PMC Completes $1.1B CMBS Transaction

"This transaction highlights PMC's ability to originate loans for a variety of property types that provide for good returns for investors," according to Richard Jarocki, principal of Prudential Mortgage Capital.

The latest CMBS securitization consists of a $1.1 billion pool of a total of 111 fixed-rate mortgage loans that are secured by commercial and multifamily properties in a total of 31 states, according to Jarocki. The composition of the securitization, by property type, adds up to 31.1% multifamily residential properties, 27.1% retail, 18.2% office, 13.8% industrial, 4.1% manufactured housing, 4% land and 1.7% self-storage facilities. The weighted average loan-to-value for the pool, which was rated by both Moody's and S&P is 72.5%, and the debt service coverage ratio is –1.36 to 1.00, according to Jarocki.

PMC is a commercial mortgage finance business that originates loans for a variety of Fannie Mae and FHA programs, as well as for the capital and mezzanine markets, Prudential's general account and other institutional investors. The company had total assets of $34.2 billion under management and administration at the end of the first quarter of this year, according to Jarocki.

For its part, Prudential Financial itself had approximately $580 billion in total assets under management and administration at the end of the first quarter. It serves a variety of individual and institutional customers around the world including, of course, The Prudential Insurance Co. of America.