CCRE rings in the new year as first CMBS sponsor

Cantor Commercial Real Estate (CCRE) has reemerged from a near-five-year hiatus as a CMBS sponsor to become the first of 2016 with Cantor Commercial Real Estate CFCRE 2016-C3 Mortgage Trust.

Cantor Commercial Real Estate (CCRE) has reemerged from a near-five-year hiatus as a CMBS sponsor to become the first of 2016 with Cantor Commercial Real Estate CFCRE 2016-C3 Mortgage Trust.

This securitization is the third conduit issued by CCRE and its first since December 2011.

The primary assets, 38 loans secured by 67 commercial properties, were contributed by Cantor Commercial Real Estate Lending, L.P., Societe Generale, and Liberty Island Group I LLC.

The largest loan concentration is in California (29.8 percent), with five of the largest loans (26.3 percent) secured by properties in Northern and Southern California. The next largest state concentrations are New York (11.4 percent), Texas (10.3 percent) and Georgia (9.2 percent).

Fitch Ratings and Kroll Bond Rating Agency issued presale reports on the commercial mortgage pass-through certificates, which had an aggregate principal balance of approximately $703.6 million as of the cut-off date.

In its report Fitch noted that the loan pool carries higher leverage than other recent Fitch-rated fixed-rate, multiborrower transactions.

“The pool’s Fitch debt service coverage ratio (DSCR) of 1.12x is lower than the 2015 and 2014 averages of 1.18x and 1.19x, respectively,” according to Fitch. “The pool’s Fitch loan to value (LTV) of 109.5% is higher than the 2015 and 2014 averages of 109.3% and 106.2%, respectively.”

Fitch also noted below average amortization, above average collateral quality and low mortgage coupons. The agency expects to rate the deal as follows:

-$29,088,000 class A-1 ‘AAAsf’; Outlook Stable;

-$40,514,000 class A-SB ‘AAAsf’; Outlook Stable;

-$200,000,000 class A-2 ‘AAAsf’; Outlook Stable;

-$222,884,000 class A-3 ‘AAAsf’; Outlook Stable;

-$528,543,000b class X-A ‘AAAsf’; Outlook Stable;

-$36,057,000 class A-M ‘AAAsf’; Outlook Stable;

-$37,815,000 class B ‘AA-sf’; Outlook Stable;

-$37,815,000b class X-B ‘AA-sf’; Outlook Stable;

-$37,816,000 class C ‘A-sf’; Outlook Stable;

-$37,816,000b class X-C ‘A-sf’; Outlook Stable;

-$41,334,000a class D ‘BBB-sf’; Outlook Stable;

-$41,334,000ab class X-D ‘BBB-sf’; Outlook Stable;

-$10,553,000a class E ‘BB+sf’; Outlook Stable;

-$10,553,000ab class X-E ‘BB+sf’; Outlook Stable;

-$8,795,000a class F ‘BB-sf’; Outlook Stable;

-$8,795,000ab class X-F ‘BB-sf’; Outlook Stable;

-$7,915,000a class G ‘B-sf’; Outlook Stable;

-$7,915,000ab class X-G ‘B-sf’; Outlook Stable.

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