FREE WRITING PROSPECTUS | ||
FILED PURSUANT TO RULE 433 | ||
REGISTRATION FILE NO.: 333-193376-11 | ||
September 15, 2014 | ||||
FREE WRITING PROSPECTUS | ||||
STRUCTURAL AND COLLATERAL TERM SHEET | ||||
$1,235,960,696 | ||||
(Approximate Total Mortgage Pool Balance) | ||||
$1,049,021,000 | ||||
(Approximate Offered Certificates) | ||||
COMM 2014-LC17 | ||||
Deutsche Mortgage & Asset Receiving Corporation Depositor | ||||
Ladder Capital Finance LLC German American Capital Corporation Cantor Commercial Real Estate Lending, L.P. Natixis Real Estate Capital LLC Silverpeak Real Estate Finance LLC Sponsors and Mortgage Loan Sellers | ||||
Deutsche Bank Securities | Cantor Fitzgerald & Co. | |||
Joint Bookrunning Managers and Co-Lead Managers | ||||
Natixis Securities Americas LLC | Nomura | Citigroup | ||
Co-Managers | ||||
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 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 September 15, 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. |
Co-Managers: | Natixis Securities Americas LLC, Citigroup Global Markets Inc. and Nomura Securities International, Inc |
Mortgage Loan Sellers: | Ladder Capital Finance LLC (“LCF”) (32.7%), German American Capital Corporation* (“GACC”) (29.3%), Cantor Commercial Real Estate Lending, L.P. (“CCRE”) (23.1%), Natixis Real Estate Capital LLC (“Natixis”) (10.8%) and Silverpeak Real Estate Finance LLC (“SPREF”) (4.1%) *An indirect wholly owned subsidiary of Deutsche Bank AG. |
Master Servicer: | Wells Fargo Bank, National Association |
Operating Advisor: | Park Bridge Lender Services LLC |
Special Servicer: | LNR Partners, LLC |
Trustee: | Wilmington Trust, National Association |
Certificate Administrator: | Wells Fargo Bank, National Association |
Rating Agencies: | Fitch Ratings, Inc., DBRS, 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 October 2014. |
Distribution Date: | 4th business day following the Determination Date in each month, commencing in October 2014. |
Cut-off Date: | Payment Date in September 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 September 29, 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: | October 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)](https://capedge.com/proxy/FWP/0001539497-14-001101/img001_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 Mortgage Trust |
TRANSACTION HIGHLIGHTS |
Mortgage Loan Sellers | Number of Mortgage Loans | Number of Mortgaged Properties | Aggregate Cut-off Date Balance | % of Outstanding Pool Balance | ||||||||
Ladder Capital Finance LLC | 22 | 140 | $403,885,000 | 32.7% | ||||||||
German American Capital Corporation | 19 | 30 | $362,354,708 | 29.3% | ||||||||
Cantor Commercial Real Estate Lending, L.P. | 12 | 13 | $285,245,406 | 23.1% | ||||||||
Natixis Real Estate Capital LLC | 11 | 16 | $133,706,725 | 10.8% | ||||||||
Silverpeak Real Estate Finance LLC | 7 | 8 | $50,768,856 | 4.1% | ||||||||
Total: | 71 | 207 | $1,235,960,696 | 100.0% |
Pooled Collateral Facts: | |
Initial Outstanding Pool Balance: | $1,235,960,696 |
Number of Mortgage Loans: | 71 |
Number of Mortgaged Properties: | 207 |
Average Mortgage Loan Cut-off Date Balance: | $17,407,897 |
Average Mortgaged Property Cut-off Date Balance: | $5,907,825 |
Weighted Average Mortgage Rate: | 4.5811% |
Weighted Average Mortgage Loan Original Term to Maturity or ARD (months): | 109 |
Weighted Average Mortgage Loan Remaining Term to Maturity or ARD (months): | 108 |
Weighted Average Mortgage Loan Seasoning (months): | 0 |
% of Mortgaged Properties Leased to a Single Tenant: | 10.9% |
Credit Statistics(1): | |
Weighted Average Mortgage Loan U/W NCF DSCR: | 1.73x |
Weighted Average Mortgage Loan Cut-off Date LTV(2): | 65.7% |
Weighted Average Mortgage Loan Maturity Date or ARD LTV(2): | 56.8% |
Weighted Average U/W NOI Debt Yield: | 10.7% |
Amortization Overview: | |
% Mortgage Loans with Amortization through Maturity: | 38.1% |
% Mortgage Loans with Interest Only followed by Amortization: | 32.9% |
% Mortgage Loans with Interest Only through Maturity or ARD: | 26.5% |
% Mortgage Loans which Fully Amortize over the Term: | 2.5% |
Weighted Average Remaining Amortization Term (months)(3): | 342 |
Loan Structural Features: | |
% Mortgage Loans with Upfront or Ongoing Tax Reserves: | 94.3% |
% Mortgage Loans with Upfront or Ongoing Replacement Reserves(4): | 89.9% |
% Mortgage Loans with Upfront or Ongoing Insurance Reserves: | 62.1% |
% Mortgage Loans with Upfront or Ongoing TI/LC Reserves(5): | 89.4% |
% Mortgage Loans with Upfront Engineering Reserves: | 72.2% |
% Mortgage Loans with Upfront or Ongoing Other Reserves: | 59.6% |
% Mortgage Loans with In Place Hard Lockboxes: | 55.9% |
% Mortgage Loans with Cash Traps Triggered at Levels ≥ 1.05x: | 82.9% |
% Mortgage Loans with Defeasance Only After a Lockout Period and Prior to an Open Period: | 88.6% |
% Mortgage Loans with Prepayment with a Yield Maintenance Charge Prior to an Open Period and also Allow Defeasance after a Period of 2 Years Following the Closing Date: | 5.0% |
% Mortgage Loans with Prepayment Only After a Lockout Period and Prior to an Open Period with a Yield Maintenance Charge: | 4.8% |
% Mortgage Loans with Prepayment with a Yield Maintenance Charge or Defeasance Only After a Lockout Period and Prior to an Open Period: | 1.6% |
(1) | With respect to the Loews Miami Beach Hotel Loan, the Wilton Commercial Portfolio Loan, the 80 and 90 Maiden Lane Loan and the Myrtle Beach Marriott Resort & Spa Loan, LTV, DSCR and debt yield calculations include the related pari passu companion loans. |
(2) | With respect to 8 mortgage loans, representing 18.3% of the initial outstanding principal balance, the Cut-off Date LTV and Maturity Date or ARD LTV have in certain cases been calculated based on the “As Renovated”, “As Stabilized”, “As Complete” or “Hypothetical As Is” value and in certain other cases calculated using the portfolio valuation value. For additional information, see the Footnotes to Annex A-1. In the case of 3 of the mortgage loans, collectively representing approximately 3.0% of the initial outstanding principal balance, the Cut-off Date LTV and Maturity Date or ARD LTV for such mortgage loans have been calculated based on an appraised value that includes certain property that does not qualify as real property. |
(3) | Excludes loans which are interest only for the full loan term or through a related anticipated repayment date. |
(4) | Includes FF&E Reserves. |
(5) | Represents the percent of the allocated initial outstanding principal balance of retail, office, mixed use and industrial properties only. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 Mortgage Trust |
SUMMARY OF THE CERTIFICATES |
OFFERED CERTIFICATES
Class(1) | Ratings (Moody’s/Fitch/DBRS) | 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) | $54,856,000 | 30.000% | (6) | 2.34 | 1 - 51 | 46.0% | 15.3% | ||||||||
Class A-2 | Aaa(sf) / AAAsf / AAA(sf) | $227,433,000 | 30.000% | (6) | 4.86 | 51 - 60 | 46.0% | 15.3% | ||||||||
Class A-SB | Aaa(sf) / AAAsf / AAA(sf) | $96,726,000 | 30.000% | (6) | 7.04 | 52 - 117 | 46.0% | 15.3% | ||||||||
Class A-3 | Aaa(sf) / AAAsf / AAA(sf) | $34,183,000 | 30.000% | (6) | 6.98 | 84 - 85 | 46.0% | 15.3% | ||||||||
Class A-4 | Aaa(sf) / AAAsf / AAA(sf) | $190,000,000 | 30.000% | (6) | 9.84 | 117 - 119 | 46.0% | 15.3% | ||||||||
Class A-5 | Aaa(sf) / AAAsf / AAA(sf) | $261,974,000 | 30.000% | (6) | 9.95 | 119 - 120 | 46.0% | 15.3% | ||||||||
Class X-A(7) | NR / AAAsf / AAA(sf) | $947,054,000(8) | N/A | N/A | N/A | N/A | N/A | |||||||||
Class A-M(9) | Aa1(sf) / AAAsf / AAA(sf) | $81,882,000(10) | 23.375% | 9.95 | 120 - 120 | 50.3% | 14.0% | |||||||||
Class B(9) | Aa3(sf) / AAsf / AA(sf) | $57,164,000(10) | 18.750% | 9.95 | 120 - 120 | 53.4% | 13.2% | |||||||||
Class PEZ(9) | A1(sf) / Asf / A(high)(sf) | $183,849,000(10) | 15.125% | (6) | 9.95 | 120 - 120 | 55.8% | 12.6% | ||||||||
Class C(9) | A3(sf) / Asf / A(high)(sf) | $44,803,000(10) | 15.125% | (6) | 9.95 | 120 - 120 | 55.8% | 12.6% |
NON-OFFERED CERTIFICATES
Class(1) | Ratings (Moody’s/Fitch/DBRS) | 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) | NR / Asf / AAA(sf) | $101,967,000(8) | N/A | N/A | N/A | N/A | N/A | |||||||
Class X-C(7) | NR / BBB-sf / AAA(sf) | $91,152,000(8) | N/A | N/A | N/A | N/A | N/A | |||||||
Class X-D(7) | NR / BB-sf / AAA(sf) | $29,354,000(8) | N/A | N/A | N/A | N/A | N/A | |||||||
Class X-E(7) | NR / B-sf / AAA(sf) | $12,360,000(8) | N/A | N/A | N/A | N/A | N/A | |||||||
Class X-F(7) | NR / NR / AAA(sf) | $16,994,000(8) | N/A | N/A | N/A | N/A | N/A | |||||||
Class X-G(7) | NR / NR / AAA(sf) | $37,079,695(8) | N/A | N/A | N/A | N/A | N/A | |||||||
Class D | NR / BBB-sf / BBB(low)(sf) | $91,152,000 | 7.750% | 9.95 | 120 - 120 | 60.6% | 11.6% | |||||||
Class E | NR / BB-sf / BB(low)(sf) | $29,354,000 | 5.375% | 9.95 | 120 - 120 | 62.2% | 11.3% | |||||||
Class F | NR / B-sf / B(high)(sf) | $12,360,000 | 4.375% | 9.95 | 120 - 120 | 62.8% | 11.2% | |||||||
Class G | NR / NR / B(low)(sf) | $16,994,000 | 3.000% | 9.97 | 120 - 121 | 63.7% | 11.0% | |||||||
Class H | NR / NR / NR | $37,079,695 | 0.000% | 10.94 | 121 - 180 | 65.7% | 10.7% |
(1) | The pass-through rates applicable to the Class A-1, Class A-2, Class A-SB, Class A-3, 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 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, Class X-D, Class X-E, Class X-F and Class X-G 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, Class X-D, Class X-E, Class X-F or Class X-G Certificates, as applicable, would be equal to zero, such class of certificates will not be issued on the settlement 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 and mortgage loans with anticipated repayment dates are repaid on the respective anticipated repayment 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-SB, Class A-3, 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 of all Certificates 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-SB, Class A-3, 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-SB, Class A-3, 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 settlement date of $44,803,000. |
(7) | The pass-through rate applicable to the Class X-A, Class X-B, Class X-C, Class X-D, Class X-E, Class X-F and Class X-G 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 |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 Mortgage Trust |
SUMMARY OF THE CERTIFICATES |
Class A-1, Class A-2, Class A-SB, Class A-3, Class A-4, Class A-5 Certificates and the Class A-M trust component (based on their Certificate Balances), 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 and Class C trust components (based on their Certificate Balances), as further described in the Free Writing Prospectus, (C) with respect to the Class X-C Certificates, the pass-through rate of the Class D Certificates, as further described in the Free Writing Prospectus, (D) with respect to the Class X-D Certificates, the pass-through rate of the Class E Certificates, as further described in the Free Writing Prospectus, (E) with respect to the Class X-E Certificates, the pass-through rate of the Class F Certificates, as further described in the Free Writing Prospectus, (F) with respect to the Class X-F Certificates, the pass-through rate of the Class G Certificates, as further described in the Free Writing Prospectus and (G) with respect to the Class X-G Certificates, the pass-through rate of the Class H Certificates, as further described in the Free Writing Prospectus. |
(8) | The Class X-A, Class X-B, Class X-C, Class X-D, Class X-E, Class X-F and Class X-G Certificates (the “Class X Certificates”) will not have Certificate Balances. None of the Class X-A, Class X-B, Class X-C, Class X-D, Class X-E, Class X-F and Class X-G Certificates will be 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-SB, Class A-3, Class A-4 and Class A-5 Certificates and the Class A-M trust component. The interest accrual amounts on the Class X-B Certificates will be calculated by reference to a notional amount equal to the sum of the total Certificate Balances of each of the Class B and Class C trust components. The interest accrual amounts on the Class X-C Certificates will be calculated by reference to a notional amount equal to the Certificate Balance of the Class D Certificates. The interest accrual amounts on the Class X-D Certificates will be calculated by reference to a notional amount equal to the Certificate Balance of the Class E Certificates. The interest accrual amounts on the Class X-E Certificates will be calculated by reference to a notional amount equal to the Certificate Balance of the Class F Certificates. The interest accrual amounts on the Class X-F Certificates will be calculated by reference to a notional amount equal to the Certificate Balance of the Class G Certificates. The interest accrual amounts on the Class X-G Certificates will be calculated by reference to a notional amount equal to the Certificate Balance of the 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 settlement 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 settlement date of $81,882,000, $57,164,000 and $44,803,000, 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 settlement date will be reduced, in required proportions, by an amount equal to the Certificate Balance of the Class PEZ Certificates issued on the settlement 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(2)(3) | U/W NCF DSCR(2) | U/W NOI Debt Yield(2) | ||||||||
A-1 | Natixis | Quito Village Center | Retail | $19,929,938 | 51 | 65.7% | 1.37x | 9.0% | ||||||||
A-2 | SPREF | RSRT Properties | Multifamily | $4,223,935 | 58 | 71.7% | 1.84x | 25.6% | ||||||||
A-2 | GACC | SRC Multifamily Portfolio 2 | Multifamily | $29,850,000 | 59 | 73.3% | 1.33x | 9.0% | ||||||||
A-2 | GACC | SRC Multifamily Portfolio 3 | Multifamily | $28,500,000 | 59 | 74.9% | 1.41x | 9.7% | ||||||||
A-2 | Natixis | Pasadena Multifamily Portfolio | Multifamily | $20,000,000 | 59 | 61.5% | 3.01x | 13.5% | ||||||||
A-2 | SPREF | Grayson Bodyplex | Retail | $3,219,921 | 59 | 64.7% | 1.56x | 11.7% | ||||||||
A-2 | CCRE | 80 and 90 Maiden Lane | Office | $90,000,000 | 60 | 61.7% | 1.73x | 7.9% | ||||||||
A-2 | GACC | World Houston Plaza | Office | $18,000,000 | 60 | 66.7% | 1.90x | 12.1% | ||||||||
A-2 | CCRE | Lowes Improvement Center | Retail | $12,350,000 | 60 | 64.7% | 2.51x | 10.4% | ||||||||
A-2 | Natixis | Weatherly Apartments | Multifamily | $5,625,000 | 60 | 72.8% | 1.28x | 9.9% | ||||||||
A-2 | GACC | Great Value Self Storage | Self Storage | $3,862,500 | 60 | 72.9% | 1.77x | 10.9% | ||||||||
A-3 | LCF | Bartlett Flex Portfolio | Industrial | $24,500,000 | 84 | 69.8% | 1.30x | 10.2% | ||||||||
A-3 | SPREF | Broadmoor Towne Center | Retail | $15,500,000 | 84 | 61.5% | 1.19x | 11.5% | ||||||||
A-3 | SPREF | Great American Plaza | Office | $3,675,000 | 84 | 72.1% | 1.47x | 10.1% |
(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. |
(2) | With respect to the 80 and 90 Maiden Lane Loan LTV, DSCR and debt yield calculations include the related pari passu companion loan. |
(3) | With respect to the SRC Multifamily Portfolio 2, the Cut-off Date LTV Ratio has been calculated using the “As Renovated” value. The “As-is” Cut-off Date LTV Ratio is 83.7%. With respect to the SRC Multifamily Portfolio 3, the Cut-off Date LTV Ratio has been calculated using the “As Renovated” value. The “As-is” Cut-off Date LTV Ratio is 84.9%. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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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, Class B and Class C trust components 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-SB, Class A-3, Class A-4 and Class A-5 Certificates, on a pro rata basis, based on the Certificate Balance of each such Class, then, to the extent of any recoveries on realized losses, to the Class A-M trust component (and correspondingly to the Class A-M Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class A-M trust component), then, to the extent of any recoveries on realized losses, to the Class B trust component (and correspondingly to the Class B Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class B trust component), then, to the extent of any recoveries on realized losses, to the Class C trust component (and correspondingly to the Class C Certificates and the Class PEZ Certificates, pro rata, based on their respective percentage interests in the Class C trust component), then, to the extent of any recoveries on realized losses, to the Class D, Class E, Class F, 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, Class X-D, Class X-E, Class X-F and Class X-G 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-SB, Class A-3, Class A-4 and Class A-5 Certificates and the Class A-M trust component; (ii) the notional amount of the Class X-B Certificates will be reduced by the aggregate amount of principal distributions and realized losses allocated to the Class B and Class C trust components; (iii) the notional amount of the Class X-C Certificates will be reduced by the principal distributions and realized losses allocated to the Class D Certificates; (iv) the notional amount of the Class X-D Certificates will be reduced by the principal distributions and realized losses allocated to the Class E Certificates; (v) the notional amount of the Class X-E Certificates will be reduced by the principal distributions and realized losses allocated to the Class F Certificates; (vi) the notional amount of the Class X-F Certificates will be reduced by the principal distributions and realized losses allocated to the Class G Certificates; and (vii) the notional amount of the Class X-G Certificates will be reduced by the principal distributions and realized losses allocated to the Class H Certificates. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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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-SB, Class A-3, Class A-4, Class A-5, Class X-A, Class X-B, Class X-C, Class X-D, Class X-E, Class X-F and Class X-G 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-SB, Class A-3, 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, Class X-D, Class X-E, Class X-F and Class X-G 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-SB, Class A-3, Class A-4 and Class A-5 Certificates and the Class A-M trust component (based on their Certificate Balances), 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 and Class C trust components (based on their Certificate Balances), as further described in the Free Writing Prospectus, (C) with respect to the Class X-C Certificates, the pass-through rate of the Class D Certificates, as further described in the Free Writing Prospectus, (D) with respect to the Class X-D Certificates, the pass-through rate of the Class E Certificates, as further described in the Free Writing Prospectus, (E) with respect to the Class X-E Certificates, the pass-through rate of the Class F Certificates, as further described in the Free Writing Prospectus, (F) with respect to the Class X-F Certificates, the pass-through rate of the Class G Certificates, as further described in the Free Writing Prospectus and (G) with respect to the Class X-G Certificates, the pass-through rate of the Class H Certificates, as further described in the Free Writing Prospectus. |
Prepayment Interest Shortfalls: | Net prepayment interest shortfalls will be allocated pro rata based on interest entitlements, in reduction of the interest otherwise payable with respect to each of the interest-bearing certificate classes. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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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-SB, Class A-3, 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-SB, Class A-3, Class A-4, Class A-5 and Class D Certificates and the Class A-M, Class B and Class C trust components (the “YM P&I Certificates”) then entitled to principal distributions, which percentage will be equal to the product of (a) a fraction, not greater than one, the numerator of which is the amount of principal distributed to such Class or trust component on such Distribution Date and the denominator of which is the total amount of principal distributed to the holders of the Class A-1, Class A-2, Class A-SB, Class A-3, Class A-4, Class A-5 and Class D Certificates and the Class A-M, Class B and Class C trust components on such Distribution Date, and (b) a fraction (expressed as a percentage which can be no greater than 100% nor less than 0%), the numerator of which is the excess of the pass-through rate of each such Class of Certificates or trust component currently receiving principal over the relevant Discount Rate, and the denominator of which is the excess of the Mortgage Rate of the related Mortgage Loan over the relevant Discount Rate. Prepayment Premium Allocation Percentage for all YM P&I Certificates = |
(Pass-Through Rate - Discount Rate) | 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 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 Loews Miami Beach Hotel secures a Mortgage Loan with an outstanding principal balance as of the Cut–off Date of $120,000,000, evidenced by Note A-2 (the “Loews Miami Beach Hotel Loan”), representing approximately 9.7% of the Initial Outstanding Pool Balance, and also secures on a pari passu basis two companion loans that have an aggregate outstanding principal balance as of the Cut-off Date of $180,000,000, evidenced by Note A-1, which is expected to be included in the COMM 2014-UBS5 transaction and Note A-3, which is currently held by |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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GACC, and which may be sold or further divided at any time (subject to compliance with the terms of the related intercreditor agreement). The Loews Miami Beach Hotel Loan and related companion loans are pari passu in right of payment and are collectively referred to herein as the “Loews Miami Beach Hotel Loan Combination.” The Loews Miami Beach Hotel Loan Combination is expected to be serviced pursuant to the COMM 2014-UBS5 pooling and servicing agreement and the related intercreditor agreement. For additional information regarding the Loews Miami Beach Hotel Loan Combination, see “Description of the Mortgage Pool—Loan Combinations—Loews Miami Beach Hotel Loan Combination” in the Free Writing Prospectus. The portfolio of Mortgaged Properties identified on Annex A–1 to the Free Writing Prospectus as Wilton Commercial Portfolio secures a Mortgage Loan with an outstanding principal balance as of the Cut–off Date of $120,000,000, evidenced by Note A-1 (the “Wilton Commercial Portfolio Loan”), representing approximately 9.7% of the Initial Outstanding Pool Balance, and also secures on a pari passu basis a companion loan that has an outstanding principal balance as of the Cut-off Date of $33,000,000, evidenced by Note A-2, which is currently held by LCF or an affiliate thereof, and which may be sold or further divided at any time (subject to compliance with the terms of the related intercreditor agreement). The Wilton Commercial Portfolio Loan and related companion loan are pari passu in right of payment and are collectively referred to herein as the “Wilton Commercial Portfolio Loan Combination.” The Wilton Commercial Portfolio Loan Combination will be serviced pursuant to the Pooling and Servicing Agreement and the related intercreditor agreement. For additional information regarding the Wilton Commercial Portfolio Loan Combination, see “Description of the Mortgage Pool—Loan Combinations—Wilton Commercial Portfolio Loan Combination” in the Free Writing Prospectus. The Mortgaged Property identified on Annex A–1 to the Free Writing Prospectus as 80 and 90 Maiden Lane secures a Mortgage Loan with an outstanding principal balance as of the Cut–off Date of $90,000,000, evidenced by Note A-1 (the “80 and 90 Maiden Lane Loan”), representing approximately 7.3% 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 $55,000,000, evidenced by Note A-2, which is currently held by CCRE, and which may be sold or further divided at any time (subject to compliance with the terms of the related intercreditor agreement). The 80 and 90 Maiden Lane Loan and related companion loan are pari passu in right of payment and are collectively referred to herein as the “80 and 90 Maiden Lane Loan Combination.” The 80 and 90 Maiden Lane Loan Combination will be serviced pursuant to the Pooling and Servicing Agreement and the related intercreditor agreement. For additional information regarding the 80 and 90 Maiden Lane Loan Combination, see “Description of the Mortgage Pool—Loan Combinations—80 and 90 Maiden Lane Loan Combination” in the Free Writing Prospectus. The Mortgaged Property identified on Annex A–1 to the Free Writing Prospectus as Myrtle Beach Marriott Resort & Spa secures a Mortgage Loan with an outstanding principal balance as of the Cut–off Date of $54,936,521, evidenced by Note A-2 (the “Myrtle Beach Marriott Resort & Spa Loan”), representing approximately 4.4% 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 $60,929,596, evidenced by Note A-1, which is currently held by CCRE, which may be sold or further divided at any time (subject to compliance with the terms of the related intercreditor agreement). The Myrtle Beach Marriott Resort & Spa Loan and related companion loan are pari passu in right of payment and are collectively referred to herein as the “Myrtle Beach Marriott Resort & Spa Loan Combination.” The Myrtle Beach Marriott Resort & Spa Loan Combination will initially be serviced pursuant to the Pooling and Servicing Agreement for this transaction and the related intercreditor agreement. It is expected that servicing of the Myrtle Beach Marriott Resort & Spa Loan Combination will transfer to the pooling and servicing agreement for a to be determined |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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securitization of the Myrtle Beach Marriott Resort & Spa pari passu companion loan.. For additional information regarding the Myrtle Beach Marriott Resort & Spa Loan Combination, see “Description of the Mortgage Pool—Loan Combinations—Myrtle Beach Marriott Resort & Spa Combination” in the Free Writing Prospectus. | |
Control Rights and Directing Holder: | Certain Classes of Certificates (the “Control Eligible Certificates”) will have certain control rights over servicing matters with respect to each Mortgage Loan (other than with respect to the Loews Miami Beach Hotel Loan and the Myrtle Beach Marriott Resort & Spa Loan). 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 (other than with respect to the Loews Miami Beach Hotel Loan and the Myrtle Beach Marriott Resort & Spa 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. It is expected that LNR Securities Holdings, LLC will be the initial Directing Holder with respect to each Mortgage Loan (other than the Loews Miami Beach Hotel Loan or the Myrtle Beach Marriott Resort & Spa Loan). For a description of the directing holder for the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination, see “Description of the Mortgage Pool—Loan Combinations” and “Description of the Pooling and Servicing Agreement—The Directing Holder” in the Free Writing Prospectus. |
Control Eligible Certificates: | Class E, 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. |
Control Termination Event: | Will occur when no Class of Control Eligible Certificates has an aggregate Certificate Balance (as notionally or actually reduced by any Appraisal Reduction Amounts and Realized Losses) equal to or greater than 25% of the initial Certificate Balance of such Class. Upon the occurrence and the continuance of a Control Termination Event, the Directing Holder 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. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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Upon the occurrence and continuation of a Control Termination Event, the Directing Holder will retain non-binding consultation rights with respect to certain material actions that the Special Servicer proposes to take with respect to a Mortgage Loan. Such consultation rights will continue until the occurrence of a Consultation Termination Event. | |
Consultation Termination Event: | Will occur when, without giving regard to the application of any Appraisal Reduction Amounts (i.e., giving effect to principal reduction through Realized Losses only), there is no Class of Control Eligible Certificates that has an aggregate Certificate Balance equal to 25% or more of the initial Certificate Balance of such Class. Upon the occurrence and continuance of a Consultation Termination Event the Directing Holder will have no rights under the pooling and servicing for this securitization (the “Pooling and Servicing Agreement”) other than those rights that all Certificateholders have. |
Appointment and Replacement of Special Servicer: | The Directing Holder will appoint the initial Special Servicer as of the Settlement Date. Prior to the occurrence and continuance of a Control Termination Event, the Special Servicer (other than with respect to the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination) may generally be replaced at any time by the Directing Holder. Upon the occurrence and during the continuance of a Control Termination Event, the Directing Holder will no longer have the right to replace the Special Servicer and such replacement (other than with respect to the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination) will occur based on a vote of holders of all voting eligible Classes of Certificates as described below. See “Description of the Mortgage Pool—Loan Combinations” and “Description of the Pooling and Servicing Agreement” in the Free Writing Prospectus for a description of the special servicer appointment and replacement rights with respect to the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination. |
Replacement of Special Servicer by Vote of Certificateholders: | Other than with respect to the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination, if a Control Termination Event has occurred and is continuing, upon (i) the written direction of holders of Certificates evidencing not less than 25% of the voting rights of all Classes of Certificates entitled to principal (taking into account the application of Appraisal Reduction Amounts to notionally reduce the Certificate Balances of Classes to which such Appraisal Reduction Amounts are allocable) requesting a vote to replace the Special Servicer with a replacement Special Servicer, (ii) payment by such requesting holders to the Certificate Administrator of all reasonable fees and expenses to be incurred by the Certificate Administrator in connection with administering such vote and (iii) delivery by such holders to the Certificate Administrator of written confirmations from each Rating Agency that the appointment of the replacement Special Servicer will not result in a downgrade of the Certificates, the Certificate Administrator will be required to promptly provide written notice to all certificateholders of such request and conduct the solicitation of votes of all Certificates in such regard. Upon the written direction (within 180 days) of (i) Holders of at least 75% of a Certificateholder Quorum or (ii) the Holders of more than 50% of the voting rights of each Class of Non-Reduced Certificates, the Trustee will immediately replace the Special Servicer (other than with respect to the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination) with the replacement Special Servicer. “Certificateholder Quorum” means, in connection with any solicitation of votes in connection with the replacement of the Special Servicer as described above, the holders of Certificates evidencing at least 75% of the aggregate voting rights (taking into account Realized Losses and the application of any Appraisal Reduction Amounts to notionally reduce the Certificate Balance of the Certificates) of all classes of Certificates entitled to principal, on an aggregate basis. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 Mortgage Trust |
STRUCTURE OVERVIEW |
In addition, other than with respect to the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination, 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 (other than with respect to the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination) must be confirmed by a majority of the voting rights of all Classes of Certificates entitled to principal (taking into account the application of Appraisal Reduction Amounts to notionally reduce the Certificate Balances of Classes to which such Appraisal Reduction Amounts are allocable) within 180 days from the time such recommendation is posted to the Certificate Administrator website and is subject to the receipt of written confirmations from each Rating Agency that the appointment of the replacement Special Servicer will not result in a downgrade of the Certificates. See “Description of the Mortgage Pool—Loan Combinations” and “Description of the Pooling and Servicing Agreement” in the Free Writing Prospectus for a description of the special servicer appointment and replacement rights with respect to the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination. | |
Cap on Workout and Liquidation Fees: | The workout fees and liquidation fees payable to a Special Servicer under the Pooling and Servicing Agreement will be an amount equal to the lesser of: (1) 1.0% of each collection of interest and principal following a workout or liquidation and (2) $1,000,000 per workout or liquidation. All Modification Fees actually paid to the Special Servicer in connection with a workout or liquidation or in connection with any prior workout or partial liquidation that occurred within the prior 18 months will be deducted from the total workout and/or liquidation fees payable (other than Modification Fees earned while the Mortgage Loan was not in special servicing). In addition, the total amount of workout and liquidation fees actually payable by the Trust under the Pooling and Servicing Agreement will be capped in the aggregate at $1,000,000 for each Mortgage Loan. If a new special servicer begins servicing the Mortgage Loan, all amounts paid to the prior special servicer will be disregarded for purposes of calculating the cap. |
Special Servicer Compensation: | The special servicing fee will equal 0.25% per annum of the stated principal balance of the related specially serviced loan or REO property. The Special Servicer and its affiliates will be prohibited from receiving or retaining any compensation or any other remuneration under the Pooling and Servicing Agreement (including in the form of commissions, brokerage fees, rebates, or as a result of any other fee-sharing arrangement) from any person (including the issuing entity, any borrower, any manager, any guarantor or indemnitor in respect of a Mortgage Loan or Serviced Loan Combination, if any, and any purchaser of any Mortgage Loan, Serviced Companion Loan or REO Property) in connection with the disposition, workout or foreclosure of any Mortgage Loan or Serviced Loan Combination, the management or disposition of any REO Property, or the performance of any other special servicing duties under the Pooling and Servicing Agreement, other than as expressly permitted in the Pooling and Servicing Agreement and other than commercially reasonable treasury management fees, banking fees and insurance commissions or fees received or retained by the Special Servicer or any of its Affiliates in connection with any services performed by such party with respect to any mortgage loan. Subject to certain limited exceptions, the Special Servicer will also be required to report any compensation or other remuneration the Special Servicer or its affiliates have received from any person and such information will be disclosed in the Certificateholders’ monthly distribution date statement. |
Operating Advisor: | With respect to the Mortgage Loans (other than the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination) 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 |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 Mortgage Trust |
STRUCTURE OVERVIEW |
Advisor will have consultation rights with respect to certain major decisions and will have additional monitoring responsibilities on behalf of the entire trust. The Operating Advisor will be subject to termination if holders of at least 15% of the aggregate voting rights of the Certificates (in connection with termination and replacement relating to the Mortgage Loans) vote to terminate and replace the Operating Advisor and such vote is approved by holders of more than 50% of the applicable voting rights that exercise their right to vote, provided that holders of at least 50% of the applicable voting rights have exercised their right to vote. The holders initiating such vote will be responsible for the fees and expenses in connection with the vote and replacement. The Operating Advisor will not have consultation rights in respect of the Loews Miami Beach Hotel Loan Combination and the Myrtle Beach Marriott Resort & Spa Loan Combination. | |
Liquidated Loan Waterfall: | On liquidation of any Mortgage Loan, all net liquidation proceeds will be applied so that amounts allocated as a recovery of accrued and unpaid interest will not, in the first instance, include any amount by which the interest portion of P&I Advances previously made was reduced as a result of Appraisal Reduction Amounts. After the adjusted interest amount is so allocated, any remaining net liquidation proceeds will be allocated to pay principal on the Mortgage Loan until the unpaid principal amount of the Mortgage Loan has been reduced to zero. Any remaining liquidation proceeds would then be allocated as a recovery of accrued and unpaid interest corresponding to the amount by which the interest portion of P&I Advances previously made was reduced as a result of Appraisal Reduction Amounts. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 Mortgage Trust |
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS |
Distribution of Cut-off Date Balances(1) |
Weighted Averages | ||||||||||||||||||||
% of Initial | ||||||||||||||||||||
Outstanding | Stated | U/W | Maturity | |||||||||||||||||
Number of | Aggregate | Pool | Remaining Term | NCF | Cut-off Date | Date or | ||||||||||||||
Range of Cut-off Date Balances | Mortgage Loans | Cut-off Date Balance | Balance | Mortgage Rate | (Mos.)(2) | DSCR | LTV Ratio(3) | ARD LTV(3) | ||||||||||||
$2,200,000 | - | $7,499,999 | 23 | $111,785,991 | 9.0% | 4.8670% | 110 | 1.62x | 69.6% | 59.0% | ||||||||||
$7,500,000 | - | $14,999,999 | 20 | $201,283,469 | 16.3% | 4.6952% | 116 | 1.58x | 66.8% | 56.7% | ||||||||||
$15,000,000 | - | $24,999,999 | 17 | $305,954,715 | 24.8% | 4.5437% | 103 | 1.69x | 66.1% | 56.8% | ||||||||||
$25,000,000 | - | $49,999,999 | 7 | $232,000,000 | 18.8% | 4.6316% | 113 | 1.46x | 68.7% | 57.1% | ||||||||||
$50,000,000 | - | $74,999,999 | 1 | $54,936,521 | 4.4% | 4.6425% | 119 | 1.62x | 69.8% | 56.8% | ||||||||||
$75,000,000 | - | $120,000,000 | 3 | $330,000,000 | 26.7% | 4.4038% | 104 | 2.09x | 60.5% | 56.1% | ||||||||||
Total/Weighted Average | 71 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 1.73x | 65.7% | 56.8% |
Distribution of Mortgage Rates(1) |
Weighted Averages | |||||||||||||||||||||
% of Initial | |||||||||||||||||||||
Outstanding | Stated | Maturity | |||||||||||||||||||
Number of | Aggregate | Pool | Remaining Term | U/W NCF | Cut-off Date | Date or | |||||||||||||||
Range of Mortgage Rates | Mortgage Loans | Cut-off Date Balance | Balance | Mortgage Rate | (Mos.)(2) | DSCR | LTV Ratio(3) | ARD LTV(3) | |||||||||||||
3.6940% | - | 4.4999% | 18 | $465,897,500 | 37.7% | 4.2430% | 101 | 2.10x | 61.5% | 59.1% | |||||||||||
4.5000% | - | 4.7499% | 21 | $295,457,962 | 23.9% | 4.5781% | 124 | 1.59x | 65.7% | 49.9% | |||||||||||
4.7500% | - | 4.9999% | 21 | $387,153,541 | 31.3% | 4.8319% | 106 | 1.46x | 70.3% | 59.8% | |||||||||||
5.0000% | - | 5.9390% | 11 | $87,451,692 | 7.1% | 5.2830% | 103 | 1.40x | 67.4% | 55.1% | |||||||||||
Total/Weighted Average | 71 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 1.73x | 65.7% | 56.8% |
Property Type Distribution(1)(4) |
Weighted Averages | ||||||||||||||||||||||||||
% of Initial | Number | Cut-off Date | Stated | |||||||||||||||||||||||
Number of | Aggregate | Outstanding | of | Balance per | Remaining | Cut-off | Maturity | |||||||||||||||||||
Mortgaged | Cut-off | Pool | Units/Rooms/Pads | Unit/Room/Pad | Mortgage | Term | U/W NCF | Date LTV | Date or | |||||||||||||||||
Property Type | Properties | Date Balance | Balance | NRA/Beds | NRA/Bed | Rate | (Mos.)(2) | Occupancy | DSCR | Ratio(3) | ARD LTV(3) | |||||||||||||||
Office | 31 | $355,945,905 | 28.8% | 2,702,433 | $180 | 4.5537% | 101 | 93.8% | 1.56x | 66.3% | 59.9% | |||||||||||||||
Suburban | 23 | $201,857,032 | 16.3% | 1,798,045 | $133 | 4.5575% | 113 | 95.1% | 1.51x | 69.1% | 61.1% | |||||||||||||||
CBD | 1 | $90,000,000 | 7.3% | 552,064 | $263 | 4.2645% | 60 | 94.1% | 1.73x | 61.7% | 61.7% | |||||||||||||||
Medical | 7 | $64,088,872 | 5.2% | 352,324 | $214 | 4.9481% | 120 | 89.3% | 1.47x | 63.7% | 53.9% | |||||||||||||||
Retail | 46 | $252,772,366 | 20.5% | 2,644,248 | $156 | 4.6436% | 109 | 92.8% | 1.61x | 66.9% | 57.5% | |||||||||||||||
Anchored(5) | 30 | $210,279,151 | 17.0% | 2,123,052 | $166 | 4.6098% | 106 | 94.1% | 1.62x | 67.1% | 58.2% | |||||||||||||||
Unanchored | 16 | $42,493,216 | 3.4% | 521,196 | $107 | 4.8106% | 120 | 86.2% | 1.55x | 65.8% | 53.8% | |||||||||||||||
Hospitality | 6 | $228,136,521 | 18.5% | 1,520 | $318,097 | 4.3637% | 120 | 80.2% | 2.30x | 61.0% | 53.2% | |||||||||||||||
Full Service | 2 | $174,936,521 | 14.2% | 1,195 | $350,335 | 4.2875% | 120 | 80.4% | 2.49x | 58.3% | 54.3% | |||||||||||||||
Limited Service | 4 | $53,200,000 | 4.3% | 325 | $212,089 | 4.6140% | 119 | 79.6% | 1.66x | 69.7% | 49.7% | |||||||||||||||
Multifamily | 65 | $189,911,208 | 15.4% | 5,653 | $37,465 | 4.7280% | 91 | 92.2% | 1.59x | 70.0% | 61.9% | |||||||||||||||
Garden | 36 | $171,661,208 | 13.9% | 5,290 | $36,103 | 4.7469% | 88 | 91.7% | 1.58x | 70.7% | 63.1% | |||||||||||||||
Student Housing | 29 | $18,250,000 | 1.5% | 363 | $50,275 | 4.5500% | 120 | 96.4% | 1.69x | 63.3% | 51.2% | |||||||||||||||
Manufactured Housing Community | 6 | $76,700,000 | 6.2% | 2,166 | $37,867 | 4.5202% | 120 | 73.4% | 1.91x | 66.0% | 58.8% | |||||||||||||||
Industrial | 33 | $76,232,196 | 6.2% | 1,866,331 | $47 | 4.9291% | 108 | 89.9% | 1.51x | 68.1% | 59.9% | |||||||||||||||
Self Storage | 18 | $34,862,500 | 2.8% | 607,352 | $62 | 4.4756% | 167 | 84.4% | 1.43x | 53.7% | 7.9% | |||||||||||||||
Mixed Use | 2 | $21,400,000 | 1.7% | 211,264 | $56,833 | 4.4661% | 120 | 76.7% | 1.58x | 63.8% | 53.3% | |||||||||||||||
Total/Weighted Average | 207 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 88.8% | 1.73x | 65.7% | 56.8% |
Geographic Distribution(1)(4) |
Weighted Averages | ||||||||||||||||||||
% of Initial | ||||||||||||||||||||
Number of | Outstanding | Stated | ||||||||||||||||||
Mortgaged | Aggregate Cut-off | Pool | Remaining | Cut-off Date | Maturity Date | |||||||||||||||
State/Location | Properties | Date Balance | Balance | Mortgage Rate | Term (Mos.) (2) | U/W NCF DSCR | LTV Ratio(3) | or ARD LTV(3) | ||||||||||||
Florida | 9 | $155,995,000 | 12.6% | 4.2706% | 120 | 2.56x | 57.0% | 54.2% | ||||||||||||
California | 12 | $151,423,938 | 12.3% | 4.5513% | 110 | 1.57x | 65.5% | 57.9% | ||||||||||||
Southern(6) | 9 | $89,494,000 | 7.2% | 4.5306% | 119 | 1.58x | 63.5% | 56.1% | ||||||||||||
Northern (6) | 3 | $61,929,938 | 5.0% | 4.5811% | 97 | 1.54x | 68.5% | 60.5% | ||||||||||||
Virginia | 57 | $134,409,294 | 10.9% | 4.7957% | 120 | 1.53x | 68.0% | 56.3% | ||||||||||||
Texas | 16 | $131,913,750 | 10.7% | 4.5203% | 82 | 1.78x | 69.0% | 57.2% | ||||||||||||
New York | 4 | $106,322,750 | 8.6% | 4.3338% | 69 | 1.75x | 62.3% | 60.4% | ||||||||||||
New York City | 2 | $93,750,000 | 7.6% | 4.2883% | 62 | 1.71x | 61.8% | 61.6% | ||||||||||||
Remaining New York State | 2 | $12,572,750 | 1.0% | 4.6725% | 120 | 2.10x | 66.2% | 51.4% | ||||||||||||
Georgia | 14 | $69,899,518 | 5.7% | 4.8458% | 114 | 1.54x | 69.5% | 61.1% | ||||||||||||
South Carolina | 3 | $68,247,271 | 5.5% | 4.6368% | 119 | 1.59x | 68.0% | 55.1% | ||||||||||||
Other | 92 | $417,749,175 | 33.8% | 4.6677% | 115 | 1.57x | 67.1% | 56.2% | ||||||||||||
Total/Weighted Average | 207 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 1.73x | 65.7% | 56.8% |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 Mortgage Trust |
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS |
Distribution of Cut-off Date LTV Ratios(1)(3) |
Weighted Averages | ||||||||||||||||||||||
% of Initial | Stated | Maturity | ||||||||||||||||||||
Range of Cut-off Date LTV | Number of | Aggregate Cut-off | Outstanding | Remaining Term | U/W NCF | Cut-off Date | Date or ARD | |||||||||||||||
Ratios | Mortgage Loans | Date Balance | Pool Balance | Mortgage Rate | (Mos.)(2) | DSCR | LTV Ratio | LTV(3) | ||||||||||||||
51.3% | - | 54.9% | 3 | $164,686,872 | 13.3% | 4.3040% | 131 | 2.48x | 52.8% | 42.4% | ||||||||||||
55.0% | - | 59.9% | 5 | $41,935,000 | 3.4% | 4.5031% | 118 | 1.76x | 58.1% | 50.9% | ||||||||||||
60.0% | - | 64.9% | 16 | $298,884,921 | 24.2% | 4.3847% | 93 | 1.82x | 62.5% | 57.1% | ||||||||||||
65.0% | - | 69.9% | 18 | $409,044,374 | 33.1% | 4.6796% | 112 | 1.60x | 68.1% | 57.4% | ||||||||||||
70.0% | - | 74.9% | 25 | $261,807,643 | 21.2% | 4.7854% | 102 | 1.42x | 72.7% | 63.9% | ||||||||||||
75.0% | - | 78.9% | 4 | $59,601,885 | 4.8% | 4.8141% | 120 | 1.38x | 75.2% | 65.1% | ||||||||||||
Total/Weighted Average | 71 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 1.73x | 65.7% | 56.8% | ||||||||||||||
Distribution of Maturity Date or ARD LTV Ratios(1)(3) | ||||||||||||||||||||||
Weighted Averages | ||||||||||||||||||||||
% of Initial | Stated | |||||||||||||||||||||
Range of LTV Ratios | Number of | Aggregate Cut-off | Outstanding | Remaining Term | U/W NCF | Cut-off Date | Maturity Date or | |||||||||||||||
at Maturity or ARD | Mortgage Loans | Date Balance | Pool Balance | Mortgage Rate | (Mos.)(2) | DSCR | LTV Ratio(3) | ARD LTV | ||||||||||||||
0.4% | - | 49.9% | 11 | $130,740,807 | 10.6% | 4.7466% | 128 | 1.66x | 59.4% | 32.3% | ||||||||||||
50.0% | - | 54.9% | 11 | $352,294,915 | 28.5% | 4.5025% | 120 | 2.05x | 61.2% | 53.7% | ||||||||||||
55.0% | - | 59.9% | 19 | $246,363,968 | 19.9% | 4.6802% | 115 | 1.51x | 67.9% | 57.7% | ||||||||||||
60.0% | - | 70.9% | 30 | $506,561,005 | 41.0% | 4.5449% | 92 | 1.63x | 69.4% | 65.0% | ||||||||||||
Total/Weighted Average | 71 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 1.73x | 65.7% | 56.8% | ||||||||||||||
Distribution of Underwritten NCF Debt Service Coverage Ratios(1) | ||||||||||||||||||||||
Weighted Averages | ||||||||||||||||||||||
% of Initial | Stated | |||||||||||||||||||||
Range of Underwritten NCF | Number of | Aggregate Cut-off | Outstanding | Remaining Term | U/W NCF | Cut-off Date | Maturity Date or | |||||||||||||||
Debt Service Coverage Ratios | Mortgage Loans | Date Balance | Pool Balance | Mortgage Rate | (Mos.)(2) | DSCR | LTV Ratio(3) | ARD LTV(3) | ||||||||||||||
1.15x | - | 1.19x | 3 | $30,225,682 | 2.4% | 4.6717% | 101 | 1.19x | 66.6% | 50.6% | ||||||||||||
1.20x | - | 1.39x | 20 | $290,560,811 | 23.5% | 4.8516% | 111 | 1.34x | 68.7% | 55.4% | ||||||||||||
1.40x | - | 1.49x | 6 | $71,913,526 | 5.8% | 4.7747% | 94 | 1.43x | 72.3% | 64.1% | ||||||||||||
1.50x | - | 1.59x | 14 | $287,487,806 | 23.3% | 4.6899% | 119 | 1.54x | 67.2% | 57.5% | ||||||||||||
1.60x | - | 1.99x | 20 | $351,292,870 | 28.4% | 4.4585% | 100 | 1.73x | 65.9% | 57.7% | ||||||||||||
2.00x | - | 3.01x | 8 | $204,480,000 | 16.5% | 4.1732% | 110 | 2.72x | 56.6% | 54.9% | ||||||||||||
Total/Weighted Average | 71 | $1,235,960,696 | 100.0% | �� | 4.5811% | 108 | 1.73x | 65.7% | 56.8% | |||||||||||||
Original Terms to Maturity or ARD(1)(2) | ||||||||||||||||||||||
Weighted Averages | ||||||||||||||||||||||
% of Initial | Stated | |||||||||||||||||||||
Original Terms | Number of | Aggregate Cut-off | Outstanding | Remaining Term | U/W NCF | Cut-off Date | Maturity Date or | |||||||||||||||
to Maturity or ARD | Mortgage Loans | Date Balance | Pool Balance | Mortgage Rate | (Mos.) | DSCR | LTV Ratio(3) | ARD LTV(3) | ||||||||||||||
60 | 11 | $235,561,294 | 19.1% | 4.4378% | 59 | 1.76x | 66.3% | 63.9% | ||||||||||||||
84 | 3 | $43,675,000 | 3.5% | 4.8905% | 84 | 1.28x | 67.0% | 52.8% | ||||||||||||||
120 | 56 | $925,724,401 | 74.9% | 4.6058% | 120 | 1.75x | 65.9% | 57.1% | ||||||||||||||
180 | 1 | $31,000,000 | 2.5% | 4.5000% | 180 | 1.39x | 51.3% | 0.4% | ||||||||||||||
Total/Weighted Average | 71 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 1.73x | 65.7% | 56.8% | ||||||||||||||
Distribution of Remaining Terms to Maturity or ARD(1)(2) | ||||||||||||||||||||||
Weighted Averages | ||||||||||||||||||||||
% of Initial | Stated | |||||||||||||||||||||
Range of Remaining Terms | Number of | Aggregate Cut-off | Outstanding | Remaining Term | U/W NCF | Cut-off Date | Maturity Date | |||||||||||||||
to Maturity or ARD | Mortgage Loans | Date Balance | Pool Balance | Mortgage Rate | (Mos.) | DSCR | LTV Ratio(3) | or ARD LTV(3) | ||||||||||||||
51 | - | 60 | 11 | $235,561,294 | 19.1% | 4.4378% | 59 | 1.76x | 66.3% | 63.9% | ||||||||||||
84 | 84 | 3 | $43,675,000 | 3.5% | 4.8905% | 84 | 1.28x | 67.0% | 52.8% | |||||||||||||
117 | - | 120 | 56 | $925,724,401 | 74.9% | 4.6058% | 120 | 1.75x | 65.9% | 57.1% | ||||||||||||
180 | - | 180 | 1 | $31,000,000 | 2.5% | 4.5000% | 180 | 1.39x | 51.3% | 0.4% | ||||||||||||
Total/Weighted Average | 71 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 1.73x | 65.7% | 56.8% |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 Mortgage Trust |
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS |
Distribution of Underwritten NOI Debt Yields(1) |
Weighted Averages | ||||||||||||||||||||||
% of Initial | Stated | Maturity | ||||||||||||||||||||
Range of Underwritten NOI | Number of | Aggregate Cut-off | Outstanding | Remaining Term | U/W NCF | Cut-off Date | Date or ARD | |||||||||||||||
Debt Yields | Mortgage Loans | Date Balance | Pool Balance | Mortgage Rate | (Mos.)(2) | DSCR | LTV Ratio(3) | LTV(3) | ||||||||||||||
7.3% | - | 7.9% | 4 | $130,570,000 | 10.6% | 4.3529% | 79 | 1.71x | 64.0% | 63.9% | ||||||||||||
8.0% | - | 8.9% | 9 | $132,321,682 | 10.7% | 4.8076% | 120 | 1.37x | 73.3% | 65.4% | ||||||||||||
9.0% | - | 9.9% | 13 | $186,324,337 | 15.1% | 4.8117% | 91 | 1.39x | 68.9% | 61.6% | ||||||||||||
10.0% | - | 12.4% | 36 | $549,920,827 | 44.5% | 4.6132% | 113 | 1.61x | 66.9% | 56.9% | ||||||||||||
12.5% | - | 14.9% | 6 | $206,227,165 | 16.7% | 4.2324% | 123 | 2.53x | 55.3% | 45.6% | ||||||||||||
15.0% | - | 25.6% | 3 | $30,596,685 | 2.5% | 4.9470% | 111 | 2.07x | 67.5% | 35.7% | ||||||||||||
Total/Weighted Average | 71 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 1.73x | 65.7% | 56.8% | ||||||||||||||
Amortization Types(1) | ||||||||||||||||||||||
Weighted Averages | ||||||||||||||||||||||
% of Initial | Stated | Maturity | ||||||||||||||||||||
Number of | Aggregate Cut-off | Outstanding | Remaining Term | U/W NCF | Cut-off Date | Date or ARD | ||||||||||||||||
Amortization Type | Mortgage Loans | Date Balance | Pool Balance | Mortgage Rate | (Mos.)(2) | DSCR | LTV Ratio(3) | LTV(3) | ||||||||||||||
Amortizing Balloon | 33 | 471,225,196 | 38.1% | 4.7928% | 112 | 1.58x | 67.2% | 53.5% | ||||||||||||||
Interest Only, then Amortizing | 26 | 390,369,500 | 31.6% | 4.5889% | 106 | 1.47x | 69.3% | 62.1% | ||||||||||||||
Interest Only | 7 | 296,200,000 | 24.0% | 4.1951% | 95 | 2.36x | 59.2% | 59.2% | ||||||||||||||
Interest Only, ARD | 3 | 31,416,000 | 2.5% | 4.8891% | 120 | 1.61x | 69.6% | 69.6% | ||||||||||||||
Fully Amortizing | 1 | 31,000,000 | 2.5% | 4.5000% | 180 | 1.39x | 51.3% | 0.4% | ||||||||||||||
Interest Only, then Amortizing ARD | 1 | 15,750,000 | 1.3% | 4.8610% | 120 | 1.37x | 74.6% | 67.3% | ||||||||||||||
Total/Weighted Average | 71 | $1,235,960,696 | 100.0% | 4.5811% | 108 | 1.73x | 65.7% | 56.8% |
Footnotes: | |
(1) | With respect to the Loews Miami Beach Hotel Loan, the Wilton Commercial Portfolio Loan, the 80 and 90 Maiden Lane Loan and the Myrtle Beach Marriott Resort & Spa Loan, LTV, DSCR, debt yield, and cut-off date balance per room/NRA calculations include the related pari passu companion loans. |
(2) | In the case of 4 mortgage loans with anticipated repayment dates, Stated Remaining Term (Mos.) is through the related anticipated repayment date. |
(3) | With respect to 8 mortgage loans, representing 18.3% of the initial outstanding principal balance, the Cut-off Date LTV Ratio and Maturity Date or ARD LTV have in certain cases been calculated based on the “As Renovated”, “As Stabilized”, “As Complete” or “Hypothetical As Is” value and in certain other cases calculated using the portfolio valuation value. For additional information, see the Footnotes to Annex A-1. In the case of 3 of the mortgage loans, collectively representing approximately 3.0% of the initial outstanding principal balance, Cut-off Date LTV Ratio and Maturity Date or ARD LTV have been calculated based on an appraised value that includes certain property that does not qualify as real property. |
(4) | Reflects allocated loan amount for properties securing multi-property mortgage loans (except with respect to the Temple Villas mortgage loan and RSRT Properties mortgage loan). |
(5) | Includes anchored, single tenant and shadow anchored properties. |
(6) | Northern California properties have a zip code greater than 93600. Southern California properties have a zip code less than or equal to 93600. |
Previous Securitization History(1) |
% of Initial | ||||||||||||
Mortgage | Cut-off Date | Outstanding | Previous | |||||||||
Mortgage Loan | Loan Seller | City, State | Property Type | Balance | Pool Balance | Securitization | ||||||
Loews Miami Beach Hotel | GACC | Miami Beach, FL | Hospitality | $120,000,000 | 9.7% | Various(2) | ||||||
Wilton Commercial Portfolio | LCF | Various | Various | $120,000,000 | 9.7% | MLCFC 2006-3 | ||||||
80 and 90 Maiden Lane | CCRE | New York, NY | Office | $90,000,000 | 7.3% | CSFB 2005-C3 | ||||||
Myrtle Beach Marriott Resort & Spa | CCRE | Myrtle Beach, SC | Hospitality | $54,936,521 | 4.4% | JPMCC 2005-CB13 | ||||||
U-Haul Pool 4 | LCF | Various | Self Storage | $31,000,000 | 2.5% | MLMT 2005-CKI1 | ||||||
SRC Multifamily Portfolio 2 | GACC | Various | Multifamily | $29,850,000 | 2.4% | CD 2005-CD1(3) | ||||||
Quito Village Center | Natixis | Saratoga, CA | Retail | $19,929,938 | 1.6% | GECMC 2004-C2 | ||||||
California Professional Center | LCF | Los Angeles, CA | Office | $16,100,000 | 1.3% | BSCMS 2004-T16 | ||||||
Broadmoor Towne Center | SPREF | Colorado Springs, CO | Retail | $15,500,000 | 1.3% | WBCMT 2004-C15 | ||||||
Triangle Plaza | LCF | Raleigh, NC | Retail | $15,000,000 | 1.2% | BSCMS 2004-PWR5 | ||||||
Satellite Office Portfolio | Natixis | Duluth, GA | Office | $12,969,915 | 1.0% | COMM 2005-LP5 | ||||||
DaVita El Segundo | CCRE | El Segundo, CA | Office | $12,250,000 | 1.0% | LBUBS 2004‐C6 | ||||||
Seaside Factory Outlet | LCF | Seaside, OR | Retail | $10,250,000 | 0.8% | GMACC 2004-C1 | ||||||
Heritage Towne Centre | CCRE | Birmingham, AL | Retail | $4,500,000 | 0.4% | LBUBS 2004-C1 | ||||||
Great American Plaza | SPREF | Las Vegas, NV | Office | $3,675,000 | 0.3% | WBCMT 2004-C14 | ||||||
Total | $555,961,374 | 45.0% |
(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 financing of the Lowes Miami Beach Hotel was previously securitized in GECMC 2005-C2, COMM 2005-LP5 and GMACC 2005-C1. |
(3) | The most recent prior financing of the Stone Creek Apartments mortgaged property was included in the CD 2005-CD1 securitization. The most recent prior financings of the La Mansion Del Paseo mortgaged property and Southfield mortgaged property were not included in securitizations. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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-LC17 Mortgage Trust |
OVERVIEW OF MORTGAGE POOL CHARACTERISTICS |
Ten Largest Mortgage Loans |
Cut-off Date | Cut-off | ||||||||||||||||||
Mortgage | % of Initial | Balance per | Date | U/W | U/W NOI | ||||||||||||||
Loan | Cut-off Date | Outstanding | Room/NRA/ | LTV | NCF | Debt | |||||||||||||
Mortgage Loan | Seller | City, State | Property Type | Balance | Pool Balance | Pad/Unit(1)(2) | Ratio(2)(3) | DSCR(2) | Yield(2) | ||||||||||
Loews Miami Beach Hotel | GACC | Miami Beach, FL | Hospitality | $120,000,000 | 9.7% | $379,747 | 53.1% | 2.89x | 13.7% | ||||||||||
Wilton Commercial Portfolio | LCF | Various | Various | $120,000,000 | 9.7% | $75 | 67.1% | 1.55x | 10.7% | ||||||||||
80 and 90 Maiden Lane | CCRE | New York, NY | Office | $90,000,000 | 7.3% | $263 | 61.7% | 1.73x | 7.9% | ||||||||||
Myrtle Beach Marriott Resort & Spa | CCRE | Myrtle Beach, SC | Hospitality | $54,936,521 | 4.4% | $286,089 | 69.8% | 1.62x | 11.3% | ||||||||||
Parkway 120 | CCRE | Matawan, NJ | Office | $45,000,000 | 3.6% | $203 | 75.0% | 1.36x | 8.9% | ||||||||||
Aloft Cupertino | CCRE | Cupertino, CA | Hospitality | $34,000,000 | 2.8% | $276,423 | 70.0% | 1.55x | 10.3% | ||||||||||
50 Crosby Drive | GACC | Bedford, MA | Office | $32,500,000 | 2.6% | $124 | 64.5% | 1.50x | 10.1% | ||||||||||
Emerald Hills Village & Beaver Lake | Manufactured | ||||||||||||||||||
Estates | LCF | Various, MN | Housing | $31,150,000 | 2.5% | $47,485 | 69.7% | 1.72x | 7.9% | ||||||||||
U-Haul Pool 4 | LCF | Various | Self Storage | $31,000,000 | 2.5% | $61 | 51.3% | 1.39x | 13.1% | ||||||||||
SRC Multifamily Portfolio 2 | GACC | Various | Multifamily | $29,850,000 | 2.4% | $49,667 | 73.3% | 1.33x | 9.0% | ||||||||||
Total/Weighted Average | $588,436,521 | 47.6% | 63.9% | 1.83x | 10.6% |
(1) | With respect to the Wilton Commercial Portfolio Loan, cut-off date balance per/NRA excludes 94 multifamily units at the Southgate Manor property. |
(2) | With respect to the Loews Miami Beach Hotel Loan, the Wilton Commercial Portfolio Loan, the 80 and 90 Maiden Lane Loan and the Myrtle Beach Marriott Resort & Spa Loan, LTV, DSCR, debt yield and cut-off date balance per room/NRA/Pad/Unit calculations include the related pari passu companion loans. |
(3) | With respect to the Wilton Commercial Portfolio Loan, the Cut-off Date LTV Ratio has been calculated using the portfolio valuation value. Using the sum of the appraised values of the individual mortgaged properties, the Cut-off Date LTV Ratio is 69.0%. With respect to the SRC Multifamily Portfolio 2 Loan, the Cut-off Date LTV Ratio has been calculated using the “As Renovated” value. The “As Renovated” appraised value takes into account upgrades being performed at each property. At closing, approximately $3.6 million was deposited in escrow for capital improvements. The “As-is” Cut-off Date LTV Ratio is 83.7%. |
Pari Passu Companion Loan Summary |
Companion | Loan | |||||||||||||
Mortgage Loan | Loans | Combination | ||||||||||||
Cut-off Date | Cut-off Date | Cut-off | Pooling & Servicing | |||||||||||
Mortgage Loan | Balance | Balance | Date Balance | Agreement | Master Servicer | Special Servicer | Voting Rights | |||||||
Loews Miami Beach Hotel | $120,000,000 | $180,000,000 | $300,000,000 | COMM 2014-UBS5 | Wells Fargo Bank, N.A. | Rialto Capital Advisors, LLC | COMM 2014-UBS5 | |||||||
Wilton Commercial Portfolio | $120,000,000 | $33,000,000 | $153,000,000 | COMM 2014-LC17 | Wells Fargo Bank, N.A. | LNR Partners, LLC | COMM 2014-LC17 | |||||||
80 and 90 Maiden Lane | $90,000,000 | $55,000,000 | $145,000,000 | COMM 2014-LC17 | Wells Fargo Bank, N.A. | LNR Partners, LLC | COMM 2014-LC17 | |||||||
Myrtle Beach Marriott | ||||||||||||||
Resort & Spa | $54,936,521 | $60,929,596 | $115,866,117 | COMM 2014-LC17 | Wells Fargo Bank, N.A. | LNR Partners, LLC | See (1) below |
(1) | Prior to the securitization of the Myrtle Beach Marriott Resort & Spa pari passu companion loan designated as Note A-1, the Myrtle Beach Marriott Resort & Spa Loan Combination will be serviced under the pooling and servicing agreement for this securitization and the related intercreditor agreement, and the directing holder will be the holder of the pari passu companion loan, which initially will be held by CCRE (Note A-1) or an affiliate thereof. After a to be determined securitization of the Myrtle Beach Marriott Resort & Spa pari passu companion loan designated as Note A-1, it is expected that the Myrtle Beach Marriott Resort & Spa Loan Combination will be serviced under the pooling and servicing agreement entered into in connection with that securitization and the related intercreditor agreement, and it is expected that the directing holder of the Myrtle Beach Marriott Resort & Spa Loan Combination will be the directing holder or its equivalent under that securitization. See “Description of the Mortgage Pool—Loan Combinations—The Myrtle Beach Marriott Resort & Spa Loan Combination” in the Free Writing Prospectus. |
Existing Mezzanine Debt Summary |
Mortgage Loan | Mezzanine Debt | Trust | Total Debt | Trust | Total Debt | Trust | Total Debt | |
Cut-off Date | Cut-off Date | U/W NCF | U/W NCF | Cut-off Date | Cut-off Date | U/W NOI | U/W NOI | |
Mortgage Loan | Balance | Balance | DSCR | DSCR | LTV Ratio | LTV Ratio | Debt Yield | Debt Yield |
Emerald Hills Village & Beaver Lake Estates | $31,150,000 | $4,450,000 | 1.72x | 1.31x | 69.7% | 79.7% | 7.9% | 6.9% |
SRC Multifamily Portfolio 2(1) | $29,850,000 | $3,000,000 | 1.33x | 1.12x | 73.3% | 80.7% | 9.0% | 8.2% |
SRC Multifamily Portfolio 3(2) | $28,500,000 | $3,000,000 | 1.41x | 1.17x | 74.9% | 82.8% | 9.7% | 8.8% |
Regency Square | $8,050,000 | $1,000,000 | 1.41x | 1.11x | 73.2% | 82.3% | 10.2% | 9.1% |
(1) | With respect to the SRC Multifamily Portfolio 2, the Cut-off Date LTV has been calculated using the “As Renovated” value. The “As Renovated” appraised value takes into account upgrades being performed at each property. At closing, approximately $3.6 million was deposited in escrow for capital improvements. The “As-is” Cut-off Date LTV is 83.7%. |
(2) | With respect to the SRC Multifamily Portfolio 3, the Cut-off Date LTV has been calculated using the “As Renovated” value. The “As Renovated” appraised value takes into account upgrades being performed at each property. At closing, approximately $3.8 million was deposited in escrow for capital improvements. The “As-is” Cut-off Date LTV is 84.9%. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
1601 Collins Avenue Miami Beach, FL 33139 | Collateral Asset Summary – Loan No. 1 Loews Miami Beach Hotel | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 53.1% 2.89x 13.7% |
![(PICTURE)](https://capedge.com/proxy/FWP/0001539497-14-001101/img002_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
1601 Collins Avenue Miami Beach, FL 33139 | Collateral Asset Summary – Loan No. 1 Loews Miami Beach Hotel | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 53.1% 2.89x 13.7% |
Mortgage Loan Information | |
Loan Seller: | GACC |
Loan Purpose: | Refinance |
Sponsor: | Loews Hotels Holding Corporation |
Borrower: | MB Redevelopment, LLC |
Original Balance(1): | $120,000,000 |
Cut-off Date Balance(1): | $120,000,000 |
% by Initial UPB: | 9.7% |
Interest Rate: | 4.1250% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 6, 2024 |
Amortization: | Interest Only |
Additional Debt(1): | $180,000,000 Pari Passu Debt |
Call Protection(2): | L(24), D(92), O(4) |
Lockbox / Cash Management: | Hard / Springing |
Reserves(3) | ||
Initial | Monthly | |
Taxes: | $3,711,259 | $371,126 |
Insurance: | $0 | Springing |
FF&E: | $0 | 4.0% of prior month’s gross revenues |
Required Repairs: | $2,500 | NAP |
Financial Information(4) | ||
Cut-off Date Balance / Room: | $379,747 | |
Balloon Balance / Room: | $379,747 | |
Cut-off Date LTV(5): | 53.1% | |
Balloon LTV: | 53.1% | |
Underwritten NOI DSCR(6): | 3.28x | |
Underwritten NCF DSCR(6): | 2.89x | |
Underwritten NOI Debt Yield: | 13.7% | |
Underwritten NCF Debt Yield: | 12.1% | |
Underwritten NOI Debt Yield at Balloon: | 13.7% | |
Underwritten NCF Debt Yield at Balloon: | 12.1% |
Property Information | ||
Single Asset / Portfolio: | Single Asset | |
Property Type: | Full Service Hospitality | |
Collateral: | Fee Simple | |
Location: | Miami Beach, FL | |
Year Built / Renovated: | 1998 / 2008-2010 | |
Total Rooms: | 790 | |
Property Management: | Loews Miami Beach Hotel Operating Company, Inc. | |
Underwritten NOI: | $41,162,461 | |
Underwritten NCF: | $36,207,741 | |
“As-is” Appraised Value: | $565,000,000 | |
“As-is” Appraisal Date: | July 9, 2014 | |
“As Stabilized” Appraised Value(5): | $616,000,000 | |
“As Stabilized” Appraisal Date(5): | July 9, 2015 | |
Historical NOI | ||
Most Recent NOI: | $41,475,955 (T-12 June 30, 2014) | |
2013 NOI: | $39,033,464 (December 31, 2013) | |
2012 NOI: | $35,832,978 (December 31, 2012) | |
2011 NOI: | $32,000,426 (December 31, 2011) | |
Historical Occupancy | ||
Most Recent Occupancy: | 86.0% (June 30, 2014) | |
2013 Occupancy: | 85.0% (December 31, 2013) | |
2012 Occupancy: | 83.7% (December 31, 2012) | |
2011 Occupancy: | 81.8% (December 31, 2011) |
(1) | The Loews Miami Beach Hotel Loan Combination is evidenced by three pari passu notes in the aggregate original principal amount of $300.0 million. The non-controlling note A-2, with an Original Balance and Cut-off Date Balance of $120.0 million, will be included in the trust. The pari passu companion loan is comprised of the controlling Note A-1 with an original principal balance of $120.0 million and the non-controlling Note A-3 with an original principal balance of $60.0 million. For additional information on the pari passu companion loans, see “The Loan” herein. |
(2) | The lockout period will be at least 24 payments beginning with and including the first payment date of October 6, 2014. Defeasance of the full $300.0 million Loews Miami Beach Hotel 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) August 12, 2017. |
(3) | See “Initial Reserves” and “Ongoing Reserves” herein. |
(4) | DSCR, LTV, Debt Yield and Balance / Room calculations are based on the aggregate Loews Miami Beach Hotel Loan Combination. |
(5) | Cut-off Date LTV is based on the “As-is” Appraised Value. The “As Stabilized” Appraised Value is based on a stabilized ADR of $361.52 and a stabilized occupancy of 83.0%. Based on the Loews Miami Beach Hotel Loan Combination amount of $300.0 million, the “As Stabilized” LTV ratio is 48.7%. |
(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 2.36x and 2.08x, respectively. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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1601 Collins Avenue Miami Beach, FL 33139 | Collateral Asset Summary – Loan No. 1 Loews Miami Beach Hotel | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 53.1% 2.89x 13.7% |
Historical Occupancy, ADR, RevPAR(1) | |||||||||
Loews Miami Beach Hotel Property | Competitive Set | Penetration Factor | |||||||
Year | Occupancy | ADR | RevPAR | Occupancy | ADR | RevPAR | Occupancy | ADR | RevPAR |
2011 | 81.8% | $294.83 | $241.13 | 73.6% | $243.60 | $179.38 | 111.1% | 121.0% | 134.4% |
2012 | 83.7% | $306.68 | $256.55 | 73.7% | $252.84 | $186.42 | 113.5% | 121.3% | 137.6% |
2013 | 85.0% | $315.38 | $268.01 | 75.5% | $251.66 | $190.10 | 112.5% | 125.3% | 141.0% |
T-12 June 2014 | 86.0% | $323.92 | $278.49 | 76.0% | $259.58 | $197.36 | 113.1% | 124.8% | 141.1% |
(1) | Source: Hospitality research report. |
The Loan. The Loews Miami Beach Hotel loan (the “Loews Miami Beach Hotel Loan”) consists of the non-controlling Note A-2 in the original principal amount of $120.0 million of a fixed rate whole loan in the aggregate original principal amount of $300.0 million (the “Loews Miami Beach Hotel Loan Combination”). The Loews Miami Beach Hotel Loan Combination is secured by the borrower’s fee simple interest in a 790-room full service hotel located at 1601 Collins Avenue in Miami Beach, Florida (the “Loews Miami Beach Hotel Property”). Only the non-controlling Note A-2 will be included in the COMM 2014-LC17 mortgage trust. The controlling Note A-1 is expected to be contributed to the COMM 2014-UBS5 trust and the non-controlling Note A-3 is expected to be contributed to a future securitization. The Loews Miami Beach Hotel Loan Combination has a 10-year term and accrues interest at a fixed rate equal to 4.1250%.
The proceeds of the Loews Miami Beach Hotel Loan Combination were used to retire existing debt of approximately $128.7 million, fund reserves of approximately $3.7 million and pay closing costs of approximately $0.7 million, giving the borrower a return of equity of approximately $166.9 million. Based on the “As-is” appraised value of $565.0 million as of July 9, 2014, the cut-off date LTV of the Loews Miami Beach Hotel Loan Combination is 53.1% and the remaining implied equity is $265.0 million. The most recent prior financing of the Loews Miami Beach Hotel Property was included in the GECMC 2005-C2, COMM 2005-LP5 and GMACC 2005-C1 securitizations.
Loan Combination Summary | ||||
Original Balance | Cut-off Date Balance | Note Holder | Controlling Piece | |
Note A-1 | $120,000,000 | $120,000,000 | COMM 2014-UBS5 | Yes |
Note A-2 | $120,000,000 | $120,000,000 | COMM 2014-LC17 | No |
Note A-3 | $60,000,000 | $60,000,000 | GACC | No |
Total | $300,000,000 | $300,000,000 |
Sources and Uses | ||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | |
Loan Amount | $300,000,000 | 100.0% | Loan Payoff | $128,711,155 | 42.9% | |
Reserves | $3,713,759 | 1.2% | ||||
Closing Costs | $671,914 | 0.2% | ||||
Return of Equity | $166,903,173 | 55.6% | ||||
Total Sources | $300,000,000 | 100.0% | Total Uses | $300,000,000 | 100.0% |
The Borrower / Sponsor. The borrower, MB Redevelopment, 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 the nonrecourse carve-out guarantor is Loews Hotels Holding Corporation.
Headquartered in New York, Loews Hotels Holding Corporation (“Loews”) was founded by Preston Robert and Laurence Tisch in 1946. Loews offers distinctive hotels in most major markets in the United States and Canada. Loews destinations include the cities of New York, Chicago, Denver, Los Angeles, Nashville, Philadelphia, Washington, D.C., Annapolis, Montreal, Quebec City and New Orleans, as well as world-renowned vacation destinations such as Miami’s South Beach, Universal Orlando, Tucson, St. Pete Beach, Florida and California’s Coronado Bay. The sponsor is consolidated under Loews Corporation (NYSE: L), but it is viewed as a standalone company with its own management team.
The Property. Built in 1998 and renovated from 2008 to 2010, the Loews Miami Beach Hotel Property is a 790-room upscale hotel that is managed by Loews Miami Beach Hotel Operating Company, Inc. The property offers several restaurants and bars, extensive meeting facilities, spa and fitness center, an outdoor pool, retail space, business center, and a typical complement of back-of-the-house facilities.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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1601 Collins Avenue Miami Beach, FL 33139 | Collateral Asset Summary – Loan No. 1 Loews Miami Beach Hotel | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 53.1% 2.89x 13.7% |
The Loews Miami Beach Hotel Property consists of two oceanfront hotel buildings, the main tower and the St. Moritz Tower, that are situated along the east side of Collins Avenue. The main tower is an 18-story, “L-shaped” structure set atop a three-level pedestal. The six-story St. Moritz Tower sits directly south of the main tower and is connected via an outdoor courtyard. The St. Moritz Tower is designated as a historical landmark due to its Art Deco design.
The main tower has 687 guestrooms and includes several of the hotel’s restaurants, lounges, guest registration, lobby, meeting space, and sales and administrative offices. The meeting area is located on the second and third floors of the main tower and consists of approximately 53,000 sq. ft. of indoor space and approximately 10,000 sq. ft. of outdoor and pre-function space. The second floor also houses the business center and banquet offices. Guestrooms are located on floors 5 through 18. The St. Moritz Tower has 103 guestrooms, the hotel’s signature restaurant Lure, sales and marketing offices, and the spa facility.
The pool and Americana Lawn, a 6,400 square foot function area, are situated between the hotel and the beach with private cabanas and day beds located on the north and south sides. Additionally, the Nautilus Bar & Grill and the Splash retail outlet are located in and around the pool area.
The Loews Miami Beach Hotel Property’s various amenities accommodate both leisure and group demands. As of year-end 2013, the leisure and meeting/group segmentation were 68.0% and 32.0%, respectively.
In 2014, the sponsor plans to invest $4.5 million in renovations to the Loews Miami Beach Hotel Property, including a $2.5 million complete renovation of the meeting rooms and ballroom, as well as lobby renovation designs, upgrades in public restrooms, and some upgrades to the guestrooms in the St. Moritz Tower. The capital for the meeting room renovation has been committed and the work is expected to be completed in the coming months.
Environmental Matters. The Phase I environmental report dated July 31, 2014 did not identify any evidence of a recognized environmental condition and recommended no further action at the Loews Miami Beach Hotel Property.
The Market. The Loews Miami Beach Hotel Property is located in Miami Beach, Florida along the east side of Collins Avenue. Miami Beach is located in Miami-Dade County, Florida, and is part of the Miami-Fort Lauderdale-West Palm Beach Metropolitan Statistical Area (“MSA”), which is synonymous with the South Florida region. South Florida has a population of over 5.6 million and ranks as the eighth most populous MSA in the nation, along with Florida ranking as the fourth most populous state in the nation.
Approximately 7.0 million people visit South Beach each year, accounting for approximately 40.0% of all tourists visiting the Greater Miami area. Of these annual visitors, approximately 4.0 million stayed in Miami Beach hotels. The months between mid-December through March represent the peak demand period. As of year-end 2013, RevPAR, ADR and occupancy for hotels in the Greater Miami and surrounding beaches increased 10.0%, 7.9% and 2.0%, respectively, over the same period in 2012.
In addition to the beaches and nightlife, Miami Beach has several other demand generators and annual events that provide ample lodging demand. Large events that induce lodging demand include Art Basel, Art Deco Weekend, South Beach Food & Wine Festival, Fashion Week, Festival of the Arts, the Auto Show and numerous events at the Miami Beach Convention Center. Many of the city’s central attractions are clustered around the Miami Beach Convention Center which consists of more than 1.1 million sq. ft. of convention space. Adjacent to the convention center is the Jackie Gleason Theater of the Performing Arts and the Miami Beach Garden Center. Miami Beach has become a destination for its beaches, shopping, dining, entertainment and business amenities.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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1601 Collins Avenue Miami Beach, FL 33139 | Collateral Asset Summary – Loan No. 1 Loews Miami Beach Hotel | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 53.1% 2.89x 13.7% |
The following chart presents primary competitors to the Loews Miami Beach Hotel Property:
Primary Competitive Set(1) | |||||||||||||||||||||||
Property | Rooms | Year Opened | Meeting Space (Sq. Ft.) | 2013 Occupancy(2) | 2013 ADR(2) | 2013 RevPAR(2) | |||||||||||||||||
Loews Miami Beach Hotel Property | 790 | 1998 | 53,194 | 86.1 | % | $311.14 | $268.01 | ||||||||||||||||
Waldorf Astoria Boca Raton Resort | 1,047 | 1926 | 114,000 | 62.0 | % | $255.00 | $158.87 | ||||||||||||||||
Marriott Harbor Beach Resort | 650 | 1983 | 30,000 | 78.0 | % | $233.00 | $181.04 | ||||||||||||||||
InterContinental Hotel Miami | 641 | 1982 | 74,000 | 82.0 | % | $187.00 | $152.76 | ||||||||||||||||
Shore Club | 308 | 1947 | 1,500 | 70.0 | % | $298.00 | $207.71 | ||||||||||||||||
Westin Diplomat Resort | 998 | 2000 | 134,000 | 83.0 | % | $218.00 | $180.38 | ||||||||||||||||
Ritz-Carlton South Beach | 375 | 2003 | 18,000 | 84.0 | % | $443.00 | $373.01 | ||||||||||||||||
Fontainebleau | 1,440 | 1954 | 142,400 | 81.0 | % | $310.00 | $251.41 | ||||||||||||||||
Eden Roc Miami Beach | 627 | 1956 | 46,000 | 73.0 | % | $240.00 | $175.20 | ||||||||||||||||
Total / Wtd. Avg. | 6,876 | 77.7 | % | $271.26 | $210.79 |
(1) | Source: Appraisal |
(2) | 2013 Occupancy, 2013 ADR and 2013 RevPAR represent estimates from the appraiser. The minor variances between the underwriting, the hospitality research report and the above table with respect to 2013 Occupancy, 2013 ADR and 2013 RevPAR at the Loews Miami Beach Hotel Property are attributable to variances in reporting methodologies and/or timing differences. |
Cash Flow Analysis.
Cash Flow Analysis | ||||||||
2011 | 2012 | 2013 | T-12 6/30/2014 | U/W | U/W per Room | |||
Occupancy | 81.8% | 83.7% | 85.0% | 86.0% | 86.0% | |||
ADR | $294.83 | $306.68 | $315.38 | $323.92 | $323.92 | |||
RevPAR | $241.13 | $256.55 | $268.01 | $278.49 | $278.49 | |||
Room Revenue | $69,530,896 | $74,177,741 | $77,279,290 | $80,302,395 | $80,302,395 | $101,649 | ||
F&B Revenue | 27,765,752 | 31,708,270 | 32,344,305 | 35,086,035 | 35,086,035 | 44,413 | ||
Other Revenue | 7,940,628 | 7,950,885 | 8,740,072 | 8,479,569 | 8,479,569 | 10,734 | ||
Total Revenue | $105,237,276 | $113,836,896 | $118,363,667 | $123,867,999 | $123,867,999 | $156,795 | ||
Operating Expenses | 40,692,204 | 44,288,384 | 45,089,207 | 46,901,794 | 46,901,794 | 59,369 | ||
Undistributed Expenses | 24,028,230 | 24,528,738 | 23,995,454 | 25,178,620 | 25,178,620 | 31,872 | ||
Gross Operating Profit | $40,516,842 | $45,019,774 | $49,279,006 | $51,787,585 | $51,787,585 | $65,554 | ||
Management Fee | 3,157,118 | 3,415,107 | 3,550,910 | 3,716,261 | 3,716,040 | 4,704 | ||
Total Fixed Charges | 5,359,298 | 5,771,689 | 6,694,632 | 6,595,369 | 6,909,084 | 8,746 | ||
Net Operating Income | $32,000,426 | $35,832,978 | $39,033,464 | $41,475,955 | $41,162,461 | $52,104 | ||
FF&E | 4,209,491 | 4,553,476 | 4,734,547 | 4,954,720 | 4,954,720 | 6,272 | ||
Net Cash Flow | $27,790,935 | $31,279,502 | $34,298,917 | $36,521,235 | $36,207,741 | $45,833 |
Property Management. The Loews Miami Beach Hotel Property is managed by Loews Miami Beach Hotel Operating Company, Inc., a borrower affiliate.
Lockbox / Cash Management. The Loews Miami Beach Hotel 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 lender. Unless a Trigger Period (as defined herein) is ongoing, all amounts on deposit in the clearing account will be swept daily into the borrower’s account. During a Trigger Period, all amounts on deposit in the clearing account will be swept daily into an account controlled by the lender.
A “Trigger Period” will commence (i) upon an event of default until cured in accordance with the Loews Miami Beach Hotel Loan documents or (ii) during a Low Debt Yield Period (as defined herein).
A “Low Debt Yield Period” will occur if the debt yield for the trailing 12-month period is less than 8.50% on the last day of the calendar quarter and will cease to exist if the debt yield is at least 8.75% for two consecutive calendar quarters.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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1601 Collins Avenue Miami Beach, FL 33139 | Collateral Asset Summary – Loan No. 1 Loews Miami Beach Hotel | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 53.1% 2.89x 13.7% |
Initial Reserves. At closing, the borrower deposited (i) $3,711,259 into a tax reserve account and (ii) $2,500 into an required repairs reserve account, which represents the engineer’s estimated cost of the required repairs.
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 $371,126, into a tax reserve account and (ii) an amount equal to 4.0% of the prior month’s gross revenues into a FF&E reserve account. In addition, 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.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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1601 Collins Avenue Miami Beach, FL 33139 | Collateral Asset Summary – Loan No. 1 Loews Miami Beach Hotel | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 53.1% 2.89x 13.7% |
![(PICTURE)](https://capedge.com/proxy/FWP/0001539497-14-001101/img003_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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Various | Collateral Asset Summary – Loan No. 2 Wilton Commercial Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 67.1% 1.55x 10.7% |
![(GRAPHIC)](https://capedge.com/proxy/FWP/0001539497-14-001101/img004_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 2 Wilton Commercial Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 67.1% 1.55x 10.7% |
Mortgage Loan Information | |
Loan Seller: | LCF |
Loan Purpose: | Refinance |
Sponsor: | The Wilton Companies, Inc.; The Wilton Companies, LLC; Richard S. Johnson; Rodney M. Poole |
Borrower: | Wilton Commercial I, LLC; Wilton Commercial II, LLC; Wilton Commercial III, LLC |
Original Balance(1): | $120,000,000 |
Cut-off Date Balance(1): | $120,000,000 |
% by Initial UPB: | 9.7% |
Interest Rate: | 4.7870% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 6, 2024 |
Amortization: | 360 months |
Additional Debt(1): | $33,000,000 Pari Passu Debt |
Call Protection(2): | L(24), D(92), O(4) |
Lockbox / Cash Management: | Soft Springing Hard / Springing |
Reserves(3) | ||
Initial | Monthly | |
Taxes: | $651,126 | $130,225 |
Insurance: | $147,556 | $16,395 |
Replacement: | $0 | $31,790 |
TI/LC: | $1,000,000 | Springing |
Required Repairs: | $770,572 | NAP |
Environmental: | $84,375 | $0 |
Atlee Leasing: | $500,000 | $0 |
Humana TI: | $134,676 | $0 |
Grocery: | $0 | Springing |
Financial Information(4) | ||
Cut-off Date Balance / Sq. Ft.(5): | $75 | |
Balloon Balance / Sq. Ft.(5): | $61 | |
Cut-off Date LTV(6): | 67.1% | |
Balloon LTV: | 54.8% | |
Underwritten NOI DSCR: | 1.70x | |
Underwritten NCF DSCR: | 1.55x | |
Underwritten NOI Debt Yield: | 10.7% | |
Underwritten NCF Debt Yield: | 9.7% | |
Underwritten NOI Debt Yield at Balloon: | 13.1% | |
Underwritten NCF Debt Yield at Balloon: | 11.9% |
Property Information | |
Single Asset / Portfolio: | Portfolio of 51 properties |
Property Type: | Various |
Collateral: | Fee Simple |
Location: | Various |
Year Built / Renovated: | Various / Various |
Total Sq. Ft.(5): | 2,031,439 |
Property Management: | Wilton Realty, LLC.; Landmark Property Services, Inc. |
Underwritten NOI: | $16,331,912 |
Underwritten NCF: | $14,875,944 |
Appraised Value(6): | $228,100,000 |
Appraisal Date: | August 1, 2014 |
Historical NOI | |
Most Recent NOI: | $15,116,448 (T-12 May 31, 2014) |
2013 NOI: | $15,150,039 (December 31, 2013) |
2012 NOI: | $14,533,615 (December 31, 2012) |
2011 NOI: | $14,958,035 (December 31, 2011) |
Historical Occupancy | |
Most Recent Occupancy(7): | 87.1% (Various) |
2013 Occupancy: | 86.2% (December 31, 2013) |
2012 Occupancy: | 84.0% (December 31, 2012) |
2011 Occupancy: | 85.4% (December 31, 2011) |
(1) | The Original Balance and Cut-off Date Balance of $120.0 million represent the controlling Note A-1 of the $153.0 million Wilton Commercial Portfolio Loan Combination evidenced by two pari passu notes. The pari passu companion loan is comprised of the non-controlling Note A-2 with an original principal balance of $33.0 million. For additional information on the pari passu companion loan, see “The Loan” herein. |
(2) | The lockout period will be at least 24 payments beginning with and including the first payment date of October 6, 2014. Defeasance of the full $153.0 million Wilton Commercial Portfolio Loan Combination is permitted after the date that is the earlier to occur of (i) two years after the closing date of the securitization that includes the last pari passu companion loan to be securitized and (ii) August 29, 2018. The Wilton Commercial Portfolio Loan Combination is freely prepayable on or after June 6, 2024. |
(3) | See “Initial Reserves” and “Ongoing Reserves” herein. |
(4) | DSCR, LTV, Debt Yield and Balance / Sq. Ft. calculations are based on the aggregate Wilton Commercial Portfolio Loan Combination. |
(5) | Cut-off Date Balance / Sq. Ft., Balloon Balance / Sq. Ft. and Total Sq. Ft. exclude 94 multifamily units at the Southgate Manor property. |
(6) | The total appraised value of $228,100,000 is based on a portfolio valuation. The sum of the appraised values of all of the individual Wilton Commercial Portfolio Properties is $221,885,000 which equates to a Cut-off Date LTV of 69.0% and a Balloon LTV of 56.3%. |
(7) | The Most Recent Occupancy dates range from May 31, 2014 through September 6, 2014. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 2 Wilton Commercial Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 67.1% 1.55x 10.7% |
Portfolio Summary | |||||||||
Property Name | Location | Sq. Ft./Units | Year Built / Renovated | Allocated Cut-off Date Balance | Appraised Value(1) | ||||
John Rolfe Commons | Richmond, VA | 159,600 | 2003-2005 / NAP | $12,148,471 | $24,200,000 | ||||
Tuckahoe Village Shopping Center | Richmond, VA | 135,901 | 1975-1999 / NAP | $11,546,588 | $21,100,000 | ||||
Hermitage Industrial Center | Richmond, VA | 384,385 | 1976-1982 / NAP | $10,999,451 | $20,100,000 | ||||
Westland Shopping Center | Richmond, VA | 94,586 | 1962, 1984 / 2008 | $7,168,784 | $13,500,000 | ||||
The Shoppes at Crossridge | Glen Allen, VA | 93,762 | 2003 / NAP | $6,621,490 | $12,500,000 | ||||
Lauderdale Square | Richmond, VA | 56,095 | 1993-2007 / NAP | $5,362,902 | $9,800,000 | ||||
Wilton Park / Wilton Park West | Richmond, VA | 67,230 | 1972, 2008 / NAP | $4,979,765 | $9,100,000 | ||||
Atlee Commerce Center II and III | Ashland, VA | 90,544 | 1995 / 2005 | $4,487,294 | $8,200,000 | ||||
Montpelier Shopping Center | Montpelier, VA | 51,635 | 2006 / NAP | $4,323,137 | $8,200,000 | ||||
Walgreens at Ridgefield Commons | Richmond, VA | 14,820 | 2008 / NAP | $3,666,431 | $6,700,000 | ||||
Hanover Commons Shopping Center | Mechanicsville, VA | 73,738 | 1990 / NAP | $3,611,686 | $6,800,000 | ||||
Beverly Hills Shopping Center | Richmond, VA | 45,014 | 1959 / 2004 | $3,283,451 | $6,000,000 | ||||
Maybeury North Shopping Center | Richmond, VA | 35,975 | 1960 / NAP | $3,283,451 | $6,000,000 | ||||
Stratford Hills Shopping Center | Richmond, VA | 42,950 | 1954 / NAP | $3,173,961 | $4,700,000 | ||||
Wilton Square at Innsbrook | Glen Allen, VA | 17,454 | 2009 / NAP | $3,009,804 | $5,700,000 | ||||
Gayton Business Center I - VIII | Richmond, VA | 55,578 | 1999 / NAP | $2,626,745 | $5,000,000 | ||||
Humana Office Building | Glen Allen, VA | 41,927 | 1986 / NAP | $2,626,745 | $4,800,000 | ||||
Canterbury Shopping Center | Richmond, VA | 47,110 | 1969 / NAP | $2,407,843 | $4,400,000 | ||||
Maybeury South Shopping Center | Richmond, VA | 24,030 | 1963 / NAP | $2,188,941 | $4,000,000 | ||||
Tuckahoe Village Merchant Square | Richmond, VA | 25,240 | 1970 / NAP | $1,641,725 | $3,000,000 | ||||
The Park at Dickens Place | Richmond, VA | 54,277 | 1999 / NAP | $1,614,275 | $2,950,000 | ||||
Canterbury Green Shopping Center | Richmond, VA | 18,990 | 1987 / NAP | $1,477,490 | $2,700,000 | ||||
Verizon Center | Richmond, VA | 15,336 | 1989 / NAP | $1,450,196 | $2,650,000 | ||||
Southgate Manor | Elizabeth City, NC | 94 | 1971 / NAP | $1,340,706 | $2,450,000 | ||||
Crossridge Wells Fargo Bank | Glen Allen, VA | 4,500 | 2006 / NAP | $1,094,510 | $2,000,000 | ||||
Crofton Green Merchants Square | Richmond, VA | 18,460 | 1976-1987 / NAP | $1,067,059 | $1,950,000 | ||||
Westland East Shopping Center | Richmond, VA | 23,362 | 1963, 2007 / NAP | $1,039,765 | $1,900,000 | ||||
Quioccasin Shoppes | Richmond, VA | 15,140 | 1965 / NAP | $985,020 | $1,800,000 | ||||
Wilton Square at Brandermill | Midlothian, VA | 17,345 | 1985 / 1988 | $930,353 | $1,700,000 | ||||
Nova of Virginia Aquatics | Richmond, VA | 28,436 | 1997, 2006 / NAP | $738,824 | $1,350,000 | ||||
Quioccasin Square Shopping Center | Richmond, VA | 5,310 | 1959 / NAP | $711,373 | $1,300,000 | ||||
2208-2218 Perl Road | Richmond, VA | 29,040 | 1969 / NAP | $711,373 | $1,300,000 | ||||
Atlee Business Center V and VI | Ashland, VA | 16,427 | 2014 / NAP | $684,078 | $1,250,000 | ||||
2400 Westwood Avenue | Richmond, VA | 36,765 | 1966 / NAP | $673,098 | $1,230,000 | ||||
2121 Dabney Road | Richmond, VA | 30,035 | 1957 / NAP | $656,706 | $1,200,000 | ||||
BHSC-Verizon Store | Richmond, VA | 1,625 | 2009 / NAP | $629,333 | $1,150,000 | ||||
Brookside Convenience Center | Richmond, VA | 6,286 | 1987 / NAP | $547,216 | $1,000,000 | ||||
Offices At Parham & Patterson | Richmond, VA | 10,680 | 1980 / NAP | $514,353 | $940,000 | ||||
4411 Jacque Street | Richmond, VA | 25,005 | 1959 / NAP | $478,824 | $875,000 | ||||
2040 Westmoreland Street | Richmond, VA | 21,515 | 1955 / NAP | $410,431 | $750,000 | ||||
Canterbury Building | Richmond, VA | 10,200 | 1970 / 2011 | $377,569 | $690,000 | ||||
338 Oyster Point Road | Newport News, VA | 4,950 | 1984 / NAP | $361,176 | $660,000 | ||||
5712-5716 Greendale Road | Richmond, VA | 14,195 | 1972 / NAP | $355,686 | $650,000 | ||||
5004-5010 West Clay Street | Richmond, VA | 17,190 | 1958, 1962 / NAP | $355,686 | $650,000 | ||||
Canterbury Green Office Building | Richmond, VA | 7,245 | 2002 / NAP | $344,784 | $630,000 | ||||
4909-4911 West Clay Street | Richmond, VA | 9,500 | 1961 / NAP | $328,392 | $600,000 | ||||
4100 West Clay Street | Richmond, VA | 7,300 | 1965 / NAP | $240,706 | $440,000 | ||||
5612-5614 Greendale Road | Richmond, VA | 8,925 | 1973 / NAP | $235,294 | $430,000 | ||||
The Wilton Professional Building | Richmond, VA | 4,406 | 2002 / NAP | $218,902 | $400,000 | ||||
5001-5003 West Leigh Street | Richmond, VA | 9,870 | 1967 / NAP | $207,922 | $380,000 | ||||
4905 West Clay Street | Richmond, VA | 1,550 | 1958 / NAP | $60,235 | $110,000 | ||||
Total(2) | 2,031,439 | $120,000,000 | $228,100,000 | ||||||
(1) | The total appraised value of $228,100,000 is based on a portfolio valuation. The sum of the appraised values of all of the individual Wilton Commercial Portfolio Properties is $221,885,000 which equates to a cut-off date LTV ratio of 69.0%. |
(2) | Total Sq. Ft./Units excludes the 94 multifamily units at the Southgate Manor property. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 2 Wilton Commercial Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 67.1% 1.55x 10.7% |
Tenant Summary(1) | |||||||||||
Tenant | Ratings (Fitch/Moody’s/S&P)(2) | Net Rentable Area (Sq. Ft.) | % of Net Rentable Area | U/W Base Rent PSF | % of Total U/W Base Rent | Lease Expiration | |||||
Martin’s(3) | BBB/Baa3/BBB | 123,231 | 6.1% | $9.15 | 6.2% | Various | |||||
Food Lion(4) | NR/Baa3/BBB- | 110,036 | 5.4% | $9.94 | 6.0% | Various | |||||
Gentek Restructuring, Inc. | NR/NR/NR | 50,535 | 2.5% | $3.75 | 1.0% | 9/30/2020 | |||||
L. Fishman & Son, Inc. | NR/NR/NR | 30,035 | 1.5% | $3.90 | 0.6% | 5/31/2015 | |||||
NOVA of Virginia Aquatics, Inc(5) | NR/NR/NR | 28,436 | 1.4% | $2.67 | 0.4% | 12/31/2020 | |||||
Total Major Tenants | 342,273 | 16.8% | $7.61 | 14.3% | |||||||
Remaining Tenants | 1,427,325 | 70.3% | $10.89 | 85.7% | |||||||
Total Occupied Collateral | 1,769,598 | 87.1% | $10.25 | 100.0% | |||||||
Vacant | 261,841 | 12.9% | |||||||||
Total | 2,031,439 | 100.0% | |||||||||
(1) | Excludes the 94 multifamily units at the Southgate Manor property. |
(2) | Certain ratings are those of the parent company whether or not the parent company guarantees the lease. |
(3) | Martin’s at The Shoppes at Crossridge property is leased under a ground lease (51,396 sq. ft.) with a lease expiration of November 10, 2022. Martin’s at the John Rolfe Commons property (71,835 sq. ft.) has a lease expiration of January 16, 2023. |
(4) | Food Lion at Montpelier Shopping Center property (33,764 sq. ft.) has a lease expiration of December 12, 2026. Food Lion at the Hanover Commons Shopping Center property (39,416 sq. ft.) has a lease expiration of November 18, 2019. Food Lion at the Tuckahoe Village Shopping Center property (36,856 sq. ft.) has a lease expiration of December 31, 2025. |
(5) | NOVA of Virginia Aquatics, Inc is leased under a ground lease. |
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 | ||||||||
MTM | 28 | 69,105 | 3.4% | 69,105 | 3.4% | $7.64 | 2.9% | 2.9% | ||||||||
2014 | 55 | 143,580 | 7.1% | 212,685 | 10.5% | $9.13 | 7.2% | 10.1% | ||||||||
2015 | 107 | 325,194 | 16.0% | 537,879 | 26.5% | $8.64 | 15.5% | 25.6% | ||||||||
2016 | 52 | 166,865 | 8.2% | 704,744 | 34.7% | $10.94 | 10.1% | 35.7% | ||||||||
2017 | 47 | 162,766 | 8.0% | 867,510 | 42.7% | $11.34 | 10.2% | 45.8% | ||||||||
2018 | 41 | 159,433 | 7.8% | 1,026,943 | 50.6% | $12.48 | 11.0% | 56.8% | ||||||||
2019 | 53 | 235,515 | 11.6% | 1,262,458 | 62.1% | $10.47 | 13.6% | 70.4% | ||||||||
2020 | 14 | 129,074 | 6.4% | 1,391,532 | 68.5% | $5.89 | 4.2% | 74.6% | ||||||||
2021 | 10 | 35,275 | 1.7% | 1,426,807 | 70.2% | $14.71 | 2.9% | 77.5% | ||||||||
2022 | 5 | 66,548 | 3.3% | 1,493,355 | 73.5% | $5.54 | 2.0% | 79.5% | ||||||||
2023 | 8 | 125,687 | 6.2% | 1,619,042 | 79.7% | $12.20 | 8.5% | 87.9% | ||||||||
2024 | 6 | 25,031 | 1.2% | 1,644,073 | 80.9% | $18.18 | 2.5% | 90.4% | ||||||||
Thereafter | 11 | 125,525 | 6.2% | 1,769,598 | 87.1% | $13.81 | 9.6% | 100.0% | ||||||||
Vacant | NAP | 261,841 | 12.9% | 2,031,439 | 100.0% | NAP | NAP | |||||||||
Total / Wtd. Avg. | 437 | 2,031,439 | 100.0% | $10.25 | 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) | Excludes the 94 multifamily units at the Southgate Manor property. |
The Loan. The Wilton Commercial Portfolio loan (the “Wilton Commercial Portfolio Loan”) consists of the controlling Note A-1 in the original principal amount of $120.0 million of a fixed rate loan in the aggregate principal amount of $153.0 million (the “Wilton Commercial Portfolio Loan Combination”). The Wilton Commercial Portfolio Loan Combination is secured by the borrowers’ fee simple interests in 51 retail, industrial, office and multifamily properties totaling 2,031,439 sq. ft. and 94 multifamily units located in two different states (the “Wilton Commercial Portfolio Properties”). Only the controlling Note A-1 will be contributed to the COMM 2014-LC17 mortgage trust. It is anticipated that the remaining Note A-2 will be contributed to a future securitization. The Wilton Commercial Portfolio Loan has a 10-year term, accrues interest at a fixed annual rate equal to 4.7870% and amortizes on a 30-year schedule.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 2 Wilton Commercial Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 67.1% 1.55x 10.7% |
The proceeds of the Wilton Commercial Portfolio Loan Combination were used to retire existing debt of approximately $143.4 million, fund reserves of approximately $3.3 million and pay closing costs of approximately $1.5 million, giving the borrowers a return of equity of approximately $4.8 million. Based on the appraised value of $228.1 million as of August 1, 2014, the Cut-off date LTV of the Wilton Commercial Portfolio Loan Combination is 67.1% with remaining implied equity of $75.1 million. The most recent prior financing of 45 of the 51 Wilton Commercial Portfolio Properties was included in the MLCFC 2006-3 securitization.
Loan Combination Summary | ||||||
Original Balance | Cut-off Date Balance | Note Holder | Controlling Piece | |||
Note A-1 | $120,000,000 | $120,000,000 | COMM 2014-LC17 | Yes | ||
Note A-2 | $33,000,000 | $33,000,000 | LCF | No | ||
Total | $153,000,000 | $153,000,000 |
Sources and Uses | ||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | |
Loan Amount | $153,000,000 | 100.0% | Existing Debt(1) | $143,359,038 | 93.7% | |
Funds to Borrower | $4,816,140 | 3.1% | ||||
Reserves | $3,288,305 | 2.1% | ||||
Closing Costs | $1,536,517 | 1.0% | ||||
Total Sources | $153,000,000 | 100.0% | Total Uses | $153,000,000 | 100.0% |
(1) | Existing Debt includes defeasance costs of approximately $12.1 million. |
The Borrower / Sponsor. Each of the borrowers, Wilton Commercial I, LLC, Wilton Commercial II, LLC and Wilton Commercial III, LLC is a single purpose Delaware limited liability company with two independent directors in its organizational structure. The Wilton Commercial Portfolio Loan guarantors are, and the Wilton Commercial Portfolio Loan is fully recourse to, The Wilton Companies, LLC and The Wilton Companies, Inc. Additionally, with respect to certain customary non-recourse carveouts, the lender will have recourse to Richard S. Johnson and Rodney M. Poole, and with respect to environmental liability, will have recourse to The Wilton Companies, LLC, The Wilton Companies, Inc., Richard S. Johnson and Rodney M. Poole.
The Properties. The 51 Wilton Commercial Portfolio Properties are comprised of: seven anchored retail properties totaling 573,973 sq. ft. (28.3% of the NRA), 20 unanchored, shadow anchored and single tenant retail properties totaling 503,677 sq. ft. (24.8% of the NRA), 17 warehouse/flex properties totaling 812,101 sq. ft. (40.0% of the NRA), six office properties totaling 141,688 sq. ft. (7.0% of the NRA), and one multifamily property totaling 94 units. The Wilton Commercial Portfolio Properties are located in two different states with Virginia representing the largest percentage by allocated loan amount (98.9%) with regard to the Wilton Commercial Portfolio Loan Combination.
The Wilton Commercial Portfolio Properties were constructed between 1954 and 2014 and currently have a physical occupancy of 87.1%.
Allocations by Property Type | ||||||
Property Type | % Loan Balance | % Sq. Ft. | % In Place Rent | |||
Retail | 70.4% | 53.0% | 75.7% | |||
Office | 7.6% | 7.0% | 6.2% | |||
Industrial | 20.9% | 40.0% | 13.7% | |||
Multifamily | 1.1% | NAP | 4.4% |
Environmental Matters. The Phase I environmental report dated July 23, 2014 recommended the completion of a Phase II environmental assessment to evaluate potential subsurface impacts resulting from prior dry cleaning operations at the Maybeury South Shopping Center property. To the extent elevated impacts are noted in the testing to be completed, ongoing monitoring and maintenance of a SVE O&M system was recommended. An environmental reserve representing 125% of the estimated costs for both the recommended Phase II environmental assessment and ongoing monitoring in the event that elevated levels are noted in the Phase II sampling was reserved at closing. The costs are broken down into (i) $13,500 for completion of well sampling and SVE O&M plan; and (ii) $30,000 for ongoing monitoring work to the extent elevated levels are detected. These costs represent three years worth of monitoring costs at $10,000 per annum.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 2 Wilton Commercial Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 67.1% 1.55x 10.7% |
The Phase I environmental reports dated July and August 2014 noted various routine items to be remediated, primarily consisting of installation of secondary containments for above-ground storage tanks, decommissioning wells and out of commission underground storage tanks, and removing drums from properties.
Major Tenants.
Martin’s (123,231 sq. ft., 6.1% of NRA, 6.2% of U/W Base Rent) Martin’s Food Markets are a chain of supermarkets operating in Maryland, West Virginia, Pennsylvania and Virginia operated by Giant and owned by Koninklijke Ahold N.V. (rated BBB/Baa3/BBB by Fitch, Moody’s and S&P), a Dutch international retailer with 222,000 employees and brands including Stop & Shop, Giant, Martin’s and Peapod across 3,107 stores throughout the world. Total annual revenue was €32.6 billion for the 2013 fiscal year. Giant Food Stores (“Giant”) has been in business since 1923 and is headquartered in Carlisle, Pennsylvania. Giant purchased Martin's while expanding in 1968. Martin’s has 22 locations throughout the greater Richmond, Virginia area.
Food Lion (110,036 sq. ft., 5.4% of NRA, 6.0% of U/W Base Rent) Food Lion is the largest subsidiary of Delhaize Group (NYSE: DEG) (rated Baa3/BBB- by Moody’s and S&P), a food retailer that was founded and currently headquartered in Belgium with 160,883 employees across 3,534 stores worldwide. Total annual revenue was €21.1 billion for the 2013 fiscal year. The company is principally engaged in the operation of supermarkets in Belgium, the United States (Southeast and Mid-Atlantic as well as Northeast and Sweetbay in Florida), Greece, Serbia, Bosnia and Herzegovina, Albania, Montenegro, Bulgaria, Romania and Indonesia. Food Lion is headquartered in Salisbury, North Carolina and operates 1,100 supermarkets in 11 mid-Atlantic and South Atlantic states such as Georgia, Kentucky, Tennessee, Virginia and West Virginia under the Food Lion banner. With over 48,000 employees, Food Lion is the largest subsidiary of Delhaize Group.
Historical Sales PSF(1) | ||||
Property Name | Tenant | Sq. Ft. | 2012 | 2013 |
Hanover Commons Shopping Center | Food Lion | 39,416 | $265 | $273 |
Tuckahoe Village Shopping Center | Food Lion | 36,856 | $247 | $252 |
Montpelier Shopping Center | Food Lion | 33,764 | $384 | $389 |
(1) Historical Sales PSF are based on historical operating statements provided by the borrowers. |
The Market. The two largest industries operating within the Richmond MSA are health care (13.9%) and retail trade (11.6%) and are also the largest industries found within Virginia and the U.S. overall. The finance/insurance/real estate industries also play a significant role in the local economy. Within the immediate neighborhood surrounding the properties, retail trade, finance/insurance/real estate, and health care are the largest employment drivers. The largest employers in the Richmond MSA include: Capital One Financial Corp (11,309); Virginia Commonwealth University Health System (8,491); HCA, Inc. (7,051); Bon Secours Richmond Health System (6,646); and Walmart (5,351). New additions to the Top 50 2014 Private Employers list include Union Bankshares, McKesson Medical-Surgical, Goodwill Industries of Central Virginia Inc. and Amazon.com.
Along with being the capital of Virginia, Richmond is also the home of the Fifth District Federal Reserve and Fourth Circuit US Court of Appeals. The Richmond area is also home to six 2014 Fortune 500 Companies, including: Altria Group, Inc. (#159); Dominion Resources, Inc. (#210); CarMax (#259); Genworth Financial, Inc. (#279); Owens & Minor, Inc. (#297) and MeadWestvaco Corp. (#448). According to Claritas, the population and average household income within the Metro Richmond area are 1,298,722 and $74,892, respectively, with population growth from 2014-2019 estimated to be 0.86%. The 2014 median value of all owner-occupied housing units is $213,853 with 36.8% of households earning more than $75,000 in annual income.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 2 Wilton Commercial Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 67.1% 1.55x 10.7% |
Cash Flow Analysis.
Cash Flow Analysis | |||||||
2011 | 2012 | 2013 | T-12 5/31/2014 | U/W | U/W PSF | ||
Base Rent | $17,022,353 | $17,028,410 | $17,539,894 | $17,734,946 | $18,482,696 | $9.10 | |
Vacancy Gross Up | 0 | 0 | 0 | 0 | 2,941,309 | 1.45 | |
Rent Steps | 0 | 0 | 0 | 0 | 292,173 | 0.14 | |
Gross Potential Rent | $17,022,353 | $17,028,410 | $17,539,894 | $17,734,946 | $21,716,178 | $10.69 | |
Total Recoveries | 2,531,909 | 2,362,965 | 2,635,095 | 2,555,307 | 3,257,166 | 1.60 | |
Total Other Income | 139,781 | 132,239 | 105,670 | 125,825 | 125,825 | 0.06 | |
Less: Vacancy(1) | (133,152) | (136,248) | (109,740) | (57,372) | (3,385,953) | (1.67) | |
Effective Gross Income | $19,560,891 | $19,387,366 | $20,170,919 | $20,358,706 | $21,713,215 | $10.69 | |
Total Operating Expenses | 4,602,857 | 4,853,751 | 5,020,880 | 5,242,258 | 5,381,303 | 2.65 | |
Net Operating Income(2) | $14,958,035 | $14,533,615 | $15,150,039 | $15,116,448 | $16,331,912 | $8.04 | |
TI/LC | 101,728 | 106,027 | 102,779 | 92,364 | 1,052,616 | 0.52 | |
Capital Expenditures | 79,776 | 63,357 | 51,076 | 112,976 | 403,352 | 0.20 | |
Net Cash Flow | $14,776,531 | $14,364,231 | $14,996,184 | $14,911,108 | $14,875,944 | $7.32 |
(1) | U/W vacancy represents 13.5% of gross income. The Wilton Commercial Portfolio Properties were 87.1% occupied as of May 31, 2014 through September 1, 2014. |
(2) | Primary factors for increases from T-12 Net Operating Income to U/W Net Operating Income include underwritten reimbursements grossed up for 100.0% occupancy and significant 2014 snow removal expense which has yet to be reconciled in the T-12 reimbursements. |
Property Management. The properties that are located in Virginia are managed by Wilton Realty, LLC., a borrower affiliate, and the one property that is located in North Carolina is managed by Landmark Property Services, Inc., an unaffiliated property manager.
Lockbox / Cash Management. The Wilton Commercial Portfolio Loan is structured with a soft springing hard lockbox and springing cash management. Funds deposited into the clearing account are swept on a daily basis into the borrowers’ operating account, unless a Trigger Event (as defined below) has occurred, in which event such funds will be swept on a daily basis into a cash management account under the control of the lender and disbursed in accordance with the Wilton Commercial Portfolio Loan documents.
A “Trigger Event” will commence after the occurrence of (i) an event of default, (ii) a Grocery Sweep Event (as defined below) or (iii) when the DSCR for the trailing 12-month period is less than 1.05x. A Trigger Event will be cured upon (x) with respect to clause (i), if the event of default has been cured, (y) with respect to clause (ii), upon a Grocery Sweep Event Cure (as defined in the Wilton Commercial Portfolio Loan documents) or (z) with respect to clause (iii), if the DSCR is at least 1.20x for two consecutive calendar quarters.
A “Grocery Sweep Event” will commence if any grocery tenant at the Hanover Commons property, the John Rolfe Commons property, the Montpelier Shopping Center property, The Shoppes at Crossridge property or the Tuckahoe Village Shopping Center property, either (a) becomes the subject of a bankruptcy action, (b) vacates or ceases to operate in a significant portion of its premises, or (c) delivers written notice of its intention to vacate its space or delivers a written non-renewal notice, then the lender will sweep the respective pre-determined amount of cash into a “Grocery Reserve” as follows:
Hanover Commons Shopping Center - $250,008 per annum, swept on a monthly basis - Food Lion
Tuckahoe Village Shopping Center - $485,004 per annum, swept on a monthly basis - Food Lion
John Rolfe Commons - $750,000 per annum, swept on a monthly basis - Martin's
The Shoppes at Crossridge - $300,000 per annum, swept on a monthly basis - Martin's
Montpelier Shopping Center - $280,008 per annum, swept on a monthly basis - Food Lion
The swept amounts may be used for retenanting costs associated with any such tenant. Upon retenanting of such space, any excess funds will be swept into the TI/LC reserve subject to a $1,000,000 cap.
Initial Reserves. At closing, the borrowers deposited (i) $651,126 into a tax reserve account, (ii) $147,556 into an insurance reserve account, (iii) $1,000,000 into a TI/LC reserve account, (iv) $500,000 into a leasing reserve account for the newly constructed Atlee Business Center V & VI property, (v) $134,676 into a Humana TI reserve account, (vi) $770,572 into a required repairs reserve account and (vii) $84,375 into an environmental reserve account.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 2 Wilton Commercial Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 67.1% 1.55x 10.7% |
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 $130,225, into a tax reserve account, (ii) 1/12 of the estimated annual insurance premiums, which currently equates to $16,395, into an insurance reserve account (iii) $83,659 into a TI/LC reserve account if the amount in the TI/LC reserve account falls below $1.0 million until the cap of $1.0 million is met and (iv) $31,790 into a replacement reserve account.
Current Mezzanine or Subordinate Indebtedness. None.
Future Mezzanine or Subordinate Indebtedness Permitted. None.
Partial Release. None.
Substitution. None.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 2 Wilton Commercial Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $120,000,000 67.1% 1.55x 10.7% |
![(MAP)](https://capedge.com/proxy/FWP/0001539497-14-001101/img005_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
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80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
![(PICTURE)](https://capedge.com/proxy/FWP/0001539497-14-001101/img006_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
Mortgage Loan Information | |
Loan Seller: | CCRE |
Loan Purpose: | Recapitalization |
Sponsor: | Robert Wolf; Paul Wasserman; Normandy Real Estate Fund III, LP |
Borrower: | W 80 Maiden Owner LLC; NK 80 Maiden Owner, LLC; Wassco LLC |
Original Balance(1): | $90,000,000 |
Cut-off Date Balance(1): | $90,000,000 |
% by Initial UPB: | 7.3% |
Interest Rate: | 4.2645% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 6, 2019 |
Amortization: | Interest Only |
Additional Debt(1): | $55,000,000 Pari Passu Debt |
Call Protection(2): | L(24), D(32), O(4) |
Lockbox / Cash Management: | Springing Hard / Springing |
Reserves(3) | ||
Initial | Monthly | |
Taxes: | $872,250 | $290,750 |
Insurance: | $185,141 | $15,428 |
Replacement: | $0 | $6,901 |
TI/LC: | $0 | $46,005 |
Required Repairs: | $312,500 | NAP |
Recent Leasing(4): | $1,805,502 | $0 |
Financial Information(5) | ||
Cut-off Date Balance / Sq. Ft.: | $263 | |
Balloon Balance / Sq. Ft.: | $263 | |
Cut-off Date LTV: | 61.7% | |
Balloon LTV: | 61.7% | |
Underwritten NOI DSCR(6): | 1.83x | |
Underwritten NCF DSCR(6): | 1.73x | |
Underwritten NOI Debt Yield: | 7.9% | |
Underwritten NCF Debt Yield: | 7.5% | |
Underwritten NOI Debt Yield at Balloon: | 7.9% | |
Underwritten NCF Debt Yield at Balloon: | 7.5% |
Property Information | |
Single Asset / Portfolio: | Single Asset |
Property Type(7): | CBD Office |
Collateral: | Fee Simple |
Location: | New York, NY |
Year Built / Renovated: | 1810, 1912 / 1986, 1988, 2004, 2013 |
Total Sq. Ft.(7): | 552,064 |
Property Management: | WNK Maiden Management LLC |
Underwritten NOI(8): | $11,457,970 |
Underwritten NCF: | $10,823,096 |
Appraised Value: | $235,000,000 |
Appraisal Date: | July 1, 2014 |
Historical NOI(8) | |
2013 NOI: | $7,773,405 (December 31, 2013) |
2012 NOI: | $10,967,477 (December 31, 2012) |
2011 NOI: | $9,977,116 (December 31, 2011) |
Historical Occupancy | |
Most Recent Occupancy: | 94.1% (April 30, 2014) |
2013 Occupancy: | 95.1% (December 31, 2013) |
2012 Occupancy: | 99.0% (December 31, 2012) |
2011 Occupancy: | 99.0% (December 31, 2011) |
(1) | The Original Balance and Cut-off Date Balance of $90.0 million represent the controlling Note A-1 of a $145.0 million whole loan (the “80 and 90 Maiden Lane Loan Combination”) evidenced by two pari passu notes. The pari passu companion loan is expected to be the non-controlling Note A-2 with an original principal amount of $55.0 million, which is expected to be included in a future securitization. |
(2) | The lockout period will be at least 24 payment dates beginning with and including the first payment date of October 6, 2014. Prepayment of the full 80 and 90 Maiden Lane Loan Combination is permitted after the date that is the earlier to occur of (i) two years after the closing date of the securitization that includes the last pari passu note to be securitized, and (ii) October 6, 2017. The assumed lockout period of 24 months is based on the expected COMM 2014-LC17 securitization closing date in September 2014. The actual lockout period may be longer. |
(3) | See “Initial Reserves” and “Ongoing Reserves” herein. |
(4) | The Recent Leasing reserve represents $1,100,000 of tenant improvements for NYC DOI, $60,049 of tenant improvements for United Cerebral Palsy and $645,453 in free rent associated with NYC DOI. |
(5) | DSCR, LTV, Debt Yield and Balance / Sq. Ft. calculations are based on the aggregate 80 and 90 Maiden Lane Loan Combination. |
(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 are 1.34x and 1.26x, respectively. |
(7) | The 80 and 90 Maiden Lane Property has 29,146 sq. ft. of retail space (5.3% of NRA) leased to eight tenants. |
(8) | The decrease in NOI from 2012 to 2013 and the subsequent increase to Underwritten NOI was primarily due to two major tenants, SUNY and Met Council, vacating the 80 and 90 Maiden Lane Property. These two spaces were re-leased to Catholic Charities of NY in November 2013 and Accion East in March 2013. Additionally, since 2013, 14 tenants totaling 102,259 sq. ft. have either executed new leases or expanded their current space at the 80 and 90 Maiden Lane Property. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
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 | ||||||||||||
Office Tenants | ||||||||||||||||||
NY Dept of Investigation(2) | AA/Aa2/AA | 107,668 | 19.5 | % | $33.79 | 21.1 | % | 7/31/2025 | ||||||||||
Office of Children & Family Services(3) | AA/Aa2/AA | 45,924 | 8.3 | % | $30.70 | 8.2 | % | 12/31/2015 | ||||||||||
United Cerebral Palsy | NR/NR/NR | 30,121 | 5.5 | % | $30.82 | 5.4 | % | 8/31/2023 | ||||||||||
NYC Dept of Education(4) | AA/Aa2/AA | 26,474 | 4.8 | % | $39.41 | 6.1 | % | 7/31/2020 | ||||||||||
Catholic Charities of NY(5) | NR/NR/NR | 26,438 | 4.8 | % | $27.39 | 4.2 | % | 4/30/2029 | ||||||||||
Total Major Office Tenants | 236,625 | 42.9 | % | $32.73 | 45.0 | % | ||||||||||||
Remaining Office Tenants | 253,615 | 45.9 | % | $31.14 | 45.9 | % | ||||||||||||
Total Occupied Office Tenants | 490,240 | 88.8 | % | $31.91 | 90.9 | % | ||||||||||||
Vacant Office | 32,678 | 5.9 | % | |||||||||||||||
Total Office | 522,918 | 94.7 | % | |||||||||||||||
Retail Tenants | ||||||||||||||||||
Duane Reade | NR/Baa1/BBB | 7,530 | 1.4 | % | $49.01 | 2.1 | % | 7/31/2017 | ||||||||||
Gristedes Foods Inc. | NR/NR/NR | 7,500 | 1.4 | % | $69.00 | 3.0 | % | 9/30/2027 | ||||||||||
Mala Dees Stores | NR/NR/NR | 3,440 | 0.6 | % | $39.56 | 0.8 | % | 5/31/2019 | ||||||||||
Gerasimos Inc. | NR/NR/NR | 3,300 | 0.6 | % | $29.53 | 0.6 | % | 8/31/2019 | ||||||||||
Jersey Mikes | NR/NR/NR | 3,200 | 0.6 | % | $100.00 | 1.9 | % | 7/31/2023 | ||||||||||
Total Major Retail Tenants | 24,970 | 4.5 | % | $57.67 | 8.4 | % | ||||||||||||
Remaining Retail Tenants | 4,176 | 0.8 | % | $31.95 | 0.8 | % | ||||||||||||
Total Occupied Retail Tenants | 29,146 | 5.3 | % | $53.99 | 9.1 | % | ||||||||||||
Vacant Retail | 0 | 0.0 | % | |||||||||||||||
Total Retail | 29,146 | 5.3 | % | |||||||||||||||
Total | 552,064 | 100.0 | % | |||||||||||||||
(1) | Certain ratings are those of the parent company whether or not the parent company guarantees the lease. |
(2) | NY Dept of Investigation (“NYC DOI”) has a one-time right to terminate its expansion space lease for 7,693 sq. ft. on the 14th floor on June 30, 2016 with at least six months prior notice and payment of $60,996. On June 30, 2022, NYC DOI may freely release the 14th floor at no cost with at least six months prior notice. NY Dept of Investigation has the right to terminate its expansion space lease upon borrowers’ failure to complete the required work at this space. The borrowers have notice and cure rights prior to a termination of the expansion space. All costs associated with such tenant improvement work have been reserved with lender. The 80 and 90 Maiden Lane Loan is structured with an excess cash flow sweep upon certain triggers related to the NYC DOI tenant. See “Lockbox / Cash Management” herein. |
(3) | The Office of Children & Family Services has the right to freely terminate 3,942 sq. ft. of its space on the fourth floor with at least six months prior notice. Additionally, the Office of Children & Family Services is permitted to terminate its lease at any time its government appropriations are not available or allocated for lease obligations. The Office of Children & Family Services has one, 5-year renewal option. |
(4) | The NYC Dept of Education can freely terminate its lease with 180 days prior notice. |
(5) | Catholic Charities of NY has one, 5-year renewal option. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
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 | (2) | 0 | 12,220 | 2.2 | % | 12,220 | 2.2 | % | $0.00 | 0.0 | % | 0.0 | % | |||||||||||||||||||
2014 | 4 | 9,037 | 1.6 | % | 21,257 | 3.9 | % | $36.57 | 1.9 | % | 1.9 | % | ||||||||||||||||||||
2015 | 9 | 78,735 | 14.3 | % | 99,992 | 18.1 | % | $33.61 | 15.4 | % | 17.3 | % | ||||||||||||||||||||
2016 | 8 | 55,723 | 10.1 | % | 155,715 | 28.2 | % | $29.82 | 9.7 | % | 26.9 | % | ||||||||||||||||||||
2017 | 14 | 59,825 | 10.8 | % | 215,540 | 39.0 | % | $33.22 | 11.5 | % | 38.5 | % | ||||||||||||||||||||
2018 | 4 | 9,016 | 1.6 | % | 224,556 | 40.7 | % | $39.93 | 2.1 | % | 40.6 | % | ||||||||||||||||||||
2019 | 6 | 22,658 | 4.1 | % | 247,214 | 44.8 | % | $35.79 | 4.7 | % | 45.3 | % | ||||||||||||||||||||
2020 | 4 | 42,674 | 7.7 | % | 289,888 | 52.5 | % | $36.07 | 8.9 | % | 54.2 | % | ||||||||||||||||||||
2021 | 3 | 17,187 | 3.1 | % | 307,075 | 55.6 | % | $32.60 | 3.3 | % | 57.5 | % | ||||||||||||||||||||
2022 | 3 | 8,988 | 1.6 | % | 316,063 | 57.3 | % | $31.56 | 1.6 | % | 59.1 | % | ||||||||||||||||||||
2023 | 6 | 54189 | 9.8 | % | 370,252 | 67.1 | % | $35.36 | 11.1 | % | 70.3 | % | ||||||||||||||||||||
2024 | 1 | 7,528 | 1.4 | % | 377,780 | 68.4 | % | $31.93 | 1.4 | % | 71.7 | % | ||||||||||||||||||||
Thereafter | 3 | 141,606 | 25.7 | % | 519,386 | 94.1 | % | $34.46 | 28.3 | % | 100.0 | % | ||||||||||||||||||||
Vacant | NAP | 32,678 | 5.9 | % | 552,064 | 100.0 | % | NAP | NAP | |||||||||||||||||||||||
Total / Wtd. Avg. | 65 | 552,064 | 100.0 | % | $33.15 | 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) | The space at the 80 and 90 Maiden Lane Property classified as MTM is owner occupied basement space by A.M. Property Holding Corporation. |
The Loan. The 80 and 90 Maiden Lane loan (the “80 and 90 Maiden Lane Loan”) consists of the controlling Note A-1 in the original principal amount of $90.0 million of a fixed rate whole loan in the aggregate original principal amount of $145.0 million (the “80 and 90 Maiden Lane Loan Combination”). The 80 and 90 Maiden Lane Loan Combination is secured by the borrowers’ fee simple interest in two adjacent office buildings totaling 552,064 sq. ft., located at 80 and 90 Maiden Lane, New York City on Maiden Lane between Pearl and William Streets (the “80 and 90 Maiden Lane Property”). Only the controlling Note A-1 will be included in the COMM 2014-LC17 trust. The non-controlling Note A-2, with an original principal balance of $55.0 million, is expected to be securitized in an upcoming securitization. The 80 and 90 Maiden Lane Loan has a five-year term and interest only payments for the term of the loan. The 80 and 90 Maiden Lane Loan accrues interest at a fixed rate equal to 4.2645% and has a cut-off date balance of $90.0 million. As part of the transaction, a joint venture between Normandy Real Estate Fund III, LP and Kushner Companies (the “Normandy JV”) purchased a 40.5% interest in the 80 and 90 Maiden Lane Property. The proceeds of the 80 and 90 Maiden Lane Loan Combination along with approximately $30.8 million of new cash equity from the Normandy JV were used to retire existing debt of approximately $85.6 million, buyout a partner and restructure the sponsorship, cover closing costs, pay reserves and return approximately $25.3 million of equity to Paul Wasserman and Robert Wolf. Based on the appraised value of $235.0 million as of July 1, 2014, the cut-off date LTV is 61.7% with remaining implied equity of $90.0 million. The most recent prior financing of the 80 and 90 Maiden Lane Property was included in the CSFB 2005-C3 transaction.
The relationship between the holders of the Note A-1 and the Note A-2 will be governed by a co-lender agreement as described under “Description of the Mortgage Pool—Loan Combinations—The 80 and 90 Maiden Lane Loan Combination” in the Free Writing Prospectus.
Pari Passu Note Summary | ||||||
Original Balance | Cut-off Date Balance | Note Holder | Controlling Piece | |||
Note A-1 | $90,000,000 | $90,000,000 | COMM 2014-LC17 | Yes | ||
Note A-2 | $55,000,000 | $55,000,000 | CCRE | No | ||
Total | $145,000,000 | $145,000,000 |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
Sources and Uses | ||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | |
Loan Amount | $145,000,000 | 82.5% | Loan Payoff | $85,628,647 | 48.7% | |
New Cash Equity | $30,795,329 | 17.5% | Closing Costs | $11,051,679 | 6.3% | |
Reserves | $3,175,393 | 1.8% | ||||
Partnership Buyout | $50,678,780 | 28.8% | ||||
Return of Equity(1) | $25,260,829 | 14.4% | ||||
Total Sources | $175,795,329 | 100.0% | Total Uses | $175,795,329 | 100.0% |
(1) | As part of the transaction, a joint venture between Normandy Real Estate Fund III, LP and Kushner Companies purchased a 40.5% interest in the 80 and 90 Maiden Lane Property. |
The Borrower / Sponsor. The borrowers are W 80 Maiden Owner LLC, NK 80 Maiden Owner, LLC and Wassco LLC as tenants in common. The sponsors of the borrowers and the non-recourse carveout guarantors are Normandy Real Estate Fund III, LP and Paul Wasserman, on a joint and several basis, and Robert Wolf (only with respect to acts, events or matters that relate to W 80 Maiden Owner LLC). Each borrower is a single purpose Delaware limited liability company structured to be bankruptcy-remote, with two independent directors in its organizational structure. In addition to the non-recourse carveouts, the guarantors guaranteed payment under certain leases. For additional information, see “Risk Factors—Risks Related to the Mortgage Loans—Risks Related to Loan Sponsor Guaranties” in the free writing prospectus.
Normandy Real Estate Fund III, LP is an investment fund operated by Normandy Real Estate Partners (“Normandy”). Normandy was founded in 2002 and is headquartered in Morristown, New Jersey. Normandy has acquired or developed over 25.0 million sq. ft. of commercial space, 2,500 residential units, 1,100 hotel rooms, and numerous land development sites across the Northeast and Mid-Atlantic region through various funds. Normandy currently has over 110 employees, and manages approximately $1.5 billion of equity capital and 15.5 million sq. ft. of commercial space.
Paul Wasserman is the managing partner of A.M. Property Holding Corporation, which currently operates approximately 2.5 million sq. ft. of real estate in Manhattan and Long Island.
Robert Wolf currently manages his family’s real estate holdings. Mr. Wolf currently has ownership interest in 18 commercial properties, 24 residential assets, five land sites, and two hotel assets valued at over $2 billion.
The Property. The 80 and 90 Maiden Lane Property is comprised of two adjacent landmarked office buildings, 80 Maiden Lane, a 25-story office building that was built in 1912 and having recent renovations in 2004 and 2013, and 90 Maiden Lane, a four-story office property built in 1810 and having recent renovations in 2004 and 2013. The 80 and 90 Maiden Lane Property totals 552,064 sq. ft. and is comprised of 522,918 sq. ft. of office space and 29,146 sq. ft. of retail space. As of April 30, 2014, the office space (90.9% of U/W Base Rent) was approximately 93.8% occupied and the retail space (9.1% of U/W Base Rent) was 100.0% occupied. The 80 and 90 Maiden Lane Property is 34.0% leased (by NRA) to investment grade tenants. Office floor plates in the 80 Maiden Lane building are between 20,000 sq. ft. and 21,000 sq. ft. and are serviced by 12 passenger elevators and two freight elevators. Office floor plates in the 90 Maiden Lane building are 6,686 sq. ft. and are serviced by one passenger elevator and one freight elevator. The 80 and 90 Maiden Lane Property has experienced significant recent leasing activity, with 20 tenants either signing new leases, renewing their leases or extending their leases since 2012.
The 80 and 90 Maiden Lane Property is located in the Insurance District of Downtown Manhattan, between William and Pearl Streets. The Insurance District is located north of the Financial East District and east of the World Trade Center District. The 80 and 90 Maiden Lane Property is located proximate to multiple subway stations that service the 2, 3, J, Z, 5 and 6 trains with access to both Grand Central Terminal and Penn Station. Additionally, the 80 and 90 Maiden Lane Property is in close proximity to the Pier 11 Ferry Terminal.
Environmental Matters. The Phase I environmental report dated July 21, 2014 recommended the development and implementation of an asbestos operation and maintenance plan at the 80 and 90 Maiden Lane Property, which is currently in place.
Major Tenants.
NY Dept of Investigation (107,668 sq. ft.; 19.5% of NRA; 21.1% of U/W Base Rent) The NY Dept of Investigation (“NYC DOI”) (rated AA/Aa2/AA by Fitch/Moody’s/S&P) was founded in the 1870s, and is one of the oldest law-enforcement agencies in the country. The NYC DOI serves the Mayor and the people of New York City as an independent and nonpartisan watchdog for the New York City government. The NYC DOI has recently expanded at the 80 and 90 Maiden Lane Property with additional leases through July 2025,
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
and has been in occupancy at the 80 and 90 Maiden Lane Property since 1995. The NY Dept of Investigation lease is signed by The City of New York.
Office of Children & Family Services (45,924 sq. ft.; 8.3% of NRA; 8.2% of U/W Base Rent) The Office of Children & Family Services (rated AA/Aa2/AA by Fitch/Moody’s/S&P) is responsible for the oversight of protective services for adults, children and other adult services provided through the local departments of social services. The Office of Children & Family Services also provides information on adoption, day care, child protective service, and services for the blind and visually handicapped. The Office of Children & Family Services lease is signed by the State of New York.
United Cerebral Palsy (30,121 sq. ft.; 5.5% of NRA; 5.4% of U/W Base Rent) Founded in 1949, United Cerebral Palsy (“UCP”) is an international nonprofit charitable organization consisting of a network of nearly 100 affiliates. UCP provides direct services, technology and advocacy to more than 176,000 children and adults with cerebral palsy and other disabilities. United Cerebral Palsy of New York, in particular, offers more than 75 comprehensive programs including medical, clinical, education, technological, residential and rehabilitative services to over 14,000 New York City residents and families annually.
The Market.
Insurance District Office Submarket
The 80 and 90 Maiden Lane Property is located in the Insurance District office submarket of Downtown Manhattan, which is bound by Pine Street, William Street, Liberty Street, Broadway, Park Row and the Brooklyn Bridge. As of Q1 2014, the downtown Class B office market was comprised of 26,839,119 sq. ft. with a vacancy rate of 8.5% and an average rental rate of $39.58 PSF, while the Insurance District submarket was comprised of approximately 13.7 million sq. ft. with a vacancy rate of 12.5% and an average rental rate of $37.67. The downtown office market absorbed nearly 933,000 sq. ft. of space during Q1 2014 and has seen three consecutive quarters of positive absorption. The appraiser analyzed a set of ten comparable leases within the immediate competitive area of the 80 and 90 Maiden Lane Property and concluded an office market rent of $37.73 PSF. Underwritten weighted average office rents at the 80 and 90 Maiden Lane Property are currently $31.91 PSF, approximately 15.4% below the appraisal’s concluded office market rent. The chart below summarizes the comparable set as determined by the appraisal.
Comparable Set(1) | |||||||||||||
Building | Tenant | Leased Area (Sq. Ft.) | Initial Rent PSF | Lease Commencement Date | Lease Term (yrs) | ||||||||
80 and 90 Maiden Lane Property | Various | 552,064 | $31.91 | Various | Various | ||||||||
75 Broad Street | Blue Engine, Inc. | 5,850 | $40.00 | Jun-2014 | 7 | ||||||||
75 Broad Street | Cooper Carry | 4,174 | $37.00 | May-2014 | 7 | ||||||||
100 Broadway | Parson’s Corporation | 17,392 | $40.00 | May-2014 | 6 | ||||||||
123 William Street | Sumall | 12,658 | $44.00 | Apr-2014 | 10 | ||||||||
60 Broad Street | XenoPsi Media | 12,820 | $40.00 | Apr-2014 | 13 | ||||||||
123 William Street | Dept. of Citywide Admin. Services | 16,161 | $41.34 | Apr-2014 | 15 | ||||||||
50 Broad Street | Man Made Music | 10,629 | $39.00 | Mar-2014 | 13 | ||||||||
25 Broad Street | Teach For America | 172,775 | $31.00 | Feb-2014 | 18 | ||||||||
40 Wall Street | Hadassah | 46,175 | $34.00 | Feb-2014 | 20 | ||||||||
80 Broad Street | Mekanism | 10,110 | $40.00 | Feb-2014 | 10 | ||||||||
Total / Wtd. Avg.(2) | 308,744 | $34.23 | 16.14 |
(1) | Source: Appraisal |
(2) | Total / Wtd. Avg. excludes the 80 and 90 Maiden Lane Property. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
The appraiser additionally analyzed a set of eight office competitive properties within the immediate area of the 80 and 90 Maiden Lane Property and concluded a market occupancy of 94.4%, in-line with the current physical occupancy at the 80 and 90 Maiden Lane Property as of April 30, 2014 of 94.1% The chart below summarizes the competitive set as determined by the appraisal.
Competitive Set(1) | ||||||||||||
Building | Leased Area (Sq. Ft.) | Year Built / Renovated | Occupancy | |||||||||
80 and 90 Maiden Lane Property | 552,064 | 1810, 1912 / 1986, 1988, 2004, 2013 | 94.1 | %(2) | ||||||||
30 Broad Street | 346,900 | 1932/1985 | 90.5 | % | ||||||||
80 Broad Street | 352,000 | 1931/2007 | 88.5 | % | ||||||||
100 Broadway | 304,538 | 1922/1998 | 97.2 | % | ||||||||
111 Broadway | 427,598 | 1905/1989 | 98.1 | % | ||||||||
115 Broadway | 409,596 | 1907/NAV | 85.7 | % | ||||||||
120 Broadway | 1,916,700 | 1915/NAV | 94.7 | % | ||||||||
59 Maiden Lane | 1,043,007 | 1965/NAV | 100.0 | % | ||||||||
83 Maiden Lane | 135,955 | 1958/1987 | 80.6 | % | ||||||||
Total / Wtd. Avg.(3) | 4,936,294 | 94.4 | % | |||||||||
(1) Source: Appraisal. | ||||||||||||
(2) As of April 30, 2014. | ||||||||||||
(3) Total / Wtd. Avg. excludes the 80 and 90 Maiden Lane Property. |
Insurance District Retail Submarket
The 80 and 90 Maiden Lane Property is located in the Insurance District retail submarket within Downtown Manhattan. As of Q1 2014, the downtown retail market has seen the most leasing activity since Q1 2004, with over 1.7 million sq. ft. of absorption. The appraiser analyzed a set of six comparable leases and concluded a weighted average retail market rent of $89.33 PSF. Underwritten weighted average retail rents at the 80 and 90 Maiden Lane Property are currently $53.99 PSF, approximately 39.6% below the appraiser’s concluded weighted average retail market rent.
Cash Flow Analysis.
Cash Flow Analysis | |||||
2011 | 2012 | 2013 | U/W | U/W PSF | |
Base Rent(1) | $15,755,676 | $16,573,901 | $14,343,375 | $17,215,796 | $31.18 |
Value of Vacant Space | 0 | 0 | 0 | 1,176,408 | 2.13 |
Gross Potential Rent | $15,755,676 | $16,573,901 | $14,343,375 | $18,392,204 | $33.32 |
Total Recoveries(2) | 1,432,590 | 1,477,474 | 1,451,554 | 2,009,687 | 3.64 |
Total % Rents | 0 | 0 | 0 | 0 | 0.00 |
Total Other Income | 0 | 0 | 0 | 0 | 0.00 |
Less: Vacancy(3) | 0 | 0 | 0 | (1,176,408) | (2.13) |
Effective Gross Income | $17,188,266 | $18,051,375 | $15,794,929 | $19,225,483 | $34.82 |
Total Operating Expenses(4) | 7,211,150 | 7,083,898 | 8,021,524 | 7,767,513 | 14.07 |
Net Operating Income | $9,977,116 | $10,967,477 | $7,773,405 | $11,457,970 | $20.75 |
TI/LC | 0 | 0 | 0 | 552,064 | 1.00 |
Capital Expenditures | 0 | 0 | 0 | 82,810 | 0.15 |
Net Cash Flow | $9,977,116 | $10,967,477 | $7,773,405 | $10,823,096 | $19.60 |
(1) | U/W Base Rent includes $1,402,249 of contractual rent increases through July 2015 and rent averaging for credit tenants with lease expirations beyond the maturity of the 80 and 90 Maiden Lane Loan. Additionally, since 2013, 14 tenants totaling 102,259 sq. ft. have either executed new leases or expanded their current space at the 80 and 90 Maiden Lane Property. |
(2) | The increase in Total Recoveries from 2013 to U/W is primarily due to the recent leasing activity noted in Footnote (1) above. |
(3) | U/W Vacancy is based on the current economic vacancy of 5.8%, above the appraisers concluded vacancy of 5.6%. |
(4) | 2013 Total Operating Expenses include one-time costs related to Hurricane Sandy. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
Property Management. The 80 and 90 Maiden Lane Property is managed by WNK Maiden Management LLC, an affiliate of the borrowers.
Lockbox / Cash Management. The 80 and 90 Maiden Lane Loan is structured with a springing hard lockbox and springing cash management. Upon the first occurrence of a Cash Management Period (as defined below), the borrowers are required to instruct all tenants to deposit all rents and other payments into the lockbox account controlled by the lender during the continuance of a Cash Management Period. During the continuance of any Cash Management Period, all funds in the lockbox account are swept daily to a lender controlled cash management account and disbursed in accordance with the 80 and 90 Maiden Lane Loan documents, with all excess cash flow deposited into a lender controlled cash collateral account.
A “Cash Management Period” will occur upon the occurrence of a Cash Trap Period.
A “Cash Trap Period” will occur upon (i) an event of default, (ii) the failure of the borrowers after the end of two consecutive calendar quarters to maintain a debt service coverage ratio (based on the interest only payments over the trailing 12 calendar months) of at least 1.05x, until the debt service coverage ratio after the end of two consecutive calendar quarters (based on the interest only payments over the trailing 12 calendar months) is at least equal to 1.10x, and (iii) the commencement of a NYC DOI Cash Trap Period (as defined below).
A “NYC DOI Cash Trap Period” will occur upon (i) NYC DOI delivering written notice to terminate, surrender or cancel its lease or any portion of its space in excess of 45,000 sq. ft., or otherwise vacating, surrendering or terminating all or any portion of its space in excess of 45,000 sq. ft. or (ii) the date upon which NYC DOI delivers written notice to terminate, surrender or cancel its lease based on (x) the borrowers failing to commence the existing tenant improvement work or (y) the borrowers failing to perform their obligations related to the build-out of the existing demised premises.
Initial Reserves. At closing, the borrowers deposited (i) $872,250 into a tax reserve account, (ii) $185,141 into an insurance reserve account, (iii) $1,100,000 into a NYC DOI TI reserve account, (iv) $60,049 into a United Cerebral Palsy TI reserve account, (v) $645,453 into a free rent reserve account for rent associated with the NYC DOI and (vi) $312,500 into a required repairs account for an emergency generator, which represents approximately 125% of the engineer’s estimated cost of the required repairs.
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 $290,750, into a tax reserve account, (ii) 1/12 of the annual insurance premiums, which currently equates to $15,428, into an insurance reserve account (iii) $46,005 into a TI/LC reserve account, subject to a cap of $2,000,000 and (iii) $6,901 ($0.15 PSF annually) into a capital expenditure reserve account, subject to a cap of $300,000.
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 Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
![(PICTURE)](https://capedge.com/proxy/FWP/0001539497-14-001101/img007_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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80 and 90 Maiden Lane New York, NY 10038 | Collateral Asset Summary – Loan No. 3 80 and 90 Maiden Lane | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $90,000,000 61.7% 1.73x 7.9% |
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The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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8400 Costa Verda Drive Myrtle Beach, SC 29572 | Collateral Asset Summary – Loan No. 4 Myrtle Beach Marriott Resort & Spa | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $54,936,521 69.8% 1.62x 11.3% |
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The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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8400 Costa Verda Drive Myrtle Beach, SC 29572 | Collateral Asset Summary – Loan No. 4 Myrtle Beach Marriott Resort & Spa | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $54,936,521 69.8% 1.62x 11.3% |
Mortgage Loan Information | |
Loan Seller: | CCRE |
Loan Purpose: | Refinance |
Sponsor: | CSC Holdings, LLC; Columbia Sussex Corporation |
Borrower: | Columbia Properties Myrtle Beach, LLC |
Original Balance(1): | $55,000,000 |
Cut-off Date Balance(1): | $54,936,521 |
% by Initial UPB: | 4.4% |
Interest Rate: | 4.6425% |
Payment Date: | 6th of each month |
First Payment Date: | September 6, 2014 |
Maturity Date: | August 6, 2024 |
Amortization: | 360 months |
Additional Debt(1): | $60,929,596 Pari Passu Debt |
Call Protection(2): | L(25), D(91), O(4) |
Lockbox / Cash Management: | Hard / Springing |
Reserves(3) | ||
Initial | Monthly | |
Taxes: | $358,000 | $44,750 |
Insurance: | $178,397 | $37,080 |
FF&E: | $0 | 1/12 of 5.0% of such year’s gross income |
Required Repairs: | $15,625 | NAP |
Seasonality: | $1,184,000 | Springing |
PIP(4): | $0 | Springing |
Franchise Agreement(5): | $0 | Springing |
Financial Information(6) | ||
Cut-off Date Balance / Key: | $286,089 | |
Balloon Balance / Key: | $232,720 | |
Cut-off Date LTV: | 69.8% | |
Balloon LTV: | 56.8% | |
Underwritten NOI DSCR: | 1.82x | |
Underwritten NCF DSCR: | 1.62x | |
Underwritten NOI Debt Yield: | 11.3% | |
Underwritten NCF Debt Yield: | 10.0% | |
Underwritten Balloon NOI Debt Yield: | 13.9% | |
Underwritten Balloon NCF Debt Yield: | 12.4% |
Property Information | |
Single Asset / Portfolio: | Single Asset |
Property Type: | Full Service Hospitality |
Collateral: | Fee Simple |
Location: | Myrtle Beach, SC |
Year Built / Renovated: | 2003 / 2011 |
Total Keys: | 405 |
Property Management: | Columbia Sussex Management |
Underwritten NOI: | $13,065,127 |
Underwritten NCF: | $11,642,207 |
Appraised Value: | $166,000,000 |
Appraisal Date: | June 27, 2014 |
Historical NOI | |
Most Recent NOI: | $13,101,807 (T-12 June 30, 2014) |
2013 NOI: | $13,404,463 (December 31, 2013) |
2012 NOI: | $12,369,255 (December 31, 2012) |
2011 NOI: | $11,463,366 (December 31, 2011) |
2010 NOI: | $11,752,640 (December 31, 2010) |
Historical Occupancy | |
Most Recent Occupancy: | 68.1% (T-12 June 30, 2014) |
2013 Occupancy: | 67.6% (December 31, 2013) |
2012 Occupancy: | 63.7% (December 31, 2012) |
2011 Occupancy: | 63.0% (December 31, 2011) |
2010 Occupancy: | 65.3% (December 31, 2010) |
(1) | The Original Balance of $55,000,000 and Cut-off Date Balance of $54,936,521 represent the non-controlling Note A-2 of the $116.0 million of the Myrtle Beach Marriott Loan Combination evidenced by two pari passu notes. The pari passu companion loan is the controlling Note A-1 with an original principal balance of $61.0 million. For additional information on the pari passu companion loan, see “The Loan” herein. |
(2) | The lockout period will be at least 25 payment dates beginning with and including the first payment date of September 6, 2014. Prepayment of the full $116.0 million Myrtle Beach Marriott Loan Combination is permitted after the date that is earlier to occur of (i) two years after the closing date of the securitization that includes the last pari passu note to be securitized, and (ii) September 6, 2018. The assumed lockout period of 25 months is based on the expected COMM 2014-LC17 securitization closing date in September 2014. The actual lockout period may be longer. |
(3) | See “Initial Reserves” and “Ongoing Reserves” herein. |
(4) | The borrower will be required to deposit 110% of any property improvement plan required in connection with the current franchise agreement or a replacement franchise agreement, less the total of any amounts then on deposit in the FF&E reserve and the franchise agreement reserve. The Myrtle Beach Marriott Property’s current franchise agreement expires in August 2024. |
(5) | The borrower will be required to deposit excess cash flow into a franchise agreement reserve account if (i) as of any payment date, the franchise agreement has a remaining term of less than 12 months or has been terminated and (ii) the balance of the franchise agreement reserve account and the FF&E reserve account is collectively less than $4,050,000. See “Ongoing Reserves” herein. |
(6) | DSCR, LTV, Debt Yield and Balance / Key calculations are based on the aggregate Myrtle Beach Marriott Loan Combination. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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8400 Costa Verda Drive Myrtle Beach, SC 29572 | Collateral Asset Summary – Loan No. 4 Myrtle Beach Marriott Resort & Spa | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $54,936,521 69.8% 1.62x 11.3% |
The Loan. The Myrtle Beach Marriott Resort & Spa loan (the “Myrtle Beach Marriott Loan”) consists of the non-controlling Note A-2 in the original principal amount of $55.0 million of a fixed rate whole loan in the aggregate original principal amount of $116.0 million (the “Myrtle Beach Marriott Loan Combination”). The Myrtle Beach Marriott Loan Combination is secured by the borrower’s fee simple interest in a 405-key, full service, ocean-front luxury resort located in Myrtle Beach, South Carolina (the “Myrtle Beach Marriott Property”). The $116.0 million Myrtle Beach Marriott Loan Combination is evidenced by two pari passu notes. Only the non-controlling Note A-2, with an original principal balance of $55.0 million, will be included in the COMM 2014-LC17 mortgage trust. The controlling Note A-1, with an original principal balance of $61.0 million, is expected to be securitized in a future transaction. The Myrtle Beach Loan Combination has a 120-month term and amortizes on a 30-year schedule.
The Myrtle Beach Loan accrues interest at a fixed rate equal to 4.6425% and has a cut-off date balance of approximately $54.9 million. The proceeds of the Myrtle Beach Marriott Loan Combination were used to retire existing debt of approximately $74.3 million, fund upfront reserves of approximately $1.7 million, pay closing costs of approximately $0.5 million and return approximately $39.5 million of equity to the sponsors. Based on the appraised value of $166.0 million as of June 27, 2014, the cut-off date LTV of the Myrtle Beach Marriott Loan Combination is 69.8% with remaining implied equity of $50.0 million. The most recent prior financing of the Myrtle Beach Marriott Property was included in the JPMCC 2005-CB13 mortgage trust.
The relationship between the holders of the Note A-1 and Note A-2 is governed by an intercreditor agreement which is described under “Description of the Mortgage Pool—Loan Combinations—The Myrtle Beach Marriott Loan Combination” in the Free Writing Prospectus.
Pari Passu Note Summary | |||||
Original Balance | Cut-off Date Balance | Note Holder | Controlling Piece | ||
Note A-1 | $61,000,000 | $60,929,596 | CCRE | Yes | |
Note A-2 | $55,000,000 | $54,936,521 | COMM 2014-LC17 | No | |
Total Sources | $116,000,000 | $115,866,117 |
Sources and Uses | |||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | ||
Loan Amount | $116,000,000 | 100.0% | Loan Payoff | $74,297,689 | 64.0% | ||
Reserves | $1,736,022 | 1.5% | |||||
Closing Costs | $491,625 | 0.4% | |||||
Return of Equity | $39,474,665 | 34.0% | |||||
Total Sources | $116,000,000 | 100.0% | Total Uses | $116,000,000 | 100.0% |
The Borrower / Sponsor. The borrower, Columbia Properties Myrtle Beach, LLC, is a recycled single purpose Delaware limited liability company structured to be bankruptcy-remote with two independent directors in its organizational structure. The sponsors of the borrower and nonrecourse carve-out guarantors are CSC Holdings, LLC and Columbia Sussex Corporation, jointly and severally, (collectively, “Columbia Sussex”). Founded in 1972, Columbia Sussex is a privately-owned company specializing in owning and operating hospitality properties. Currently, the sponsors own and manage a $2.0 billion portfolio of 35 hospitality assets with the majority having Marriott flags.
Columbia Sussex developed the Myrtle Beach Marriott Property under Marriott’s flag in 2003. The franchise agreement is coterminous with the Myrtle Beach Marriott Loan.
The Property. The Myrtle Beach Marriott Property is a 15-story, 405-key full service luxury resort located directly on the beach in Myrtle Beach, South Carolina. Developed by the sponsors in 2003 and most recently renovated in 2011, the Myrtle Beach Marriott Property is comprised of three main buildings, which include the 15-story guestroom tower, a two-story public space building containing meeting space, food and beverage outlets and a spa, and a three-level parking garage offering approximately 562 spaces. The Myrtle Beach Marriott Property is situated in a larger complex that includes five additional towers containing over 370 Marriott Vacation Club timeshare units (non-collateral), which share amenities at the Myrtle Beach Marriott Property. The room mix at the Myrtle Beach Marriott Property consists of 255 double-bedded rooms, 142 king-bedded rooms and eight suites. The Myrtle Beach Marriott Property was strategically designed to provide nearly 75.0% of the guestrooms with ocean views. Guestrooms feature floor-to-ceiling windows, marble bathrooms, Bath & Body Works toiletries, mini-fridges, pillow top mattresses, HDTVs and complimentary wireless internet.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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8400 Costa Verda Drive Myrtle Beach, SC 29572 | Collateral Asset Summary – Loan No. 4 Myrtle Beach Marriott Resort & Spa | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $54,936,521 69.8% 1.62x 11.3% |
Amenities for the Myrtle Beach Marriott Property include four restaurants, a lobby lounge featuring a bar, a pool bar, three pools (two outdoor pools, one heated indoor pool), an outdoor waterslide, a full-service spa, a fitness center, a business center, on-site laundry and 11 meeting rooms offering approximately 45,000 sq. ft., including the 15,030 sq. ft. Atlantic Ballroom that can accommodate over 1,600 guests. Since developing the Myrtle Beach Marriott Property in 2003, the sponsors have invested approximately $2.7 million ($6,675 per key) in capital expenditures, including approximately $900,000 (2,222 per key) since 2011. Recent capital expenditures include guestroom soft goods, HDTVs, internet upgrade, lobby and restaurant renovations and cooling tower installations, among other things.
The Myrtle Beach Marriott Property is in the top 3.0% of all Marriott hotels in terms of the number of reward points redeemed to book rooms and is in the second highest tier of Marriott reward redemptions, which not only indicates high demand for the Myrtle Beach Marriott Property but also represents Marriott’s commitment to the franchise location. Based on a brand wide survey in July 2014, the Myrtle Beach Marriott ranked 8th and 13th out of 355 Marriott hotels in terms of overall staff service and overall customer satisfaction, respectively. Additional accolades include the “2013 AAA Four Diamond Award” and “TripAdvisor’s 2014 Certificate of Excellence”, a recognition given to only the top 10% of hotels on the website. Additionally, U.S. News & World Report ranked the Myrtle Beach Marriott Property as #1 out of over 400 hotels in Myrtle Beach in 2014.
Environmental Matters. The Phase I environmental report dated July 8, 2014 recommended no further action at the Myrtle Beach Marriott Property.
The Market. The Myrtle Beach Marriott Property is located in the ocean-front city of Myrtle Beach, which is situated on the center of a 60-mile continuous stretch of beach known as the Grand Strand in northeastern South Carolina. The Myrtle Beach area is a vacation destination with approximately 16.1 million visitors in 2013, a 5.9% increase since 2012. Since 2003, the estimated number of annual visitors has exceeded 12.8 million. From 2003 to 2013, the Myrtle Beach area experienced an annual growth rate of approximately 2.3%. In 2014, Myrtle Beach was ranked as the top summer destination by TripAdvisor, outperforming New York, Las Vegas, San Francisco, San Diego and Key West, among others. In July 2013, the Myrtle Beach Metropolitan Statistical Area was the 7th fastest growing metro area in the United States.
Primary access to the Myrtle Beach Marriott Property is provided by U.S. Route 17, which offers north/south travel along the Atlantic coast from Florida through Virginia. Additionally, the Myrtle Beach Marriott Property is located within 11.3 miles of the Myrtle Beach International Airport, which is served by seven airlines with non-stop service to over 25 cities, including Atlanta, Boston, Detroit, Fort Lauderdale, New York and Washington. In 2013, Myrtle Beach International Airport experienced an annual growth rate in traffic of 12.3%. In order to accommodate the increase in demand, Myrtle Beach International Airport opened a $118.0 million, 240,000 sq. ft. terminal in spring 2013 and has plans to complete a $20.0 million runway resurfacing project by spring 2015.
In addition to numerous on-site amenities, the Myrtle Beach Marriott Property is positioned near a number of notable attractions, including over 100 golf courses, numerous amusement parks, an aquarium, entertainment venues, retail developments and over 1,900 restaurants. Additionally, the Myrtle Beach Marriott Property is located within 6.7 miles of the Myrtle Beach Boardwalk. The Myrtle Beach Boardwalk was recognized as the #3 boardwalk in the United States by National Geographic in 2014 and as one of the best boardwalks in the United States by Travel + Leisure.
The Myrtle Beach hotel market contains approximately 89,000 hotel rooms spread across 460 hotels. The demand segmentation for the Myrtle Beach Marriott Property consists of 65% leisure, 30% meeting and group and 5% commercial. Historically, the Myrtle Beach Marriott Property has achieved a leisure penetration rate of 126%. According to the appraiser, the Myrtle Beach Marriott Property is the only AAA Four Diamond property in the market and has on average larger rooms than its competitors.
As of May 31, 2014, the Myrtle Beach Marriott Property was reported as having occupancy, ADR and RevPAR of 68.0%, $167.14 and $113.63, respectively. The Myrtle Beach Marriott Property reported penetration rates of 104.9%, 127.9% and 134.2% for occupancy, ADR and RevPAR, respectively. The competitive set includes Hilton Myrtle Beach Resort, Embassy Suites Myrtle Beach Oceanfront Resort and Sheraton Hotel Myrtle Beach Convention Center.
Historical Occupancy, ADR, RevPAR – Competitive Set(1) | |||||||||
Myrtle Beach Marriott Property | Competitive Set | Penetration Factor | |||||||
Year | Occupancy | ADR | RevPAR | Occupancy | ADR | RevPAR | Occupancy | ADR | RevPAR |
T-12 May 2014 | 68.0% | $167.14 | $113.63 | 64.8% | $130.73 | $84.69 | 104.9% | 127.9% | 134.2% |
T-12 May 2013 | 64.7% | $173.78 | $112.36 | 60.0% | $130.20 | $78.13 | 107.7% | 133.5% | 143.8% |
T-12 May 2012 | 63.3% | $168.64 | $106.70 | 60.3% | $128.11 | $77.27 | 104.9% | 131.6% | 138.1% |
(1) | Source: Hospitality research report. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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8400 Costa Verda Drive Myrtle Beach, SC 29572 | Collateral Asset Summary – Loan No. 4 Myrtle Beach Marriott Resort & Spa | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $54,936,521 69.8% 1.62x 11.3% |
Competitive Set(1) | ||||
Name | Myrtle Beach Marriott Property | Embassy Suites Myrtle Beach Oceanfront Resort | Sheraton Hotel Myrtle Beach Convention Center | Hilton Myrtle Beach Resort |
# of Rooms | 405 | 255 | 400 | 385 |
Location | Myrtle Beach, SC | Myrtle Beach, SC | Myrtle Beach, SC | Myrtle Beach, SC |
Year Opened | 2003 | 1987 | 2003 | 1974 |
Occupancy(2) | 68.0% | 70.0% | 60.0% | 62.0% |
ADR(2) | $167.14 | $160.00 | $125.00 | $113.00 |
RevPAR(2) | $113.63 | $112.00 | $75.00 | $70.06 |
Beachfront | Yes | Yes | No | Yes |
Restaurant | Yes | Yes | Yes | Yes |
Lounge | Yes | Yes | Yes | Yes |
Indoor Pool | Yes | Yes | Yes | Yes |
Outdoor Pool | Yes | Yes | No | Yes |
Fitness Center | Yes | Yes | Yes | Yes |
(1)�� | Source: Appraisal. |
(2) | Occupancy, ADR and RevPAR for the Myrtle Beach Marriott Property are as of T-12 May 2014 from a hospitality research report. Occupancy, ADR and RevPAR for the competitive set are 2013 annual estimated provided by the appraiser. |
Cash Flow Analysis.
Cash Flow Analysis | ||||||||
2011 | 2012 | 2013 | T-12 6/30/2014 | U/W | U/W per Room(1) | |||
Occupancy | 63.0% | 63.7% | 67.6% | 68.1% | 68.1% | |||
ADR | $160.93 | $175.83 | $174.00 | $172.39 | $172.39 | |||
RevPAR | $101.38 | $112.07 | $117.69 | $117.36 | $117.36 | |||
Room Revenue | $14,987,236 | $16,612,424 | $17,397,626 | $17,348,916 | $17,348,916 | $42,837 | ||
F&B Revenue | 8,779,212 | 8,597,032 | 9,617,501 | 9,314,159 | 9,314,159 | 22,998 | ||
Other Revenue(2) | 2,059,193 | 1,990,478 | 1,841,508 | 1,795,311 | 1,795,311 | 4,433 | ||
Total Revenue | $25,825,641 | $27,199,934 | $28,856,635 | $28,458,386 | $28,458,386 | $70,268 | ||
Operating Expenses | 7,757,053 | 8,002,775 | 8,338,321 | 8,357,792 | 8,357,792 | 20,637 | ||
Undistributed Expenses | 5,405,524 | 5,606,425 | 5,925,986 | 5,851,393 | 5,888,231 | 14,539 | ||
Gross Operating Profit | $12,663,064 | $13,590,734 | $14,592,328 | $14,249,201 | $14,212,362 | $35,092 | ||
Total Fixed Charges | 1,199,698 | 1,221,479 | 1,187,865 | 1,147,394 | 1,147,236 | 2,833 | ||
Net Operating Income | $11,463,366 | $12,369,255 | $13,404,463 | $13,101,807 | $13,065,127 | $32,260 | ||
FF&E | 0 | 0 | 0 | 0 | 1,422,919 | 3,513 | ||
Net Cash Flow | $11,463,366 | $12,369,255 | $13,404,463 | $13,101,807 | $11,642,207 | $28,746 |
(1) | U/W per Room is based on a total of 405 rooms. |
(2) | Other Revenue includes spa revenue, parking revenue and other miscellaneous items such as gift shop sales, a lease from Marriott Vacation Rental and beach chair rentals, among other things. |
Historical Revenue(1) | |||||||||
2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | T-12 6/30/2014 | |
Occupancy | 74.9% | 74.0% | 72.7% | 65.7% | 65.3% | 63.0% | 63.7% | 67.6% | 68.1% |
ADR | $144.71 | $157.06 | $157.64 | $154.12 | $155.25 | $160.93 | $175.83 | $174.00 | $172.39 |
RevPAR | $108.42 | $116.21 | $114.68 | $101.21 | $101.44 | $101.38 | $112.07 | $117.69 | $117.36 |
Revenue(2) | $28,394,000 | $30,187,000 | $31,126,000 | $26,559,000 | $26,812,000 | $25,825,641 | $27,199,934 | $28,856,635 | $28,458,386 |
NOI(2) | $11,839,180 | $12,426,390 | $14,463,220 | $12,276,230 | $11,752,640 | $11,463,366 | $12,369,255 | $13,404,463 | $13,101,807 |
(1) | Estimates as provided by borrower. |
(2) | The average Total Revenue and Net Operating Income since 2006 are approximately $28.2 million and $12.6 million, respectively. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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8400 Costa Verda Drive Myrtle Beach, SC 29572 | Collateral Asset Summary – Loan No. 4 Myrtle Beach Marriott Resort & Spa | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $54,936,521 69.8% 1.62x 11.3% |
Property Management. The Myrtle Beach Marriott Property is managed by Columbia Sussex Management, an affiliate of the borrower.
Lockbox / Cash Management. The Myrtle Beach Marriott Loan is structured with a hard lockbox and springing cash management. In place cash management is required upon (i) an event of default, (ii) a bankruptcy action of the borrower, the guarantor or the property manager, (iii) the failure of the borrower after the end of two consecutive calendar quarters to maintain a debt service coverage ratio of at least 1.25x until the debt service coverage ratio after the end of two consecutive calendar quarters is at least equal to 1.30x or (iv) 12 months prior to the expiration of the franchise agreement or if the franchise agreement has been terminated. A full excess cash sweep (“Cash Trap Period”) will occur upon the continuation of the events specified in clauses (i) and (ii) as well as the failure of the borrower after the end of two consecutive calendar quarters to maintain a debt service coverage ratio of at least 1.20x until the debt service coverage ratio after the end of two consecutive calendar quarters is at least 1.25x.
Initial Reserves. At closing, the borrower deposited (i) $358,000 into a tax reserve account, (ii) $178,397 into an insurance reserve account, (iii) $1,184,000 into a seasonality reserve account and (iv) $15,625 into a required repairs reserve account, which represents 125% of the engineer’s recommendation.
Ongoing Reserves. On a monthly basis, the borrower is required to make deposits of (i) 1/12 of the required annual taxes, which currently equates to $44,750, into a tax reserve account, (ii) 1/12 of the required insurance premiums, which currently equates to $37,080, into an insurance reserve account and (iii) 1/12 of 5.0% of such year���s gross income into a FF&E reserve account. Additionally, excess cash flow will be deposited into a franchise agreement reserve account if (i) as of any payment date, the franchise agreement has a remaining term of less than 12 months or has been terminated and (ii) the balance of the franchise agreement reserve account and FF&E reserve account is collectively less than $4,050,000. If any future PIP work is required by the current franchise agreement or a replacement franchise agreement, the borrower will deposit 110% of the estimated costs for any PIP less the amount then on deposit in the FF&E reserve account and the franchise agreement reserve account.
The borrower also deposited $900,000 into the seasonality reserve account on the payment date occurring in September 2014 and is required to deposit $250,000 on the payment date occurring in October 2014. Additionally, on each payment date occurring in July, August and September, to the extent that the balance of the seasonality reserve account is less than $2,334,000, the borrower is required to deposit (i) $778,000 if no Cash Trap Period is continuing or (ii) all excess cash flow if a Cash Trap Period is occurring.
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 Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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8400 Costa Verda Drive Myrtle Beach, SC 29572 | Collateral Asset Summary – Loan No. 4 Myrtle Beach Marriott Resort & Spa | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $54,936,521 69.8% 1.62x 11.3% |
![(MAP)](https://capedge.com/proxy/FWP/0001539497-14-001101/img010_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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90 Matawan Road Matawan, NJ 07747 | Collateral Asset Summary – Loan No. 5 Parkway 120 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $45,000,000 75.0% 1.36x 8.9% |
![(GRAPHIC)](https://capedge.com/proxy/FWP/0001539497-14-001101/img011_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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90 Matawan Road Matawan, NJ 07747 | Collateral Asset Summary – Loan No. 5 Parkway 120 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $45,000,000 75.0% 1.36x 8.9% |
Mortgage Loan Information | |
Loan Seller: | CCRE |
Loan Purpose: | Acquisition |
Sponsor: | Ephraim Hasenfeld; Jack Shalhon; GFT Properties, Inc. |
Borrower: | Hudson 90 Matawan LP; Matawan Parkway Investments LLC; GFT Matawan LLC |
Original Balance: | $45,000,000 |
Cut-off Date Balance: | $45,000,000 |
% by Initial UPB: | 3.6% |
Interest Rate: | 4.8000% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 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: | Hard / Springing |
Reserves(1) | ||
Initial | Monthly | |
Taxes: | $89,269 | $44,635 |
Insurance: | $12,552 | $6,276 |
Replacement: | $0 | $2,771 |
TI/LC(2): | $3,932,096 | Springing |
Required Repairs: | $32,188 | NAP |
Free Rent: | $413,977 | $0 |
Financial Information | ||
Cut-off Date Balance / Sq. Ft.: | $203 | |
Balloon Balance / Sq. Ft.: | $179 | |
Cut-off Date LTV: | 75.0% | |
Balloon LTV: | 66.1% | |
Underwritten NOI DSCR(3): | 1.42x | |
Underwritten NCF DSCR(3): | 1.36x | |
Underwritten NOI Debt Yield: | 8.9% | |
Underwritten NCF Debt Yield: | 8.6% | |
Underwritten NOI Debt Yield at Balloon: | 10.1% | |
Underwritten NCF Debt Yield at Balloon: | 9.7% |
Property Information | |
Single Asset / Portfolio: | Single Asset |
Property Type: | Suburban Office |
Collateral: | Fee Simple |
Location: | Matawan, NJ |
Year Built / Renovated: | 2001 / NAP |
Total Sq. Ft.: | 221,664 |
Property Management: | Vision Management LLC |
Underwritten NOI: | $4,009,938 |
Underwritten NCF: | $3,854,773 |
Appraised Value: | $60,000,000 |
Appraisal Date: | June 17, 2014 |
Historical NOI(4) | |
Most Recent NOI: | $3,016,996 (T-12 May 31, 2014) |
2013 NOI: | $2,732,001 (December 31, 2013) |
2012 NOI(5): | NAV |
2011 NOI(5): | NAV |
Historical Occupancy(4) | |
Most Recent Occupancy: | 100.0% (June 30, 2014) |
2013 Occupancy: | 86.2% (December 31, 2013) |
2012 Occupancy: | 80.0% (December 31, 2012) |
2011 Occupancy(5): | NAV |
(1) | See “Initial Reserves” and “Ongoing Reserves” herein. |
(2) | The TI/LC reserve account includes $2,000,000 for general future rollover and $1,932,096 for outstanding tenant improvement and leasing commissions owed for recently executed leases. |
(3) | Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 1.83x and 1.76x, respectively. |
(4) | The Parkway 120 Property was originally built-to-suit for a single tenant semiconductor company and later converted to multi-tenant use. The increases in Historical NOI and Historical Occupancy are primarily a result of the transition to a multi-tenant property. |
(5) | The sponsors acquired the Parkway 120 Property in August 2014. As a result, 2011 NOI, 2012 NOI and 2011 Occupancy are unavailable. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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90 Matawan Road Matawan, NJ 07747 | Collateral Asset Summary – Loan No. 5 Parkway 120 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $45,000,000 75.0% 1.36x 8.9% |
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(2) | |||||||
iCIMS(3)(4) | NR/NR/NR | 83,940 | 37.9% | $24.78 | 33.6% | 6/30/2023 | |||||||
Fragomen, Del Rey, Loewy & Bernsen(5)(6) | NR/NR/NR | 51,869 | 23.4% | $33.81 | 28.4% | 8/31/2019 | |||||||
Tata Communications(7) | NR/A+/A1+(8) | 30,182 | 13.6% | $31.31 | 15.3% | 3/31/2019 | |||||||
Broadcom(9) | NR/A2/A- | 21,152 | 9.5% | $25.47 | 8.7% | 8/31/2019 | |||||||
Judge Group(10) | NR/NR/NR | 11,842 | 5.3% | $25.50 | 4.9% | 3/31/2020 | |||||||
Total Major Tenants | 198,985 | 89.8% | $28.24 | 90.9% | |||||||||
Remaining Tenants | 22,679 | 10.2% | $24.78 | 9.1% | |||||||||
Total Occupied Collateral | 221,664 | 100.0% | $27.88 | 100.0% | |||||||||
Vacant | 0 | 0.0% | |||||||||||
Total | 221,664 | 100.0% | |||||||||||
(1) | Certain ratings may be those of the parent company whether or not the parent company guarantees the lease. |
(2) | The Parkway 120 Loan is structured with an excess cash sweep triggered 12 months prior to the lease expiration date of any tenant or tenants collectively occupying more than 15% of NRA or accounting for more than 15% of gross income, in addition to other triggers. See “Lockbox / Cash Management” herein. |
(3) | iCIMS has two, five-year renewal options. Additionally, iCIMS has a one-time right to terminate its lease effective June 30, 2020 with written notice no later than June 30, 2019, subject to a termination fee, which includes unamortized tenant improvement and leasing commissions. |
(4) | iCIMS executed a lease amendment to expand its space in January 2015 by approximately 23,327 sq. ft., which is included in iCIMS’ NRA. The borrowers deposited approximately $397,243 into a free rent reserve associated with the expansion. |
(5) | Fragomen has three, five-year renewal options. |
(6) | Fragomen executed a lease amendment to expand its space in September 2014 by approximately 5,640 sq. ft., which is included in Fragomen’s NRA. The borrowers deposited approximately $16,734 into a free rent reserve associated with the expansion. |
(7) | Tata Communications has two, five-year renewal options. |
(8) | Tata Communications is rated by ICRA and CRISIL, which are the Indian subsidiaries of Moody’s and S&P, respectively. |
(9) | Broadcom has one, five-year renewal option. |
(10) | Judge Group has one, five-year renewal option. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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90 Matawan Road Matawan, NJ 07747 | Collateral Asset Summary – Loan No. 5 Parkway 120 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $45,000,000 75.0% 1.36x 8.9% |
Lease Rollover Schedule(1) | ||||||||||||||||
Year | # of Leases Expiring | Total Expiring Sq. Ft. | % of Total Sq. Ft. Expiring(2) | 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 | 0 | 0 | 0.0% | 0 | 0.0% | $0.00 | 0.0% | 0.0% | ||||||||
2015 | 1 | 1,048 | 0.5% | 1,048 | 0.5% | $28.30 | 0.5% | 0.5% | ||||||||
2016 | 1 | 4,616 | 2.1% | 5,664 | 2.6% | $25.25 | 1.9% | 2.4% | ||||||||
2017 | 3 | 16,690 | 7.5% | 22,354 | 10.1% | $24.91 | 6.7% | 9.1% | ||||||||
2018 | 0 | 0 | 0.0% | 22,354 | 10.1% | $0.00 | 0.0% | 9.1% | ||||||||
2019(3) | 4 | 103,203 | 46.6% | 125,557 | 56.6% | $31.37 | 52.4% | 61.5% | ||||||||
2020 | 1 | 11,842 | 5.3% | 137,399 | 62.0% | $25.50 | 4.9% | 66.4% | ||||||||
2021 | 0 | 0 | 0.0% | 137,399 | 62.0% | $0.00 | 0.0% | 66.4% | ||||||||
2022 | 0 | 0 | 0.0% | 137,399 | 62.0% | $0.00 | 0.0% | 66.4% | ||||||||
2023(4) | 4 | 83,940 | 37.9% | 221,339 | 99.9% | $24.78 | 33.6% | 100.0% | ||||||||
2024 | 0 | 0 | 0.0% | 221,339 | 99.9% | $0.00 | 0.0% | 100.0% | ||||||||
Thereafter | 0 | 0 | 0.0% | 221,339 | 99.9% | $0.00 | 0.0% | 100.0% | ||||||||
Management | 1 | 325 | 0.1% | 221,664 | 100.0% | NAP | NAP | |||||||||
Vacant | NAP | 0 | 0.0% | 221,664 | 100.0% | NAP | NAP | |||||||||
Total / Wtd. Avg. | 15 | 221,664 | 100.0% | $27.88 | 100.0% | |||||||||||
(1) | Certain tenants may 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) | The Parkway 120 Loan is structured with an excess cash sweep triggered 12 months prior to the lease expiration date of any tenant or tenants collectively occupying more than 15% of NRA or accounting for more than 15% of gross income, among other trigger conditions. See “Lockbox / Cash Management” herein. |
(3) | Leases expiring in 2019 include Fragomen, which has three, five-year renewal options. |
(4) | Leases expiring in 2023 include iCIMS, which has two, five-year renewal options. |
The Loan. The Parkway 120 loan (the “Parkway 120 Loan”) is a fixed rate loan with an original principal balance of $45.0 million, secured by the borrowers’ fee simple interest in a five-story, 221,664 sq. ft. office building (the “Parkway 120 Property”) located in Matawan, New Jersey. The Parkway 120 Loan has a 10-year term and amortizes on a 30-year schedule after an initial three-year interest only period. The Parkway 120 Loan accrues interest at a fixed rate equal to 4.8000% and has a cut-off date balance of $45.0 million. Based on the appraised value of $60.0 million as of June 17, 2014, the cut-off date LTV ratio is 75.0%. The Parkway 120 Loan proceeds, along with approximately $11.2 million of equity from the sponsors, were used to acquire the Parkway 120 Property for $51.0 million, fund reserves of approximately $4.5 million and pay closing costs.
Sources and Uses | ||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | |
Loan Amount | $45,000,000 | 80.1% | Purchase Price | $51,000,000 | 90.7% | |
Sponsor Equity | $11,201,282 | 19.9% | Reserves | $4,480,082 | 8.0% | |
Closing Costs | $721,201 | 1.3% | ||||
Total Sources | $56,201,282 | 100.0% | Total Uses | $56,201,282 | 100.0% |
The Borrower / Sponsor. The borrowers, Hudson 90 Matawan LP, Matawan Parkway Investments LLC and GFT Matawan LLC, are tenants in common, each of which is a single purpose entity structured to be bankruptcy-remote, with two independent directors in each organizational structure. The sponsors of the borrowers and non-recourse carve-out guarantors are Ephraim Hasenfeld, Jack Shalhon and GFT Properties, Inc, on a joint and several basis.
Ephraim Hasenfeld owns 100.0% of EH 90 GP INC., the general partner of Hudson 90 Matawan LP, which owns a 78.7057% TIC interest in the Parkway 120 Property. Ephraim Hasenfeld is the founder of Hudson Equities Management Corp. (“HEMC”). HEMC manages multifamily properties, office buildings and shopping centers throughout New Jersey, Pennsylvania, Florida and Nebraska, totaling over 2.0 million sq. ft. of commercial space and nearly 1,000 multifamily units. In addition, Ephraim Hasenfeld owns approximately 700,000 sq. ft. of office space, 70,000 sq. ft. of retail space and nearly 800 multifamily units.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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90 Matawan Road Matawan, NJ 07747 | Collateral Asset Summary – Loan No. 5 Parkway 120 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $45,000,000 75.0% 1.36x 8.9% |
The Property. The Parkway 120 Property consists of a five-story, multi-tenant Class A office building that contains 221,664 sq. ft. and is located in Matawan, New Jersey. The Parkway 120 Property was originally built-to-suit for a single tenant semiconductor company and later converted to multi-tenant use. As such, occupancy has increased by 20.0% since 2012 to a current occupancy of 100.0% as of June 30, 2014. The Parkway 120 Property offers 734 parking spaces, which includes 91 garage spaces. Amenities at the Parkway 120 Property include a high-speed fiber optic network service, a two-story atrium lobby, a café with indoor and outdoor seating, state-of-the-art digital energy management system and views of the Raritan Bay, among others.
The Parkway 120 Property is 100.0% leased to 10 tenants as of June 30, 2014. The largest tenant, iCIMS, leases 83,940 sq. ft., 37.9% of the total net rentable area (“NRA”) and accounts for 33.6% of the U/W base rent. The second largest tenant, Fragomen, leases 23.4% of the total NRA and accounts for 28.4% of the U/W base rent. The third largest tenant, Tata Communications, leases 13.6% of the total NRA and accounts for 15.3% of the U/W base rent. No other tenant leases more than 9.5% of the total NRA or accounts for more than 8.7% of U/W base rent at the Parkway 120 Property. Other notable tenants include Broadcom, Southwest Securities and John Hancock. In addition, major tenant have invested in the build-out of their own spaces with state-of-the-art virtual conference rooms (Tata Communications), open floor layouts (iCIMS) and custom accents, including an executive conference room with leather floors (Fragomen). Collectively, tenants at the Parkway 120 Property have invested over $4.3 million in capital expenditures.
The Parkway 120 Property is located immediately off of the Garden State Parkway, the longest highway in New Jersey and one of the top five busiest toll roads in North America. The Garden State Parkway intersects with the New Jersey Turnpike, approximately 9.0 miles north of the Parkway 120 Property. Additionally, the Metropark Train Station and Newark Liberty International Airport are located within 12.5 miles and 24.0 miles of the Parkway 120 Property, respectively. Local public transportation within one mile of the Parkway 120 Property connects to commuter rail lines that provide access to Newark, New York, the Garden State Arts Center and Cheesequake State Park. The Aberdeen Matawan NJ Transit stop is located within two miles of the Parkway 120 Property.
Environmental Matters. The Phase I environmental report dated July 29, 2014 recommended no further action at the Parkway 120 Property.
Major Tenants.
iCIMS (83,940 sq. ft.; 37.9% of NRA; 33.6% of U/W Base Rent) iCIMS is a provider of web-based applicant tracking and recruiting management software for corporate human resource professionals and third-party recruiters. Founded in 1999, iCIMS has become one of the largest and fastest-growing talent acquisition providers with offices in North America, United Kingdom and China. In 2013, iCIMS was named by Inc. 500 as one of America’s fast growing companies for the eighth year in a row. With approximately 270 employees, iCIMS reported 2013 revenues of approximately $47.4 million, nearly 85.0% higher than 2010 revenues. The Parkway 120 Property serves as iCIMS’ headquarters. iCIMS has been a tenant at the Parkway 120 Property since 2012 and most recently executed a lease amendment to expand its space in January 2015 by approximately 23,327 sq. ft. iCIMS has a one-time right to terminate its lease effective June 30, 2020 with written notice no later than June 30, 2019, subject to a termination fee, which includes unamortized tenant improvement and leasing commissions. iCIMS has two, five-year renewal options. Additionally, iCIMS has invested approximately $1.1 million ($13.10 PSF) in capital expenditures to customize its space with open floor layouts.
Fragomen, Del Rey, Loewy & Bernsen (51,869 sq. ft.; 23.4% of NRA; 28.4% of U/W Base Rent) Fragomen, Del Rey, Loewy & Bernsen (“Fragomen”) is a global immigration law firm with more than 2,400 professionals throughout 40 offices across 18 countries. Fragomen ranks as #77 on the 2014 Am Law 100 and for the past ten years has been designated by Who’s Who Legal as the “Corporate Immigration Firm of the Year.” The Parkway 120 Property is Fragomen’s second largest office and serves as the company’s global infrastructure for its operations. Fragomen has been a tenant at the Parkway 120 Property since 2008 and most recently executed a lease amendment to expand its space by approximately 5,640 sq. ft. in September 2014. Fragomen has three, five-year renewal options. In particular, Fragomen has invested approximately $550,000 ($10.60 PSF) to enhance its space, including an executive conference room with leather floors.
Tata Communications (30,182 sq. ft.; 13.6% of NRA; 15.3% of U/W Base Rent) Tata Communications (“Tata”) (rated A+ / A1+ by ICRA and CRISIL, which are the Indian subsidiaries of Moody’s and S&P, respectively), a subsidiary of the $100.0 billion conglomerate Tata Group, is an Indian telecommunications company. Tata offers the largest network footprint linking 240 countries with city-to-city connectivity. With over 7,500 employees in 31 countries, Tata delivers approximately 20.0% of the Internet’s traffic and offers the world’s largest submarine cable network and international wholesale voice platform. Since being a tenant at the Parkway 120 Property since 2007, Tata has built out its space with state-of-the-art virtual conference rooms. Tata has two, five-year renewal options.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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90 Matawan Road Matawan, NJ 07747 | Collateral Asset Summary – Loan No. 5 Parkway 120 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $45,000,000 75.0% 1.36x 8.9% |
The Market. The Parkway 120 Property is located in Matawan, New Jersey, within Monmouth County. The Parkway 120 Property is located in the Brunswick office submarket of Northern New Jersey. As of Q1 2014, the Brunswick submarket contained an overall inventory of approximately 8.6 million sq. ft. with a vacancy rate of 12.2%. Northern New Jersey features one of the most diverse economic bases in the country and is supported by financial services, pharmaceutical, telecommunications, insurance, biotech, and electronics industries. In particular, New Jersey ranks as one of the top states for corporate headquarters by containing one of the largest concentrations of Fortune 500 companies in the United States. Additionally, Matawan is part of the Bayshore Regional Strategic Plan, an effort by nine municipalities to reinvigorate the area’s economy emphasizing traditional downtowns, dense residential neighborhoods, maritime history and Raritan Bayshore coastline. In 2013, the population within a three-mile radius was 68,600 with a median income of $73,082. As of June 2014, the unemployment rate in Monmouth County was 5.8%, which was less than the unemployment rate for the state of New Jersey of 6.6%.
The average underwritten base rent at the Parkway 120 Property is approximately $27.88, which is in-line with the appraiser’s average market rent conclusion of $27.08 PSF. The appraiser identified six comparable leases within the Parkway 120 Property’s market. A summary of the six leases is shown in the chart below.
Comparable Leases(1) | |||||
Property | City, State | Year Built | NRA (sq. ft.) | Occupancy | Rent PSF |
Parkway 120 Property | Matawan, NJ | 2001 | 221,664 | 100%(2) | $27.88 |
100 Matawan Road | Old Bridge, NJ | 1986 | 130,000 | 88% | $22.50 |
100 Matawan Road | Old Bridge, NJ | 1986 | 130,000 | 88% | $24.32 |
100 Matawan Road | Old Bridge, NJ | 1986 | 130,000 | 88% | $22.80 |
91 Fieldcrest | South Edison, NJ | 1979 | 79,882 | 85% | $23.50 |
1301 State Route | Hazlet, NJ | 2003 | 52,000 | NAV | $22.18 |
379 Thornall | Edison, NJ | 1986 | 310,279 | 91% | $30.00 |
Total / Wtd. Avg.(3) | $24.22(4) |
(1) | Source: Appraisal. |
(2) | As of June 30, 2014. |
(3) | Total / Wtd. Avg. does not include the Parkway 120 Property. |
(4) | The unadjusted average for the comparable leases is $24.22 PSF. After accounting for asset quality and location, the appraiser determined an adjusted average of $26.20 PSF. Additionally, the appraiser concluded an average market rent of $27.08 PSF and vacancy of 6.0% for the Parkway 120 Property. |
Cash Flow Analysis.
Cash Flow Analysis | |||||
2013 | T-12 5/31/2014 | U/W | U/W PSF | ||
Base Rent(1)(2) | $4,284,004 | $4,734,744 | $5,664,107 | $25.55 | |
Value of Vacant Space | 0 | 0 | 516,853 | 2.33 | |
Gross Potential Rent | $4,284,004 | $4,734,744 | $6,180,960 | $27.88 | |
Total Recoveries | 575,819 | 652,981 | 710,420 | 3.20 | |
Total Other Income | 3,145 | 1,436 | 0 | 0.00 | |
Less: Vacancy(3) | 0 | 0 | (516,853) | (2.33) | |
Effective Gross Income | $4,862,968 | $5,389,161 | $6,374,526 | $28.76 | |
Total Operating Expenses | 2,130,967 | 2,372,165 | 2,364,588 | 10.67 | |
Net Operating Income | $2,732,001 | $3,016,996 | $4,009,938 | $18.09 | |
TI/LC | 0 | 0 | 110,832 | 0.50 | |
Capital Expenditures | 0 | 0 | 44,333 | 0.20 | |
Net Cash Flow | $2,732,001 | $3,016,996 | $3,854,773 | $17.39 |
(1) | The increase in Base Rent from T-12 5/31/2014 to U/W is primarily the result of the expiration of free rent and an increase in occupancy from 86.2% in 2013 to current occupancy of 100.0% as of June 30, 2014. |
(2) | U/W Base Rent includes $147,065 of contractual rent steps through September 2015. |
(3) | U/W Vacancy is based on an economic vacancy of 7.5% of Gross Potential Rent and Total Recoveries, greater than the appraiser’s concluded vacancy of 6.0%. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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90 Matawan Road Matawan, NJ 07747 | Collateral Asset Summary – Loan No. 5 Parkway 120 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $45,000,000 75.0% 1.36x 8.9% |
Property Management. The Parkway 120 Property is managed by Vision Management LLC (“Vision”), which has managed the Parkway 120 Property since 2006. Vision is a subsidiary of Vision Real Estate Partners, which currently owns and manages, or has developed more than 2.0 million sq. ft. of commercial space concentrated in the greater New Jersey/New York metropolitan area.
Lockbox / Cash Management. The Parkway 120 Loan is structured with a hard lockbox and springing cash management. In place cash management and full excess cash sweep will occur upon (i) an event of default, (ii) the failure by the borrowers to maintain a debt service coverage ratio of at least 1.15x for any calendar quarter, until the debt service coverage ratio is at least 1.20x for two consecutive calendar quarters or (iii) commencement of a Triggering Tenant Cash Trap Period (as defined below).
A “Triggering Tenant Cash Trap Period” will commence if one or more tenants collectively (a) occupying more than 15.0% of NRA at the Parkway 120 Property, or (b) contributing more than 15.0% of gross income from operations (i) indicates its intention not to renew its respective lease, (ii) indicates its intention to terminate its respective lease, (iii) indicates its intention to vacate its respective space, (iv) “goes dark” at the Parkway 120 Property or (v) fails to pay to borrower its respective payment obligations under its respective lease for a period of 60 days or more. A Triggering Tenant Cash Trap Period will also commence on the date that is 12 months prior to the then current expiration of any lease or leases that would trigger the parameters described in clause (a) and (b) above.
Initial Reserves. At closing, the borrowers deposited (i) $89,269 into a tax reserve account, (ii) $12,552 into an insurance reserve account, (iii) $32,188 into a required repairs reserve account, which represents 125% of the engineer’s recommendation, (iv) $2,000,000 into a TI/LC reserve account for general future rollover, (v) $1,932,096 into an initial TI/LC reserve account for outstanding tenant improvements and leasing commissions related to recently executed leases and (vi) $413,977 into a free rent reserve account, which includes approximately $397,243 associated with the iCIMS expansion lease and approximately $16,734 associated with the Fragomen expansion lease.
Ongoing Reserves. On a monthly basis, the borrowers will be required to make deposits of (i) 1/12 of the required annual taxes, which currently equates to $44,635, into a tax reserve account, (ii) 1/12 of the required insurance premiums, which currently equates to $6,276, into an insurance reserve account, and (iii) $2,771 ($0.15 PSF annually) into a capital expenditure reserve account. Additionally, if at any time the balance of the TI/LC reserve account is less than $1,500,000, the borrowers will be required to make monthly deposits of $9,236 into the TI/LC reserve account, subject to a cap of $2,000,000.
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 Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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90 Matawan Road Matawan, NJ 07747 | Collateral Asset Summary – Loan No. 5 Parkway 120 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $45,000,000 75.0% 1.36x 8.9% |
![(MAP)](https://capedge.com/proxy/FWP/0001539497-14-001101/img012_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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90 Matawan Road Matawan, NJ 07747 | Collateral Asset Summary – Loan No. 5 Parkway 120 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $45,000,000 75.0% 1.36x 8.9% |
![(MAP)](https://capedge.com/proxy/FWP/0001539497-14-001101/img013_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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10165 North De Anza Boulevard Cupertino, CA 95014 | Collateral Asset Summary – Loan No. 6 Aloft Cupertino | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $34,000,000 70.0% 1.55x 10.3% |
![(GRAPHIC)](https://capedge.com/proxy/FWP/0001539497-14-001101/img014_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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10165 North De Anza Boulevard Cupertino, CA 95014 | Collateral Asset Summary – Loan No. 6 Aloft Cupertino | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $34,000,000 70.0% 1.55x 10.3% |
Mortgage Loan Information | |
Loan Seller: | CCRE |
Loan Purpose: | Refinance |
Sponsor: | Dipesh Gupta; Manish Gupta |
Borrower: | Infinite Loop Cupertino Hotel, LLC |
Original Balance: | $34,000,000 |
Cut-off Date Balance: | $34,000,000 |
% by Initial UPB: | 2.8% |
Interest Rate: | 4.4695% |
Payment Date: | 6th of each month |
First Payment Date: | September 6, 2014 |
Maturity Date: | August 6, 2024 |
Amortization: | Interest only for first 36 months; 360 months thereafter |
Additional Debt: | None |
Call Protection(1): | L(25), D(89), O(6) |
Lockbox / Cash Management: | Hard / Springing |
Reserves(2) | ||
Initial | Monthly | |
Taxes: | $175,000 | $25,000 |
Insurance: | $39,185 | $4,898 |
FF&E: | $0 | 1/12 of 4.0% of prior year’s gross income |
Earnout(1): | $2,000,000 | $0 |
PIP(3): | $0 | Springing |
Financial Information | ||
Cut-off Date Balance / Key: | $276,423 | |
Balloon Balance / Key: | $241,804 | |
Cut-off Date LTV: | 70.0% | |
Balloon LTV: | 61.2% | |
Underwritten NOI DSCR(4): | 1.71x | |
Underwritten NCF DSCR(4): | 1.55x | |
Underwritten NOI Debt Yield: | 10.3% | |
Underwritten NCF Debt Yield: | 9.4% | |
Underwritten NOI Debt Yield at Balloon: | 11.8% | |
Underwritten NCF Debt Yield at Balloon: | 10.8% |
Property Information | ||
Single Asset / Portfolio: | Single Asset | |
Property Type: | Limited Service Hospitality | |
Collateral: | Fee Simple | |
Location: | Cupertino, CA | |
Year Built / Renovated: | 2013 / NAP | |
Total Keys: | 123 | |
Property Management: | Azul Hospitality – Aloft Cupertino, LLC | |
Underwritten NOI: | $3,514,089 | |
Underwritten NCF: | $3,201,052 | |
Appraised Value: | $48,600,000 | |
Appraisal Date: | June 23, 2014 | |
Historical NOI(5) | ||
Most Recent NOI: | $3,607,006 (T-12 July 31, 2014) | |
2013 NOI: | $2,541,171 (December 31, 2013) | |
2012 NOI: | NAP | |
2011 NOI: | NAP | |
Historical Occupancy(5) | ||
Most Recent Occupancy: | 80.4% (July 31, 2014) | |
2013 Occupancy: | 72.3% (December 31, 2013) | |
2012 Occupancy: | NAP | |
2011 Occupancy: | NAP |
(1) | On or after November 6, 2015, the borrower may obtain funds in the earnout reserve provided (i) no event of default is continuing and (ii) the Aloft Cupertino Property has achieved a net cash flow trailing-12 month debt yield at least equal to 10.75% for six consecutive months. In addition, (i) after expiration of the lockout period (and notwithstanding the debt yield requirement above), the borrower may obtain amounts in the earnout reserve if it effects a partial defeasance (without the release of any real property) by delivering defeasance collateral sufficient to satisfy debt service on a $2,000,000 defeasance note and (ii) at any time, the borrower may obtain the release of funds in the earnout reserve upon depositing with lender an acceptable letter of credit in the amount of $2,000,000. See “Initial Reserves” herein. |
(2) | See “Initial Reserves” and “Ongoing Reserves” herein. |
(3) | The borrower will be required to deposit 125% of any property improvement plan required in connection with the current franchise agreement or a replacement franchise agreement. The Aloft Cupertino Property’s current franchise agreement expires July 1, 2033. |
(4) | Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 2.28x and 2.08x, respectively. |
(5) | The Aloft Cupertino Property opened for business in January of 2013. As such, Historical NOI and Historical Occupancy are not available prior to 2013. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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10165 North De Anza Boulevard Cupertino, CA 95014 | Collateral Asset Summary – Loan No. 6 Aloft Cupertino | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $34,000,000 70.0% 1.55x 10.3% |
The Loan. The Aloft Cupertino loan (the “Aloft Cupertino Loan”) is a fixed rate loan with an original principal balance of $34.0 million secured by the borrower’s fee simple interest in a 123-room, limited service hotel located in Cupertino, California (the “Aloft Cupertino Property”). The Aloft Cupertino Loan has a 10-year term and amortizes on a 30-year schedule after a 36-month interest only period.
The Aloft Cupertino Loan accrues interest at a fixed rate equal to 4.4695% and has a cut-off date balance of $34.0 million. The proceeds of the Aloft Cupertino Loan were used to retire existing debt of approximately $27.1 million, fund upfront reserves of approximately $2.2 million, pay closing costs and return approximately $4.3 million of equity to the sponsors. Based on the appraised value of $48.6 million as of June 23, 2014, the cut-off date LTV of the Aloft Cupertino Loan is 70.0%. The most recent prior financing of the Aloft Cupertino Property was not included in a securitization.
Sources and Uses | |||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | ||
Loan Amount | $34,000,000 | 100.0% | Loan Payoff | $27,093,635 | 79.7% | ||
Reserves | $2,214,185 | 6.5% | |||||
Closing Costs | $387,265 | 1.1% | |||||
Return of Equity | $4,304,916 | 12.7% | |||||
Total Sources | $34,000,000 | 100.0% | Total Uses | $34,000,000 | 100.0% |
The Borrower / Sponsor. The borrower, Infinite Loop Cupertino Hotel, 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 nonrecourse carve-out guarantors are Dipesh Gupta and Manish Gupta, joint founders of the Shashi Corporation. Founded in 2004 in Silicon Valley, the Shashi Corporation is a privately held real estate development and asset management firm with a focus in hospitality. The Shashi Corporation specializes in creating long term value by penetrating high barrier to entry markets with lifestyle oriented designs and international brands. The Shashi Corporation currently owns two others hotels in the Silicon Valley region including the 54-room Palo Alto Quality Inn and the Sunnyvale Pacific Inn, which is currently undergoing a conversion to an Aloft branded hotel. The Shashi Corporation developed the Aloft Cupertino Property for a total cost of $33.0 million, including Starwood’s key money.
The Property. The Aloft Cupertino Property is a four-story, 123-room, newly constructed limited service hotel with a single-level, 90-space subterranean parking garage located in Silicon Valley in Cupertino, California. The Aloft Cupertino Property is LEED Silver Certified and features 104 king rooms and 19 queen rooms. The Aloft Cupertino Property is considered one of the most technologically advanced Aloft hotels in the world due to its smart check technology, which utilizes guests’ mobile devices to check in and out as well as control guest-specific room climate control, which is tied to the door lock system. The Aloft Cupertino Property also features a robotic butler that will assist in providing amenities to guest rooms. Additionally, given its location in Silicon Valley, the Aloft Cupertino Property is served by four times the normal internet bandwidth than standard Aloft hotels.
The Aloft Cupertino Property features a bar/lounge, approximately 1,100 sq. ft. of meeting space, a business center, exercise facilities, an outdoor pool and whirlpool. Guestroom amenities include flat screen televisions, cable, a desk and chair, free wifi and free bottled water with all guestrooms featuring Apple TV. The Aloft Cupertino Property’s food and beverage outlet, W XYZ, is a standard Aloft brand bar/lounge that features an outdoor patio area with exterior signage and is the largest of all Aloft bars in the country. The Aloft Cupertino Property’s meeting space, named Aloft Tactic, contains approximately 1,100 sq. ft. of meeting space, which can be subdivided into three separate rooms.
Aloft Hotels is currently comprised of more than sixty hotels in ten countries and is owned by Starwood Hotels & Resorts World Inc. (“Starwood”), one of the leading hotel and leisure companies in the world with 1,134 properties in nearly 100 counties and 171,000 employees. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following brands: St. Regis, The Luxury Collection, W, Westin, Le Meridien, Sheraton, Four Points by Sheraton, Aloft and Element. The Aloft Cupertino Property’s current franchise agreement with Starwood expires July 1, 2033. In connection with the execution of the license agreement, Starwood provided $2.0 million of key money.
Environmental Matters. The Phase I environmental report dated July 22, 2014 recommended no further action at the Aloft Cupertino Property.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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10165 North De Anza Boulevard Cupertino, CA 95014 | Collateral Asset Summary – Loan No. 6 Aloft Cupertino | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $34,000,000 70.0% 1.55x 10.3% |
The Market. The Aloft Cupertino Property is located in Cupertino, California, which is located at the southern end of the San Francisco Bay near the center of Silicon Valley. Silicon Valley is considered the hub of the high-tech industry in the United States and continues to be one of the top research and development centers in the world. Silicon Valley is home to 18 of the Fortune 500 corporations, including Apple Inc., whose headquarters are located in Cupertino at the intersection of Interstate 280 and De Anza Boulevard, approximately one-half mile north of the Aloft Cupertino Property. Additional Fortune 500 companies include Hewlett-Packard Company, Intel Corporation, Google Inc., Cisco Systems, Oracle Corporation, Ebay, Synnex, Applied Materials, Agilent Technologies, Symantec, NetApp, Sanmina-SCI Corporation and Advanced Micro Devices. Cisco and Apple Inc. are the two largest private employers in Silicon Valley.
Over 60 high-tech companies have offices located specifically in Cupertino and are primarily located on De Anza Boulevard, Cali Mill Plaza and Bubb Road. According to the Cupertino 2013 Comprehensive Annual Financial Report, the largest private employers in Cupertino are Apple Inc. (15,000 employees), Cupertino Union School District (1,597 employees), Foothill/DeAnza Community College District (1,183 employees), Fremont Union High School District (961 employees) and Seagate Technology LLC (500 employees). The current Apple Inc. campus located in Cupertino is comprised of six buildings totaling 850,000 sq. ft. that were built in 1993 and holds 2,800 people. In 2006, Apple Inc. announced its intention to build an additional campus on approximately 176 acres, located approximately one mile east of the current campus. The new campus is expected to house up to 12,000 employees, with the first of two construction phases expected to be completed by 2016. Additional buildings will include a 120,000 sq. ft. auditorium, research and development facilities, a 100,000 sq. ft. fitness center and a dedicated generating plant as the primary source of electricity.
Given the Aloft Cupertino’s location within the Silicon Valley, a significant portion of income is generated by local corporate accounts, specifically Apple Inc. Apple Inc. generated approximately 28.7% of revenue as of July 31, 2014. Below is a summary of the top five corporate accounts at the Aloft Cupertino Property.
Corporate Accounts | |||||||||
T-12 7/31/2014 | |||||||||
Company | # of Room Night | % of Occ Nights | Room Revenue | % of Revenue | ADR | ||||
Apple Inc. | 10,186 | 28.0% | $2,067,896 | 28.7% | $203.01 | ||||
Google Inc. | 1,907 | 5.3% | $394,615 | 5.5% | $206.93 | ||||
Seagate | 1,857 | 5.1% | $354,615 | 4.9% | $190.96 | ||||
PriceWaterhouseCoopers | 903 | 2.5% | $221,607 | 3.1% | $245.41 | ||||
Amazon.com | 488 | 1.3% | $97,958 | 1.4% | $200.73 |
The Aloft Cupertino Property is located north of the intersection of Stevens Creek Boulevard and De Anza Boulevard, approximately 11 miles southwest of the San Jose International Airport. Stevens Creek Boulevard is a major east/west arterial, which provides access to State Route 85. State Route 85 connects the cities of San Jose in the south to Mountain View in the north and passes through the cities of Mountain View, Sunnyvale, Cupertino, Saratoga, Campbell and Los Gatos. De Anza Boulevard is the primary north/south arterial and provides direct access to Interstate 280. Interstate 280 connects San Jose to the south and San Francisco to the north and passes through the cities of Santa Clara, Cupertino, Los Altos and Los Altos Hills.
The Aloft Cupertino Property competes directly with three hotels totaling 449 rooms located in Cupertino, California and Sunnyvale, California including Joie De Vivre Domain Hotel, Courtyard San Jose Cupertino and Hilton Garden Inn Cupertino. As of May 2014, the Aloft Cupertino Property exhibited an occupancy, ADR and RevPAR of 78.7%, $194.67 and $153.19, respectively, resulting in competitive set penetration rates of 98.3%, 121.5% and 119.4%, respectively.
Historical Occupancy, ADR, RevPAR – Competitive Set(1)(2) | |||||||||
Aloft Cupertino Property | Competitive Set | Penetration Factor | |||||||
Year | Occupancy | ADR | RevPAR | Occupancy | ADR | RevPAR | Occupancy | ADR | RevPAR |
T-12 May 31, 2014 | 78.7% | $194.67 | $153.19 | 80.1% | $160.28 | $128.33 | 98.3% | 121.5% | 119.4% |
T-5 May 31, 2013 | 62.3% | $194.39 | $121.20 | 81.0% | $143.61 | $116.25 | 77.0% | 135.4% | 104.3% |
(1) | Source: Hospitality research report. |
(2) | The Aloft Cupertino Property opened in 2013. As such, historical occupancy, ADR and RevPAR are unavailable prior to 2013. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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10165 North De Anza Boulevard Cupertino, CA 95014 | Collateral Asset Summary – Loan No. 6 Aloft Cupertino | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $34,000,000 70.0% 1.55x 10.3% |
Cash Flow Analysis.
Cash Flow Analysis(1) | |||||
2013 | T-12 7/31/2014 | U/W | U/W per Room(2) | ||
Occupancy | 72.3% | 80.4% | 80.4% | ||
ADR | $177.01 | $199.52 | $199.52 | ||
RevPAR | $127.90 | $160.41 | $160.41 | ||
Room Revenue | $5,742,294 | $7,201,699 | $7,201,699 | $58,550 | |
F&B Revenue | 513,456 | 593,500 | 593,500 | 4,825 | |
Other Revenue(3) | 26,977 | 30,724 | 30,724 | 250 | |
Total Revenue | $6,282,727 | $7,825,923 | $7,825,923 | $63,625 | |
Operating Expenses | 1,608,095 | 1,918,729 | 1,918,729 | 15,599 | |
Undistributed Expenses | 1,769,313 | 1,898,802 | 1,936,528 | 15,744 | |
Gross Operating Profit | $2,905,319 | $4,008,392 | $3,970,666 | $32,282 | |
Total Fixed Charges(4) | 364,148 | 401,386 | 456,577 | 3,712 | |
Net Operating Income | $2,541,171 | $3,607,006 | $3,514,089 | $28,570 | |
FF&E | 0 | 0 | 313,037 | 2,545 | |
Net Cash Flow | $2,541,171 | $3,607,006 | $3,201,052 | $26,025 |
(1) | The Aloft Cupertino Property opened in 2013. As such, historical cash flows are unavailable prior to 2013. |
(2) | U/W per Room is based on a total of 123 rooms. |
(3) | Other Revenue is comprised primarily of revenue generated by laundry and valet services. |
(4) | Real estate taxes were underwritten to the appraiser’s concluded millage rate of 1.17% multiplied by the Aloft Cupertino Loan amount. |
Property Management. The Aloft Cupertino Property is managed by Azul Hospitality – Aloft Cupertino, LLC. Azul Hospitality Group is a preferred management company for the Aloft brand that focuses primarily on upscale hotels and resorts, with unique destination and product attributes.
Lockbox / Cash Management. The Aloft Cupertino Loan is structured with a hard lockbox and springing cash management. In place cash management (a “Cash Management Period”) is required upon (i) an event of default, (ii) a bankruptcy action of the borrower, principal, guarantor or the property manager or (iii) the failure of the borrower after the end of two consecutive calendar quarters to maintain a debt service coverage ratio of greater than or equal to 1.20x until the debt service coverage ratio after the end of two consecutive calendar quarters is at least equal to 1.25x. A full excess cash sweep (a “Cash Trap Period”) will occur upon the continuation of the events specified in clauses (i) and (ii) as well as the failure of the borrower after the end of two consecutive calendar quarters to maintain a debt service coverage ratio of at least 1.15x until the debt service coverage ratio after the end of two consecutive calendar quarters is greater than or equal to 1.20x. Notwithstanding the foregoing, the borrower may defer a Cash Management Period or Cash Trap Period that was triggered by a low debt service coverage ratio by depositing with lender cash sufficient to meet the minimum debt service coverage levels monthly through any deferral period to be held as additional collateral for the Aloft Cupertino Loan. The additional cash collateral will be held until such time as (i) no event of default has occurred and is continuing and (ii) no Cash Management Period or Cash Trap Period would exist based on actual net operating income at the Aloft Cupertino Property for a period of two consecutive calendar months.
Initial Reserves. At closing, the borrower deposited (i) $175,000 into a tax reserve account, (ii) $39,185 into an insurance reserve account and (iii) $2,000,000 into an earnout reserve account. On or after November 6, 2015, the borrower may obtain funds in the earnout reserve provided (i) no event of default is continuing and (ii) the Aloft Cupertino Property has achieved a net cash flow trailing-12 month debt yield greater than or equal to 10.75% for six consecutive calendar months. In addition, (i) after expiration of the lockout period (and notwithstanding the debt yield requirement above), the borrower may obtain amounts in the earnout reserve if it effects a partial defeasance (without the release of any real property) by delivering defeasance collateral in the principal amount of $2,000,000 and (ii) at any time, the borrower may obtain the release of funds in the earnout reserve upon depositing with lender an acceptable letter of credit in the amount of $2,000,000. Lender may draw upon the letter of credit at any time (i) during an event of default, (ii) upon notice that the issuer of the letter of credit has failed to extend the termination date or failed to provide a replacement letter of credit at least 60 days prior to any termination date or (iii) if the letter of credit issuer’s long term unsecured debt credit rating issued by S&P falls below A (or below the equivalent rating by another rating agency).
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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10165 North De Anza Boulevard Cupertino, CA 95014 | Collateral Asset Summary – Loan No. 6 Aloft Cupertino | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $34,000,000 70.0% 1.55x 10.3% |
Ongoing Reserves. On a monthly basis, the borrower is required to make deposits of (i) 1/12 of the required annual taxes, which currently equates to $25,000, into a tax reserve account, (ii) 1/12 of the required insurance premiums, which currently equates to $4,898, into an insurance reserve account, and (iii) 1/12 of 4.0% of the prior year’s gross income into a FF&E reserve account. Additionally, if any future PIP work is required by the current franchise agreement or a replacement franchise agreement, the borrower will deposit 125% of the estimated costs for such PIP.
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 Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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10165 North De Anza Boulevard Cupertino, CA 95014 | Collateral Asset Summary – Loan No. 6 Aloft Cupertino | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $34,000,000 70.0% 1.55x 10.3% |
![(MAP)](https://capedge.com/proxy/FWP/0001539497-14-001101/img015_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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50 Crosby Drive Bedford, MA 01730 | Collateral Asset Summary – Loan No. 7 50 Crosby Drive | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $32,500,000 64.5% 1.50x 10.1% |
![(GRAPHIC)](https://capedge.com/proxy/FWP/0001539497-14-001101/img016_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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50 Crosby Drive Bedford, MA 01730 | Collateral Asset Summary – Loan No. 7 50 Crosby Drive | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $32,500,000 64.5% 1.50x 10.1% |
Mortgage Loan Information | |
Loan Seller: | GACC |
Loan Purpose: | Acquisition |
Sponsor: | Jay O. Hirsh; Bradford A. Spencer |
Borrower: | Bedford Owner, LLC |
Original Balance: | $32,500,000 |
Cut-off Date Balance: | $32,500,000 |
% by Initial UPB: | 2.6% |
Interest Rate: | 4.3800% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 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: | Hard / In Place |
Reserves(1) | ||
Initial | Monthly | |
Taxes: | $133,034 | $66,517 |
Insurance: | $0 | Springing |
Replacement: | $0 | $4,803 |
TI/LC: | $0 | $51,843 |
Required Repairs: | $68,750 | NAP |
Oracle Lease Sweep: | $0 | Springing |
Financial Information | ||
Cut-off Date Balance / Sq. Ft.: | $124 | |
Balloon Balance / Sq. Ft.: | $113 | |
Cut-off Date LTV: | 64.5% | |
Balloon LTV: | 58.9% | |
Underwritten NOI DSCR(2): | 1.68x | |
Underwritten NCF DSCR(2): | 1.50x | |
Underwritten NOI Debt Yield: | 10.1% | |
Underwritten NCF Debt Yield: | 9.0% | |
Underwritten NOI Debt Yield at Balloon: | 11.0% | |
Underwritten NCF Debt Yield at Balloon: | 9.8% |
Property Information | |
Single Asset / Portfolio: | Single Asset |
Property Type: | Suburban Office |
Collateral: | Fee Simple |
Location: | Bedford, MA |
Year Built / Renovated: | 1981 / 2013 |
Total Sq. Ft.: | 261,961 |
Property Management: | Jumbo Capital LLC |
Underwritten NOI: | $3,267,521 |
Underwritten NCF: | $2,918,017 |
Appraised Value: | $50,400,000 |
Appraisal Date: | June 25, 2014 |
Historical NOI | |
Most Recent NOI: | $2,867,019 (T-12 June 30, 2014) |
2013 NOI: | $2,875,108 (December 31, 2013) |
2012 NOI: | $1,633,924 (December 31, 2012) |
2011 NOI: | NAV |
Historical Occupancy | |
Most Recent Occupancy: | 100.0% (September 6, 2014) |
2013 Occupancy: | 100.0% (December 31, 2013) |
2012 Occupancy: | 100.0% (December 31, 2012) |
2011 Occupancy: | 100.0% (December 31, 2011) |
(1) | See “Initial Reserves”, “Ongoing Reserves” and “Oracle Lease Sweep Reserve” herein. |
(2) | Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR are 2.26x and 2.02x, respectively. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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50 Crosby Drive Bedford, MA 01730 | Collateral Asset Summary – Loan No. 7 50 Crosby Drive | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $32,500,000 64.5% 1.50x 10.1% |
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(2)(3) | ||||||
Acme Packet, Inc., a subsidiary of Oracle America, Inc. | A+/A1/A+ | 123,788 | 47.3% | $19.50 | 43.9% | 3/31/2022 | ||||||
Acme Packet, Inc., a subsidiary of Oracle America, Inc. Expansion 1 | A+/A1/A+ | 27,161 | 10.4% | $19.50 | 9.6% | 3/31/2022 | ||||||
Acme Packet, Inc., a subsidiary of Oracle America, Inc. Expansion 2 | A+/A1/A+ | 111,012 | 42.3% | $23.00 | 46.5% | 3/31/2022 | ||||||
Total Occupied Collateral | 261,961 | 100.0% | $20.98 | 100.0% | ||||||||
Vacant | 0 | 0.0% | ||||||||||
Total | 261,961 | 100.0% | ||||||||||
(1) | Certain ratings are those of the parent company whether or not the parent company guarantees the lease. |
(2) | Oracle has two, five-year extension options at 95% of the market rate, which are exercisable between 12 – 15 months prior to the expiration of the then current term. |
(3) | Tenant has a one-time termination right at the property effective as of 3/31/2020 upon no less than 12 months written notice. Tenant is responsible for the payment of a termination fee equal to any unamortized amount of outstanding TI/LC’s which is estimated to be approximately $2.0 million. |
Lease Rollover Schedule | ||||||||
Year | # of Leases Expiring | Total Expiring Sq. Ft. | % of Total Sq. Ft. Expiring | Cumulative Sq. Ft. Expiring | Cumulative % of Sq. Ft. Expiring | Annual U/W Base Rent 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 | 0 | 0 | 0.0% | 0 | 0.0% | $0.00 | 0.0% | 0.0% |
2015 | 0 | 0 | 0.0% | 0 | 0.0% | $0.00 | 0.0% | 0.0% |
2016 | 0 | 0 | 0.0% | 0 | 0.0% | $0.00 | 0.0% | 0.0% |
2017 | 0 | 0 | 0.0% | 0 | 0.0% | $0.00 | 0.0% | 0.0% |
2018 | 0 | 0 | 0.0% | 0 | 0.0% | $0.00 | 0.0% | 0.0% |
2019 | 0 | 0 | 0.0% | 0 | 0.0% | $0.00 | 0.0% | 0.0% |
2020 | 0 | 0 | 0.0% | 0 | 0.0% | $0.00 | 0.0% | 0.0% |
2021 | 0 | 0 | 0.0% | 0 | 0.0% | $0.00 | 0.0% | 0.0% |
2022 | 3 | 261,961 | 100.0% | 261,961 | 100.0% | $20.98 | 100.0% | 100.0% |
2023 | 0 | 0 | 0.0% | 261,961 | 100.0% | $0.00 | 0.0% | 100.0% |
2024 | 0 | 0 | 0.0% | 261,961 | 100.0% | $0.00 | 0.0% | 100.0% |
Thereafter | 0 | 0 | 0.0% | 261,961 | 100.0% | $0.00 | 0.0% | 100.0% |
Vacant | NAP | 0 | 0.0% | 261,961 | 100.0% | NAP | NAP | |
Total / Wtd. Avg. | 3 | 261,961 | 100.0% | $20.98 | 100.0% | |||
The Loan. The 50 Crosby Drive loan (the “50 Crosby Drive Loan”) is a fixed rate loan secured by the borrower’s fee simple interest in 50 Crosby Drive, a four-story, single-tenant office building totaling 261,961 square feet located in Bedford, Massachusetts (the “50 Crosby Drive Property”). The 50 Crosby Drive Loan has an original principal balance of $32.5 million with a 10-year term and amortizes on a 30-year schedule after an initial five-year interest only period. The 50 Crosby Drive Loan accrues interest at a fixed rate equal to 4.3800% and has a cut-off date balance of $32.5 million. The 50 Crosby Drive Loan proceeds, along with approximately $16.8 million in equity from the sponsors, were used to purchase the 50 Crosby Drive Property for $48.2 million, pay upfront reserves of $201,784 and pay closing costs of $947,153. Based on the appraised value of $50.4 million as of June 25, 2014, the cut-off date LTV ratio is 64.5%. The most recent prior financing of the 50 Crosby Drive Property was not included in a securitization.
Sources and Uses | |||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | ||
Loan Amount | $32,500,000 | 65.9% | Purchase Price(1) | $48,200,000 | 97.7% | ||
Sponsor Equity | $16,848,938 | 34.1% | Reserves | $201,784 | 0.4% | ||
Closing Costs | $947,153 | 1.9% | |||||
Total Sources | $49,348,938 | 100.0% | Total Uses | $49,348,938 | 100.0% |
(1) | In addition to the 50 Crosby Drive Property, the sponsors are also acquiring 28.5 acres of undeveloped land which is not part of the collateral that secures the 50 Crosby Drive Loan. The combined purchase price for the 50 Crosby Drive Property and the 28.5 acres of excess land is $50.0 million per the purchase and sale agreement (“PSA”). As the PSA did not provide an allocated breakdown between the 50 Crosby Drive Property and the excess land, the “as-is” appraised value of $1.8 million for the land has been netted from the $50.0 million total purchase price. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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50 Crosby Drive Bedford, MA 01730 | Collateral Asset Summary – Loan No. 7 50 Crosby Drive | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $32,500,000 64.5% 1.50x 10.1% |
The Borrower / Sponsor. The borrower, Bedford Owner, LLC, is a single purpose, bankruptcy-remote Delaware limited liability company with one independent director in its organizational structure. The sponsors of the borrower and nonrecourse carve-out guarantors are Jay O. Hirsh and Bradford A. Spencer, who are the principals of Jumbo Capital LLC, a real estate investment firm engaged in acquiring and managing properties of all types in the greater Boston area. Jumbo Capital LLC has more than $75 million in equity under management with 17 properties totaling more than 1,000,000 square feet.
An additional partner in the borrower and an approved replacement guarantor is Sound Mark Horizons Fund, L.P. Sound Mark Partners is an investment management company established in 2013 by a team of investment professionals, all of whom previously worked together at CBRE Capital Partners.
The Property. The 50 Crosby Drive Property is a Class A, 261,961 square foot, four-story office building that is 100.0% occupied by Acme Packet, Inc. (“Acme Packet”), a wholly owned subsidiary of Oracle America, Inc. (“Oracle”) (NYSE: ORCL; rated A+/A1/A+ by Fitch/Moody’s/S&P). Located in Bedford, Massachusetts, the 50 Crosby Drive Property was constructed in 1981 as a single-tenant corporate campus designed for Parametric Technology Corporation, whose lease expired December 2009. Following the expiration of the Parametric Technology Corporation lease, Acme Packet entered into a direct lease for 123,788 square feet in November 2009, which Acme Packet expanded to 150,949 square feet in July 2010 before expanding in 2011 to lease the entire premises. In 2013, Acme Packet was acquired by Oracle for $2.1 billion. As part of the acquisition, the lease at the 50 Crosby Drive Property was assigned to Oracle.
Following the expansion of Acme Packet in 2011, the tenant and previous owner engaged in a joint capital improvements plan and between 2012 and 2013 spent in excess of $19.5 million renovating and upgrading the property into a Class A office property. Post renovation, the building now features an atrium lobby and offers tenants various amenities including a full-service cafeteria, coffee bar, fitness center with locker room facilities, a large amphitheater/conference center and 747 (2.85/1,000 SF) surface parking spaces. The 50 Crosby Drive Property is located within close proximity to Burlington, 15 miles northwest of Boston just off the Route 3/Route 62 interchange and three miles from Route 128/Interstate 95. It is situated on a 22.6 acre site with additional land area of 28.5 acres that is not part of the collateral securing the 50 Crosby Drive Loan, however is owned by the same sponsorship.
Environmental Matters. The Phase I environmental report dated July 28, 2014 did not identify any evidence of a recognized environmental condition and recommended no further action at the 50 Crosby Drive Property.
Tenant. The 50 Crosby Drive Property is fully leased to Oracle America, Inc. (“Oracle”) (rated A+/A1/A+ by Fitch/Moody’s/S&P) pursuant to three separate leases. Founded in 1977, Oracle is one of the largest international providers of enterprise software products and a leading provider of computer hardware products and services. Based in Redwood Shores, California, Oracle has more than 120,000 employees and 400,000 customers worldwide. Oracle is ranked #82 on the 2014 Fortune 500 List with $38.3 billion in revenue for FY 2014.
The Oracle lease is a gross lease having a term that expires in March 2022. The tenant uses its space at the 50 Crosby Drive Property as its operational East Coast headquarters and the campus currently accommodates a workforce of 600 employees, which is expected to increase to 850 employees. Oracle has two five-year renewal options at 95% of the market rate which are exercisable between 12 and 15 months prior to the expiration of the then current term. The tenant has a one-time termination right at the property as of March 31, 2020, upon no less than 12 months written notice. Under this termination option, Oracle is responsible for the payment of a termination fee equal to any unamortized amount of outstanding TI/LC’s, which is estimated to be approximately $2.0 million.
Oracle considers Bedford/Burlington to be the company’s East Coast headquarters. The company has approximately 582,000 square feet of owner-occupied space across four buildings with permission to build an additional 125,000 square feet in addition to a parking garage for employees. Of the 582,000 square feet, 412,000 square feet is located within the Van de Graff Drive office park (located 2 miles from the 50 Crosby Drive Property) and was build-to-suit construction. The remaining 170,000 square feet is located in the Network Drive office park (located 0.5 miles from the 50 Crosby Drive Property) and was the original premise of Sun Microsystems which was purchased by Oracle in 2010.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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50 Crosby Drive Bedford, MA 01730 | Collateral Asset Summary – Loan No. 7 50 Crosby Drive | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $32,500,000 64.5% 1.50x 10.1% |
The previous tenant at the 50 Crosby Drive Property was Acme Packet; however the company was acquired by Oracle in 2013. The addition of Acme Packet to Oracle’s communications portfolio will enable service providers and enterprises by delivering an end-to-end portfolio of technologies that will support the deployment, innovation and monetization of all-IP networks. Prior to the acquisition, Acme Packet was a leader in session delivery network solutions, enabling the delivery of next-generation voice, video, data and unified communications services and applications across IP networks.
On June 25, 2014, Oracle reported net earnings of $11.0 billion in the fiscal year ended May 31, 2014. Q4 2013 revenues were $8.4 billion, a 2% increase from $8.2 billion in the fourth quarter of the prior fiscal year. Revenues totaled $38.3 billion, up 3% from last year’s $37.2 billion. In addition, cash flow from operations was $14.9 billion, a 5% increase from $14.2 billion in fiscal 2013. Oracle’s largest source of cash flow is from the purchase and renewal of software licenses and product support agreements. The company is the second largest software vendor in the world, behind Microsoft.
The Market. The 50 Crosby Drive Property is located in Bedford, Massachusetts in the Greater Boston suburban office market. Boston’s suburban office markets are focused on Route 128/Interstate 95 and Interstate 495, and are nationally recognized for the concentration of technology and major multinational companies. The Boston MSA has a total population of 5.92 million people with average household income of $59,380, which is 31.9% above the national average. Furthermore, over the last five years Boston’s total employment has grown at an average annual rate of 0.9%, while US employment has declined at an annual rate of 0.7%.
Geographically, the town of Bedford is considered part of the Route 3 North submarket; however, the 50 Crosby Drive Property is located in the southern portion of this market in close proximity to Burlington and Route 128 and therefore also competes with the Route 128 North submarket. Key highways in the Bedford area include U.S. Route 3 and State Routes 4, 62, and 225, and the 50 Crosby Drive Property is just three miles from Route 128/Interstate 95. The immediate surrounding area consists primarily of office, research & development, and industrial development. Bedford’s economic profile is influenced by the trends impacting the Boston area and is increasingly becoming oriented to the technology sector.
The Boston suburban office market had a strong start to 2014 with more than 427,000 square feet of absorption in the first quarter. Several firms currently have expansion projects underway – Trip Advisor (Needham), Schneider Electric (Andover), Keurig (Burlington), and New Balance (at New Boston Landing in Brighton) will all be increasing their suburban office footprint in 2014 and 2015. In particular, an increase in activity in the Route 3 North and Route 128 West submarkets is helping drive overall vacancy down to 11.0% from 11.3% in the previous quarter.
The market’s gross rent has risen from a five-year average of $24.93 PSF to a surveyed current average of $30.70 PSF. To determine a market rent for the 50 Crosby Drive Property the appraiser identified eight comparable leases that are outlined in the table below. The appraiser concluded that market rent for the 50 Crosby Drive Property was $25.00 PSF compared to Oracle’s current rent of $20.98 PSF (16.08% below market).
Competitive Set(1) | ||||||||||||||||||
Name | 50 Crosby Drive | 53 & 63 South Avenue | Westford Tech Park West | 200 River’s Edge | 174-176 Middlesex Turnpike | 400 First Avenue | 225 Presidential Way | 18 Crosby Drive | 296 Concord Road | |||||||||
Property Type | Single T | Single T | Single T | Multi T | Single T | Single T | Multi T | Single T | Multi T | |||||||||
Year Built | 1981 | 2013-2014 | 2008-2013 | 2009 | 2001 | 2015 | 2001 | 1975 | 1998 | |||||||||
Total Occupancy | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | |||||||||
Size (Sq. Ft.) | 261,961 | 424,783 | 175,000 | 114,611 | 328,232 | 280,892 | 206,601 | 50,000 | 165,822 | |||||||||
Major Tenant | Oracle | GMCR | Red Hat | Management Sciences | RSA Tech. | Trip Advisors | Raytheon | Joule | L-1 Secure | |||||||||
Lease type | NNN | NNN | NNN | Base year | NNN | NNN | NNN | NNN | Base Year | |||||||||
Rent PSF | $20.98 | $29.90 | $18.15 | $29.50 | $19.00 | $33.00 | $12.50 | $18.35 | $20.75 |
(1) | Source: Appraisal. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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50 Crosby Drive Bedford, MA 01730 | Collateral Asset Summary – Loan No. 7 50 Crosby Drive | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $32,500,000 64.5% 1.50x 10.1% |
Cash Flow Analysis.
Cash Flow Analysis | |||||
2012 | 2013 | T-12 6/30/2014 | U/W | U/W PSF | |
Base Rent(1) | $4,164,638 | $5,427,399 | $5,455,152 | $6,135,365 | $23.42 |
Value of Vacant Space | 0 | 0 | 0 | 0 | 0.00 |
Gross Potential Rent | $4,164,638 | $5,427,399 | $5,455,152 | $6,135,365 | $23.42 |
Total Recoveries | 829,325 | 1,039,753 | 976,924 | 1,069,576 | 4.08 |
Total Other Income | 48,055 | 24,150 | 28,440 | 0 | 0.00 |
Less: Vacancy(2) | 0 | 0 | 0 | (360,247) | (1.38) |
Effective Gross Income | $5,042,018 | $6,491,302 | $6,460,516 | $6,844,694 | $26.13 |
Total Operating Expenses | 3,408,094 | 3,616,194 | 3,593,497 | 3,577,173 | 13.66 |
Net Operating Income | $1,633,924 | $2,875,108 | $2,867,019 | $3,267,521 | $12.47 |
TI/LC | 0 | 0 | 0 | 415,536 | 1.59 |
Capital Expenditures | 0 | 0 | 0 | 57,631 | 0.22 |
Structural Offset | 0 | 0 | 0 | (123,664) | (0.47) |
Net Cash Flow | $1,633,924 | $2,875,108 | $2,867,019 | $2,918,017 | $11.14 |
(1) | U/W Base Rent includes $638,583 in step rent which represents the straight line of average rent underwritten throughout Oracle’s termination option on 3/31/2020. |
(2) | U/W Vacancy represents 5.0% of effective gross income as the property is 100.0% occupied by a credit tenant. |
Property Management. The 50 Crosby Drive Property will be managed by Jumbo Capital LLC, a borrower affiliate.
Lockbox / Cash Management. The 50 Crosby Drive Loan is structured with a hard lockbox with in place cash management. The borrower has sent a tenant direction letter to Oracle instructing the tenant to deposit all rents and payments into the lockbox account controlled by the lender. All funds in the lockbox account are swept on a daily basis to a cash management account under the control of the lender and disbursed in accordance with the 50 Crosby Drive Loan documents. All excess cash will be swept into a lender controlled account (i) upon an event of default under the 50 Crosby Drive Loan documents until cured in accordance with the loan documents; (ii) during the continuance of an Oracle Tenant Sweep Event (as defined below) or (iii) during the continuance of a Low Debt Service Trigger Period. A “Low Debt Service Trigger Period” will commence if the DSCR falls below 1.15x and will end if the DSCR achieves at least 1.20x for two consecutive quarters.
Initial Reserves. At closing, the borrower deposited (i) $133,034 into a tax reserve account and (ii) $68,750 into a required repairs reserve account, which represents approximately 125% of the engineer’s estimated cost of the required repairs.
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 $66,517, into a tax reserve account, (ii) 51,843 into a TI/LC reserve account, and (iii) $4,803 into a capital expenditure reserve account. In addition, the borrower will is required to deposit 1/12 of the annual insurance premiums into the insurance reserve if an acceptable blanket policy is no longer in place.
Oracle Lease Sweep Reserve. The 50 Crosby Drive Loan was structured to include a lease sweep reserve to reserve for re-tenanting costs in the event that Oracle either terminates its lease or does not renew its lease at the 50 Crosby Drive Property. During the continuance of an Oracle Tenant Sweep Event, all excess cash at the 50 Crosby Drive Property will be swept into an account to be held as additional collateral for the 50 Crosby Drive Loan. Provided there is no event of default, the reserve will be made available to the borrower to pay for certain tenant improvements, leasing commissions and other costs incurred by the borrower in connection with the re-tenanting of the space covered by the sweep lease.
An “Oracle Tenant Sweep Event” will commence (a) upon the earlier of (i) the date that is 12 months prior to the expiration of a Sweep Lease (defined below) or (ii) the date required under the Sweep Lease by which the Sweep Tenant (defined below) is required to give notice of its exercise of a renewal option there under (and such renewal has not been exercised), (b) upon the early termination, early cancellation or early surrender of a Sweep Lease or upon borrower’s receipt of notice by a Sweep Tenant of its intent to effect an early termination, early cancellation or early surrender of its Sweep Lease, (c) if a Sweep Tenant has ceased operating its business at the 50 Crosby Drive Property at substantially all of its space, (d) upon a default under a Sweep Lease by a Sweep Tenant beyond any applicable notice and cure period, (e) upon a bankruptcy or insolvency proceeding of a Sweep Tenant or its parent or (f) upon a decline in the credit rating of the Sweep Tenant (or its parent entity) below “BBB” or equivalent by any of the rating agencies.
As used herein, (i) “Sweep Lease” means the Oracle lease and any replacement lease covering a majority of the space currently demised under such lease and (ii) “Sweep Tenant” means any tenant under a Sweep Lease.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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50 Crosby Drive Bedford, MA 01730 | Collateral Asset Summary – Loan No. 7 50 Crosby Drive | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $32,500,000 64.5% 1.50x 10.1% |
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 Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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50 Crosby Drive Bedford, MA 01730 | Collateral Asset Summary – Loan No. 7 50 Crosby Drive | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $32,500,000 64.5% 1.50x 10.1% |
![(MAP)](https://capedge.com/proxy/FWP/0001539497-14-001101/img017_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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Inver Grove Heights, MN and Maplewood, MN | Collateral Asset Summary – Loan No. 8 Emerald Hills Village & Beaver Lake Estates | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,150,000 69.7% 1.72x 7.9% |
![(GRAPHIC)](https://capedge.com/proxy/FWP/0001539497-14-001101/img018_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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Inver Grove Heights, MN and Maplewood, MN | Collateral Asset Summary – Loan No. 8 Emerald Hills Village & Beaver Lake Estates | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,150,000 69.7% 1.72x 7.9% |
Mortgage Loan Information | |
Loan Seller: | LCF |
Loan Purpose: | Acquisition |
Sponsor: | Ross H. Partrich |
Borrower: | Emerald Hills MHC, LLC; Beaver Lake MHC, LLC |
Original Balance: | $31,150,000 |
Cut-off Date Balance: | $31,150,000 |
% by Initial UPB: | 2.5% |
Interest Rate: | 4.4810% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 6, 2024 |
Amortization: | Interest Only |
Additional Debt(1): | $4,450,000 Mezzanine Debt |
Call Protection: | L(24), D(93), O(3) |
Lockbox / Cash Management: | Soft / In Place |
Reserves(2) | ||
Initial | Monthly | |
Taxes: | $148,278 | $29,656 |
Insurance: | $39,501 | $4,938 |
Replacement: | $0 | $2,733 |
Financial Information | ||
Mortgage Loan | Total Debt | |
Cut-off Date Balance / Pad: | $47,485 | $54,268 |
Balloon Balance / Pad: | $47,485 | $54,268 |
Cut-off Date LTV: | 69.7% | 79.7% |
Balloon LTV: | 69.7% | 79.7% |
Underwritten NOI DSCR: | 1.75x | 1.33x |
Underwritten NCF DSCR: | 1.72x | 1.31x |
Underwritten NOI Debt Yield: | 7.9% | 6.9% |
Underwritten NCF Debt Yield: | 7.8% | 6.9% |
Underwritten NOI Debt Yield at Balloon: | 7.9% | 6.9% |
Underwritten NCF Debt Yield at Balloon: | 7.8% | 6.9% |
Property Information | |
Single Asset / Portfolio: | Portfolio of two properties |
Property Type: | Manufactured Housing Community |
Collateral: | Fee Simple |
Location: | Inver Grove Heights, MN and Maplewood, MN |
Year Built / Renovated: | 1969 / NAP |
Total Pads: | 656 |
Property Management: | Newbury Management Company |
Underwritten NOI(3): | $2,473,946 |
Underwritten NCF: | $2,441,146 |
Appraised Value: | $44,660,000 |
Appraisal Date: | June 15, 2014 |
Historical NOI(3) | |
Most Recent NOI: | $2,166,886 (T-12 July 31, 2014) |
2013 NOI: | $2,071,516 (December 31, 2013) |
2012 NOI: | $1,994,380 (December 31, 2012) |
2011 NOI: | $1,919,254 (December 31, 2011) |
Historical Occupancy | |
Most Recent Occupancy: | 96.5% (August 1, 2014) |
2013 Occupancy: | 98.7% (December 31, 2013) |
2012 Occupancy: | 99.0% (December 31, 2012) |
2011 Occupancy: | 98.3% (December 31, 2011) |
(1) | See “Current Mezzanine or Subordinate Indebtedness” herein. |
(2) | See “Initial Reserves” and “Ongoing Reserves” herein. |
(3) | The increase in Underwritten NOI over Historical NOI is due primarily to lower underwritten expenses including a lower underwritten management fee, a lower underwritten payroll & benefits expense and a lower underwritten repairs & maintenance expense. The Emerald Hills Village & Beaver Lake Estates Loan is an acquisition loan and these expenses were underwritten based on the appraisal and the borrowers’ budget. |
Property Summary | ||||||
Property Name | Location | Pads | Year Built / Renovated | Allocated Loan Amount | Appraised Value | Occupancy(1) |
Emerald Hills Village | Inver Grove Heights, MN | 402 | 1969 / NAP | $20,300,000 | $29,000,000 | 96.5% |
Beaver Lake Estates | Maplewood, MN | 254 | 1969 / NAP | $10,850,000 | $15,660,000 | 96.5% |
Total / Wtd. Avg. | 656 | $31,150,000 | $44,660,000 | 96.5% |
(1) | Based on the August 1, 2014 rent rolls. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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Inver Grove Heights, MN and Maplewood, MN | Collateral Asset Summary – Loan No. 8 Emerald Hills Village & Beaver Lake Estates | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,150,000 69.7% 1.72x 7.9% |
The Loan. The Emerald Hills Village & Beaver Lake Estates loan (the “Emerald Hills Village & Beaver Lake Estates Loan”) is a fixed rate loan secured by the borrowers’ fee simple interest in a 402-pad manufactured housing community located at 8555 Bacardi Avenue in Inver Grove Heights, Minnesota (the “Emerald Hills Village Property”) and a 254-pad manufactured housing community located at 2425 East Maryland Avenue in Maplewood, Minnesota (the “Beaver Lake Estates Property,” and together with the Emerald Hills Village Property, the “Emerald Hills Village & Beaver Lake Estates Properties”) with an original principal balance of $31.15 million. The Emerald Hills Village & Beaver Lake Estates Loan is interest only for its entire 10-year term. The Emerald Hills Village & Beaver Lake Estates Loan accrues interest at a fixed annual rate equal to 4.4810% and has a cut-off date balance of $31.15 million. The Emerald Hills Village & Beaver Lake Estates Loan proceeds, along with a $4.45 million mezzanine loan and approximately $8.7 million of equity from the sponsors, were used to acquire the Emerald Hills Village & Beaver Lake Estates Properties for a total purchase price of $43.5 million, fund upfront reserves of approximately $0.2 million and pay closing costs of approximately $0.6 million. Based on the appraised value of $44.66 million as of June 15, 2014, the cut-off date LTV ratio is 69.7%. The most recent prior financing of the Emerald Hills Village & Beaver Lake Estates Loan was not included in a securitization.
Sources and Uses | ||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | |
Loan Amount | $31,150,000 | 70.4% | Purchase Price | $43,500,000 | 98.3% | |
Mezzanine Loan | $4,450,000 | 10.1% | Reserves | $187,780 | 0.4% | |
Sponsor Equity | $8,652,239 | 19.6% | Closing Costs | $564,459 | 1.3% | |
Total Sources | $44,252,239 | 100.0% | Total Uses | $44,252,239 | 100.0% |
The Borrower / Sponsor. The borrowers, Emerald Hills MHC, LLC and Beaver Lake MHC, LLC, are each a single purpose Delaware limited liability company with one independent director. The managing member of each of the borrowers is Minneapolis MHC Holdings, LLC, a single purpose Delaware limited liability company. The sponsor and nonrecourse carve-out guarantor is Ross H. Partrich, the owner of RHP Properties, Inc. (“RHP”).
RHP is a real estate investment firm specializing in the acquisition and management of manufactured home and apartment communities. By number of communities, RHP is the nation’s second largest private owner and operator of manufactured housing communities, owning and managing approximately 212 communities with over 52,000 housing units and sites across 25 states, with a combined value of approximately $2.25 billion.
The Properties. The Emerald Hills Village & Beaver Lake Estates Properties consist of two manufactured housing communities totaling 656 pads and are located in Inver Grove Heights, Minnesota and Maplewood, Minnesota. The Emerald Hills Village Property and the Beaver Lake Estates Property were both developed in 1969 and are both located outside of St. Paul, Minnesota. The Emerald Hills Village & Beaver Lake Estates Properties are considered to be Class A properties by the appraisers. The Emerald Hills Village & Beaver Lake Estates Properties have together averaged over 96.5% occupancy since 2010.
The Emerald Hills Village Property. The Emerald Hills Village Property is located in Inver Grove Heights, Minnesota which is approximately 10.0 miles south of St. Paul, Minnesota. The Emerald Hills Village Property was built in 1969, consists of 402 manufactured housing pads located on 77.5 acres, and as of August 1, 2014, was 96.5% occupied. The Emerald Hills Village Property is an all-age Class A community with amenities that include a swimming pool, basketball court, nature pond and RV storage.
The Beaver Lake Estates Property. The Beaver Lake Estates Property is located in Maplewood, Minnesota which is approximately 5.6 miles northeast of St. Paul, Minnesota. The Beaver Lake Estates Property was built in 1969, consists of 254 manufactured housing pads located on 37.8 acres, and as of August 1, 2014, was 96.5% occupied. The Beaver Lake Estates Property is an all-age Class A community with amenities that include a community center and a playground.
Environmental Matters. The Phase I environmental report dated June 26, 2014 recommended the implementation of an asbestos operation and maintenance plan at the Beaver Lake Estates Property. The Phase I environmental report dated June 26, 2014 recommended the implementation of an asbestos operation and maintenance plan at the Emerald Hills Village Property and a Phase II environmental site assessment in the absence of documentation confirming the proper removal of a former onsite underground storage tank. A Phase II environmental site assessment was completed on August 19, 2014 and concluded there was no evidence of any residual petroleum impacts.
The Market. The Emerald Hills Village & Beaver Lake Estates Properties are located within the Minneapolis-St. Paul-Bloomington metropolitan statistical area (the “Minneapolis MSA”). Minneapolis-Saint Paul is the most populous urban area in Minnesota. The largest employers in the Minneapolis MSA include government employers such as the US Federal Government and the State of Minnesota, healthcare employers such as the Mayo Clinic and retail employers such as the Target Corporation. In 2012, the Minneapolis MSA had a reported population of over 3.3 million and has experienced population growth of 0.7% per year since 2010. Approximately 61.9% of Minnesota’s total population lives within the Minneapolis MSA.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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Inver Grove Heights, MN and Maplewood, MN | Collateral Asset Summary – Loan No. 8 Emerald Hills Village & Beaver Lake Estates | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,150,000 69.7% 1.72x 7.9% |
The Emerald Hills Village Property is located approximately 10.0 miles south of the St. Paul central business district and within four miles of I-494 and I-35E, two of the major thoroughfares that are perpendicular to each other located directly south of downtown St. Paul. The 2013 population within a five-mile radius of the Emerald Hills Village Property was approximately 109,234 and the average household income was approximately $96,044.
The Beaver Lake Estates Property is located approximately 5.6 miles northeast of the St. Paul central business district and within two miles of I-694 and I-94, two of the major thoroughfares that are perpendicular to each other located northeast of downtown St. Paul. The 2013 population within a five-mile radius of the Beaver Lake Estates Property was approximately 214,212 and the average household income was approximately $67,947.
The subsequent chart displays historical occupancies for each of the Emerald Hills Village & Beaver Lake Estates Properties along with a comparison of average actual and market rent.
Historical Occupancy and Market Rent Summary | |||||||||
Property Name | City (MN) | 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) |
Emerald Hills Village | Inver Grove Heights | 402 | 99.0% | 98.9% | 96.5% | $515 | 93.4% | $467 - $575 | $515 |
Beaver Lake Estates | Maplewood | 254 | 98.9% | 98.3% | 96.5% | $482 | 95.9% | $395 - $567 | $482 |
Total / Wtd. Avg. | 656 | 99.0% | 98.7% | 96.5% | $502 | 94.4% | $395 - 575 | $502 |
(1) | Based on the August 1, 2014 rent rolls. |
(2) | Source: Appraisal |
Cash Flow Analysis.
Cash Flow Analysis | |||||||
2011 | 2012 | 2013 | T-12 7/31/2014 | U/W | U/W per Pad | ||
Gross Potential Rent(1) | $3,573,171 | $3,669,456 | $3,751,986 | $3,830,452 | $3,954,900 | $6,029 | |
Other Income | 72,471 | 85,769 | 101,787 | 89,693 | 89,693 | 137 | |
Less: Vacancy & Credit Loss(2) | (189,594) | (175,772) | (148,295) | (131,530) | (197,745) | (301) | |
Effective Gross Income | $3,456,048 | $3,579,453 | $3,705,478 | $3,788,615 | $3,846,848 | $5,864 | |
Total Operating Expenses | 1,536,794 | 1,585,073 | 1,633,962 | 1,621,729 | 1,372,902 | 2,093 | |
Net Operating Income(3) | $1,919,254 | $1,994,380 | $2,071,516 | $2,166,886 | $2,473,946 | $3,771 | |
Capital Expenditures | 0 | 0 | 0 | 0 | 32,800 | 50 | |
Net Cash Flow | $1,919,254 | $1,994,380 | $2,071,516 | $2,166,886 | $2,441,146 | $3,721 | |
(1) | U/W Gross Potential Rent is based on the in-place rent rolls annualized. |
(2) | U/W Vacancy represents 5.0% of Gross Potential Rent. The Emerald Hills Village & Beaver Lake Estates Properties were 96.5% occupied as of August 1, 2014. |
(3) | The increase in U/W Net Operating Income over the historical Net Operating Income is due primarily to lower underwritten expenses including a lower underwritten management fee, a lower underwritten payroll & benefits expense and a lower underwritten repairs & maintenance expense. The Emerald Hills Village & Beaver Lake Estates Loan is an acquisition loan and these expenses were underwritten based on the appraisal and the borrowers’ budget. |
Property Management. The Emerald Hills Village & Beaver Lake Estates Properties are managed by Newbury Management Company, an affiliate of the borrowers.
Lockbox / Cash Management. The Emerald Hills Village & Beaver Lake Estates Loan is structured with a soft lockbox and in place cash management. Funds deposited into the clearing account will be swept into a cash management account under the control of the lender and disbursed in accordance with the Emerald Hills Village & Beaver Lake Estates Loan documents. During a Sweep Period (as defined below) all excess cash will be swept into a lender controlled account.
Subject to termination in accordance with the related mortgage loan documents, a “Sweep Period” will commence upon the occurrence of any of the following: (i) an event of default under the loan agreement, (ii) an event of default under the management agreement, (iii) the Emerald Hills Village & Beaver Lake Estates Loan debt service coverage ratio is less than 1.05x for four consecutive calendar quarters or (iv) a mezzanine loan event of default.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Inver Grove Heights, MN and Maplewood, MN | Collateral Asset Summary – Loan No. 8 Emerald Hills Village & Beaver Lake Estates | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,150,000 69.7% 1.72x 7.9% |
Initial Reserves. At closing, the borrowers deposited (i) $148,278 into a tax reserve account and (ii) $39,501 into an insurance 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 $29,656, into a tax reserve account, (ii) 1/12 of the annual insurance premiums, which currently equates to $4,938, into an insurance reserve account and (iii) $2,733 into a capital expenditure reserve account.
Current Mezzanine or Subordinate Indebtedness. A $4,450,000 mezzanine loan was funded concurrently with the Emerald Hills Village & Beaver Lake Estates Loan. The mezzanine loan is interest only, is coterminous with the Emerald Hills Village & Beaver Lake Estates Loan and accrues interest at a rate of 10.0000% per annum. The mezzanine loan is held by BLEH MEZZ-RCM LLC.
Future Mezzanine or Subordinate Indebtedness Permitted. None.
Partial Release. None.
Substitution. None.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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Inver Grove Heights, MN and Maplewood, MN | Collateral Asset Summary – Loan No. 8 Emerald Hills Village & Beaver Lake Estates | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,150,000 69.7% 1.72x 7.9% |
![(MAP)](https://capedge.com/proxy/FWP/0001539497-14-001101/img019_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various (14 States) | Collateral Asset Summary – Loan No. 9 U-Haul Pool 4 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,000,000 51.3% 1.39x 13.1% |
![(GRAPHIC)](https://capedge.com/proxy/FWP/0001539497-14-001101/img020_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various (14 States) | Collateral Asset Summary – Loan No. 9 U-Haul Pool 4 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,000,000 51.3% 1.39x 13.1% |
Mortgage Loan Information | Property Information | |||||
Loan Seller: | LCF | Single Asset / Portfolio: | Portfolio of 17 properties | |||
Loan Purpose(1): | Recapitalization | Property Type: | Self Storage | |||
Sponsor(2): | AMERCO | Collateral: | Fee Simple | |||
Borrower: | U-Haul Co. of Florida 4, LLC; UHIL 4, | Location: | Various (14 States) | |||
LLC; AREC 4, LLC | Year Built / Renovated: | 1950-2000 / 1982, 2014 | ||||
Original Balance: | $31,000,000 | Total Sq. Ft.(4): | 505,952 | |||
Cut-off Date Balance: | $31,000,000 | Total Units(5): | 6,537 | |||
% by Initial UPB: | 2.5% | Property Management: | 14 separate affiliates of U-Haul | |||
Interest Rate: | 4.5000% | International, Inc. | ||||
Payment Date: | 1st of each month | Underwritten NOI: | $4,049,107 | |||
First Payment Date: | October 1, 2014 | Underwritten NCF: | $3,954,473 | |||
Maturity Date: | September 1, 2029 | Appraised Value: | $60,445,000 | |||
Amortization: | 180 months | Appraisal Date: | June 2014 | |||
Additional Debt: | None | |||||
Call Protection: | L(24), D(152), O(4) | Historical NOI | ||||
Lockbox / Cash Management: | Soft / Springing | Most Recent NOI: | $4,003,009 (T-12 June 30, 2014) | |||
2014 NOI: | $3,938,635 (T-12 March 31, 2014) | |||||
Reserves(3) | 2013 NOI: | $3,661,634 (T-12 March 31, 2013) | ||||
Initial | Monthly | 2012 NOI: | $3,418,125 (T-12 March 31, 2012) | |||
Taxes: | $422,562 | Springing | ||||
Insurance: | $40,701 | Springing | Historical Occupancy(6) | |||
Replacement: | $0 | $7,886 | Most Recent Occupancy(7): | 81.4% (August 10, 2014) | ||
Required Repairs: | $305,026 | NAP | 2013 Occupancy: | 85.4% (December 31, 2013) | ||
Environmental: | $140,000 | $0 | 2012 Occupancy: | 85.1% (December 31, 2012) | ||
2011 Occupancy: | NAV | |||||
Financial Information | (1) The most recent prior financing of the U-Haul Pool 4 Properties was previously securitized in MLMT 2005-CKI1. The related loan was defeased on July 16, 2014. (2) AMERCO is the parent company of U-Haul International, Inc. (3) See “Initial Reserves” and “Ongoing Reserves” herein. (4) Total Sq. Ft. includes 474,612 sq. ft. of self storage, 3,340 sq. ft of RV parking and 28,000 sq. ft of storage space for U-Box storage pods. (5) Total Units includes 5,811 self storage units, 26 RV parking spaces and storage spaces for 700 U-Box storage pods. (6) Occupancy based on percentage of self storage units and RV parking spaces leased, without regard to square footage of any unit or space. (7) Current occupancy has decreased due to the addition of 859 self storage units in February 17, 2014 to the U-Haul of Glendale property. | |||||
Cut-off Date Balance / Sq. Ft. (Unit): | $61 ($4,742) | |||||
Balloon Balance / Sq. Ft. (Unit): | $1 ($41) | |||||
Cut-off Date LTV: | 51.3% | |||||
Balloon LTV: | 0.4% | |||||
Underwritten NOI DSCR: | 1.42x | |||||
Underwritten NCF DSCR: | 1.39x | |||||
Underwritten NOI Debt Yield: | 13.1% | |||||
Underwritten NCF Debt Yield: | 12.8% | |||||
Underwritten NOI Debt Yield at Balloon: | NAP | |||||
Underwritten NCF Debt Yield at Balloon: | NAP | |||||
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various (14 States) | Collateral Asset Summary – Loan No. 9 U-Haul Pool 4 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,000,000 51.3% 1.39x 13.1% |
Portfolio Summary | ||||||||
Property Name | Location | Units(1) | Sq. Ft. | Year Built / Renovated | Allocated Loan Amount(2) | Appraised Value | Occupancy (SF / Unit)(3) | |
U-Haul of Houston | Houston, TX | 1,166 | 74,075 | 1985 / 2014 | $5,425,000 | $10,100,000 | 92.5% / 91.1% | |
U-Haul of Glendale | Glendale, AZ | 1,082 | 83,335 | 1979-2000 / 2014 | $5,000,000 | $9,250,000 | 35.6% / 26.1% | |
U-Haul of Savannah | Savannah, GA | 543 | 38,125 | 1977 / NAP | $2,663,000 | $5,150,000 | 92.4% / 92.7% | |
U-Haul of Gretna | Gretna, LA | 279 | 25,780 | 1994 / NAP | $2,069,000 | $4,000,000 | 96.6% / 95.4% | |
U-Haul of Tuscaloosa | Tuscaloosa, AL | 480 | 32,338 | 1970-1984 / NAP | $1,939,000 | $3,750,000 | 94.3% / 95.3% | |
U-Haul of Independence | Independence, MO | 394 | 36,100 | 1970, 1993 / NAP | $1,784,000 | $3,450,000 | 96.1% / 95.3% | |
U-Haul of Columbus | Columbus, OH | 301 | 28,091 | 1974-1983 / NAP | $1,764,000 | $3,410,000 | 98.5% / 98.9% | |
U-Haul of San Angelo | San Angelo, TX | 274 | 31,965 | 1980 / NAP | $1,655,000 | $3,200,000 | 99.1% / 98.8% | |
U-Haul of Memphis | Memphis, TN | 459 | 33,927 | 1978 / 1982 | $1,603,000 | $3,100,000 | 90.4% / 84.9% | |
U-Haul of Orange | Orange, CT | 207 | 14,816 | 1980 / NAP | $1,376,000 | $2,660,000 | 96.3% / 96.9% | |
U-Haul of Tampa | Tampa, FL | 284 | 26,932 | 1990 / NAP | $1,151,000 | $2,725,000 | 97.6% / 97.8% | |
U-Haul of Topeka | Topeka, KS | 215 | 18,570 | 1979, 1993 / NAP | $1,086,000 | $2,100,000 | 96.8% / 97.3% | |
U-Haul of Saddle Brook | Saddle Brook, NJ | 160 | 10,300 | 1965 / NAP | $1,050,000 | $2,800,000 | 93.7% / 94.2% | |
U-Haul of Hartford | Hartford, CT | 213 | 17,970 | 1956-1980 / 2014 | $957,000 | $1,850,000 | 98.2% / 97.0% | |
U-Haul of Anaheim | Anaheim, CA | 83 | 5,220 | 1955 / NAP | $569,000 | $1,100,000 | 97.1% / 97.5% | |
U-Haul of Pocatello | Pocatello, ID | 167 | 11,420 | 1983 / NAP | $485,000 | $980,000 | 84.0% / 82.6% | |
U-Haul of Middletown | Middletown, OH | 230 | 16,988 | 1950 / NAP | $424,000 | $820,000 | 88.0% / 89.5% | |
Total / Wtd. Avg. | 6,537 | 505,952 | $31,000,000 | $60,445,000 | 84.5% / 81.4% |
(1) | Units include 5,811 self storage units, 26 RV parking spaces and storage space for 700 U-Box storage pods. |
(2) | The U-Haul Pool 4 Loan does not permit property releases. |
(3) | Occupancy based on rent rolls as of August 10, 2014 for self storage and RV only. |
The Loan. The U-Haul Pool 4 loan (the “U-Haul Pool 4 Loan”) is a fixed rate loan secured by the borrowers’ fee simple interest in 17 self storage properties totaling 505,952 sq. ft. or 6,537 units, located in 14 states (the “U-Haul Pool 4 Properties”) with an original principal balance of $31.0 million. The U-Haul Pool 4 Loan has a 15-year term and will amortize on a 15-year schedule. The U-Haul Pool 4 Loan accrues interest at a fixed annual rate equal to 4.5000% and has a cut-off date balance of $31.0 million. The U-Haul Pool 4 Loan proceeds were used to fund upfront reserves, pay closing costs and return approximately $29.3 million of equity to the borrowers. The most recent prior financing of the U-Haul Pool 4 Loan was included in the MLMT 2005-CKI1 securitization. The previous financing was defeased on July 16, 2014. Based on the appraised value of approximately $60.4 million, the cut-off date LTV ratio is 51.3% with remaining implied equity of approximately $29.4 million.
Sources and Uses(1) | ||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | |
Loan Amount | $31,000,000 | 100.0% | Reserves | $908,289 | 2.9% | |
Closing Costs | $882,906 | 2.8% | ||||
Return of Equity | $29,208,805 | 94.2% | ||||
Total Sources | $31,000,000 | 100.0% | Total Uses | $31,000,000 | 100.0% |
(1) | The U-Haul Pool 4 Properties were unencumbered prior to the origination of the U-Haul Pool 4 Loan. The most recent prior financing of the U-Haul Pool 4 Loan was previously securitized in MLMT 2005-CKI1. The related loan was defeased on July 16, 2014 and had a principal balance of approximately $20.8 million at that time and had a defeasance cost of approximately $1.1 million. |
The Borrower / Sponsor. The borrowers, U-Haul Co. of Florida 4, LLC, UHIL 4, LLC and AREC 4, LLC, are each a Delaware limited liability company with two independent directors in its organizational structure. The sponsor of the borrowers and the nonrecourse carve-out guarantor is AMERCO, the parent company of U-Haul International, Inc. (“U-Haul”).
U-Haul is one of the largest North American operators of self storage facilities and has been a leader in the self storage industry since 1974. U-Haul operates nearly 467,000 storage rooms, comprising approximately 42.1 million square feet of storage space with locations in 49 states and 10 Canadian provinces. U-Haul provides customers with a variety of moving and storage rentals and supplies including self storage, packing supplies and truck and trailer rentals. AMERCO filed for Chapter 11 bankruptcy in 2003 after failing to refinance $866 million of debt. The company emerged from bankruptcy approximately nine months later, and its creditors were paid in full.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various (14 States) | Collateral Asset Summary – Loan No. 9 U-Haul Pool 4 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,000,000 51.3% 1.39x 13.1% |
As of fiscal year-end March 31, 2014, U-Haul had $2.8 billion of revenues resulting in $34 million of net income as well as $5.3 billion in total assets, $495 million of which is liquid. The market capitalization of U-Haul (NASDAQ: UHAL) as of August 25, 2014 is $5.6 billion.
The Properties. The U-Haul Pool 4 Loan is secured by the fee simple interests in 17 self storage properties, totaling approximately 505,952 sq. ft. The U-Haul Pool 4 Properties are located across 14 states with two each located in Connecticut, Ohio and Texas and one each in Alabama, Arizona, California, Florida, Georgia, Idaho, Kansas, Louisiana, Missouri, New Jersey and Tennessee. The U-Haul Pool 4 Properties range from 5,220 sq. ft. to 83,335 sq. ft., or 83 units to 1,166 units. The unit mixes include interior and exterior self storage units (approximately 40.8% climate controlled), as well as storage space for U-Box storage pods and RV parking spaces. As of August 10, 2014, the U-Haul Pool 4 Properties were 81.4% leased based on total self storage units and RV parking spaces and 84.5% leased based on total self storage and RV sq. ft. U-Haul also operates its truck rental (“U-Move”) and moving supplies sales businesses along with mobile storage pod rentals and storage (“U-Box”) at each of the U-Haul Pool 4 Properties.
The following chart details historical occupancy and net cash flows for each of the U-Haul Pool 4 Properties.
Historical Financial Data | |||||||||
Occupancy(1) | Net Cash Flow(2) | ||||||||
Property Name | TTM 3/2012 | TTM 3/2013 | TTM 3/2014 | TTM 6/2014 | TTM 3/2012 | TTM 3/2013 | TTM 3/2014 | TTM 6/2014 | |
U-Haul of Houston | 92.0% | 91.3% | 90.2% | 94.0% | $674,020 | $746,843 | $862,652 | $862,783 | |
U-Haul of Glendale(3) | 82.6% | 80.9% | 76.3% | 21.9% | $183,531 | $165,509 | $137,659 | $135,052 | |
U-Haul of Savannah | 82.5% | 87.7% | 87.6% | 95.7% | $263,431 | $315,249 | $349,831 | $359,105 | |
U-Haul of Gretna | 92.2% | 90.8% | 91.3% | 94.3% | $267,119 | $274,012 | $284,829 | $290,445 | |
U-Haul of Tuscaloosa | 87.0% | 83.1% | 81.6% | 96.0% | $287,895 | $295,819 | $291,570 | $282,231 | |
U-Haul of Independence | 83.3% | 85.2% | 90.2% | 93.8% | $194,063 | $208,895 | $245,151 | $248,992 | |
U-Haul of Columbus | 87.8% | 85.9% | 90.3% | 96.8% | $203,738 | $224,913 | $220,951 | $233,098 | |
U-Haul of San Angelo | 89.1% | 95.1% | 94.7% | 95.9% | $182,983 | $220,994 | $225,131 | $223,099 | |
U-Haul of Memphis | 76.2% | 78.5% | 74.7% | 78.5% | $210,294 | $227,614 | $223,099 | $217,802 | |
U-Haul of Orange | 72.7% | 73.7% | 78.6% | 86.4% | $217,434 | $202,287 | $235,059 | $250,623 | |
U-Haul of Tampa | 81.9% | 79.0% | 87.1% | 95.0% | $165,525 | $167,483 | $196,846 | $211,604 | |
U-Haul of Topeka | 92.9% | 89.6% | 91.2% | 94.7% | $163,184 | $162,132 | $161,155 | $168,112 | |
U-Haul of Saddle Brook | 78.8% | 83.7% | 86.9% | 98.7% | $126,563 | $154,812 | $138,313 | $142,145 | |
U-Haul of Hartford | 87.7% | 84.9% | 89.6% | 85.2% | $113,278 | $112,251 | $147,539 | $152,273 | |
U-Haul of Anaheim | 74.4% | 78.3% | 90.8% | 97.5% | $46,408 | $49,283 | $68,242 | $68,644 | |
U-Haul of Pocatello | 82.7% | 87.5% | 85.8% | 82.6% | $48,125 | $53,579 | $65,310 | $70,247 | |
U-Haul of Middletown | 83.0% | 86.8% | 86.1% | 87.4% | $70,534 | $79,959 | $85,298 | $86,753 |
(1) | Occupancy based on rent rolls as of August 10, 2014 for self storage and RV only. |
(2) | Net Cash Flow based on borrower provided statements. |
(3) | U-Haul of Glendale added 859 self storage units in February 17, 2014, thus increasing the vacancy. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various (14 States) | Collateral Asset Summary – Loan No. 9 U-Haul Pool 4 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,000,000 51.3% 1.39x 13.1% |
Unit Mix | ||||||
Property Name | Sq. Ft.(1) | Units | Climate Controlled Units | Non-Climate Controlled Units | Parking/ RV Units | U-Box Storage Units |
U-Haul of Houston(2) | 74,075 | 1,166 | 641 | 306 | 0 | 219 |
U-Haul of Glendale(3) | 83,335 | 1082 | 606 | 429 | 6 | 41 |
U-Haul of Savannah | 38,125 | 543 | 143 | 234 | 18 | 148 |
U-Haul of Gretna | 25,780 | 279 | 86 | 176 | 0 | 17 |
U-Haul of Tuscaloosa | 32,338 | 480 | 401 | 2 | 0 | 77 |
U-Haul of Independence | 36,100 | 394 | 0 | 384 | 0 | 10 |
U-Haul of Columbus | 28,091 | 301 | 12 | 268 | 0 | 21 |
U-Haul of San Angelo | 31,965 | 274 | 86 | 155 | 2 | 31 |
U-Haul of Memphis | 33,927 | 459 | 78 | 360 | 0 | 21 |
U-Haul of Orange | 14,816 | 207 | 188 | 3 | 0 | 16 |
U-Haul of Tampa | 26,932 | 284 | 30 | 247 | 0 | 7 |
U-Haul of Topeka | 18,570 | 215 | 0 | 187 | 0 | 28 |
U-Haul of Saddle Brook | 10,300 | 160 | 0 | 156 | 0 | 4 |
U-Haul of Hartford | 17,970 | 213 | 0 | 202 | 0 | 11 |
U-Haul of Anaheim | 5,220 | 83 | 0 | 80 | 0 | 3 |
U-Haul of Pocatello | 11,420 | 167 | 100 | 32 | 0 | 35 |
U-Haul of Middletown | 16,988 | 230 | 0 | 219 | 0 | 11 |
Total | 505,952 | 6,537 | 2,371 | 3,440 | 26 | 700 |
(1) | Sq. Ft. includes 474,612 sq. ft. of self storage, 3,340 sq. ft of RV parking and 28,000 sq. ft of storage space for U-Box storage pods. |
(2) | U-Haul of Houston added 45 self storage units totaling 3,625 sq. ft in August 2014. |
(3) | U-Haul of Glendale added 859 self storage units in February 17, 2014, thus increasing the vacancy. |
Environmental Matters. The Phase I environmental reports dated June and July 2014 recommended the development and implementation of an asbestos operation and maintenance plans at all of the U-Haul Pool 4 Properties, all of which are in place. Phase II environmental assessments and/or file reviews were recommended for 10 of the properties. Environmental insurance, purchased in lieu of Phase II environmental assessments, was issued by Great American Insurance Group. Such insurance has a $3.0 million loss limit per pollution condition and $12.0 million aggregate limit covering a 10 year period which includes an endorsement indicating the policy may be extended for an additional five years. Additionally a $140,000 upfront reserve was taken to remediate environmental issues. AMERCO serves as the environmental indemnitor for the U-Haul Pool 4 Loan.
The Market. According to a third-party report, in 2013 the US self storage market encompassed approximately 48,000 self storage facilities totaling approximately 2.3 billion sq. ft. The customer base for self storage is broken down into four categories: residential (70%), commercial (18%), student (6%), and military (6%). Occupancy rates for the nation fell moderately through 2004 before stabilizing in 2005 and 2006, with a marked downturn beginning in 2007. The decline in occupancy continued into 2010 nationally but has since recovered. The North Central / Midwest / West / South Central / Southwest region has experienced a similar trend with occupancy declining into 2010 but recovering from 2011 to the present. This recent trend in occupancy is attributed to (a) the limited amount of new development in this property type and (b) the recovery in the national economy. The below chart depicts market information compared to the U-Haul Pool 4 Properties and local demographics.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various (14 States) | Collateral Asset Summary – Loan No. 9 U-Haul Pool 4 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,000,000 51.3% 1.39x 13.1% |
Market Comparison | ||||||||
Market Comparables(1) | 3-Mile Radius(1) | |||||||
Property Name | Monthly Rent Per Unit (1) | Monthly Rent PSF(1) | Occupancy(2) | Monthly Rent Per Unit | Monthly Rent PSF | Occupancy | 2014 Population | Median Household Income |
U-Haul of Houston | $84 | $1.22 | 91.1% | $84 | $1.22 | 88% | 104,570 | $73,557 |
U-Haul of Glendale(3) | $97 | $1.23 | 26.1% | $94 | $1.19 | 89% | 110,809 | $74,078 |
U-Haul of Savannah | $89 | $1.07 | 92.7% | $89 | $1.07 | 91% | 44,014 | $39,676 |
U-Haul of Gretna | $110 | $1.15 | 95.4% | $110 | $1.15 | 91% | 130,960 | $54,869 |
U-Haul of Tuscaloosa | $61 | $0.84 | 95.3% | $58 | $0.79 | 93% | 52,093 | $43,191 |
U-Haul of Independence | $79 | $0.85 | 95.3% | $82 | $0.88 | 98% | 61,492 | $44,835 |
U-Haul of Columbus | $91 | $0.94 | 98.9% | $92 | $0.94 | 84% | 123,652 | $51,008 |
U-Haul of San Angelo | $91 | $0.72 | 98.8% | $93 | $0.73 | 88% | 65,726 | $50,989 |
U-Haul of Memphis | $67 | $0.89 | 84.9% | $67 | $0.89 | 86% | 89,681 | $42,064 |
U-Haul of Orange | $95 | $1.28 | 96.9% | $88 | $1.18 | 80% | 71,863 | $78,809 |
U-Haul of Tampa | $89 | $0.92 | 97.8% | $89 | $0.92 | 83% | 120,756 | $43,353 |
U-Haul of Topeka | $95 | $1.02 | 97.3% | $90 | $0.97 | 98% | 51,627 | $56,080 |
U-Haul of Saddle Brook | $109 | $1.68 | 94.2% | $105 | $1.61 | 83% | 282,801 | $71,028 |
U-Haul of Hartford | $112 | $1.29 | 97.0% | $105 | $1.21 | 79% | 101,387 | $50,264 |
U-Haul of Anaheim | $89 | $1.39 | 97.5% | $87 | $1.37 | 86% | 261,157 | $65,355 |
U-Haul of Pocatello | $70 | $0.92 | 82.6% | $70 | $0.92 | 89% | 45,455 | $43,000 |
U-Haul of Middletown | $152 | $0.71 | 89.5% | $153 | $0.71 | 92% | 41,049 | $45,564 |
Wtd. Avg. | $90 | $1.09 | 81.4% | $89 | $1.07 | 89% | 98,930 | $58,498 |
(1) | Source: Appraisals |
(2) | Occupancy based on rent rolls as of August 10, 2014 for self storage units and RV parking spaces only. |
(3) | U-Haul of Glendale added 859 self storage units in February 17, 2014 thus increasing the vacancy |
Cash Flow Analysis.
Cash Flow Analysis | ||||||
T-12 3/31/2012 | T-12 3/31/2013 | T-12 3/31/2014 | T-12 6/30/2014 | U/W | U/W PSF | |
Base Rent(1) | $4,167,238 | $4,385,871 | $4,850,914 | $4,949,997 | $5,538,100 | $10.95 |
Value of Vacant Space | 0 | 0 | 0 | 0 | 1,398,330 | 2.76 |
Gross Potential Rent | $4,167,238 | $4,385,871 | $4,850,914 | $4,949,997 | $6,936,430 | $13.71 |
Total Recoveries | 0 | 0 | 0 | 0 | 0 | 0.00 |
Total Other Income(2) | 1,089,971 | 1,119,204 | 990,073 | 969,181 | 969,181 | 1.92 |
Less: Vacancy(3) | 0 | 0 | 0 | 0 | (1,398,330) | (2.76) |
Effective Gross Income | $5,257,208 | $5,505,075 | $5,840,987 | $5,919,179 | $6,507,282 | $12.86 |
Total Operating Expenses | 1,839,085 | 1,843,441 | 1,902,351 | 1,916,170 | 2,458,174 | 4.86 |
Net Operating Income | $3,418,125 | $3,661,634 | $3,938,635 | $4,003,009 | $4,049,107 | $8.00 |
TI/LC | 0 | 0 | 0 | 0 | 0 | 0.00 |
Capital Expenditures | 0 | 0 | 0 | 0 | 94,635 | 0.19 |
Net Cash Flow | $3,418,125 | $3,661,634 | $3,938,635 | $4,003,009 | $3,954,473 | $7.82 |
(1) | U/W Base Rent based on in-place rent rolls as of August 10, 2014 and T-12 U-Box storage income. |
(2) | Total Other Income consists of U-Move and miscellaneous revenue. |
(3) | U/W Vacancy based on T-12 actual vacancy for 16 of the properties. U-Haul of Glendale underwritten at 55% occupancy which is the midpoint between current occupancy of 26% and appraiser’s stabilized occupancy of 84%. The appraiser projects stabilized occupancy will occur in 24 months. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various (14 States) | Collateral Asset Summary – Loan No. 9 U-Haul Pool 4 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,000,000 51.3% 1.39x 13.1% |
Property Management. The U-Haul Pool 4 Properties are managed by 14 separate affiliates of U-Haul International, Inc.
Lockbox / Cash Management. The U-Haul Pool 4 Loan is structured with a soft lockbox and springing cash management. The borrowers and property managers collect rents at the U-Haul Pool 4 Properties and are required to deposit such amounts into a lockbox account. During a Cash Trap Event Period (as defined below) all amounts in the lockbox account will be transferred into the cash management account, and all excess cash flow is to be held as additional collateral.
A “Cash Trap Event Period” will commence upon the earlier of (i) an event of default, (ii) the failure of the borrowers after the end of two consecutive calendar quarters to maintain a debt service coverage ratio of at least 1.15x, (iii) the borrowers failure to provide evidence of payments of real estate taxes or that the properties are insured or (iv) the date on which the property managers become insolvent or the debtor in any bankruptcy action.
A Cash Trap Event Period will expire, with regard to clause (i) above, if the cure of the event of default is accepted by the U-Haul Pool 4 Loan lender, with regard to clause (ii) above, if the U-Haul Pool 4 Loan generates a debt service coverage ratio equal to or greater than 1.15x for the trailing 12 month period for four consecutive calendar quarters, with regard to clause (iii) above, if the borrowers provide evidence of payment of taxes or insurance, and with regard to clause (iv) above, if the borrowers enter into a replacement management agreement with a qualified manager in accordance with the terms of the loan agreement.
Initial Reserves. At closing, the borrowers deposited (i) $422,562 into a tax reserve account, (ii) $40,701 into an insurance reserve account, (iii) $305,026 into a required repairs account, which represents 125% of the estimated cost of, among other things, the replacement of roofs and asphalt repairs, and (iv) $140,000 into an environmental reserve account.
Ongoing Reserves. On a monthly basis, the borrowers are required to deposit $7,886 into a replacement reserve account, subject to a cap of $47,322. The borrowers are required to deposit 1/12 of annual real estate taxes upon (i) an event of default, (ii) if the balance of the tax reserve account falls below an amount sufficient to pay six months of taxes or (iii) if the borrowers fail to furnish evidence of satisfactory payment of all taxes due. The borrowers are required to deposit 1/12 of the annual insurance premiums upon (i) an event of default, (ii) if an acceptable blanket insurance policy is no longer in place, (iii) if the balance of the insurance reserve account falls below an amount sufficient to pay six months of insurance premiums or (iv) if the borrowers fail to furnish evidence of satisfactory payment of all insurance premiums.
Current Mezzanine or Subordinate Indebtedness. None.
Future Mezzanine or Subordinate Indebtedness Permitted. None.
Partial Release. None.
Substitution. None.
Acquisition of Adjacent Property. The borrowers may acquire properties adjacent to an existing mortgaged property for expansion purposes, provided that, among other conditions, the borrowers provide the lender with a clean environmental report, updated title and survey, evidence that the property is insured in accordance with the loan documents and evidence that the property is acquired for cash (i.e. without the incurrence of any debt). Any such after acquired adjacent property will be encumbered by the lien of the mortgage on the related mortgaged property.
Acquisition of Operating Lease Property. The borrowers may enter into operating leases with respect to storage facilities that may be acquired by an affiliate of the borrowers in the vicinity of an existing mortgage property, provided that, among other conditions: (i) such facility is operated as a remote, unstaffed facility related to an existing mortgage property, (ii) the borrowers deliver a clean environmental report, a current survey and evidence that the property is insured in accordance with the loan documents and (iii) the related borrower and affiliate enter into an operating lease which provides that (a) in the event that the debt service coverage ratio for the loan is less than 1.20x, any rent, taxes and insurance due by the borrowers under the operating lease will be abated and (b) if the lender forecloses or accepts a deed-in-lieu of foreclosure on the related mortgaged property, the lender will have the option to terminate the operating lease.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various (14 States) | Collateral Asset Summary – Loan No. 9 U-Haul Pool 4 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $31,000,000 51.3% 1.39x 13.1% |
![(MAP)](https://capedge.com/proxy/FWP/0001539497-14-001101/img021_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 10 SRC Multifamily Portfolio 2 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $29,850,000 73.3% 1.33x 9.0% |
![(PICTURE)](https://capedge.com/proxy/FWP/0001539497-14-001101/img022_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 10 SRC Multifamily Portfolio 2 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $29,850,000 73.3% 1.33x 9.0% |
Mortgage Loan Information | Property Information | |||||
Loan Seller: | GACC | Single Asset / Portfolio: | Portfolio of three properties | |||
Loan Purpose: | Acquisition | Property Type: | Garden Multifamily | |||
Sponsor(1): | Edward P. Lorin; Charles F. Hill; The | Collateral: | Fee Simple | |||
Lorin Family Trust; The Hill Family | Brownsville, TX; Tyler, TX; | |||||
Living Trust | Location: | Shreveport, LA | ||||
Borrower: | Brownsville TX FM 802 BIG 22 LLC; | Year Built / Renovated: | Various / Various | |||
Shreveport LA Southfield BIG 22 LLC; | Total Units: | 601 | ||||
Tyler TX Hollytree BIG 22 LLC | Property Management: | The Lynd Company | ||||
Original Balance: | $29,850,000 | Underwritten NOI: | $2,681,642 | |||
Cut-off Date Balance: | $29,850,000 | Underwritten NCF: | $2,531,392 | |||
% by Initial UPB: | 2.4% | “As Renovated” Appraised Value(6): | $40,700,000 | |||
Interest Rate: | 4.901759% | “As Renovated” Appraisal Date: | May and June 2015 | |||
Payment Date: | 6th of each month | |||||
First Payment Date: | September 6, 2014 | Historical NOI | ||||
Maturity Date: | August 6, 2019 | Most Recent NOI: | $2,613,692 (T-12 March 31, 2014) | |||
Amortization: | Interest only for first 18 months; 360 | 2013 NOI: | $2,666,226 (December 31, 2013) | |||
months thereafter | 2012 NOI: | $2,699,491 (December 31, 2012) | ||||
Additional Debt(2): | $3,000,000 Mezzanine Debt | 2011 NOI: | NAV | |||
Call Protection(3): | L(25), D(31), O(4) | |||||
Lockbox / Cash Management: | Soft / In Place | Historical Occupancy | ||||
Most Recent Occupancy: | 88.4% (June 3, 2014) | |||||
Reserves(4) | 2013 Occupancy: | 86.5% (December 31, 2013) | ||||
Initial | Monthly | 2012 Occupancy: | NAV | |||
Taxes: | $275,832 | $39,405 | 2011 Occupancy: | NAV | ||
Insurance: | $0 | Springing | (1) The sponsors are also the sponsors under the mortgage loan identified on the Annex A-1 to this Free Writing Prospectus as SRC Multifamily Portfolio 3, which has a Cut-off Date Balance of $28,500,000. (2) See “Current Mezzanine or Subordinate Indebtedness” herein. (3) Partial release is permitted. See “Partial Release” herein. (4) See “Initial Reserves” and “Ongoing Reserves” herein. (5) Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and Underwritten NCF DSCR for the mortgage loan are 1.81x and 1.71x, respectively. The Underwritten NOI DSCR and Underwritten NCF DSCR for the total debt are 1.45x and 1.37x, respectively. (6) The “As Renovated” appraised value takes into account upgrades being performed at each property. At closing, approximately $3.6 million was deposited in escrows for capital improvements. Based on the “As-is” appraised value of $35,660,000, the Cut-off Date LTV for the SRC Multifamily Portfolio 2 Loan is 83.7%. | |||
Replacement: | $0 | $12,521 | ||||
Required Repairs: | $281,808 | NAP | ||||
Capital Expenditure Holdback: | $3,594,407 | $0 | ||||
Financial Information | ||||||
Mortgage Loan | Total Debt | |||||
Cut-off Date Balance / Unit: | $49,667 | $54,659 | ||||
Balloon Balance / Unit: | $47,011 | $52,002 | ||||
Cut-off Date LTV: | 73.3% | 80.7% | ||||
Balloon LTV: | 69.4% | 76.8% | ||||
Underwritten NOI DSCR(5): | 1.41x | 1.18x | ||||
Underwritten NCF DSCR(5): | 1.33x | 1.12x | ||||
Underwritten NOI Debt Yield: | 9.0% | 8.2% | ||||
Underwritten NCF Debt Yield: | 8.5% | 7.7% | ||||
Underwritten NOI Debt Yield at Balloon: | 9.5% | 8.6% | ||||
Underwritten NCF Debt Yield at Balloon: | 9.0% | 8.1% |
Property Summary | ||||||
Property Name | Location | Units | Year Built / Renovated | Allocated Loan Amount | “As Renovated” Appraised Value | Occupancy(1) |
La Mansion Del Paseo | Brownsville, TX | 168 | 2001 / NAP | $11,150,000 | $14,900,000 | 89.3% |
Southfield | Shreveport, LA | 185 | 1971 / 2014 | $9,900,000 | $13,500,000 | 89.7% |
Stone Creek Apartments | Tyler, TX | 248 | 1984 / NAP | $8,800,000 | $12,300,000 | 86.7% |
Total / Wtd. Avg. | 601 | $29,850,000 | $40,700,000 | 88.4% |
(1) | Based on the June 3, 2014 rent rolls. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 10 SRC Multifamily Portfolio 2 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $29,850,000 73.3% 1.33x 9.0% |
The Loan. The SRC Multifamily Portfolio 2 loan (the “SRC Multifamily Portfolio 2 Loan”) is a fixed rate loan secured by the borrowers’ fee simple interests in a 601-unit garden multifamily portfolio located at 2700 FM 802 in Brownsville, Texas, 109 Southfield Road in Shreveport, Louisiana and 6100 Hollytree Drive in Tyler, Texas (the “SRC Multifamily Portfolio 2 Properties”) with an original principal balance of $29.85 million. The SRC Multifamily Portfolio 2 Loan has a 5-year term and, after an initial 18-month interest only period, amortizes on a 30-year schedule. The SRC Multifamily Portfolio 2 Loan accrues interest at a fixed rate equal to 4.901759% and has a cut-off date balance of $29.85 million. The SRC Multifamily Portfolio 2 Loan proceeds, along with a $3.0 million mezzanine loan and approximately $7.3 million of sponsor equity were used to acquire the SRC Multifamily Portfolio 2 Properties for approximately $35.0 million, fund reserves and a capital expenditure holdback and pay closing costs. Based on the “As Renovated” appraised value of the properties of $40.7 million as of May and June 2015, the cut-off date LTV is 73.3%. The “As Renovated” appraised value takes into account upgrades being performed at each property. At closing, approximately $3.6 million was deposited in escrows for capital improvements. The “As-is” appraised value is approximately $35.7 million as of May 2014. The most recent prior financing of the Stone Creek Apartments property was included in the CD 2005-CD1 securitization. The most recent prior financings of the La Mansion Del Paseo and Southfield properties were not included in securitizations.
Sources and Uses | ||||||
Sources | Proceeds | % of Total | Uses | Proceeds | % of Total | |
Loan Amount | $29,850,000 | 74.3% | Purchase Price | $35,023,686 | 87.1% | |
Mezzanine Debt | $3,000,000 | 7.5% | Capital Expenditure Holdback | $3,594,407 | 8.9% | |
Sponsor Equity | $7,338,316 | 18.3% | Reserves | $557,640 | 1.4% | |
Closing Costs | $1,012,584 | 2.5% | ||||
Total Sources | $40,188,316 | 100.0% | Total Uses | $40,188,316 | 100.0% |
The Borrower / Sponsor. The borrowers, Tyler TX Hollytree BIG 22 LLC, Shreveport LA Southfield BIG 22 LLC, and Brownsville TX FM 802 BIG 22 LLC, are each single purpose Delaware limited liability companies structured to be bankruptcy-remote, each with at least one independent director in its organizational structure. The sponsors of the borrowers and the non-recourse carve-out guarantors are Edward P. Lorin, Charles F. Hill, The Lorin Family Trust and The Hill Family Living Trust, on a joint and several basis.
Mr. Charles F. Hill and Mr. Edward P. Lorin, founders of Strategic Realty Capital (“SRC”), have over 40 years of combined experience in real estate and commercial investments. SRC currently has ownership interest in 13,811 multifamily units across 36 properties in seven states, including 10 properties in Texas.
The Properties. The SRC Multifamily Portfolio 2 Properties include one Class A multifamily garden property, one Class B/C multifamily garden property, and one Class B multifamily garden property totaling 601 units located in Brownsville, Texas, Shreveport, Louisiana and Tyler, Texas. A summary of each property is below:
La Mansion Del Paseo
Unit Mix Summary – La Mansion Del Paseo Property(1) | |||||||||
Unit Type | # of Units | % of Total | Occupied Units | Occupancy | Avg. Unit Size (Sq. Ft.) | Avg. Monthly Rental Rate | Avg. Monthly Rental Rate PSF | Monthly Market Rental Rate | Monthly Market Rate PSF |
1 Bed / 1 Bath | 72 | 42.9% | 70 | 97.2% | 761 | $731 | $0.96 | $743 | $0.98 |
2 Bed / 2 Bath | 72 | 42.9% | 56 | 77.8% | 1,090 | $922 | $0.85 | $937 | $0.86 |
3 Bed / 2 Bath | 24 | 14.3% | 24 | 100.0% | 1,326 | $1,040 | $0.78 | $1,065 | $0.80 |
Total / Wtd. Avg. | 168 | 100.0% | 150 | 89.3% | 983 | $852 | $0.87 | $872 | $0.89 |
(1) | Based on the rent roll dated June 3, 2014. |
La Mansion Del Paseo (the “La Mansion Del Paseo Property”) is a 168-unit, Class A garden complex comprised of 14 residential buildings on a 10.28-acre site located in the north central portion of Brownsville, Texas. Amenities include an on-site leasing office, clubhouse, fitness center, business center, laundry room, jogging trail, swimming pool, playground, barbecue grill and picnic area, controlled access, and a DVD library. The residential units feature carpeting and vinyl tile flooring, standard kitchen appliances, ceiling fans, laundry connections, walk-in closets, built-in bookshelves, dry bar and a patio balcony. In addition, the property has 298 open surface spaces and 40 carport spaces, which equates to 2.01 parking spaces per unit. The borrower has budgeted $791,444 to be invested in capital improvements including interior upgrades and updates of shared amenities at the La Mansion Del Paseo Property.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 10 SRC Multifamily Portfolio 2 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $29,850,000 73.3% 1.33x 9.0% |
Southfield
Unit Mix Summary – Southfield Property(1) | ||||||||||
Unit Type | # of Units | % of Total | Occupied Units | Occupancy | Average Unit Size (Sq. Ft.) | Average Monthly Rental Rate | Average Monthly Rental Rate PSF | Monthly Market Rental Rate | Monthly Rental Rate PSF | |
1 Bed / 1 Bath | 60 | 32.4% | 57 | 95.0% | 619 | $550 | $0.89 | $630 | $1.02 | |
2 Bed / 1 Bath | 30 | 16.2% | 28 | 93.3% | 816 | $642 | $0.79 | $721 | $0.88 | |
2 Bed / 1.5 Bath | 30 | 16.2% | 28 | 93.3% | 939 | $681 | $0.72 | $765 | $0.81 | |
2 Bed / 2.5 Bath | 16 | 8.6% | 14 | 87.5% | 1229 | $712 | $0.58 | $848 | $0.69 | |
3 Bed / 2 Bath | 49 | 26.5% | 39 | 79.6% | 1,241 | $788 | $0.64 | $872 | $0.70 | |
Total / Wtd. Avg. | 185 | 100.0% | 166 | 89.7% | 920 | $657 | $0.73 | $750 | $0.81 |
(1) | Based on the rent roll dated June 3, 2014. |
Southfield (the “Southfield Property”) is a 185-unit, Class B/C garden complex comprised of 22 residential buildings on a 9.185-acre site located in the south eastern portion of Shreveport, Louisiana. Amenities include an on-site leasing office, two laundry rooms, clubhouse, sand volleyball court and swimming pool. The residential units features carpeting and laminate wood flooring, standard kitchen appliances, wood burning fireplaces on select units, ceiling fans, laundry connections, walk-in closets and a patio/balcony. In addition, the property has 138 open surface spaces and 222 carport spaces, which equates to 1.94 parking spaces per unit. The borrower has budgeted $1,231,009 to be invested in capital improvements including interior upgrades and updates of shared amenities at the Southfield Property.
Stone Creek Apartments
Unit Mix Summary – Stone Creek Apartments Property (1) | |||||||||
Unit Type | # of Units | % of Total | Occupied Units | Occupancy | Avg. Unit Size (Sq. Ft.) | Avg. Monthly Rental Rate | Avg. Monthly Rental Rate PSF | Monthly Market Rental Rate | Monthly Market Rate PSF |
1 Bed / 1 Bath | 144 | 58.1% | 136 | 94.4% | 568 | $518 | $0.91 | $507 | $0.89 |
2 Bed / 1 Bath | 49 | 19.8% | 31 | 63.3% | 830 | $643 | $0.77 | $635 | $0.77 |
2 Bed / 2 Bath | 55 | 22.2% | 48 | 87.3% | 890 | $671 | $0.75 | $675 | $0.76 |
Total / Wtd. Avg. | 248 | 100.0% | 215 | 86.7% | 691 | $570 | $0.84 | $569 | $0.82 |
(1) | Based on the rent roll dated June 3, 2014. |
Stone Creek Apartments (the “Stone Creek Apartments Property”) is a 248-unit, Class B garden complex comprised of 16 residential buildings on a 12.043-acre site located in the southern portion of Tyler, Texas. Amenities include an on-site leasing office, two laundry rooms, clubhouse, sand volleyball court and a swimming pool. Units feature carpeting and laminate wood flooring, standard kitchen appliances, wood burning fireplaces on select units, ceiling fans, laundry connections in select units, walk-in closets, and a patio/balcony. In addition, the property has 496 open surface spaces which equates to 2 parking spaces per unit. The borrower has budgeted $1,571,955 to be invested in capital improvements including interior upgrades and updates of shared amenities at the Stone Creek Apartments.
Environmental Matters. Phase I environmental reports dated May 20, 2014 concluded that there was no evidence of current or historical recognized environment conditions (“RECs”) in connection with any property within the portfolio. Based on the age, Phase I environmental reports did indicate that asbestos and asbestos containing materials and lead-based paint (“LBP”) may be present at both Southfield Property and Stone Creek Apartments Property. Asbestos and lead-based paint operations and maintenance plans for the properties were implemented at closing.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 10 SRC Multifamily Portfolio 2 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $29,850,000 73.3% 1.33x 9.0% |
The Market.
Brownsville-Harlingen MSA
The La Mansion Del Paseo Property is located in the Brownsville-Harlingen metropolitan area. The Brownsville-Harlingen metropolitan area has a total estimated population of 428,500 as of 2014 and has experienced an annual growth rate of 1.49% since 2007. The unemployment rate in the region decreased to 9.3% in 2014, the third consecutive year the rate has decreased. Total employment has also grown substantially in the past five years, increasing 2.0%, 1.5%, 1.9%, 1.8% and 2.8% in 2010, 2011, 2012, 2013, and 2014, respectively. The 2014 average estimated household income in the region is $53,643, $48,616 and $44,962 within a 1, 3 and 5-mile radius, respectively, of the property.
The Brownsville-Harlingen metropolitan area apartment market has experienced consistent rent growth of 2.1% per year over the past five years. The average asking rent in the area closed at $627 per unit in the first quarter of 2014, which represented a 0.7% increase since the fourth quarter of 2013. The area consistently underperforms the Southwest region and the nation in terms of asking rent and asking rent per foot among all unit mixes, however the vacancy rate of 4.7% in the area as of the first quarter 2014 is 0.5% lower than the Southwest region’s rate of 5.2%.
La Mansion Del Paseo Property Competitive Set(1) | ||||||
Name | La Mansion Del Paseo Property | Las Palmas | Villages at Paso Real | The Reata | Stonleigh | Cornerstone |
Year Built | 2001 | 2002 | 2010 | 2001 | 2006 | 1999 |
Total Occupancy | 89.3%(2) | 97% | 93% | 97% | 96% | 93% |
Units | 168 | 144 | 180 | 144 | 180 | 168 |
Average Rent per Unit | $852(2) | $817 | $824 | $849 | $632 | $701 |
Average Rent PSF | $0.87(2) | $1.00 | $0.99 | $1.05 | $0.89 | $0.83 |
(1) | Source: Appraisal |
(2) | As of the June 3, 2014 rent roll. |
Shreveport-Bossier City MSA
The Southfield Property is located in the Shreveport-Bossier City metropolitan area. The area has a total estimated population of 409,100 as of 2014 and has experienced an annual growth rate of 0.68% since 2007. The area’s unemployment rate is 5.6% in 2014, down from 6.8% in 2013. The area’s total employment increased 1.6% in 2014. The 2014 median estimated household income in the region is $62,536, $52,121 and $43,039 within a 1, 3 and 5-mile radius, respectively, of the property.
The average asking rent in the Shreveport metropolitan area increased 1.3% from the beginning of 2014 to the end of the first quarter of 2014 and closed at an average asking rent of $751 per unit. The vacancy rate in the region is 6.0% as of the first quarter 2014, a decrease from 6.4% at the end of the fourth quarter of 2013.
Southfield Property Competitive Set(1) | ||||||
Name | Southfield Property | Village of Williamsburg | Park Villa | Colonial Plaza | Haystack Aparments | The Willows at Wright Island |
Year Built | 1971 | 1975 | 1985 | 1972 | 1976 | 1986 |
Total Occupancy | 89.7%(2) | 93% | 93% | 91% | 100% | 95% |
Units | 185 | 194 | 128 | 192 | 240 | 196 |
Average Rent per Unit | $657(2) | $738 | $716 | $685 | $591 | $949 |
Average Rent PSF | $0.73(2) | $0.88 | $0.77 | $0.73 | $0.80 | $1.08 |
(1) | Source: Appraisal |
(2) | As of the June 3, 2014 rent roll. |
Tyler MSA
The Stone Creek Apartments Property is located in the Tyler metropolitan area. The area had a total population of 219,500 in 2013 and has experienced an annual growth rate of 1.6% since 2006. The unemployment rate was 5.7% in 2013 and total employment increased 0.6%, 0.7%, and 1.4% in 2011, 2012, and 2013 respectively. The 2014 median estimated household income in the region is $43,446, $46,593 and $45,164 within a 1, 3 and 5-mile radius, respectively, of the property.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 10 SRC Multifamily Portfolio 2 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $29,850,000 73.3% 1.33x 9.0% |
The area’s vacancy rate of 5.3% as of the first quarter 2014 was slightly higher than the Southwest region’s average of 5.2%, but the rate decreased 0.1% from the fourth quarter 2013. The asking rent in the area closed at $779 per unit in 1Q14, an increase of 0.3% over the fourth quarter 2013. Over the last year, the Tyler metropolitan area outperformed the country with an annual rent increase of 3.4%.
Stone Creek Apartments Property Competitive Set(1) | ||||||
Name | Stone Creek Apartments Property | Salado | Autumn Glen | Bullard Crossing | Bullard Creek | Dove Tree |
Year Built | 1984 | 1974 | 1985 | 1974 | 1979 | 1978 |
Total Occupancy | 86.7%(2) | 94% | 96% | 92% | 93% | 93% |
Units | 248 | 312 | 208 | 194 | 200 | 200 |
Average Rent per Unit | $570(2) | $709 | $719 | $746 | $644 | $607 |
Average Rent PSF | $0.84(2) | $0.84 | $0.88 | $0.71 | $0.81 | $1.00 |
(1) | Source: Appraisal |
(2) | As of June 3, 2014 rent roll. |
Cash Flow Analysis.
Cash Flow Analysis | |||||
2012 | 2013 | T-12 3/31/2014 | U/W | U/W per Unit | |
Gross Potential Rent | $4,892,218 | $4,930,088 | $4,939,683 | $4,937,568 | $8,216 |
Total Other Income | 465,837 | 603,443 | 587,716 | 587,716 | 978 |
Less: Concessions | (155,415) | (158,210) | (157,669) | (140,715) | (234) |
Less: Vacancy & Credit Loss & Bad Debt | (461,970) | (691,532) | (699,382) | (641,992) | (1,068) |
Effective Gross Income | $4,740,670 | $4,683,789 | $4,670,347 | $4,742,576 | $7,891 |
Total Expenses | 2,041,179 | 2,017,563 | 2,056,655 | 2,060,934 | 3,429 |
Net Operating Income | $2,699,491 | $2,666,226 | $2,613,692 | $2,681,642 | $4,462 |
Replacement Reserves | 0 | 0 | 0 | 150,250 | 250 |
Capital Expenditures | 0 | 0 | 0 | 0 | 0 |
Net Cash Flow | $2,699,491 | $2,666,226 | $2,613,692 | $2,531,392 | $4,212 |
Property Management. The SRC Multifamily Portfolio 2 Properties are managed by The Lynd Company, a professional property management company with expertise in the management of value-add multifamily properties. The Lynd Company manages more than 34,000 apartment units and 10 million sq. ft. of commercial real estate nationwide.
Lockbox / Cash Management. The SRC Multifamily Portfolio 2 Loan is structured with a soft lockbox and in place cash management. All rents and other gross revenue are required to be deposited by the borrowers or manager into a clearing account within one business day of receipt. All funds in the clearing account are swept daily to a cash management account under the control of the lender and disbursed in accordance with the SRC Multifamily Portfolio 2 Loan documents.
Additionally, all excess cash will be swept into a lender controlled account upon (i) an event of default under the SRC Multifamily Portfolio 2 Loan documents, (ii) an event of default under the mezzanine loan documents or (iii) if the debt service coverage ratio is less than 1.05x on the last day of the calendar quarter and will end if (a) with respect to clause (i) or (ii) above, the respective event of default has been cured or waived and no other event of default is then continuing or (b) with respect to clause (iii) above, the debt service coverage ratio is at least 1.20x for two consecutive quarters.
Initial Reserves. At closing, the borrowers deposited (i) $275,832 into a tax reserve account, (ii) $281,808 into a required repairs reserve account, which represents approximately 115% of the engineer’s estimated cost of the required repairs and (iii) $3,594,407 into a capital expenditure holdback 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 $39,405, into a tax reserve account and (ii) $12,521 into a replacement reserve account. In addition, the borrowers are required to deposit 1/12 of the annual insurance premiums into an insurance reserve account if an acceptable blanket policy is no longer in place.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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.
101
Various | Collateral Asset Summary – Loan No. 10 SRC Multifamily Portfolio 2 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $29,850,000 73.3% 1.33x 9.0% |
Current Mezzanine or Subordinate Indebtedness. A $3,000,000 mezzanine loan was funded concurrently with the SRC Multifamily Portfolio 2 Loan. The mezzanine loan accrues interest at a rate of 12.0000% and will be interest only for the full term. An intercreditor agreement is in place with respect to the mezzanine loan.
Future Mezzanine or Subordinate Indebtedness Permitted. None.
Partial Release. Any time after the expiration of the lockout period the borrowers may obtain the release of any individual property upon the sale of such property, provided, among other things, that (i) the sale of such property is (x) pursuant to an arm’s-length agreement to a third party not affiliated with any borrower, mezzanine borrower or any guarantor and in which no borrower, no affiliate of any borrower, mezzanine borrower and/or any guarantor has any beneficial interest or (y) to Moriah SRC BIG 22 Member LLC, or its affiliate, pursuant to its right of first refusal, and is on the same economic terms as the offer made by a third party not affiliated with any borrower, any mezzanine borrower or any guarantor, and in which no borrower and no affiliate of any borrower, any mezzanine borrower and/or any guarantor has any beneficial interest, (ii) the LTV for the remaining properties shall not exceed the lesser of the LTV immediately preceding such release and 82.0%, (iii) the DSCR for the remaining properties is not less than the greater of the DSCR immediately preceding the partial release and 1.14x and (iv) the borrowers provide defeasance collateral to the lender in an amount equal to the greater of 125% of the allocated loan amount for the released property or 100% of the allocated sales proceeds from the released property.
Substitution. None.
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various | Collateral Asset Summary – Loan No. 10 SRC Multifamily Portfolio 2 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $29,850,000 73.3% 1.33x 9.0% |
![(PICTURE)](https://capedge.com/proxy/FWP/0001539497-14-001101/img023_v1.jpg)
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various,TX | Collateral Asset Summary – Loan No. 11 SRC Multifamily Portfolio 3 | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $28,500,000 74.9% 1.41x 9.7% |
Mortgage Loan Information | Property Information | |||||
Loan Seller: | GACC | Single Asset / Portfolio: | Portfolio of three properties | |||
Loan Purpose: | Acquisition | Property Type: | Garden Multifamily | |||
Sponsor(1): | Edward P. Lorin; Charles F. Hill; The | Collateral: | Fee Simple | |||
Lorin Family Trust; The Hill Family | Location: | Various, TX | ||||
Living Trust | Year Built / Renovated: | 1974 – 1982 / NAP | ||||
Borrower: | Tyler TX Rice BIG 22 LLC; | Total Units: | 772 | |||
Longview TX McCann BIG 22 LLC; | Property Management: | The Lynd Company | ||||
Abilene TX Curry BIG 22 LLC | Underwritten NOI: | $2,759,402 | ||||
Original Balance: | $28,500,000 | Underwritten NCF: | $2,550,327 | |||
Cut-off Date Balance: | $28,500,000 | “As Renovated” Appraised Value(6) : | $38,050,000 | |||
% by Initial UPB: | 2.3% | “As Renovated” Appraisal Date: | May and June 2015 | |||
Interest Rate: | 4.871053% | |||||
Payment Date: | 6th of each month | Historical NOI | ||||
First Payment Date: | September 6, 2014 | Most Recent NOI: | $2,540,649 (T-12 March 31, 2014) | |||
Maturity Date: | August 6, 2019 | 2013 NOI: | $2,482,771 (December 31, 2013) | |||
Amortization: | Interest only for first 18 months; 360 | 2012 NOI: | $2,656,944 (December 31, 2012) | |||
months thereafter | 2011 NOI: | NAV | ||||
Additional Debt(2): | $3,000,000 Mezzanine Debt | |||||
Call Protection(3): | L(25), D(31), O(4) | Historical Occupancy | ||||
Lockbox / Cash Management: | Soft / In Place | Most Recent Occupancy: | 88.3% (June 3, 2014) | |||
2013 Occupancy: | 83.6% (December 31, 2013) | |||||
Reserves | 2012 Occupancy: | NAV | ||||
Initial | Monthly | 2011 Occupancy: | NAV | |||
Taxes: | $331,309 | $47,330 | (1) The sponsors are also the sponsors under the mortgage loan identified on Annex A-1 to this Free Writing Prospectus as SRC Multifamily Portfolio 2, which has a Cut-off Date Balance of $29,850,000. (2) The mezzanine loan is coterminous with the mortgage loan and accrues interest at a rate of 12.0000% per annum. (3) The borrowers may release an individual property or properties after the lockout period upon a bona-fide sale, subject to terms and conditions set forth in the mortgage loan documents, including but not limited to: (i) the DSCR after giving effect to such release is at least the greater of (x) the DSCR immediately preceding such sale and (y) 1.18x; (ii) the LTV after giving effect to such release is no more than the lesser of (x) the LTV immediately preceding such sale and (y) 83.0%; (iii) no event of default under the mortgage loan has occurred and is continuing, and (iv) the borrowers partially defease to lender the greater of 125% of the allocated loan amount for the released property or 100% of the net sales proceeds from the released property. (4) The borrowers 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. (5) Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and the Underwritten NCF DSCR are 1.96x and 1.81x, respectively for the mortgage loan and 1.56x and 1.44x, respectively, for the total debt. (6) The “As Renovated” Appraised Value takes into account upgrades being performed at each property. At closing, approximately $3.78 million was deposited in escrows for capital improvements. Based on the “As-is” appraised value of $33,550,000, the Cutoff Date LTV for the mortgage loan is 84.9%. | |||
Insurance(4): | $0 | Springing | ||||
Replacement: | $0 | $17,431 | ||||
Required Repairs: | $550,692 | NAP | ||||
Capital Expenditure Holdback: | $3,783,791 | $0 | ||||
Financial Information | ||||||
Mortgage Loan | Total Debt | |||||
Cut-off Date Balance / Unit: | $36,917 | $40,803 | ||||
Balloon Balance / Unit: | $34,931 | $38,817 | ||||
Cut-off Date LTV: | 74.9% | 82.8% | ||||
Balloon LTV: | 70.9% | 78.8% | ||||
Underwritten NOI DSCR(5): | 1.53x | 1.27x | ||||
Underwritten NCF DSCR(5): | 1.41x | 1.17x | ||||
Underwritten NOI Debt Yield: | 9.7% | 8.8% | ||||
Underwritten NCF Debt Yield: | 8.9% | 8.1% | ||||
TRANSACTION HIGHLIGHTS |
■ | Management. The properties are managed by The Lynd Company, a professional management company with expertise in the management of multifamily properties. The Lynd Company was founded in 1980 and has grown its management portfolio to more than 34,000 apartment units and 10 million sq. ft. of commercial property nationwide. |
■ | Capital Investment. The borrowers will contribute approximately $8.23 million of equity to the transaction at closing in order to acquire the properties, fund reserves and pay closing costs. Included in the reserves is an approximately $3.78 million capital expenditure holdback reserve that will be used to make significant improvements across the portfolio. Per the appraisal, major property renovations are anticipated to be completed within 12 months of the acquisition. |
■ | Sponsorship. Charles F. Hill and Edward P. Lorin, founders of Strategic Realty Capital (“SRC”), have over 40 years of combined experience in real estate and commercial investments. SRC currently has ownership interest in 13,811 multifamily units across 36 properties in seven states, including 10 properties in Texas. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various Memphis, TN 38133 | Collateral Asset Summary – Loan No. 12 Bartlett Flex Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $24,500,000 69.8% 1.30x 10.2% |
Mortgage Loan Information | |
Loan Seller: | LCF |
Loan Purpose: | Refinance |
Sponsor: | Dunavant Holding Inc.; Dunavant Enterprises, Inc. |
Borrower: | Stage Hills Holdings, LLC; Wolf Lake Holdings, LLC |
Original Balance: | $24,500,000 |
Cut-off Date Balance: | $24,500,000 |
% by Initial UPB: | 2.0% |
Interest Rate: | 5.1500% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 6, 2021 |
Amortization: | 300 months |
Additional Debt: | None |
Call Protection: | L(24), D(57), O(3) |
Lockbox / Cash Management(1): | Hard / Springing |
Reserves | ||
Initial | Monthly | |
Taxes: | $291,206 | $36,401 |
Insurance: | $92,969 | $10,330 |
Replacement: | $0 | $5,849 |
Required Repairs: | $74,713 | NAP |
TI/LC(2): | $400,000 | Springing |
Unfunded Obligations: | $430,090 | $0 |
Working Capital(3): | $205,159 | $0 |
Financial Information | ||
Cut-off Date Balance / Sq. Ft.: | $52 | |
Balloon Balance / Sq. Ft.: | $44 | |
Cut-off Date LTV: | 69.8% | |
Balloon LTV: | 58.6% | |
Underwritten NOI DSCR: | 1.43x | |
Underwritten NCF DSCR: | 1.30x | |
Underwritten NOI Debt Yield: | 10.2% | |
Underwritten NCF Debt Yield: | 9.3% |
Property Information | |
Single Asset / Portfolio: | Portfolio of 14 properties |
Property Type: | Industrial Flex |
Collateral: | Fee Simple |
Location: | Memphis, TN |
Year Built / Renovated: | 1992-2007 / 2012 |
Total Sq. Ft.: | 467,949 |
Property Management: | Colliers Management Services - Memphis, LLC |
Underwritten NOI: | $2,497,934 |
Underwritten NCF: | $2,273,965 |
Appraised Value: | $35,100,000 |
Appraisal Date: | July 9, 2014 |
Historical NOI | |
Most Recent NOI: | $1,882,534 (T-12 June, 30, 2014) |
2013 NOI: | $1,813,041 (December 31, 2013) |
2012 NOI: | $1,432,152 (December 31, 2012) |
2011 NOI: | NAV |
Historical Occupancy | |
Most Recent Occupancy: | 84.2% (July 2, 2014) |
2013 Occupancy: | 74.0% (December 31, 2013) |
2012 Occupancy: | 66.9% (December 31, 2012) |
2011 Occupancy: | NAV |
(1) | Subject to termination in accordance with the related mortgage loan documents, cash management will be triggered if (i) an event of default under the mortgage loan documents or the property management agreement has occurred and is continuing or (ii) the DSCR is less than 1.15x as of any determination date. |
(2) | The borrowers are required to deposit $15,598 monthly into the TI/LC reserve if the balance on reserve falls below the TI/LC cap of $400,000. |
(3) | The borrowers may draw upon the Working Capital reserve for operating expenses and debt service payments. |
TRANSACTION HIGHLIGHTS |
■ | Location. The portfolio is located approximately 20 miles northeast of downtown Memphis, Tennessee and 0.8 miles north of Interstate 40, the third longest Interstate Highway in the United States. According to the Tennessee Department of Transportation, the I-40/I-240 interchange has a daily vehicle traffic count of 200,000. |
■ | Tenancy. The portfolio features a highly granular rent roll with no single tenant leasing more than 6.7% of the portfolio net rentable area or representing more than 9.8% of total base rent. The portfolio is leased to 65 tenants with a wide range of local and national tenants, including Chrysler Group, LLC, Caremark, Inc., Experitec, Inc. and Henry Schein. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
2016 Gees Mill Road Northeast Conyers, GA 30013 | Collateral Asset Summary – Loan No. 13 Hillphoenix Global Corporate Headquarters | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $22,771,000 69.4% 1.58x 8.1% |
Mortgage Loan Information | |
Loan Seller: | LCF |
Loan Purpose: | Acquisition |
Sponsor(1)(2): | LHP Conyers LLC |
Borrower: | LHP Conyers LLC |
Original Balance: | $22,771,000 |
Cut-off Date Balance: | $22,771,000 |
% by Initial UPB: | 1.8% |
Interest Rate(3): | 4.9240% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Anticipated Repayment Date(3): | September 6, 2024 |
Maturity Date: | September 6, 2029 |
Amortization(4): | Interest Only, ARD |
Additional Debt(5): | Future Mezzanine Debt Permitted |
Call Protection: | YM(24), DorYM(92), O(4) |
Lockbox / Cash Management: | Hard / In Place |
Reserves | ||
Initial | Monthly | |
Taxes(6): | $0 | Springing |
Insurance(7): | $0 | Springing |
Financial Information | ||
Cut-off Date Balance / Sq. Ft.: | $50 | |
Balloon Balance / Sq. Ft.: | $50 | |
Cut-off Date LTV: | 69.4% | |
Balloon LTV: | 69.4% | |
Underwritten NOI DSCR: | 1.62x | |
Underwritten NCF DSCR: | 1.58x | |
Underwritten NOI Debt Yield: | 8.1% | |
Underwritten NCF Debt Yield: | 7.9% |
Property Information | |
Single Asset / Portfolio: | Single Asset |
Property Type: | Industrial Warehouse |
Collateral: | Fee Simple |
Location: | Conyers, GA |
Year Built / Renovated: | 2014 / NAP |
Total Sq. Ft.: | 454,281 |
Property Management: | Self-managed |
Underwritten NOI: | $1,841,413 |
Underwritten NCF: | $1,795,984 |
Appraised Value: | $32,800,000 |
Appraisal Date: | June 25, 2014 |
Historical NOI(8) | |
Most Recent NOI: | NAP |
2013 NOI: | NAP |
2012 NOI: | NAP |
2011 NOI: | NAP |
Historical Occupancy(8) | |
Most Recent Occupancy: | 100.0% (September 6, 2014) |
2013 Occupancy: | NAP |
2012 Occupancy: | NAP |
2011 Occupancy: | NAP |
(1) | The sponsor is related to the borrowers under the mortgage loans identified on Annex A-1 to the Free Writing Prospectus as Highwoods Portfolio, Sam’s Club and Tractor Supply – El Centro, which have Cut-off Date Balances of $15,750,000, $5,670,000 and $2,975,000 respectively. |
(2) | The sponsor is an affiliate of the loan seller. Please see “Risk Factors – Risks Related to Conflicts of Interest – Related Parties May Acquire Certificates or Experience Other Conflicts” in the Free Writing Prospectus. |
(3) | If the mortgage loan is not repaid in full by the Anticipated Repayment Date, the interest rate will increase by 3.0000% to 7.9240% and additional interest will accrue (but the payment of such additional interest will be deferred until the unpaid principal balance is reduced to zero). The mortgage loan will then also amortize based on a 30-year schedule. |
(4) | The mortgage loan is interest only through the Anticipated Repayment Date. |
(5) | Mezzanine debt is permitted provided, among other things per the mortgage loan documents, that (i) the combined LTV is less than or equal to 85.0% and (ii) the combined DSCR is greater than or equal to 1.20x. |
(6) | The borrower will be required to deposit 1/12 of taxes lender estimates will be payable during the next 12 month period upon the tax conditions precedent (as defined in the mortgage loan documents) not being satisfied. |
(7) | The borrower will be required to deposit 1/12 of the annual insurance premiums into the insurance account upon the insurance premiums conditions precedent (as defined in the mortgage loan documents) not being satisfied. |
(8) | The property was completed in 2014. As such, Historical NOI and Historical Occupancy are not applicable. |
TRANSACTION HIGHLIGHTS |
■ | Property. The property consists of a newly built 454,281 sq. ft. Class A industrial warehouse facility located on a 52.2 acre site. The property serves as the headquarters for Hillphoenix Inc. which is a global manufacturer and supplier of refrigerated display systems for supermarkets and retailers. Hillphoenix Inc. is a subsidiary of the Dover Corporation (NYSE:DOV; Rated A/A2/A by Fitch, Moody’s and S&P). Hillphoenix Inc. has executed a new 15-year lease, which provides three five-year extension options. The Hillphoenix Inc. lease expires in April 2029, and there are no termination options. |
■ | Location. The property is located in Conyers, Georgia within an industrial corridor that houses various corporate headquarters and distribution facilities for companies including Sara Lee, Marshall’s and Sealy Mattress Company. The property is located within 1.5 miles of two I-20 interchanges, which connect to I-285, Atlanta’s perimeter highway. |
■ | Letter of Credit. The JPMorgan Chase Bank, N.A. is providing a $5.0 million letter of credit for the first ten years of the Hillphoenix Inc. lease, which expires on October 15, 2023. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
621 Richey Street and 407 South Richey Street Pasadena, TX 77506 | Collateral Asset Summary – Loan No.14 Pasadena Multifamily Portfolio | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $20,000,000 61.5% 3.01x 13.5% |
Mortgage Loan Information | |
Loan Seller: | Natixis |
Loan Purpose: | Acquisition |
Sponsor: | Empire Square Group LLC; Time Square Holdings LLC |
Borrower: | Alta Villas Nominee, LLC |
Original Balance: | $20,000,000 |
Cut-off Date Balance: | $20,000,000 |
% by Initial UPB: | 1.6% |
Interest Rate: | 3.8400% |
Payment Date: | 5th of each month |
First Payment Date: | September 5, 2014 |
Maturity Date: | August 5, 2019 |
Amortization: | Interest Only |
Additional Debt: | None |
Call Protection(1): | L(25), D(32), O(3) |
Lockbox / Cash Management(2): | Hard / Springing |
Reserves | ||
Initial | Monthly | |
Taxes: | $342,348 | $48,907 |
Insurance: | $65,883 | $39,943 |
Replacement: | $0 | $29,993 |
Required Repairs: | $764,500 | NAP |
Environmental VCP Holdback: | $7,500 | $625 |
Financial Information | ||
Cut-off Date Balance / Unit: | $20,367 | |
Balloon Balance / Unit: | $20,367 | |
Cut-off Date LTV: | 61.5% | |
Balloon LTV: | 61.5% | |
Underwritten NOI DSCR: | 3.47x | |
Underwritten NCF DSCR: | 3.01x | |
Underwritten NOI Debt Yield: | 13.5% | |
Underwritten NCF Debt Yield: | 11.7% |
Property Information | |
Single Asset / Portfolio: | Portfolio of two properties |
Property Type: | Garden Multifamily |
Collateral(3): | Fee Simple |
Location(3): | Pasadena, TX |
Year Built / Renovated: | 1970 / 2011 - 2014 |
Total Units(3): | 982 |
Property Management: | Mosaic Residential, Inc. |
Underwritten NOI: | $2,701,328 |
Underwritten NCF: | $2,346,332 |
Appraised Value(3): | $32,500,000 |
Appraisal Date(3): | May 2014 |
Historical NOI | |
Most Recent NOI: | $2,948,025 (T-12 June 30, 2014) |
2013 NOI: | $2,016,877 (December 31, 2013) |
2012 NOI: | NAV |
2011 NOI: | NAV |
Historical Occupancy | |
Most Recent Occupancy: | 92.1% (July 21, 2014) |
2013 Occupancy: | 87.0% (December 31, 2013) |
2012 Occupancy: | NAV |
2011 Occupancy: | NAV |
(1) | On any date after the lockout period ends, the borrower may obtain the one-time release of any individual property, provided, among other things per the mortgage loan documents, (i) the LTV for the remaining property does not exceed the lesser of the LTV immediately preceding such release and 65.0%, (ii) the DSCR for the remaining property is not less than the greater of the DSCR immediately preceding the partial release and 2.50x, (iii) the Debt Yield for the remaining property is not less than the greater of the Debt Yield immediately preceding the partial release and 11.73% and (iv) the borrower delivers to lender the greater of 125% of the allocated loan amount for the released property or 100% of the allocated sales proceeds from the released property. |
(2) | Cash management will be triggered upon (i) an event of default or (ii) the failure by the borrower, after the end of a calendar quarter, to maintain a DSCR of at least 1.30x. |
(3) | The mortgage loan is secured by the borrower’s fee simple interest in the following two garden multifamily properties containing 982 units: (i) the Alta Vista property (514 units, Appraised Value of $17.0 million as of May 30, 2014) and (ii) the Las Villas property (468 units, Appraised Value of $15.5 million as of May 29, 2014). |
TRANSACTION HIGHLIGHTS |
§ | Recent Renovations. The seller completed $3.64 million ($3,714 per unit) of capital improvements to the properties over the last three years of ownership and at closing the borrower deposited $764,500 ($779 per unit) into a required repairs reserve. |
§ | Sponsor. The sponsors of the mortgage loan are Empire Square Group LLC (“Empire Square”) and Time Square Holdings LLC, an affiliate of Empire Square who is the asset manager for the properties. Empire Square is a boutique private equity firm based in New York City focused on investments in real estate and in high growth companies in the United States. The firm works on behalf of high net worth individuals, family offices and institutions to source customized investment opportunities as well as to provide advisory and asset management services for existing portfolios. Empire Square currently has $220.0 million in assets under management across all property types in various states including California, Washington, Texas, Colorado, Georgia, New York and Massachusetts. |
§ | Experienced Management. The properties are professionally managed by Houston based Mosaic Residential, Inc. (“Mosaic”). Mosaic’s principal owners have extensive multifamily commercial real estate business, with each having over 14 years of experience in the space. The firm is currently responsible for the management of over 6,100 units in the Houston market alone and a total of 9,200 units in the state of Texas. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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.
107
18764-18850 Cox Avenue Saratoga, CA 95070 | Collateral Asset Summary – Loan No.15 Quito Village Center | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $19,929,938 65.7% 1.37x 9.0% |
Mortgage Loan Information | |
Loan Seller: | Natixis |
Loan Purpose: | Refinance |
Sponsor: | Peter Pau |
Borrower: | SHP Quito Village LLC |
Original Balance: | $20,000,000 |
Cut-off Date Balance: | $19,929,938 |
% by Initial UPB: | 1.6% |
Interest Rate: | 4.7800% |
Payment Date: | 5th of each month |
First Payment Date: | January 5, 2014 |
Maturity Date: | December 5, 2018 |
Amortization: | 360 months |
Additional Debt: | None |
Call Protection: | L(33), D(24), O(3) |
Lockbox / Cash Management(1): | Hard / Springing |
Reserves | ||
Initial | Monthly | |
Taxes: | $153,614 | $23,877 |
Insurance: | $23,535 | $1,961 |
Replacement: | $600,000 | $1,005 |
TI/LC: | $775,000 | $5,013 |
Debt Yield Holdback: | $1,762,581 | $0 |
Gene’s(2): | $0 | Springing |
Financial Information | ||
Cut-off Date Balance / Sq. Ft.: | $248 | |
Balloon Balance / Sq. Ft.: | $231 | |
Cut-off Date LTV: | 65.7% | |
Balloon LTV: | 61.2% | |
Underwritten NOI DSCR: | 1.43x | |
Underwritten NCF DSCR: | 1.37x | |
Underwritten NOI Debt Yield: | 9.0% | |
Underwritten NCF Debt Yield: | 8.6% |
Property Information | |
Single Asset / Portfolio: | Single Asset |
Property Type: | Anchored Retail |
Collateral: | Fee Simple |
Location: | Saratoga, CA |
Year Built / Renovated: | 1951 / 1991 |
Total Sq. Ft.: | 80,326 |
Property Management: | Sand Hill Property Management, LLC |
Underwritten NOI: | $1,791,883 |
Underwritten NCF: | $1,719,678 |
Appraised Value: | $30,350,000 |
Appraisal Date: | October 15, 2013 |
Historical NOI | |
Most Recent NOI: | $1,464,582 (T-12 June 30, 2014) |
2013 NOI: | $1,123,181 (December 31, 2013) |
2012 NOI: | $860,174 (December 31, 2012) |
2011 NOI: | $792,695 (December 31, 2011) |
Historical Occupancy | |
Most Recent Occupancy(3): | 93.4% (August 6, 2014) |
2013 Occupancy: | 72.5% (December 31, 2013) |
2012 Occupancy: | 59.0% (December 31, 2012) |
2011 Occupancy: | 65.0% (December 31, 2011) |
(1) | Cash management will be triggered upon (i) an event of default, (ii) the failure by the borrower, after the end of a calendar quarter, to maintain a DSCR of at least 1.15x, (iii) the occurrence of a Gene’s Trigger Event or (iv) the debt yield is less than 8.5%. A “Gene’s Trigger Event” will commence upon (i) any bankruptcy action by Gene’s Fine Foods (“Gene’s”), (ii) Gene’s goes dark for a continuous period of not less than 30 days, (iii) the occurrence of a monetary default or material non-monetary default under the Gene’s lease or (iv) six months prior to the expiration of the Gene’s lease and Gene’s has not renewed for a minimum term of five years. |
(2) | Upon the occurrence and during the continuance of a cash management period occurring solely due to the occurrence of a Gene’s Trigger Event, all excess cash flow will be deposited into the Gene’s reserve. |
(3) | The property is currently 86.9% occupied and 93.4% leased. OPT, a physical therapy group, has executed a five year lease for 5,486 sq. ft. over four suites and are expected to move in around December 15, 2014. Misara has executed a five year lease for 2,268 sq. ft. to open an Erik’s DeliCafe, a local chain of franchised restaurant. They are expected to open for business in October 2014. |
TRANSACTION HIGHLIGHTS |
§ | Location. Saratoga, California is an affluent, well-established, predominantly residential community located in the west end of Silicon Valley at the base of the Santa Cruz Mountain Range. Saratoga provides a residential location for Silicon Valley workers and is oriented toward upper middle income residents. In 2011, Bloomberg Business Week reported that the average household income was $237,804, with an average household net worth of $1,516,018. It has also become an emerging center of private equity and venture capital. Singapore Economic Development Board and TIF have their offices there, as do venture firms Gabriel Venture Partners, Rustic Canyon Partners, and Woodside Fund. |
§ | Sponsor. The sponsor, Peter Pau is the co-founder of Sand Hill Property Company, a real estate company which manages all aspects of the investment and development process ranging from acquisition, planning/entitlements, construction, financing and marketing/leasing/sales. Peter Pau has been active in the San Francisco Bay Area since 1988 with experience of completing/managing more than 40 projects encompassing over 14 million sq. ft. of building area. Over the last two decades, Sand Hill Property Company has developed over $1.0 billion worth of real estate projects. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
10100 and 10330 Pioneer Boulevard Santa Fe Springs, CA 90670 | Collateral Asset Summary – Loan No. 16 Town Center | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $19,500,000 58.6% 1.65x 11.2% |
Mortgage Loan Information | |
Loan Seller: | GACC |
Loan Purpose: | Refinance |
Sponsor(1): | Benjamin Nazarian; Neil Kadisha |
Borrower: | Omninet Pioneer, LP |
Original Balance: | $19,500,000 |
Cut-off Date Balance: | $19,500,000 |
% by Initial UPB: | 1.6% |
Interest Rate: | 4.4600% |
Payment Date: | 6th of each month |
First Payment Date: | July 6, 2014 |
Maturity Date: | June 6, 2024 |
Amortization: | Interest only for first 60 months; 360 months thereafter |
Additional Debt: | None |
Call Protection: | L(27), D(89), O(4) |
Lockbox / Cash Management(2): | Hard / Springing |
Reserves | ||
Initial | Monthly | |
Taxes: | $49,620 | $16,540 |
Insurance(3): | $0 | Springing |
Replacement(4): | $0 | $2,915 |
TI/LC(5): | $250,000 | $18,221 |
Required Repairs: | $35,938 | NAP |
Earnout(6): | $1,000,000 | $0 |
Lease Sweep(7): | $0 | Springing |
Financial Information | ||
Cut-off Date Balance / Sq. Ft.: | $110 | |
Balloon Balance / Sq. Ft.: | $101 | |
Cut-off Date LTV: | 58.6% | |
Balloon LTV: | 53.6% | |
Underwritten NOI DSCR(8): | 1.84x | |
Underwritten NCF DSCR(8): | 1.65x | |
Underwritten NOI Debt Yield: | 11.2% | |
Underwritten NCF Debt Yield: | 10.0% |
Property Information | |
Single Asset / Portfolio: | Single Asset |
Property Type: | Suburban Office |
Collateral: | Fee Simple |
Location: | Santa Fe Springs, CA |
Year Built / Renovated: | 1983 / 2012 |
Total Sq. Ft.: | 176,740 |
Property Management: | Omninet Property Management, Inc. |
Underwritten NOI: | $2,175,260 |
Underwritten NCF: | $1,946,072 |
Appraised Value: | $33,300,000 |
Appraisal Date: | March 13, 2014 |
Historical NOI | |
Most Recent NOI: | $2,365,193 (T-12 February 28, 2014) |
2013 NOI: | $2,345,553 (December 31, 2013) |
2012 NOI: | $2,162,918 (December 31, 2012) |
2011 NOI: | NAV |
Historical Occupancy | |
Most Recent Occupancy: | 84.0% (June 5, 2014) |
2013 Occupancy: | 83.0% (December 31, 2013) |
2012 Occupancy: | 80.0% (December 31, 2012) |
2011 Occupancy: | NAV |
(1) | The sponsors are also the sponsors under the mortgage loan identified on Annex A-1 to this Free Writing Prospectus as Miramar Metroplex, which has a Cut-off Date Balance of $16,000,000 and Sky Park, which has a Cut-off Date Balance of $10,000,000. |
(2) | Cash management will be triggered upon (i) an event of default, (ii) the failure by the borrower, after the end of a calendar quarter, to maintain a DSCR of at least 1.15x or (iii) the occurrence of a Lease Sweep Period (as defined below). |
(3) | 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. |
(4) | Replacement reserves are subject to a cap of $115,000. |
(5) | TI/LC reserves are subject to a cap of $874,608. |
(6) | Borrower is required to deposit $1,000,000 into an earnout reserve account that may be disbursed after achieving for two consecutive calendar quarters, (i) a debt yield of at least 10.0%, (ii) a DSCR of at least 1.70x, and (iii) a physical occupancy of at least 86.0%. |
(7) | Excess cash will be deposited in the lease sweep reserve during a lease sweep period. A “Lease Sweep Period” will commence upon (i) if the debt yield is less than 8.5%, (ii) twelve months prior to the expiration of the LA County Office of Education (“LA County Education”) lease (“LA County Education Lease”) or the LA County Dept. of Health (“LADHS”) lease (“LADHS Lease”) or six months prior to the January 2015 expiration date stated in the LA County Education Lease or upon the date LA County Education or LADHS is required to give notice of its exercise of a renewal option, (iii) the date the LA County Education Lease or the LADHS Lease is surrendered, cancelled, or terminated prior to its then current expiration date, (iv) a monetary default under the LA County Education Lease or the LADHS Lease, or (v) the occurrence of an LA County Education or LADHS, or either of their direct or indirect parent companies, lease sweep tenant party insolvency proceeding. |
(8) | Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and the Underwritten NCF DSCR are 2.47x and 2.21x, respectively. |
TRANSACTION HIGHLIGHTS |
■ | Sponsorship. Benjamin Nazarian and Neil Kadisha, managing partners and founders of Omninet Capital, have been investing in commercial real estate and venture capital for over 20 years. Omninet Capital’s portfolio includes over 6.0 million sq. ft. of commercial office, retail and industrial property across five states as of January 2013. The sponsors are based in nearby Beverly Hills, California. For information relating to certain legal proceedings involving the sponsors, see “Risk Factors—Prior Bankruptcies, Defaults or Other Proceedings May Be Relevant to Future Performance” in the Free Writing Prospectus. |
■ | Local Market. The property is located in the submarket of Sante Fe Springs, California, an area that is primarily industrial with limited office and retail space. In the immediate area of the property, there is only one other office property with over 100,000 sq. ft. of net rentable area. Furthermore, the property is conveniently located within a mile of Interstate 5 and Interstate 605 and approximately 18 miles from the Los Angeles International Airport. The 2013 population and average household income within a five-mile radius of the property were 619,601 and $71,711, respectively. |
■ | Tenant Mix. The property features a strong tenant mix with 12 separate tenants occupying the space. Two tenants, LA County Education and LADHS, occupy approximately 58.1% of the net rentable area as of the rent roll dated June 5, 2014. LA County Education is a state-funded agency that oversees the academic and financial stability of Los Angeles County’s 2 million preschool and school-age children. LADHS is the second largest health system in the nation and provides care to more than 10 million residents of Los Angeles County. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
Various, TX | Collateral Asset Summary – Loan No. 17 Eagle Ford | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $19,200,000 69.3% 1.86x 19.8% |
Mortgage Loan Information | |
Loan Seller: | Natixis |
Loan Purpose: | Acquisition |
Sponsor: | Michael W. Reschke |
Borrower: | Pearsall Hotel Partners, LLC; Cotulla Hotel Partners, LLC; Pleasanton Hotel Partners, LLC |
Original Balance: | $19,200,000 |
Cut-off Date Balance: | $19,200,000 |
% by Initial UPB: | 1.6% |
Interest Rate: | 4.8700% |
Payment Date: | 5th of each month |
First Payment Date: | October 5, 2014 |
Maturity Date: | September 5, 2024 |
Amortization: | 180 months |
Additional Debt: | None |
Call Protection: | L(24), DorYM1(92), O(4) |
Lockbox / Cash Management(1): | Hard / Springing |
Reserves | ||
Initial | Monthly | |
Taxes: | $173,959 | $21,745 |
Insurance: | $5,897 | $5,897 |
FF&E: | $0 | 1/12 of 5% of prior year's gross revenues |
Franchise Termination(2): | $0 | Springing |
Financial Information | ||
Cut-off Date Balance / Room: | $95,050 | |
Balloon Balance / Room: | $40,272 | |
Cut-off Date LTV: | 69.3% | |
Balloon LTV: | 29.4% | |
Underwritten NOI DSCR: | 2.10x | |
Underwritten NCF DSCR: | 1.86x | |
Underwritten NOI Debt Yield: | 19.8% | |
Underwritten NCF Debt Yield: | 17.5% |
Property Information | |
Single Asset / Portfolio: | Portfolio of three properties |
Property Type: | Limited Service Hospitality |
Collateral(3): | Fee Simple |
Location(3): | Various, TX |
Year Built / Renovated(3): | 2012-2013 / NAP |
Total Rooms(3): | 202 |
Property Management: | Prism Hospitality, L.P. |
Underwritten NOI: | $3,796,000 |
Underwritten NCF: | $3,368,000 |
Appraised Value(3): | $27,700,000 |
Appraisal Date(3): | July 2014 |
Historical NOI | |
Most Recent NOI: | $6,023,500 (T-12 June 30, 2014) |
2013 NOI: | NAV |
2012 NOI: | NAV |
2011 NOI(4): | NAP |
Historical Occupancy | |
Most Recent Occupancy: | 76.7% (June 30, 2014) |
2013 Occupancy: | NAV |
2012 Occupancy: | NAV |
2011 Occupancy(4): | NAP |
(1) | Cash management will be triggered upon (i) an event of default or (ii) the failure by the borrowers, after the end of a calendar quarter, to maintain a DSCR of at least 1.65x for the prior 12 month period or (iii) the occurrence of the Franchise Termination Sweep Date (together a “Cash Management Period”). The “Franchise Termination Sweep Date” is (i) the actual date upon which any existing franchise agreement (including a replacement franchise agreement) is terminated for any reason, or (ii) the date that is 18 months prior to the scheduled expiration date of any existing franchise agreement (including a replacement franchise agreement). |
(2) | Upon the occurrence of a Cash Management Period following the occurrence of the Franchise Termination Sweep Date, all excess cash flow is required to be deposited into the franchise termination reserve. |
(3) | The mortgage loan is secured by the borrowers’ fee simple interests in the following three limited service hospitality properties containing 202 rooms: (i) the Hampton Inn & Suites - Pleasanton property (63 rooms, built in 2012, located in Pleasanton, Texas, appraised value of $9.8 million as of July 7, 2014), (ii) the La Quinta - Pearsall property (66 rooms built in 2012, located in Pearsall, Texas, appraised value of $6.7 million as of July 8, 2014) and (iii) the Hampton Inn & Suites - Cotulla property (73 rooms, built in 2013, located in Cotulla, Texas, appraised value of $11.2 million as of July 7, 2014). |
(4) | The properties were completed in 2012-2013. As such, 2011 NOI and 2011 Historical Occupancy are not applicable. |
TRANSACTION HIGHLIGHTS |
■ | Credit Metrics. The mortgage loan exhibits an Underwritten NOI Debt Yield of 19.8% and an Underwritten NCF DSCR of 1.86x on an amortizing basis. The mortgage loan is structured with a 15-year amortization resulting in an Underwritten NOI Debt Yield at maturity of 46.7% and a Balloon LTV of 29.4%, based on the appraised value of $27.7 million. |
■ | New Construction / Performance. The Hampton Inn & Suites - Pleasanton and the La Quinta - Pearsall properties were constructed in 2012 and the Hampton Inn & Suites - Cotulla property was constructed in 2013. The three properties exhibit strong performances. The June 2014 trailing twelve months occupancy, ADR and RevPAR penetration were 121.7%, 118.8% and 145.0%, respectively. |
■ | Sponsor. Michael W. Reschke is the founder, chairman and CEO of the Prime Group, Inc. (“Prime”) a development company founded in 1982 and headquartered in Chicago. Prime has developed nearly $11.0 billion of institutional-quality commercial and residential real estate across all product types. Prime was the founding shareholder of four publicly traded real estate companies. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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
78 North Holiday Boulevard Santa Claus, IN 47579 | Collateral Asset Summary – Loan No. 18 Lake Rudolph | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $18,422,250 60.5% 2.10x 13.0% |
Mortgage Loan Information | |
Loan Seller: | LCF |
Loan Purpose(1): | Acquisition |
Sponsor(2): | Sun Communities Operating Limited Partnership |
Borrower: | Sun TRS Lake Rudolph LLC |
Original Balance: | |
Cut-off Date Balance: | $18,422,250 |
% by Initial UPB: | 1.5% |
Interest Rate: | 4.5690% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 6, 2024 |
Amortization: | |
Additional Debt: | |
Call Protection: | |
Lockbox / Cash Management(3): |
Reserves | ||
Initial | Monthly | |
Taxes: | $24,379 | |
Insurance(4): | $0 | Springing |
Replacement(5): | $0 | |
Seasonality(6): | $0 | Springing |
Property Information | |
Single Asset / Portfolio: | |
Property Type: | |
Collateral: | |
Location: | Santa Claus, IN |
Year Built / Renovated: | 1960 / 2013 |
Total Pads: | 499 |
Property Management: | Self-managed |
Underwritten NOI: | |
Underwritten NCF: | |
Appraised Value: | |
Appraisal Date: | |
Historical NOI | |
2013 NOI: | |
2012 NOI: | |
2011 NOI: | |
Historical Occupancy(7) | |
2013 Occupancy: | |
2012 Occupancy: | |
2011 Occupancy: | 44.6% (December 31, 2011) |
(1) | The property was acquired by the sponsor in an all-cash transaction in June 2014. |
(2) | The sponsor is also the sponsor under the mortgage loans identified on Annex A-1 to the Free Writing Prospectus as Lake in Wood and Jellystone of Western NY, which have Cut-off Date Balances of $11,055,000 and $7,172,750, respectively. |
(3) | Subject to termination in accordance with the related loan documents, cash management will be triggered upon (i) an event of default under the mortgage loan documents or the property management agreement, (ii) a DSCR of less than 1.25x or (iii) Sun Communities Operating Limited Partnership (“Sun Partnership”) becoming insolvent or a debtor in any bankruptcy action. |
(4) | If an acceptable blanket insurance policy is no longer in place, the borrower is required to deposit 1/12 of the annual insurance premiums into the insurance account. |
(5) | If at any time during the term (i) Sun Partnership is not the guarantor or (ii) Sun Partnership fails to satisfy the net worth requirement, the borrower is required to deposit $2,079 monthly into the replacement reserve. |
(6) | If (i) Sun Partnership is no longer the guarantor under a guaranty in lieu of the seasonality reserve, (ii) Sun Partnership fails to satisfy the net worth requirement, (iii) an event of default shall have occurred and be continuing, or (iv) the guaranty shall cease to be in full force and effect, the borrower shall deposit on each monthly payment date, other than during the months of September through May, 1/3 of the amount applicable to the seasonality shortfall, which is initially $1,050,000. |
(7) | Historical Occupancy is calculated on a seasonal basis. |
TRANSACTION HIGHLIGHTS |
■ | Property Condition and Amenities. The property is a RV resort located in Santa Claus, Indiana. The property contains 199 RV camping sites, 74 rental cottages and 226 transient sites that can be used for tents or RVs. The property was developed as a seasonal campground and family resort. The property is located adjacent to Holiday World & Splashin’ Safari which is an amusement park and water park covering approximately 120 acres and attracts approximately 1.1 million visitors per year. |
■ | Sponsor. The sponsor, Sun Partnership, is a fully integrated real estate company which, together with their affiliates and predecessors, has been in the business of acquiring, operating, developing and expanding manufactured housing (“MH”) and recreational vehicle (“RV”) communities since 1975. Sun Partnership leases individual parcels of land (“sites”) with utility access for placement of manufactured homes and RVs. The company owns, operates, and develops MH and RV communities located throughout the United States. Sun Partnership, as of June 2014, owned and operated a portfolio of 193 properties located in 27 states, including 149 MH communities, 32 RV communities, and 12 properties containing both MH and RV sites. Additionally, in June 2014, the properties contained an aggregate 54,300 developed manufactured home sites, 9,000 annual RV sites (inclusive of both annual and seasonal usage rights) and 8,700 transient RV sites. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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Philadelphia, PA | Collateral Asset Summary – Loan No. 19 Temple Villas | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $18,250,000 63.3% 1.69x 10.5% |
Mortgage Loan Information | |
Loan Seller: | LCF |
Loan Purpose: | Refinance |
Sponsor: | Abbas Zeini; Halal Mahdi; Ahmed Michael Alhadad |
Borrower(1): | Various |
Original Balance: | $18,250,000 |
Cut-off Date Balance: | $18,250,000 |
% by Initial UPB: | 1.5% |
Interest Rate: | 4.5500% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 6, 2024 |
Amortization: | 360 months |
Additional Debt: | None |
Call Protection: | L(24), D(93), O(3) |
Lockbox / Cash Management(2): | Springing Soft / Springing |
Reserves | ||
Initial | Monthly | |
Taxes(3): | $16,337 | Springing |
Insurance: | $35,451 | $11,817 |
Replacement(4): | $0 | Springing |
TI/LC(4): | $0 | Springing |
Debt Service: | $93,013 | $0 |
Financial Information | ||
Cut-off Date Balance / Bed: | $50,275 | |
Balloon Balance / Bed: | $40,718 | |
Cut-off Date LTV: | 63.3% | |
Balloon LTV: | 51.2% | |
Underwritten NOI DSCR: | 1.72x | |
Underwritten NCF DSCR: | 1.69x | |
Underwritten NOI Debt Yield: | 10.5% | |
Underwritten NCF Debt Yield: | 10.3% |
Property Information | |
Single Asset / Portfolio: | Portfolio of 29 properties |
Property Type: | Student Housing Multifamily |
Collateral: | Fee Simple |
Location: | Philadelphia, PA |
Year Built / Renovated: | 1910, 1920, 2010-2014 / 2012, 2013 |
Total Beds(5): | 363 |
Property Management: | Temple Villas I, LLC |
Underwritten NOI(6): | $1,918,189 |
Underwritten NCF: | $1,881,889 |
Appraised Value: | $28,850,000 |
Appraisal Date: | July 22, 2014 |
Historical NOI(6): | |
2013 NOI: | $1,620,840 (December 31, 2013) |
2012 NOI: | $1,162,378 (December 31, 2012) |
2011 NOI: | $928,833 (December 31, 2011) |
Historical Occupancy | |
Most Recent Occupancy: | 96.4% (August 1, 2014) |
2013 Occupancy: | 98.0% (December 31, 2013) |
2012 Occupancy: | 100.0% (December 31, 2012) |
2011 Occupancy: | 100.0% (December 31, 2011) |
(1) | The borrowers are 1400 N 15 St LLC; 1500 Jefferson LLC; 1600 Cecil B Moore LLC; 1600 Willington St. LLC; 1627 French Street LLC; 1700 W Berks St LLC; 1800 North 17th St LLC a/k/a 1800 North 17th Street, LLC; 2300 N. Park Avenue LLC; Temple Villas II LLC; Temple Villas III LLC; ZMA One, LLC. |
(2) | Subject to termination in accordance with the related loan documents, a soft lockbox and in place cash management will be triggered upon (i) the continuance of an event of default, (ii) an event of default under the management agreement or (iii) the borrowers fail to maintain a DSCR of at least 1.15x. |
(3) | The borrowers will be required to make monthly deposits of 1/12 of the annual taxes into the tax reserve if (i) the borrowers do not provide satisfactory evidence that all taxes have been paid prior to their respective due dates, (ii) the lender has not received acceptable evidence of such payment of the current taxes prior to the due date or (iii) the amount in the tax reserve account on reserve for the payment of taxes is less than the annual tax fund deposit. |
(4) | The borrowers deposited an irrevocable, unconditional letter of credit in the amount of $90,000 from First NBC Bank which represents $72,000 for capital expenditures relating to the residential space at the property and $18,000 for tenant improvements and leasing commissions associated with the commercial space at the property. This letter of credit is in lieu of the monthly replacement and TI/LC reserve deposits. |
(5) | The property includes 363 beds in 97 units. |
(6) | The increase in Underwritten NOI from the Historical NOI was due to underwriting the actual pre-leased rent roll for the 2014/2015 school year. Additionally, not all of the units were included in the Historical NOI. |
TRANSACTION HIGHLIGHTS |
■ | Location. The property consists of 29 buildings located within a mile of each other and between two and four blocks from the Temple University campus. One building is located near the University of Pennsylvania and Drexel University. With enrollment above 35,000, Temple University is the 26th largest university in the U.S. On-campus housing can accommodate approximately 5,558 students with more than 30,000 students attending the main campus. |
■ | Asset Quality. All of the Temple Villas buildings have been constructed or renovated in the last four years. Seven were constructed in 2010, four were constructed in 2011, twelve were constructed in 2013 and three more were completed in 2014. Three of the buildings were constructed in 1910 and 1920 and were renovated in 2012 and 2013. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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15710 John F Kennedy Boulevard Houston, TX 77032 | Collateral Asset Summary – Loan No. 20 World Houston Plaza | Cut-off Date Balance: Cut-off Date LTV: U/W NCF DSCR: U/W NOI Debt Yield: | $18,000,000 66.7% 1.90x 12.1% |
Mortgage Loan Information | |
Loan Seller: | GACC |
Loan Purpose: | Acquisition |
Sponsor: | LVS II Offshore, L.P. |
Borrower: | BL WHP Property Owner LP |
Original Balance: | $18,000,000 |
Cut-off Date Balance: | $18,000,000 |
% by Initial UPB: | 1.5% |
Interest Rate: | 3.6940% |
Payment Date: | 6th of each month |
First Payment Date: | October 6, 2014 |
Maturity Date: | September 6, 2019 |
Amortization: | Interest only for first 25 months; 360 months thereafter |
Additional Debt(1): | Future Mezzanine Debt Permitted |
Call Protection: | L(24), D(31), O(5) |
Lockbox / Cash Management(2): | Hard / Springing |
Reserves | ||
Initial | Monthly | |
Taxes: | $545,336 | $68,167 |
Insurance(3): | $0 | Springing |
Replacement: | $0 | $5,784 |
TI/LC(4): | $149,380 | $19,881 |
Required Repairs: | $129,229 | NAP |
Lease Sweep (5): | $0 | Springing |
Financial Information | ||
Cut-off Date Balance / Sq. Ft.: | $83 | |
Balloon Balance / Sq. Ft.: | $78 | |
Cut-off Date LTV: | 66.7% | |
Balloon LTV: | 63.0% | |
Underwritten NOI DSCR(6): | 2.20x | |
Underwritten NCF DSCR(6): | 1.90x | |
Underwritten NOI Debt Yield: | 12.1% | |
Underwritten NCF Debt Yield: | 10.5% |
Property Information | |
Single Asset / Portfolio: | Single Asset |
Property Type: | Suburban Office |
Collateral: | Fee Simple |
Location: | Houston, TX |
Year Built / Renovated: | 1986 / NAP |
Total Sq. Ft.: | 216,889 |
Property Management: | LPC Commercial Services, Inc. |
Underwritten NOI: | $2,182,430 |
Underwritten NCF: | $1,889,630 |
Appraised Value: | $27,000,000 |
Appraisal Date: | July 9, 2014 |
Historical NOI | |
2013 NOI: | $2,489,428 (December 31, 2013) |
2012 NOI: | $2,078,389 (December 31, 2012) |
2011 NOI: | $2,369,720 (December 31, 2011) |
Historical Occupancy | |
Most Recent Occupancy: | 100.0% (June 1, 2014) |
2013 Occupancy: | 99.0% (December 31, 2013) |
2012 Occupancy: | 99.0% (December 31, 2012) |
2011 Occupancy: | 99.0% (December 31, 2011) |
(1) | Mezzanine debt is permitted provided, among other things per the mortgage loan documents, the principal amount when combined with the mortgage loan will result in (i) an LTV of no more than 67.0%, (ii) a DSCR of no less than 1.50x and (iii) a debt yield of no less than 10.0%. |
(2) | Cash management will be triggered (i) upon an event of default, (ii) if the DSCR falls below 1.15x until such time that the DSCR is at least 1.20x for two consecutive calendar quarters, (iii) the commencement of a Lease Sweep Period (as defined in the mortgage loan documents) or (iv) the commencement of a Mezzanine Trigger Period (as defined in the mortgage loan documents). |
(3) | 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. |
(4) | Monthly deposits into the TI/LC reserve will be suspended once Weatherford U.S., LP (“Weatherford”) has irrevocably extended its lease (the “Weatherford Lease”). |
(5) | On each monthly payment date during a Lease Sweep Period, all excess cash flow will be deposited to the lease sweep reserve. A “Lease Sweep Period” will commence upon (i) twelve months prior to the expiration of the Weatherford Lease or upon the date Weatherford is required to give notice of its exercise of a renewal option, (ii) the date the Weatherford Lease is surrendered, cancelled, or terminated prior to its then current expiration date, (iii) the date that is thirty days after an event of default in connection with the payment of monthly rent under the Weatherford Lease or any other material non-monetary default under the Weatherford Lease or (iv) the occurrence of a bankruptcy or other insolvency proceeding by Weatherford. |
(6) | Based on amortizing debt service payments. Based on the current interest only payments, the Underwritten NOI DSCR and the Underwritten NCF DSCR are 3.24x and 2.80x, respectively. |
TRANSACTION HIGHLIGHTS |
■ | Sponsorship. LVS II Offshore, L.P. is a wholly owned subsidiary of Pacific Investment Management Company, LLC GP X11 (“PIMCO”). PIMCO has approximately $1.97 trillion in assets under management, of which, $1.55 trillion are third party client assets, as of June 30, 2014. |
■ | Location. The property is located in the Houston-Sugar Land-Baytown metropolitan area (“Houston MSA”), one of the leading economies in the United States. Between 2002 and 2012, Houston’s Gross Metro Product averaged an annual growth rate of 2.3% compared to the 1.6% growth rate averaged by the United States. In addition, the Houston MSA has outpaced national averages in population growth, as the population grew at an average annual rate of 2.2%, more than double the national average of 0.9% between 2002 and 2012. The unemployment rate was 6.3% in February 2013, 1.80% below the U.S. rate of 8.1%. The property is located in the Intercontinental Airport area of Houston, and is in close proximity to George Bush Intercontinental Airport, IH-45 and the North Belt, two major thoroughfares in the Houston MSA. |
■ | Tenancy. The property was 100% leased as of June 1, 2014 with two of the tenants, Weatherford and Kraton Polymers US, LLC, occupying approximately 72.8% of the space. Both tenants have expanded multiple times at the property. The property has exhibited strong historical occupancy averaging 99.0% since 2011. In addition, 55.7% of the property is being leased to credit tenants. Weatherford is rated Baa3 by Moody’s and US Bank, the parent company of FSV Payment Systems, Ltd., is rated A1/AA-/AA by Moody’s, Fitch and DBRS, respectively. |
■ | Below Market Rents. According to the appraisal, the in-place subject rent in year one is approximately $21.18 PSF which is significantly lower than the appraiser’s market rent estimate of $26.00 PSF as of July 15, 2014. |
The depositor has filed a registration statement (including the prospectus) with the Securities and Exchange Commission (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 Securities and Exchange Commission for more complete information about the depositor, the issuing entity 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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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., Natixis Securities Americas LLC, Citigroup Global Markets Inc., and Nomura Securities International, 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 COMM 2014-LC17 Mortgage Trust Commercial Mortgage Pass-Through Certificates (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 depositor 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.
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