04/23/2010

Goldman to Write CMBS Loan for Taubman

Goldman Sachs has agreed to originate a $77 million commercial MBS loan for Taubman Centers on a Michigan mall.

The bank is one of about a half-dozen securitization players seeking to amass collateral for their first multiple-borrower transactions since the market crash. Goldman is known to have originated at least one other mortgage so far - a $55 million loan on a mall owned by Glimcher Realty.

Goldman is believed to be shooting to bring a securitization to market in June or July. The target size is unclear, but securitization programs generally think deals would have to reach the $500 million threshold to make sense. Multiple lenders might join forces to achieve critical mass.

The Taubman loan will be funded soon, according to market players. It will be backed by the 612,000-square-foot Mall at Partridge Creek, in Clinton Township, which is 25 miles north of Detroit.

The loan's terms aren't known, although mortgages originated by CMBS programs so far this year have carried fixed rates and terms of five or 10 years. In an SEC filing in February, Taubman said it planned to refinance the loan in the first half at a rate of nearly 6%.

The REIT, based in Bloomfield Hills, Mich., would use the proceeds to help retire an $81 million construction loan, pegged to 115 bp over Libor. That loan, originated in 2006, matures in September.

The mall, which opened in 2007, is anchored by Nordstrom, Parisian and MJR Digital Cinema 14.

The loan that Goldman wrote for Glimcher is backed by the 566,000-sf Mall at Johnson City, in Johnson City, Tenn. The Columbus, Ohio, mall REIT's financing carries a 6.76% coupon, a 10-year term and a 65.6% loan-to-value ratio.

Only a few other banks have closed CMBS loans this year, including Bank of America, Deutsche Bank and J.P. Morgan. This month, RBS and Natixis laid claim to pricing the first multi-borrower CMBS deal since mid-2008. The $309.7 million issue was backed by six loans that the sponsors recently originated.

CORRECTION (4/30/10): This article has been corrected. The original version incorrectly described the location of the Mall at Partridge Creek in Clinton Township, Mich. The property is 25 miles north of Detroit, not in the state's Upper Peninsula region.

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