was founded in 1998.  Riverstone Communities, LLC owns and operates over 50 manufactured housing communities in over 8 states, including over 35 communities in Florida.
 
Lockbox / Cash Management.    The Casa del Monte MHC Loan is structured with a springing soft lockbox and springing cash management.  Upon the occurrence and during the continuance of an event of default, the borrower or manager are required to deposit all rents and other payments received by the borrower or the property manager into a lender-controlled account.  Upon the occurrence and during the continuance of an event of default, borrower is not entitled to make any withdrawals from the lender-controlled account and lender may apply the funds deposited into the lender-controlled account to the payment of the amounts owing under the loan documents in any order in its sole discretion.
 
Initial Reserves.    At closing, the borrower deposited (i) $263,800 into a tax reserve account, (ii) $16,564 into a replacement reserve account and (iii) $122,813 into a required repairs reserve account.
 
Ongoing Reserves.    On a monthly basis, the borrower is required to deposit reserves of (i) 1/12 of the estimated annual real estate taxes, which currently equates to $52,760, into a tax reserve account, (ii) 1/12 of the estimated annual insurance premiums, which currently equates to $4,141, into an insurance reserve account and (iii) $2,738 into a replacement reserve account.
 
Current Mezzanine or Subordinate Indebtedness.    None.
 
Future Mezzanine or Subordinate Indebtedness Permitted.    None.
 
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.
 
 
105
 
 
6151 Forest Hill Boulevard
West Palm Beach, FL 33415
Collateral Asset Summary – Loan No. 10
Casa del Monte MHC
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$30,923,959
59.5%
1.73x
10.8%
 
(MAP)
 
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.
 
 
106
 
 
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107
 

Cuyahoga Falls & Euclid, OH
Collateral Asset Summary – Loan No. 11
Northeast Ohio Multifamily Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$30,200,000
74.9%
1.31x
8.9%
 
Mortgage Loan Information
Loan Seller:
CCRE
Loan Purpose:
Acquisition
Sponsor:
The Suffolk Family Trust;
RedRock Real Estate, LLC
Borrower:
BWIP Wyoga Towers Owner LLC;
BWIP Wyoga Village Owner LLC;
BWIP Richmond Hills Owner LLC
Original Balance:
$30,200,000
Cut-off Date Balance:
$30,200,000
% by Initial UPB:
2.5%
Interest Rate:
4.8110%
Payment Date:
6th of each month
First Payment Date:
June 6, 2014
Maturity Date:
May 6, 2024
Amortization:
Interest only for first 24 months; 360 months thereafter
Additional Debt:
None
Call Protection(1):
L(24), D(92), O(4)
Lockbox / Cash Management(2):
Springing Soft / Springing
 
Reserves
 
Initial
Monthly
Taxes:
$225,500
$37,583  
Insurance:
$26,667
$13,333  
Replacement(3):
$0
Springing  
Renovation(4):
$1,350,000
$0  
 
Financial Information
Cut-off Date Balance / Unit:
$43,020
  
Balloon Balance / Unit:
$37,046
  
Cut-off Date LTV:
74.9%
  
Balloon LTV:
64.5%
  
Underwritten NOI DSCR(5):
1.42x
  
Underwritten NCF DSCR(5):
1.31x
  
Underwritten NOI Debt Yield:
8.9%
  
Underwritten NCF Debt Yield:
8.2%
  
Property Information
Single Asset / Portfolio:
Portfolio of three properties
Property Type:
Mid Rise Multifamily
Collateral:
Fee Simple
Location:
Cuyahoga Falls & Euclid, OH
Year Built / Renovated:
1966 - 1975 / 2006, 2010, 2014
Total Units:
702
Property Management:
APM Management LLC
Underwritten NOI:
$2,697,696
Underwritten NCF:
$2,487,096
Appraised Value:
$40,300,000
Appraisal Date:
February 18, 2014
 
Historical NOI
Most Recent NOI:
$2,685,833 (T-12 January 31, 2014)
2013 NOI:
$2,722,872 (December 31, 2013)
2012 NOI:
$2,889,825 (December 31, 2012)
2011 NOI:
$2,596,531 (December 31, 2011)
 
Historical Occupancy
Most Recent Occupancy:
91.0% (March 3, 2014)
2013 Occupancy:
96.6% (September 30, 2013)
2012 Occupancy:
96.4% (December 31, 2012)
2011 Occupancy:
95.4% (December 31, 2011)
(1)  
At any time during the term of the loan, the borrower may obtain the release of any property provided, among other things, the payment of the applicable yield maintenance premium in addition to a release amount equal to the greatest of (i) the Minimum Release Price for such property, (ii) 100% of the net sales proceeds and (iii) an amount that, after giving effect to such release results in (a) the DSCR of the remaining properties not less than the greater of 1.31x and the DSCR immediately preceding the release and (b) the NCF debt yield of the remaining properties not less than 8.25%. The “Minimum Release Price” is as follows: Richmond Hills property - $6,840,000; Towers at Wyoga Lake property - $14,750,000; Village at Wyoga Lake property - $16,510,000.
(2)  
A soft lockbox and cash management will be triggered upon (i) any event of default, (ii) any bankruptcy action or insolvency of any borrower, guarantor or affiliated manager or (iii) the failure by the borrowers to maintain a DSCR of at least 1.15x for two consecutive quarters.
(3)  
The borrowers will be required to make monthly deposits of $17,550 to the replacement reserve beginning with the payment date following the earliest to occur of (i) an event of default, (ii) October 10, 2015 and (iii) the date on which the aggregate amount of the funds on deposit in the renovation reserve account and the replacement reserve account are less than $216,000.
(4)  
The borrowers deposited $1.35 million into a renovation reserve account for future renovations, including exterior upgrades, new appliances, flooring, cabinets and countertops.
(5)  
Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and the Underwritten NCF DSCR are 1.83x and 1.69x, respectively.
 
 
 
TRANSACTION HIGHLIGHTS
 
■
Properties.  The Northeast Ohio Multifamily Portfolio is comprised of three mid rise apartment buildings, containing 702 units, located within the Cleveland metropolitan statistical area. The Towers at Wyoga Lake property and Village at Wyoga Lake property share amenities, including a 7,296 sq. ft. clubhouse with a billiards area, fitness center, kitchen, movie theater and pool. Laundry facilities are offered at all of the properties. As of March 3, 2014 the Village at Wyoga Lake property, Towers at Wyoga Lake property and Richmond Hills property were 87.9%, 91.7% and 93.9% occupied, respectively.
 
■
Market.  As of Q4 2014, the respective multifamily submarkets reported vacancy rates from 2.7% to 5.0%. Within a three mile radius of the Village at Wyoga Lake Property and Towers at Wyoga Lake property, the 2013 population and average household income was 32,394 and $76,288 respectively. Within a three mile radius of the Richmond Hills property, the 2013 population was 84,126.
 
■
Renovation.  The properties were recently renovated in 2006, 2010 and 2014.  Additionally, the borrowers deposited $1.35 million ($1,923 per unit) into a renovation reserve account for future renovations, including exterior upgrades, new appliances, flooring, cabinets and countertops.
 
■
Property Management.  APM Management LLC, headquartered near Cleveland, Ohio, has completed over $400.0 million of development projects, including the development and construction of more than 5,000 multifamily communities in Ohio, Pennsylvania, South Carolina, Indiana and Florida.
 
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.
 
 
108
 
 
2712 Southwest Freeway
Houston, TX 77098
Collateral Asset Summary – Loan No. 12
Crowne Plaza Houston River Oaks
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$27,750,000
75.0%
1.52x
12.4%
 
Mortgage Loan Information
Loan Seller:
JLC
Loan Purpose:
Refinance
Sponsor:
Pacifica Hosts, Inc.
Borrower:
ASDN Houston LLC
Original Balance:
$27,750,000
Cut-off Date Balance:
$27,750,000
% by Initial UPB:
2.3%
Interest Rate:
4.9800%
Payment Date:
6th of each month
First Payment Date:
June 6, 2014
Maturity Date:
May 6, 2024
Amortization:
300 months
Additional Debt:
None
Call Protection:
L(24), D(92), O(4)
Lockbox / Cash Management(1):
Hard / Springing
 
Reserves
 
Initial
Monthly
Taxes:
$199,000
$49,717  
Insurance:
$93,722
$8,600  
FF&E:
$0
1/12 of 4.0% of prior year’s  
gross   revenues  
Franchise Agreement Termination(2):
$0
Springing  
PIP(3):
$0
Springing  
 
Financial Information
Cut-off Date Balance / Room:
$78,390
  
Balloon Balance / Room:
$58,582
  
Cut-off Date LTV:
75.0%
  
Balloon LTV:
56.0%
  
Underwritten NOI DSCR:
1.78x
  
Underwritten NCF DSCR:
1.52x
  
Underwritten NOI Debt Yield:
12.4%
  
Underwritten NCF Debt Yield:
10.6%
  
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Full Service Hospitality
Collateral:
Fee Simple
Location:
Houston, TX
Year Built / Renovated:
1983 - 1984 / 2009
Total Rooms:
354
Property Management:
Pacifica Hosts, Inc.
Underwritten NOI:
$3,451,601
Underwritten NCF:
$2,952,950
Appraised Value:
$37,000,000
Appraisal Date:
March 14, 2014
 
Historical NOI
2013 NOI:
$3,495,714 (December 31, 2013)
2012 NOI:
$2,764,337 (December 31, 2012)
2011 NOI:
$2,105,864 (December 31, 2011)
2010 NOI:
$1,310,263 (December 31, 2010)
 
Historical Occupancy
2013 Occupancy:
80.2% (December 31, 2013)
2012 Occupancy:
76.0% (December 31, 2012)
2011 Occupancy:
69.3% (December 31, 2011)
2010 Occupancy:
62.9% (December 31, 2010)
(1)  
Cash management will be triggered upon (i) an event of default, (ii) if the DSCR falls below 1.05x until such time that the DSCR is at least 1.05x for two consecutive calendar quarters or (iii) a Franchise Agreement Cash Trap. A “Franchise Agreement Cash Trap” will commence (i) twelve months prior to the franchise agreement termination date (currently February 23, 2019) unless the term of the franchise agreement has been extended to terminate no earlier than February 23, 2029 or (ii) borrower’s receipt of written notice from franchisor terminating the franchise agreement.
(2)  
Upon the occurrence of a Franchise Agreement Cash Trap, borrower is required to deposit an amount such that the aggregate undisbursed balance of the FF&E reserve account equals $1,000,000.
(3)  
Upon borrower’s receipt of written notice from franchisor that a property improvement plan (“PIP”) is required at the property, borrower is required to deposit 110% of all budgeted and/or anticipated costs and expenses in connection with such PIP.
 
 
 
 
 
 
 
 
 
 
 
 
 
TRANSACTION HIGHLIGHTS
 
■  
Location and Quality. The property is located in the west central portion of the city of Houston, Texas, at the northeast corner of the intersection of westbound US Highway 59 and Wake Forest Drive. The property is located on the Southwest Freeway approximately midway between the Galleria district and downtown Houston, less than one-quarter mile east of the Greenway Plaza office district and only four miles from Reliant Stadium, home to the Houston Texans. The property is currently ranked as the #7 hotel in Houston by TripAdvisor (out of 447 hotels).
 
■  
Property Performance.  The property has consistently outperformed its competitive set in occupancy and RevPAR with occupancy penetration ranging between 122.0% and 131.8% and a RevPAR penetration ranging between 114.0% and 124.1% between 2010 and 2013. The property’s occupancy and RevPAR has steadily increased from 62.9% and $49.13 in 2010, respectively, to 80.2% and $78.42 in 2013, respectively.
 
■  
Experienced Sponsorship. The borrower and sponsor are affiliates of Pacifica Companies, LLC (“Pacifica”), and both are controlled by Pacifica’s Chairman and founding principal, Mr. Ashok Israni.  Pacifica is a privately held real estate company serving as a developer, owner, investor and investment manager of real estate investments throughout the United States, Mexico and India.  The company was founded in 1978 and is headquartered in San Diego, California.  Pacifica’s real estate portfolio is valued in excess of $2.5 billion and includes hotels, mixed use projects, development projects, master planned communities, office, industrial, retail shopping centers, assisted living communities, multifamily communities and single-family communities. The company currently has over 80 executives in their San Diego, California headquarters and employs nearly 3,000 employees in the United States and Asia.  Pacifica currently owns and operates 30 hotels in the United States under brands such as the Marriott, Hilton and Holiday Inns.
 
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.
 
 
109
 
 
Los Angeles, CA
Collateral Asset Summary – Loan No. 13
LA Multifamily Portfolio
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$27,350,000
74.7%
1.24x
8.3%
 
Mortgage Loan Information
Loan Seller:
CCRE
Loan Purpose:
Refinance
Sponsor:
Zachary D. Robbins
Borrower:
Descanso Artiste; Argyle Restoration Partnership; 1516 Normandie Investments; Normandie 7 Associates; Oxford Resurrection Partnership; 1516 Hobart Investments; Brick Resurrection on Cherokee
Original Balance:
$27,350,000
Cut-off Date Balance:
$27,350,000
% by Initial UPB:
2.3%
Interest Rate:
5.0790%
Payment Date:
6th of each month
First Payment Date:
May 6, 2014
Maturity Date:
April 6, 2024
Amortization:
Interest only for first 60 months; 360 months thereafter
Additional Debt(1):
Future Mezzanine Debt Permitted
Call Protection(2):
L(25), D(91), O(4)
Lockbox / Cash Management(3):
Soft / Springing
 
Reserves
 
Initial
Monthly
Taxes:
$29,167
$29,167   
Insurance:
$0
$8,013   
Replacement(4):
$0
$6,771   
Required Repairs:
$62,500
NAP   
 
Financial Information
Cut-off Date Balance / Unit:
$84,154
  
Balloon Balance / Unit:
$77,717
  
Cut-off Date LTV:
74.7%
  
Balloon LTV:
69.0%
  
Underwritten NOI DSCR(5):
1.28x
  
Underwritten NCF DSCR(5):
1.24x
  
Underwritten NOI Debt Yield:
8.3%
  
Underwritten NCF Debt Yield:
8.0%
  
Property Information
Single Asset / Portfolio:
Portfolio of seven properties
Property Type:
Mid Rise Multifamily
Collateral:
Fee Simple
Location:
Los Angeles, CA
Year Built / Renovated:
1926 - 1935 / 2011
Total Units:
325
Property Management:
7th St. Associates, Inc.
Underwritten NOI:
$2,282,502
Underwritten NCF:
$2,201,252
Appraised Value:
$36,600,000
Appraisal Date:
March 2014
 
Historical NOI
Most Recent NOI:
$2,692,519 (T-12 February 28, 2014)
2013 NOI:
$2,639,843 (December 31, 2013)
2012 NOI:
$2,510,718 (December 31, 2012)
2011 NOI:
$2,347,880 (December 31, 2011)
 
Historical Occupancy
Most Recent Occupancy:
97.8% (March 10, 2014)
2013 Occupancy:
92.6% (December 31, 2013)
2012 Occupancy:
96.0% (December 31, 2012)
2011 Occupancy:
98.2% (December 31, 2011)
(1)  
Mezzanine debt is permitted provided, among other things, (i) the combined LTV does not exceed 75.0%, (ii) the combined 30-year amortizing DSCR is at least 1.25x and (iii) the combined debt yield is at least 8.5%.
(2)  
After the expiration of the lockout period, the borrower may obtain the release of no more than two individual properties (other than the 2017 Argyle Avenue property and the 1746 North Cherokee property) provided, among other things, (i) the borrower partially defeases in an amount equal to the greater of (a) 100.0% of the net sales proceeds or (b) 115.0% of the amortized allocated loan amount, (ii) the LTV ratio of the remaining properties is not greater than the lesser of 65.0% and the LTV ratio immediately preceding the release, (iii) the DSCR ratio of the remaining properties is not less than the greater of 1.50x and the DSCR immediately preceding the release and (iv) the debt yield of the remaining properties is at least 8.5% for the first release and 9.0% for the second release.
(3)  
Cash management will be triggered upon (i) any event of default, (ii) any bankruptcy action or insolvency of borrower, guarantor or affiliated manager or (iii) the failure by the borrower to maintain a DSCR of at least 1.10x for two consecutive quarters, unless, within five days of such event, the borrower provides a letter of credit in an amount that is the difference between the outstanding principal balance and the amount necessary to achieve a DSCR of 1.20x.
(4)  
The replacement reserve is subject to a cap of $350,000.
(5)  
Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and the Underwritten NCF DSCR are 1.62x and 1.56x, respectively.
 
 
 
 
 
TRANSACTION HIGHLIGHTS
 
§
Property.  Constructed between 1926 and 1935, the LA Multifamily Portfolio properties consist of seven mid rise, multifamily properties located throughout Los Angeles, California. Six of the seven properties contain rent stabilized units.
 
§
Market.  As of Q4 2013, the Los Angeles County multifamily submarket vacancy was 3.1%, below the national rate of 4.1% and the West region’s rate of 3.5%. In 2013, Los Angeles County had an estimated population of approximately 10.0 million. Within a three mile radius of each property, the 2013 average household income ranged from approximately $52,018 to $75,336.
 
§
Historical Occupancy.  Since 2003, the LA Multifamily Portfolio properties have had an average occupancy of approximately 97.1%.
 
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.
 
 
110
 
 
2828 Marblevista Boulevard
Columbus, OH 43204
Collateral Asset Summary – Loan No. 14
Marble Cliff Commons
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$26,625,000
73.7%
1.32x
8.7%
 
Mortgage Loan Information
Loan Seller:
CCRE
Loan Purpose:
Acquisition
Sponsor:
Matthew Skvarla; David Spies; Keith Rubenstein; Philip M. Welch
Borrower:
Marble Cliff Commons Apartments, LLC
Original Balance:
$26,625,000
Cut-off Date Balance:
$26,625,000
% by Initial UPB:
2.2%
Interest Rate:
4.9490%
Payment Date:
6th of each month
First Payment Date:
June 6, 2014
Maturity Date:
May 6, 2024
Amortization:
Interest only for first 60 months; 360 months thereafter
Additional Debt:
None
Call Protection:
L(24), D(92), O(4)
Lockbox / Cash Management(1):
Springing Soft / Springing
 
Reserves
 
Initial
Monthly 
Taxes:
$344,000
$57,333  
Insurance:
$49,970
$3,844  
Replacement:
$0
$6,417  
Required Repairs:
$38,832
NAP  
O&M:
$40,000
$0  
 
Financial Information
Cut-off Date Balance / Unit:
$96,467
  
Balloon Balance / Unit:
$88,915
  
Cut-off Date LTV:
73.7%
  
Balloon LTV:
67.9%
  
Underwritten NOI DSCR(2):
1.36x
  
Underwritten NCF DSCR(2):
1.32x
  
Underwritten NOI Debt Yield:
8.7%
  
Underwritten NCF Debt Yield:
8.5%
  
 
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Garden Multifamily
Collateral:
Fee Simple
Location:
Columbus, OH
Year Built / Renovated:
2002 / NAP
Total Units:
276
Property Management:
Somerset Apartment Management, LLC
Underwritten NOI:
$2,319,749
Underwritten NCF:
$2,250,749
Appraised Value:
$36,120,000
Appraisal Date:
March 6, 2014
 
Historical NOI
Most Recent NOI:
$2,624,585 (T-12 January 31, 2014)
2013 NOI:
$2,621,232 (December 31, 2013)
2012 NOI:
$2,607,484 (December 31, 2012)
2011 NOI:
$2,353,918 (December 31, 2011)
 
Historical Occupancy
Most Recent Occupancy:
91.3% (April 3, 2014)
2013 Occupancy:
89.1% (December 29, 2013)
2012 Occupancy:
96.0% (December 30, 2012)
2011 Occupancy:
95.7% (December 25, 2011)
(1)  
A soft lockbox, in-place cash management and an excess cash flow sweep will be triggered upon (i) any event of default, (ii) any bankruptcy action of borrower, principal, guarantor or manager or (iii) failure by the borrower to maintain a DSCR of at least 1.10x at the end of two consecutive calendar quarters.
(2)  
Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.74x and 1.68x, respectively.
 
TRANSACTION HIGHLIGHTS
 
§
Property.  The property is a Class A, 276 unit garden multifamily property consisting of 33 one and two-story apartment buildings and 618 parking spaces.  Apartment amenities include private patios and balconies, gas fireplaces, attached garages, walk-in closets and large floor plans.  Community amenities include a club house, ¾ acre pond, dog park and resort-style outdoor swimming pool. 
 
§ 
Sponsorship. The guarantors, Matthew Skvarla, David Spies, Keith Rubenstein and Philip M. Welch represent part of the executive management team of Somerset Partners, a private investment firm with commercial and multifamily property investments throughout the United States.  Since 2001, Somerset Partners has invested approximately $1.6 billion in 14 transactions.  Somerset Partners currently has 4,500 units under management as of January 2014 and has acquired and managed more than 15,000 units since 2002.
 
§ 
Acquisition Financing.  The sponsors purchased the property for $35.5 million, resulting in the investment of approximately $8.8 million of new borrower cash equity.
 
§ 
Market.  The property is located in the Hilliard submarket of Columbus, Ohio.  The 2013 median population and household income within a three-mile radius were 76,490 and $49,871, respectively. As of Q4 2013, the Hilliard submarket exhibited an occupancy rate of 95.0% and average asking rents of $835 per unit.
 
§ 
Occupancy History.  The property has maintained an average occupancy greater than 95.0% since January 2011.
 
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.
 
 
111
 
 
175 Highland Avenue
Seekonk, MA 02771
Collateral Asset Summary – Loan No. 15
The Seekonk Crossing
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$23,000,000
68.7%
1.47x
8.7
 
Mortgage Loan Information
Loan Seller:
GECC
Loan Purpose:
Refinance
Sponsor:
Francis Greenburger
Borrower:
Seekonk Shopping Center Equities II LLC
Original Balance:
$23,000,000
Cut-off Date Balance:
$23,000,000
% by Initial UPB:
1.9%
Interest Rate:
3.8900%
Payment Date:
1st of each month
First Payment Date:
April 1, 2014
Maturity Date:
March 1, 2019
Amortization:
Interest only for first 24 months; 360 months thereafter
Additional Debt:
None
Call Protection:
L(26), D(31), O(3)
Lockbox / Cash Management(1):
Hard / Springing
 
Reserves
 
Initial
Monthly 
Taxes:
$0
$49,210  
Insurance:
$6,038
$3,034  
Replacement:
$0
$2,906  
TI/LC(2):
$0
$4,031  
Hobby Lobby Rent(3):
$60,278
$0  
Big Lots(4):
$0
Springing  
 
Financial Information
Cut-off Date Balance / Sq. Ft.:
$103
  
Balloon Balance / Sq. Ft.:
$97
  
Cut-off Date LTV:
68.7%
  
Balloon LTV:
64.9%
  
Underwritten NOI DSCR(5):
1.53x
  
Underwritten NCF DSCR(5):
1.47x
  
Underwritten NOI Debt Yield:
8.7%
  
Underwritten NCF Debt Yield:
8.3%
  
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Anchored Retail
Collateral:
Fee Simple
Location:
Seekonk, MA
Year Built / Renovated:
1991 - 1993 / 2012
Total Sq. Ft.:
224,078
Property Management:
Time Equities, Inc.; The Discovery Group Inc.
Underwritten NOI:
$1,992,429
Underwritten NCF:
$1,909,179
Appraised Value:
$33,500,000
Appraisal Date:
January 14, 2014
 
Historical NOI
Most Recent NOI:
$1,760,315 (T-12 January 31, 2014)
2013 NOI:
$1,807,247 (December 31, 2013)
2012 NOI:
$1,465,302 (December 31, 2012)
 
Historical Occupancy
Most Recent Occupancy:
96.7% (March 1, 2014)
2013 Occupancy:
87.0% (December 31, 2013)
2012 Occupancy:
92.7% (December 31, 2012)
(1)  
Cash management will be triggered upon (i) an event of default or (ii) a “Big Lots Trigger Event” meaning Big Lots has not renewed its lease for a term of at least five years on or before 1) August 31, 2016 (five months prior to its current expiration date) and 2) five months prior to any subsequent expiration date.
(2)  
The TI/LC reserve is subject to a cap of $145,119.
(3)  
The Hobby Lobby Rent reserve account is held by lender until lender receives written evidence that Hobby Lobby is in physical occupancy of its leased space and has commenced paying all of its unabated rent.  Hobby Lobby is in physical occupancy of its leased space, has opened for business and commenced paying rent on April 1, 2014.
(4)  
Upon the occurrence of a Big Lots Trigger Event the borrower will deposit $19,334 monthly into the Big Lots reserve account.
(5)  
Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 2.20x and 2.10x, respectively.
 
 
 
 
 
 
 
TRANSACTION HIGHLIGHTS
 
§
Property. The property is a seven-building retail center totaling 224,078 sq. ft. located in Seekonk, Massachusetts.  The property was 96.7% occupied by nine tenants as of March 1, 2014.  The property is anchored by BJ’s Wholesale Club (48.8% of NRA and includes a gas station) under an initial 20-year lease term expiring August 2032.  The BJ’s Wholesale Club lease contains five, five-year renewal options.  Other notable tenants include Hobby Lobby (19.0% of NRA; March 2024 expiration) and Big Lots (12.3% of NRA; January 2017 expiration).  No other tenant comprises more than 8.0% of NRA.  2012 property renovations included tenant relocations, additional space added, partial roof installation, gut renovations, new signage and parking striping and paving.
 
§
Location / Market.  The property is located in Seekonk, Massachusetts, approximately 37 miles south of Boston and four miles east of Providence, Rhode Island.  The property is situated along Route 6, a densely developed commercial corridor that is improved with a variety of retail.  The five-mile radius population is 193,444 with an average household income of $67,467.  The property is located within the Route 495 South submarket as delineated by CoStar according to the appraiser.  The submarket occupancy was 94.4% as of Q3 2013.  The appraiser reported five directly competitive multi-tenant retail properties with an average occupancy of 93.9%.
 
§
Sponsorship. The loan sponsor and guarantor is Mr. Francis Greenburger.  Mr. Greenburger is the founder, Chairman, and CEO of Time Equities Inc., (“TEI”), a full service real estate company established in 1966 based in New York City.  TEI is a full service real estate company including development and asset and property management.  TEI owns approximately 20 million sq. ft. of commercial property in 25 states, five Canadian provinces and Germany. TEI’s portfolio includes office, industrial and retail properties, as well as over 3,500 multifamily apartment units and 131 commercial properties.
 
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.
 
 
112
 
 

4535 Commerce Street
Virginia Beach, VA 23462
Collateral Asset Summary – Loan No. 16
Westin Virginia Beach
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$20,700,000
67.9%
1.68x
13.3%
 
Mortgage Loan Information
Loan Seller:
GACC
Loan Purpose:
Refinance
Sponsor(1):
Daniel A. Hoffler; Louis S. Haddad; American Realty Capital Hospitality Trust, Inc.
Borrower:
TCA Block 7 Hotel, L.L.C.
Original Balance:
$20,700,000
Cut-off Date Balance:
$20,700,000
% by Initial UPB:
1.7%
Interest Rate:
5.1300%
Payment Date:
6th of each month
First Payment Date:
June 6, 2014
Maturity Date:
May 6, 2024
Amortization:
360 months
Additional Debt:
None
Call Protection:
L(24), D(91), O(5)
Lockbox / Cash Management(2):
Hard / Springing

Reserves
 
Initial
Monthly  
Taxes:
$253,530
$31,422  
Insurance(3):
$0
Springing  
FF&E:
$0
4.0% of prior month’s  
gross revenues  
Common Charges(4):
$0
Ongoing  

Financial Information
Cut-off Date Balance / Room:
$87,712
  
Balloon Balance / Room:
$72,433
  
Cut-off Date LTV(5):
67.9%
  
Balloon LTV:
56.0%
  
Underwritten NOI DSCR:
2.03x
  
Underwritten NCF DSCR:
1.68x
  
Underwritten NOI Debt Yield:
13.3%
  
Underwritten NCF Debt Yield:
11.0%
  

Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Full Service Hospitality
Collateral:
Fee Simple
Location:
Virginia Beach, VA
Year Built / Renovated:
2007 / NAP
Total Rooms:
236
Property Management:
Crestline Hotels & Resorts, LLC
Underwritten NOI:
$2,743,259
Underwritten NCF:
$2,276,160
“As-is” Appraised Value:
$30,500,000
“As-is” Appraisal Date:
April 1, 2014
“As Stabilized” Appraised Value(5):
$33,000,000
“As Stabilized” Appraisal Date(5):
April 1, 2016
 
Historical NOI
Most Recent NOI:
$2,509,787 (T-12 February 28, 2014)
2013 NOI:
$2,531,065 (December 31, 2013)
2012 NOI:
$2,386,923 (December 31, 2012)
2011 NOI:
$1,752,653 (December 31, 2011)
 
Historical Occupancy
Most Recent Occupancy:
70.0% (February 28, 2014)
2013 Occupancy:
69.9% (December 31, 2013)
2012 Occupancy:
76.0% (December 31, 2012)
2011 Occupancy:
75.0% (December 31, 2011)
(1)  
American Realty Capital Hospitality Trust, Inc. is also affiliated with the sponsor under the mortgage loan identified on Annex A-1 as ARC Marriott Hotel Portfolio, which has a Cut-off Date Balance of $45.5 million.
(2)  
Cash management will be triggered (i) during the continuance of an event of default, (ii) if the DSCR falls below 1.20x on the last day of any calendar quarter, until the DSCR is at least 1.25x for two consecutive calendar quarters or (iii) if the borrower fails to deposit the environmental insurance deductible deposit amount into the insurance account at the time any claim arises under the environmental insurance policy.
(3)  
The borrower will be required to deposit 1/12 of the annual insurance premiums into the insurance account if an acceptable blanket insurance policy is no longer in place.
(4)  
On each monthly payment date, the borrower is required to deposit an amount equal to the monthly amount set forth in the approved annual budget for common charges.
(5)  
The “As Stabilized” LTV ratio is 62.7% based on a stabilized ADR of $148 with a stabilized occupancy of 71.0%.

 
TRANSACTION HIGHLIGHTS
§ 
Property. The Westin Virginia Beach property consists of a 15-story full service hotel with 236 guestrooms, approximately 11,200 sq. ft. of meeting space, a restaurant, business center, fitness center and an indoor swimming pool. The hotel is located in a mixed-use development that includes a 735-space parking ramp, multiple retail spaces and a conference center. In addition, floors 16-30 of the building include 120 condominium units, which are not part of the collateral.
 
§ 
Experienced Management. Crestline Hotels & Resorts, LLC (“Crestline”) has a portfolio of managed properties that includes more than 46 hotels, resorts, conference centers and convention hotels with over 7,700 rooms in 12 states and the District of Columbia.  Crestline, through the newly formed REIT, American Realty Capital Hospitality Trust, Inc., also owns an approximately 30.5% equity interest in the Westin Virginia Beach property.
 
§ 
Location.  The city of Virginia Beach has approximately 5.5 million overnight tourists each year with an estimated $1.3 billion in tourism revenue. The Westin Virginia Beach property is located in the Town Center, with accessibility to Norfolk, Chesapeake, the Norfolk Naval Base and the Virginia Beach Convention Center. The Westin Virginia Beach property is located on a main street development, with business, retail and dining options adjacent to the hotel.  In addition, the Sandler Center for the Performing Arts is located directly next to the hotel.
 
§ 
Performance. The 2013 Occupancy, ADR and RevPAR penetration rates were 111%, 106% and 118%, respectively. In addition, penetration rates have been at or above 99% since 2011.
 
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.
 
 
113
 
 
Winter Springs, Brandon, Winter
Garden and Hobe Sound, FL
Collateral Asset Summary – Loan No. 17
ART Florida Multifamily Portfolio 2
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$20,000,000
71.7%
1.37x
9.4%
 
Mortgage Loan Information
Loan Seller:
CCRE
Loan Purpose:
Refinance
Sponsor:
Arbor Realty SR, Inc.
Borrower:
Turkscap Apartments, LLC; Turkscap Apartments III, LLC; Mosswood Apartments, LLC; Mosswood Apartments II, LLC; Winter Woods Apartments, LLC; Winter Woods Apartments II, LLC; Mark Landing Apartments, LLC
Original Balance:
$20,000,000
Cut-off Date Balance:
$20,000,000
% by Initial UPB:
1.7%
Interest Rate:
4.9090%
Payment Date:
6th of each month
First Payment Date:
May 6, 2014
Maturity Date:
April 6, 2024
Amortization:
Interest only for first 24 months; 360 months thereafter
Additional Debt:
None
Call Protection(1):
L(25), D(91), O(4)
Lockbox / Cash Management(2):
Soft Springing Hard / Springing

Reserves
 
Initial
Monthly  
Taxes:
$35,000
$17,500  
Insurance:
$21,325
$10,663  
Replacement:
$0
$10,475  
Required Repairs:
$18,344
NAP  

Financial Information
Cut-off Date Balance / Unit:
$47,733
  
Balloon Balance / Unit:
$41,206
  
Cut-off Date LTV:
71.7%
  
Balloon LTV:
61.9%
  
Underwritten NOI DSCR(3):
1.47x
  
Underwritten NCF DSCR(3):
1.37x
  
Underwritten NOI Debt Yield:
9.4%
  
Underwritten NCF Debt Yield:
8.7%
  

Property Information
Single Asset / Portfolio:
Portfolio of four properties
Property Type:
Garden Multifamily
Collateral:
Fee Simple
Location:
Winter Springs, Brandon, Winter Garden and Hobe Sound, FL
Year Built / Renovated:
1977 - 1987 / 2011
Total Units:
419
Property Management:
Elon Property Management Company, L.L.C.
Underwritten NOI:
$1,872,776
Underwritten NCF:
$1,747,076
Appraised Value:
$27,900,000
Appraisal Date:
March 2014
 
Historical NOI(4)
2013 NOI:
$1,767,889 (December 31, 2013)
2012 NOI:
$1,674,260 (December 31, 2012)
2011 NOI:
NAV
2010 NOI:
NAV
 
Historical Occupancy(4)
Most Recent Occupancy:
94.5% (February 2014)
2013 Occupancy:
94.4% (December 31, 2013)
2012 Occupancy:
82.6% (December 31, 2012)
2011 Occupancy:
NAV
(1)  
On any date after the lockout period ends, the borrowers may obtain the release of an individual property by partially defeasing the mortgage loan by an amount equal to the greater of (i) 120.0% of the allocated loan amount (as defined below) and (ii) an amount such that (1) the LTV immediately following the release is no greater than 70.0% and (2) the DSCR following the release is at least 1.30x.
(2)  
Cash management and a full excess cash flow sweep will be triggered upon (i) any event of default or (ii) failure by the borrowers to maintain a DSCR of at least 1.10x at the end of one calendar quarter.
(3)  
Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.88x and 1.76x, respectively.
(4)  
The sponsor acquired the ART Florida Multifamily Portfolio 2 properties in 2011. As such, Historical NOI and Historical Occupancy are unavailable prior to 2012.

 
TRANSACTION HIGHLIGHTS
§
Properties.  The ART Florida Multifamily Portfolio 2 properties are comprised of four single-story garden style apartment communities, containing 419 units. The properties are located in Winter Springs, Brandon, Winter Garden and Hobe Sound, Florida. Since 2011, the sponsor has invested approximately $553,000 ($1,320 per unit) into the properties.
 
§ 
Market.  As of Q4 2013, the respective multifamily submarkets reported vacancy rates ranging from 2.4% to 3.2%. In 2014, the estimated population and average household income within a three-mile radius of each property was, on average, approximately 51,552 and $72,274, respectively.
 
§ 
Sponsorship. Arbor Realty SR, Inc., a subsidiary of Arbor Realty Trust, Inc. (“Arbor”) (NYSE:ABR), acquired the portfolio in 2011. Arbor is a REIT that invests in a diversified portfolio of multifamily and commercial real estate-related bridge and mezzanine loans and preferred equity. In January 2014, Arbor announced the funding of 31 multifamily loans for approximately $197.6 million.

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.
 
 
114
 
 
338 Third Avenue
Brooklyn, NY 11215
Collateral Asset Summary – Loan No. 18
Park Slope Storage Deluxe
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$17,000,000
62.3%
1.38x
8.6%
 
Mortgage Loan Information
Loan Seller:
GACC
Loan Purpose:
Refinance
Sponsor(1):
Steven J. Guttman
Borrower:
338 DE LLC
Original Balance:
$17,000,000
Cut-off Date Balance:
$17,000,000
% by Initial UPB:
1.4%
Interest Rate:
4.7000%
Payment Date:
6th of each month
First Payment Date:
June 6, 2014
Maturity Date:
May 6, 2024
Amortization:
Interest only for first 24 months; 360 months thereafter
Additional Debt:
None
Call Protection:
L(24), D(92), O(4)
Lockbox / Cash Management(2):
Springing Hard / Springing

Reserves
 
Initial
Monthly  
Taxes:
$36,619
$7,324  
Insurance(3):
$34,203
Springing  
Replacement:
$0
$878 

Financial Information
Cut-off Date Balance / Sq. Ft.:
$242
  
Balloon Balance / Sq. Ft.:
$208
  
Cut-off Date LTV:
62.3%
  
Balloon LTV:
53.5%
  
Underwritten NOI DSCR(4):
1.39x
  
Underwritten NCF DSCR(4):
1.38x
  
Underwritten NOI Debt Yield:
8.6%
  
Underwritten NCF Debt Yield:
8.6%
  
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Self Storage
Collateral:
Fee Simple
Location:
Brooklyn, NY
Year Built / Renovated:
1966 / 2012
Total Sq. Ft.:
70,225
Property Management:
Storage Deluxe Management Company, LLC
Underwritten NOI:
$1,469,115
Underwritten NCF:
$1,458,577
Appraised Value:
$27,300,000
Appraisal Date:
March 4, 2014
 
Historical NOI(5)
Most Recent NOI:
$1,339,043 (T-12 February 28, 2014)
2013 NOI:
$1,245,221 (December 31, 2013)
2012 NOI:
NAV
 
Historical Occupancy
Most Recent Occupancy:
75.1% (March 31, 2014)
2013 Occupancy:
77.8% (December 31, 2013)
2012 Occupancy:
65.2% (December 31, 2012)
(1)  
Steven J. Guttman is also the sponsor under the mortgage loan identified on Annex A-1 to this Free Writing Prospectus as Woodside Avenue Storage Deluxe, which has a Cut-off Date Balance of $14,500,000.
(2)  
A lockbox with in-place cash management will be established (i) upon and during the continuance of an event of default or (ii) if the DSCR falls below 1.10x at any time after the first anniversary of the funding of the loan.
(3)  
The borrower will be required to deposit 1/12 of the annual insurance premiums into the insurance reserve account if an acceptable blanket policy is no longer in place.
(4)  
Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.81x and 1.80x, respectively.
(5)  
The property was converted to self storage in 2012 and began operations in March 2012.  As such, 2012 NOI is not applicable and not available.

 
TRANSACTION HIGHLIGHTS
§
Collateral.  The property consists of 1,444 storage units (of which 1,425 are climate-controlled) across 70,225 sq. ft. in a four-story building located at the border of the Park Slope neighborhood of Brooklyn, New York.  The building is accessible via two loading areas, each served by an elevator. Project amenities include key-code access, surveillance cameras, security alarms, fire sprinklers, interior climate control units and exterior drive-up units.
 
§ 
Location/Market. Park Slope is a residential neighborhood in Brooklyn, New York. It has a population of approximately 131,000 and an average household income of approximately $117,000 within a one-mile radius. In addition, the property’s signage is visible from over one mile away.
 
§ 
Tax Abatement. The property received an Industrial Commercial Abatement Program (“ICAP”) property tax abatement for 25 years beginning with the 2014/15 tax year. The abatement freezes the assessment on structural improvements made to the building for 16 years and then phases out in 10 percentage increments in years 2030 through 2040.
 
§ 
Experienced Sponsorship. The sponsor is Steven J. Guttman, the founder of Storage Deluxe Management Company, LLC (“Storage Deluxe”), which is a Manhattan-based owner, developer, and manager of self storage properties. Over the past 13 years, Storage Deluxe has developed and constructed 34 self storage facilities, one fine art storage facility and one luxury car storage facility. Altogether, these assets comprise approximately 2.4 million sq. ft. across 40,000 units. Currently, Storage Deluxe manages seven facilities which comprise 9,350 units, with an additional six properties under construction.

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.
 
 
115
 
6 Avon Parkway
Liverpool, NY 13090
Collateral Asset Summary – Loan No. 19
Brookwood on the Green
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$16,000,000
63.5%
1.49x
10.2%
 
Mortgage Loan Information
Loan Seller:
GACC
Loan Purpose:
Refinance
Sponsor:
Robert C. Morgan
Borrower:
Morgan Brookwood DE, LLC
Original Balance:
$16,000,000
Cut-off Date Balance:
$16,000,000
% by Initial UPB:
1.3%
Interest Rate:
5.0000%
Payment Date:
6th of each month
First Payment Date:
April 6, 2014
Maturity Date:
March 6, 2024
Amortization:
Interest only for first 18 months; 360 months thereafter
Additional Debt(1):
$2,000,000 Mezzanine Loan
Call Protection:
L(26), D(90), O(4)
Lockbox / Cash Management:
Soft / In Place
 
Reserves
 
Initial
Monthly
Taxes:
$104,657
$34,886   
Insurance(2):
$0
Springing   
Replacement:
$0
$7,083   
Required Repairs(3):
$140,063
NAP   
 
Financial Information
 
Mortgage Loan
Total Debt
Cut-off Date Balance / Unit:
$47,059
$52,941
Balloon Balance / Unit:
$40,227
$46,109
Cut-off Date LTV:
63.5%
71.4%
Balloon LTV:
54.3%
62.2%
Underwritten NOI DSCR(4):
1.58x
1.26x
Underwritten NCF DSCR(4):
1.49x
1.19x
Underwritten NOI Debt Yield:
10.2%
9.0%
Underwritten NCF Debt Yield:
9.6%
8.6%
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Garden Multifamily
Collateral:
Fee Simple
Location:
Liverpool, NY
Year Built / Renovated:
1965 / NAP
Total Units:
340
Property Management:
Morgan Management, LLC
Underwritten NOI:
$1,624,573
Underwritten NCF:
$1,539,573
Appraised Value:
$25,200,000
Appraisal Date:
January 23, 2014
 
Historical NOI
Most Recent NOI:
$1,714,777 (T-7 December 31, 2013 Ann.)
2012 NOI:
$1,354,708 (December 31, 2012)
2011 NOI:
$1,291,976 (December 31, 2011)
2010 NOI:
$1,138,119 (December 31, 2010)
 
Historical Occupancy
Most Recent Occupancy:
95.0% (January 22, 2014)
2012 Occupancy:
NAV
2011 Occupancy:
NAV
2010 Occupancy:
NAV
(1)  
The mezzanine loan is coterminous with the mortgage loan with an interest rate of 13.0000% per annum and is interest only for its entire term.
(2)  
The borrower will be required to deposit 1/12 of the annual insurance premiums into the insurance reserve if an acceptable blanket policy is no longer in place.
(3)  
The engineering report identified certain immediate repairs, estimated to cost $112,050. As a result of NY lien law concerns, in lieu of funding a reserve with respect to such costs, $140,063 (i.e., 125% of engineer’s cost estimate) was funded to a borrower account at closing, with respect to which the borrower will have unrestricted access to pay for such required repairs or otherwise, subject only to springing lender control of such account following the occurrence of an event of default. The loan documents obligate the borrower to complete the identified required repair items within 180 days of loan closing and guarantor has guaranteed the lender’s losses related to a breach of such covenant.
(4)  
Based on amortizing debt service payments on the mortgage loan. Using the current interest only payments on the mortgage loan, the Underwritten NOI DSCR and the Underwritten NCF DSCR are 2.00x and 1.90x, respectively for the mortgage loan and 1.51x and 1.43x, respectively for the total debt.

 
TRANSACTION HIGHLIGHTS
 
■
Asset Quality.  Constructed in 1965, the property consists of 34 apartment buildings with layouts that include single-story, two-story, townhouse-style and two-story stacked flat units over garages. The sponsor purchased the property in 2013 and is in the process of completing extensive repairs and renovations to the property which have included pool repairs, new siding, roof repairs, new boiler installation, appliance replacement, landscaping improvements and exterior lighting installation. Additionally, 204 units (60.0% of the total) have been remodeled with new flooring, new cabinets and new appliances.
 
■  
Location.  The property is located approximately five miles northwest of the Syracuse central business district. The region is served by multiple major roadways including Interstates 90 (the New York State Thruway) and 81 and Routes 481 and 690. Mass bus transit is provided via Centro along major thoroughfares. Trailways and Greyhound bus service is provided via the bus terminal in downtown Syracuse. Amtrak service throughout the New York region is provided via the downtown Syracuse station. Hancock International Airport is located approximately 6.6 miles east of the property, directly off of Interstate 81.
 
■  
Sponsorship.  Robert C. Morgan is the founder of Morgan Management, LLC, the property manager of the property. Morgan Management, LLC has owned and operated a residential and commercial real estate portfolio since 1976. After originally focusing on manufactured housing communities, Morgan Management, LLC’s real estate portfolio now includes RV resorts, residential apartment communities, self storage facilities, commercial office buildings and shopping plazas.
 
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.
 
 
116
 
7119-7125 East Shea Boulevard and 10392 North Scottsdale Road
Scottsdale, AZ 85254
Collateral Asset Summary – Loan No. 20
Scottsdale Commons
Cut-off Date Balance:
Cut-off Date LTV:
U/W NCF DSCR:
U/W NOI Debt Yield:
$15,125,000
59.8%
2.38x
11.5%
 
Mortgage Loan Information
Loan Seller:
GACC
Loan Purpose:
Refinance
Sponsor:
Basil Christopoulos
Borrower:
Trojan Development Associates III, LLC
Original Balance:
$15,125,000
Cut-off Date Balance:
$15,125,000
% by Initial UPB:
1.3%
Interest Rate:
4.5500%
Payment Date:
6th of each month
First Payment Date:
May 6, 2014
Maturity Date:
April 6, 2024
Amortization:
Interest Only
Additional Debt(1):
Future Mezzanine Debt Permitted
Call Protection:
L(25), D(91), O(4)
Lockbox / Cash Management(2):
Soft / Springing
 
Reserves
 
Initial
Monthly
Taxes:
$0
$13,480  
Insurance:
$14,956
$1,917  
Replacement(3):
$0
$1,992  
TI/LC(4):
$0
$5,211  
Required Repairs:
$36,876
NAP  
Lease Sweep(5):
$0
Springing  
 
Financial Information
Cut-off Date Balance / Sq. Ft.:
$218
  
Balloon Balance / Sq. Ft.:
$218
  
Cut-off Date LTV:
59.8%
  
Balloon LTV:
59.8%
  
Underwritten NOI DSCR(6):
2.49x
  
Underwritten NCF DSCR(6):
2.38x
  
Underwritten NOI Debt Yield:
11.5%
  
Underwritten NCF Debt Yield:
11.0%
  
Property Information
Single Asset / Portfolio:
Single Asset
Property Type:
Anchored Retail
Collateral:
Fee Simple
Location:
Scottsdale, AZ
Year Built / Renovated:
1985, 1989, 1999 / 2008
Total Sq. Ft.:
69,482
Property Management:
C&H Development Co.
Underwritten NOI:
$1,738,345
Underwritten NCF:
$1,661,915
Appraised Value:
$25,300,000
Appraisal Date:
February 27, 2014
 
Historical NOI
2013 NOI:
$1,631,908 (December 31, 2013)
2012 NOI:
$1,702,820 (December 31, 2012)
2011 NOI:
$1,564,557 (December 31, 2011)
 
Historical Occupancy
Most Recent Occupancy:
94.5% (February 12, 2014)
2013 Occupancy:
97.2% (December 31, 2013)
2012 Occupancy:
98.4% (December 31, 2012)
2011 Occupancy:
92.6% (December 31, 2011)
(1)  
Borrower will be permitted in connection with a sale to obtain a mezzanine loan from an approved mezzanine lender provided that (i) the combined LTV does not exceed 59.8%, (ii) the combined DSCR will not be less than 2.30x and (iii) the combined NCF debt yield will not be less than 10.8%.
(2)  
Cash management will be triggered (i) upon and during the continuance of an event of default, (ii) if the DSCR falls below 1.15x, (iii) if a mezzanine loan is outstanding or (iv) upon the commencement of a Lease Sweep Period. A “Lease Sweep Period” will commence during the first to occur of (a) the date 12 months prior to the earliest stated expiration date (including the stated expiration of any renewal term) of a Lease Sweep Lease or the date required under a Lease Sweep Lease by which the tenant is required to give notice of its exercise of a renewal option thereunder, if such renewal has not been so exercised, (b) the date that a Lease Sweep Lease (or a material portion thereof) is surrendered, cancelled, or terminated prior to its then current expiration date, (c) the date that any tenant under a Lease Sweep Lease goes dark and fails to provide evidence of its intention to re-occupy its space, and any tenant under a Lease Sweep Lease gives notice that it intends to go dark, (d) an occurrence of an event of default under a Lease Sweep Lease or (e) the occurrence of a Lease Sweep Tenant Party Insolvency Proceeding (as defined in the loan documents).  A “Lease Sweep Lease” is defined as the Fresh & Easy lease, the BevMo! lease, or any replacement lease that covers 14,000 or more rentable sq. ft.
(3)  
The replacement reserve is subject to a cap of $95,616.
(4)  
The TI/LC reserve is subject to a cap of $150,000.
(5)  
The borrower is required to deposit all excess cash into a lease sweep reserve during a Lease Sweep Period.
(6)  
Underwritten NOI DSCR and Underwritten NCF DSCR are based on the interest only debt service payment. Based on a 30-year amortization schedule, the Underwritten NOI DSCR and Underwritten NCF DSCR would be 1.88x and 1.80x, respectively.

 
TRANSACTION HIGHLIGHTS
 
■  
Collateral and Tenancy.  The property is a 69,482 sq. ft. grocery-anchored retail center located in North Scottsdale, Arizona, approximately six miles from downtown Scottsdale. As of February 12, 2014, the property is 94.5% leased to 21 tenants, with Fresh & Easy (20.7% of NRA; lease exp. 6/2023) and BevMo! (20.4% NRA; lease exp. 11/2022) being the major tenants. Other national tenants include Avis Rent a Car, H&R Block, Jersey Mike’s, Sleep America LLC, Mutual of Omaha and The UPS Store. The Sponsor acquired the Property in June 2007 for $17.97 million and has since spent over $5.4 million in capital improvements and tenant improvements.
 
■  
Location/Market. The property is located at the intersection of North Scottsdale Road and East Shea Boulevard (over 75,000 vehicles per day), in the Phoenix/Scottsdale metropolitan statistical area. Average household income within a three-mile radius of the property for 2013 was $94,481.
 
■  
Sponsorship. The sponsor is Basil Christopoulos, the President of C&H Development Co., a real estate development firm that specializes in the investment of retail projects in the Bay Area, North Scottsdale and high-end areas of Los Angeles. Since early 1990s, Mr. Christopoulos and C&H Development Co. have developed nearly 500 retail centers. Mr. Christopoulos currently has eight properties under ownership / management.
 
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.
 
 
117
 
 
STATEMENT REGARDING ASSUMPTIONS AS TO
SECURITIES, PRICING ESTIMATES AND OTHER INFORMATION
 
This material is for your information, and none of Deutsche Bank Securities Inc., Cantor Fitzgerald & Co., Jefferies LLC, CastleOak Securities, L.P. and KeyBanc Capital Markets Inc. (the “Underwriters”) are soliciting any action based upon it.  This material is not to be construed as an offer to sell or the solicitation of any offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal.
 
Neither this document nor anything contained herein shall form the basis for any contract or commitment whatsoever. The information contained herein is preliminary as of the date hereof. These materials are subject to change, completion or amendment from time to time.  The information contained herein will be superseded by similar information delivered to you as part of the offering document relating to the Commercial Mortgage Pass-Through Certificates, Series COMM 2014-CCRE17 (the “Offering Document”).  The Information supersedes any such information previously delivered.  The Information should be reviewed only in conjunction with the entire Offering Document. All of the information contained herein is subject to the same limitations and qualifications contained in the Offering Document.  The information contained herein does not contain all relevant information relating to the underlying mortgage loans or mortgaged properties. Such information is described elsewhere in the Offering Document.  The information contained herein will be more fully described elsewhere in the Offering Document.  The information contained herein should not be viewed as projections, forecasts, predictions or opinions with respect to value.  Prior to making any investment decision, prospective investors are strongly urged to read the Offering Document its entirety.   Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this free writing prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
 
The attached information contains certain tables and other statistical analyses (the “Computational Materials”) which have been prepared in reliance upon information furnished by the Mortgage Loan Sellers.  Numerous assumptions were used in preparing the Computational Materials, which may or may not be reflected herein.  As such, no assurance can be given as to the Computational Materials’ accuracy, appropriateness or completeness in any particular context; or as to whether the Computational Materials and/or the assumptions upon which they are based reflect present market conditions or future market performance. The Computational Materials should not be construed as either projections or predictions or as legal, tax, financial or accounting advice. You should consult your own counsel, accountant and other advisors as to the legal, tax, business, financial and related aspects of a purchase of these securities. Any weighted average lives, yields and principal payment periods shown in the Computational Materials are based on prepayment and/or loss assumptions, and changes in such prepayment and/or loss assumptions may dramatically affect such weighted average lives, yields and principal payment periods. In addition, it is possible that prepayments or losses on the underlying assets will occur at rates higher or lower than the rates shown in the attached Computational Materials. The specific characteristics of the securities may differ from those shown in the Computational Materials due to differences between the final underlying assets and the preliminary underlying assets used in preparing the Computational Materials. The principal amount and designation of any security described in the Computational Materials are subject to change prior to issuance. None of Underwriters or any of their respective affiliates makes any representation or warranty as to the actual rate or timing of payments or losses on any of the underlying assets or the payments or yield on the securities.
 
This document contains forward-looking statements. Those statements are subject to certain risks and uncertainties that could cause the success of collections and the actual cash flow generated to differ materially from the information set forth herein. While such information reflects projections prepared in good faith based upon methods and data that are believed to be reasonable and accurate as of the dates thereof, the issuer undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances. Individuals should not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determination with respect to the forecasted periods, which reflect the issuer’s view only as of the date hereof.
 
IRS CIRCULAR 230 NOTICE: THIS TERM SHEET IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING U.S. FEDERAL, STATE OR LOCAL TAX PENALTIES. THIS TERM SHEET IS WRITTEN AND PROVIDED IN CONNECTION WITH THE PROMOTION OR MARKETING BY THE DEPOSITOR AND THE UNDERWRITERS OF THE TRANSACTION OR MATTERS ADDRESSED HEREIN.   INVESTORS SHOULD SEEK ADVICE BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
 
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