Morgan Stanley Trust to issue CMBS including all new loans


Morgan Stanley is making a fresh start, with a $ 765.3 million CMBS deal issued through its MSC 2021 trust that includes 43 loans secured by 60 properties and launched in April 2021 or later as vaccination rates rise. was gaining momentum and the rate of Covid infection was declining.

KBRA notes in a recent pre-sale report that the issuer indicated that none of the borrowers requested forbearance, debt service relief or loan modifications, and that all loans are up to date. on their debt service payments or have an early payment date by August 2021.

“Additionally, all of the pool’s loans were issued in April 2021 or later, so none of the loans were issued before the start of the pandemic,” KBRA said.

The rating agency notes that the global pool has a KBRA-calculated Trust Weighted Average Loan-to-Value Ratio (KLTV) of 95.0%, which is lower than the 98.3% average of the 12 CMBS conduits that ‘he noted over the past six months. In addition, the pool’s exposure to loans with KLTVs above 100% – 20 loans, or 41.6% – is the lowest of the comparison set, which averaged 61.8%.

Morgan Stanley entered into a $ 726 million CMBS deal through the same trust in late April, comprising 60 loans secured by 125 properties. Morgan Stanley structured the direction of the transaction, with Barclays Bank and KeyBank acting as joint lead managers.

The properties in the current deal are located in 27 Metropolitan Statistical Areas (MSA) – the top five being New York, Pittsburgh, Los Angeles, Austin and Dallas-Fort Worth, according to KBRA.

“KBRA views diversity over ownership type favorably, and this deal is exposed to most of the major ownership type segments, the top three being Retail (30.0%), Office (23.3 % 0 and mixed use (14.7%), “the rating agency said.

The deal’s 43 loans were lower than the Comparison Group average of 53, and its 61 properties were well below the Comparison Group average of 105, as well as the property count averages for the past four years. .

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