The market is preparing to absorb another data center revenue securitization this week, this time through a $450 million, single-borrower, commercial mortgage-backed securities transaction. The deal, DATA 2023-CNTR, will finance a loan to be co-originated by Barclays Capital Real Estate, Morgan Stanley Bank and Citi Real Estate Funding.
The underlying loan itself will be a 10-year, fixed-rate deal requiring monthly interest-only payments, according to ratings analysts at Kroll Bond Rating Agency. A two-building data center complex in Elk Grove Village, Ill., with a gross building area of 790,339 square feet and 67.4 megawatts of rentable power, KBRA said.
Some 23 tenants occupy the complex, which accounted for 86.7% of total square footage and 86.8% of rentable power. The property has a net operating income of $62.7 million, net cash flow of $60 million and a capitalization rate of 6.70%, KBRA said.
Digital Realty is sponsoring the loan, and Berkadia Commercial Mortgage will service it, with Situs Holdings acting as special servicer, the rating agency said.
KBRA expects to assign ratings of ‘AAA’, ‘AA+’ and ‘A+’ to classes A, B and C; and ‘BBB+’ to the class D notes. Additionally, it expects to assign ‘AAA’ to a class of interest-only certificates and ‘BBB-‘ to a class of retained, eligible horizontal residual interest.
