BAML, UBS to launch $876m CMBS

Bank of America Merril Lynch and UBS plan to originate a $876.3 million BACM 2016-UBS10 transaction, backed by 52 loans on 84 properties.

Bank of America Merrill Lynch and UBS are issuing the $876.3 million BACM 2016-UBS10 transaction, a CMBS deal backed by 52 loans on 84 properties.

fitch-ratings-logoFitch Ratings and Moody’s have assigned the top five classes in the transaction with preliminary ‘AAAsf’ ratings, according to presale reports.

The top 10 loans in the transaction comprise a lower-than-average concentration in the pool, Fitch noted in its presale report — 51.5 percent of the pool versus the year-to-date 2016 average of 54.8 percent for other Fitch-rated fixed-rate multiborrower transactions. The transaction also has higher leverage than other recent Fitch-rated transactions, with an loan-to-value of 108.2 percent, which is higher than the YTD average Fitch LTV average of 107.9 percent.

The largest loan in the pool is a $200 million loan backed by the Hyatt Regency Huntington Beach Resort and Spa on the Southern California coast. Office properties represent the highest concentration of the pool at 33.3 percent, followed by retail properties at 26.6 percent.

Earlier this month, Fitch announced a preliminary rating of another CMBS transaction with heavy hotel exposure, the $892.8 million JPMDB Commercial Mortgage Securities Trust 2016-C2, backed by 30 fixed-rate loans on 79 properties.