cmbs presentation_jianhao zeng
TRANSCRIPT
Contact:Jianhao Michael ZengM.S. in Real Estate FinanceClass of 2015NYUSchack Institute of Real Estate
[email protected] 347-997-0664
JADS Capital, LLC
About JADS Capital, LLC
• Medium sized Asset Management Firm
• Seeking relatively defensive investments with potential for capital appreciation
• Specializing in Commercially Mortgage Backed Securities
Our Investment Choice• Comparison done between Morgan Stanley 1416 and Wells Fargo 1416 pool
• After careful analysis, we are confident that the Wells Fargo pool is the most well suited investment vehicle for our clients
Morgan Stanley 1416 Wells Fargo 1416
Trustee US Bank, National Association
Wilmington Trust, National Association
Master Servicer Wells Fargo Wells Fargo
Special Servicer LNR Partners LNR Partners
B – Piece Buyer N/A N/A
Rating Agencies Kroll, Moody’s Kroll, Moody’s, Dominion Bond
Original Lenders Morgan Stanley Mortgage Capital Holdings, B of A
Wells Fargo, Ladder Capital Finance, RBS, Rialto
Primary Servicers LNR Partners LNR Partners
More than one Master Servicer No No
More than one Special Servicer No No
MS1416 WF14160.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Weighted Average Interest Rate
MS1416 WF14160.00 Years2.00 Years4.00 Years6.00 Years8.00 Years
10.00 Years12.00 Years14.00 Years16.00 Years
Weighted Average Maturity Time
•Fitch provided ratings for the Master and Special Servicers.
• Master: Wells Fargo Bank rated ‘CMS2’.• - Level 2 – Servicer demonstrates high performance in servicing ability.
• Special: LNR Partners LLC- Commercial Special: STRONG- Construction loan special: ABOVE AVERAGE- Financial position: SUFFICIENT- Management and Organization: STRONG- Loan administration: STRONG/ABOVE AVERAGE- Outlook: STABLE and POSITIVE
Servicer Ratings
Weight of Top Ten Loans: MS1416Arundel Mills & Marketplace; 11.4%
State Farm Portfolio; 7.9%
Green Hills Corporate
Center; 5.1%
Outlets of Mississippi; 4.9%
Marriott Phil-adelphia
Downtown; 4.7% Hilton San
Francisco Fi-nancial District;
4.1% La Concha
Hotel & Tower; 3.3%
Aspen Heights - Stillwater;
3.0%
Thunder Hollow Apartments; 2.4% Sprague Hotel Portfolio; 2.2%
Other 66 Loans; 50.9%
Weight of Top Ten Loans by asset class: MS1416
Retail16%
Hospitality14%
Office13%
Multifamily5%
Other Loans51%
RetailHospitalityOfficeMultifamilyOther Loans
Weight of Top Ten Loans: WF1416Woodbridge Center; 12.3%
Soho Beach House; 5.6%
Montgomery Mall; 5.5%
Pacific Design Center; 5.1%
Purgatory Creek Apartments; 3.2%
Weatherford Ridge; 3.2%
Harlequin Plaza; 2.9%Market Square at Montrose; 2.6%
JL Holdings - Burger King Portfolio - 90; 2.3%Security Self Storage SPX Portfolio; 2.3%
Other 72 Loans; 52.4%
Weight of Top Ten Loans by asset class: WF1416
Retail26%
Hospitality6%
Mixed Use5%
Multifamily3%
Office3%Self Storage
2%
Other Loans55%
RetailHospitalityMixed UseMultifamilyOfficeSelf StorageOther Loans
Loan 1MS1416 WF1416
Property Name Arundel Mills & Marketplace Woodbridge Center
Occupancy 99.6% 97.1%
% of pool Balance 11.4% 12.3%
Asset Type Retail Retail
Amortization Interest Only 36 Month IO/360 Month Amortization
DSCR 2.66x 1.16x
Memo: Anchored Property & Super Regional Mall. High
Quality Tenants. Bankruptcy or Economic Decline of anchor tenant
exposure.
Regional Mall & High Quality Tenants and
Location. Low DSCR ( 1.16x)
Loan 2MS1416 WF1416
Property Name State Farm Portfolio Soho Beach House
Occupancy 100% 85.6%
% of pool Balance 7.9% 5.6%
Asset Type Office Hospitality
Amortization Interest Only 21 Month IO/401 Month Amortization
DSCR 1.62x 0.95x
Memo: Diversification/Exposure to different markets.
Regulations in every state is different
Great Location, demand for hotels.
Old Building, low DSCR 0.95x(negative cash-flow),
Volatile market.
Loan 3MS1416 WF1416
Property Name Green Hills Corporate Center Montgomery Mall
Occupancy 99.1% 92.4%
% of pool Balance 5.1% 5.5%
Asset Type Office Retail
Amortization Full Amortization-360 Month Interest Only 120 Month
DSCR 1.79x 2.6x
Memo: Fully occupy, strong tenants (2). Location, depended on
their 2 tenants
Strong DSCR 2.6x.Bankruptcy or Economic Decline of anchor tenant
exposure.
Loan 4MS1416 WF1416
Property Name Outlets of Mississippi Pacific Design Center
Occupancy 95.4% 72.7%
% of pool Balance 4.9% 5.1%
Asset Type Retail Office
Amortization IO-60 month & Amortization 60 Month IO/ 360 Amortization
DSCR 1.42x 1.05x
Memo: Strong Tenants ( Saks Fifth Avenue, Forever 21 etc),
benefits from weak market conditions, Demand, New Building. Bankruptcy or
Economic Decline of anchor tenant exposure.
Mixed used (Design Center/office)
Low Occupancy, low DSCR, Largest tenant restaurant.
Loan 5MS1416 WF1416
Property Name Marriott Philadelphia Downtown Purgatory Creek Apartment
Occupancy 77.3% 94.4%
% of pool Balance 4.7% 3.2%
Asset Type Hospitality Multifamily
Amortization Full Amortization-360 Month 30 Month IO/ 360 Month Amortization
DSCR 1.56x 1.23x
Memo: Adjacent to Penn Convention Center
Two miles from Texas State University
Loan 6MS1416 WF1416
Property Name Hilton San Francisco Weatherford Ridge
Occupancy 91.2% 97%
% of pool Balance 4.1% 3.2%
Asset Type Hospitality Retail
Amortization IO-60 month & Amortization 36 Month IO/360 Month Amortization
DSCR 1.34x 1.34x
Memo: 91% average occupancy rate27% increase in RevPar
Nationally recognized tenant roster
Loan 7MS1416 WF1416
Property Name La Concha Hotel & Tower Harlequin Plaza
Occupancy 90.1% 88.6%
% of pool Balance 3.3% 2.9%
Asset Type Hospitality Office
Amortization Full Amortization-360 Month 120 Month IO
DSCR 1.57x 2.16X
Memo: Hotel in San Juan, Puerto Rico93% average occupancy rate
Sponsored by Paulson Management, LLC
Cherry Creek Mortgage & Bellco Credit Union
Loan 8MS1416 WF1416
Property Name Aspen Hights - Stillwater Market Square at Montrose
Occupancy 98.2% 98.3%
% of pool Balance 3% 2.6%
Asset Type Multifamily Retail
Amortization IO-60 month & Amortization 36 Month IO/360 month Amortization
DSCR 1.06x 1.36x
Memo: Student Housing for OSUNew Development
Strong growth for demand
Below Market LeaseHigh Occupancy
Loan 9MS1416 WF1416
Property Name Thunder Hollow Apartments JL Holdings – Burger King Portfolio
Occupancy 88.7% 100%
% of pool Balance 2.4% 2.3%
Asset Type Multifamily Retail – Single Tenant
Amortization IO-12 month & Amortization 240 month Amortization
DSCR 1.21x 1.41x
Memo: Good market4.125M Mezzanine debt, High LTV
Collateralized by 90 Burger KingsLow LTV
Age of assetsB-note exist in this loan
Loan 10MS1416 WF1416
Property Name Sprague Hotel Portfolio Security Self Storage SPX Portfolio
Occupancy 71.9% 88.9%
% of pool Balance 2.2% 2.3%
Asset Type Hospitality Self Storage
Amortization Full Amortization-240 Month 360 Month Amortization
DSCR 1.25x 1.37x
Memo: Cross CollateralizedExperienced Management –
Holiday InnHigh RevPAR
Full Amortization
High OccupancyWell diversified
High LTV
Key Metrics
Morgan Stanley Wells Fargo64.50%65.00%65.50%66.00%66.50%67.00%67.50%68.00%68.50%69.00%69.50%
69.30%
66.30%
LTV
LTV
Morgan Stanley Wells Fargo1.62
1.64
1.66
1.68
1.7
1.72
1.74
1.76
1.78
1.77x
1.68x
DSCR
DSCR
Call Protection
82%
13%
5%
Wells Fargo
Permits De-feasanceYield Main-tenanceBoth
85%
15%
Morgan Stanley
Interest Only Loans:
Morgan Stanley Wells Fargo
25%9%
40.60%
47.30%
35%44%
Interest Only IO & Amortization Pure Amortization
Morgan Stanley - Cross Collateralization-24% of pool balance is secured by multiple properties
-Arundel Mills loan secured by regional mall and shopping center
-Sprague Hotel Portfolio (3 hotels, 345 guestrooms)
Wells Fargo Cross-Collateralization-9.7% of pool balance are secured by multiple properties
-2.2% are cross collateralized loans
-Burger King portfolio (90 properties)
-Security Self Storage Portfolio (eight properties in CO, KS and TX)