Goldman Sachs is marketing nearly $1 billion of commercial mortgage bonds backed primarily by office and retail properties.
The $959 million GS Mortgage Securities Trust 2017-GS6 is less highly leveraged than other recent multi-borrower transactions rated by Fitch Ratings, with a debt service coverage ratio of 1.32x and a loan to value ratio of 98.8%. By comparison, the average conduit rated by Fitch this year had a DSCR of 1.22x and an LTV of 104.5%
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Classes A-1FCF and A-1LCF, the first-and last-cash flow tranches, will receive sequential payments, while the A-1A and A-1B certificates will be repaid on a pro rata basis.
The pool is primarily composed of multifamily mortgages, but includes a range of properties, and one third of the pool structured with future funding.
At 2.5 million square feet, The Franklin has a NOI of $45 million and a rating agency cap rate of 9.75%.
The deal also includes a series of exchangeable notes that will pay variable rates.
GSMBS 2026-PJ2's losses are based on a senior-subordinate, shifting-interest structure and Fitch expects a 10.3% final probability of default in the AAA rating stress.
