New York July 18, 2018
The private-label CMBS market is taking off after a roughly two-week hiatus.
Since late last week, 12 transactions with a balance of $6.4 billion have been bought to market. Two of those deals have priced. Last Friday, Citigroup Commercial Mortgage Trust, 2018-ATLS, backed by a $1.2 billion loan with a two-year initial term written by Citibank and Goldman Sachs against the 2,917-room Atlantis Resort on Paradise Island in the Bahamas, saw its most senior bond class price at a spread of 125 basis points more than Libor.
And on Monday, Greenfield Portfolio Trust, 2018-GPP, backed by a $270 million loan that Deutsche Bank, JPMorgan and Goldman Sachs had provided against a portfolio of 69 office and industrial properties with 3.9 million square feet owned by Greenfield Partners, priced.
That leaves another 10 transactions with a balance of $5 billion in the on-deck circle. Two of those are conduits, GS Mortgage Securities Corp. II, 2018-GS10, and BANK, 2018-BNK13.
The Goldman conduit’s benchmark bond class, with the highest possible ratings and a 10-year average life, was being shopped at a spread of 86-87 bps more than swaps. That would be in line with the 86-bps spreach achieved by the Benchmark Mortgage Trust, 2018-B4, transaction, which priced at the end of last month, and would be substantially tighter than the 91-98 bp prints for three other conduits that priced that week.
The BANK deal has just gotten underway and price talk wasn’t available.
When all the pending deal’s price, issuance for the year will have reached $46.8 billion.
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