- What Citigroup and RBC Capital Markets have priced a $550m CMBS offering
- Why The deal is the first single-borrower CMBS offering since 2019 in Canada
- What next The offering is expected to settle on Oct. 18
Citigroup and RBC Capital Markets priced a $550m single-borrower CMBS deal on Oct. 9, Green Street News can reveal.
The offering (BX 2024-PURE) is backed by a loan to Blackstone and Ivanhoé Cambridge’s Pure Industrial. The debt is collateralized by 15 triple-net leased industrial properties in the Toronto, Montréal and Vancouver metropolitan areas. It has an initial term of two years, plus three one-year extension options. Most of the proceeds were used to repay existing debt.
The deal is the first single-borrower CMBS offering since 2019 in Canada and is the first ever backed by floating-rate debt, according to sister publication Commercial Mortgage Alert’s CMBS Database.
The super-senior, longest-duration notes, rated triple-A by Moody’s Ratings and Morningstar DBRS, went out the door at 190 basis points over CORRA, on the tight side of the offered range. The D class, rated Baa3 by Moody’s, priced at 365 bps over CORRA, where it was offered.
The interest-only mortgage has a loan-to-value ratio of 54.3% and an underwritten net cash flow debt yield of 9.1%. The underwritten debt-service coverage ratio at comparable CORRA is 1.28 to 1.
Desjardins Capital Markets served as co-manager.
The offering is expected to settle on Oct. 18.
