Abstention Risks Highlight Cantor’s $ 271 Million CMBS

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Despite uncertainties over growing forbearance requests from commercial tenants, Cantor Fitzgerald’s commercial mortgage arm plans to market approximately $ 237 million in commercial loan-backed bonds of multi-family properties, offices, retail and mixed use.

According to public documents filed with the Securities and Exchange Commission, Cantor Commercial Real Estate (CCRE) is contributing 14 loans secured by 43 properties to a transaction dubbed CP 2020-P1.

Many properties have already been inundated with requests for rent relief from tenants, according to the Kroll Bond rating agency. The forbearance requests include the sole borrower of the pool’s largest loan, a $ 50 million stake in a loan for the AVR Atlanta Airport Marriott Gateway hotel.

According to Kroll, plans are in place for service advances on principal and interest payments that should “help maintain timely interest payments on rated securities.”

But the agency warns that with the uncertainty of the depth and duration of the coronavirus outbreak, “such loans may also risk being transferred to the special department” that will be designated for the transaction.

All of the loans were assigned to the CF 2020-P1 trust by Cantor Commercial Real Estate, according to an ABS-15G disclosure file with the SEC.

Parkmerced

Kroll issued preliminary notes for the $ 271 million transaction, including an AAA rating for a $ 194.5 million Class A tranche, a $ 27.8 million Class B tranche (rated A- ) and a $ 14.1 million Class C tranche (rated B).

The sponsorship trust will keep a balance of $ 34.7 million for risk-sharing purposes, according to Kroll’s pre-sale report.

Kroll considers the transaction to be a single, large-scale CMBS transaction due to its high level of concentration, although the 14 fixed rate loans have the characteristics of an intermediary transaction and include a mix of multi-family, use mixed, housing, office and commercial properties.

All properties are expected to be affected by the COVID-19 pandemic “to varying degrees”.

Among the mortgaged assets of the pool are the Atlanta Airport Marriott Gateway (the only accommodation facility in the pool), the 3,321-unit Parkmerced multi-family complex in San Francisco, and a portfolio of 27 mid- and high-rise Class B buildings in San Francisco. New The boroughs of Manhattan and Brooklyn in York.

CEMR is Cantor’s integrated CRE finance company. The company’s most recent securitization was a $ 719 million loan portfolio valued last December, according to data from Finsight.

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