TMCnet News
Harvest Commercial Capital, LLC Closes Its First Securitization of Owner-Occupied First-Lien SBA 504 Loans and Conventional Real Estate Loans - $266.6 Million of Offered Certificates Rated by Kroll Bond Rating AgencyHarvest Commercial Capital, LLC ("HCC") (http://www.harvestcommercialcapital.com), the nationwide non-bank leader in owner-occupied small balance commercial real estate loans, securitized $266.6 million of first-lien, SBA 504 and conventional fixed rate commercial real estate loans that the company references as HCCLT 2019-1. The transaction was co-lead managed by Barclays Capital and Credit Suisse Securities. Kroll Bond Rating Agency ("KRBA") assigned a "AAA" rating to the most senior certificates along with ratings ranging from AA to B on 5 other classes of certificates. The closing of this transaction represents the first securitization of predominately owner-user small balance commercial loans in over 12 years. HCC leaders Adam Seery, Evan Mitnick and Todd Massas shared their excitement, "With the closing of the HCCLT 2019-1 transaction, HCC has set a new benchmark for securitizations of owner-occupied commercial real estate loans. Strong investor interest in the deal demonstrated the igh level of appetite for this asset class. This transaction is a testament to the strong work environment at Harvest and to the unbelievable amount of effort it took to get this done. We have an exceptional team!" HCC plans to be a regular issuer moving forward. Deal Characteristics HCCLT 2019-1 is a $266.6 million securitization collateralized by 191 small balance commercial mortgage loans, primarily made to small business concerns and secured by owner-occupied commercial real estate properties. The majority of the loans (140 loans, 75.7% of the total pool balance) were recently originated by Harvest Commercial Capital, LLC in conjunction with the firm's Conventional (86, 53.0%) and 504 (54, 22.8%) programs, while the remaining loans (51, 24.3%) were purchased in a portfolio acquisition of collateral previously securitized in a 2006 General Electric Capital Corporation ("GECC") transaction. With the exception of seven floating-rate loans (3.5%), the pool is comprised of fixed rate mortgages. It should be noted that 138 (75.2%) of the 184 fixed rate loans provide for a single adjustment to the interest rate after the 60th mortgage payment, in each case following an initial fixed-rate period, that does not adjust thereafter. The loans have an average outstanding principal balance of $1.4 million. The pool has a weighted average loan to value ratio of 51.4% based on third party appraisals (HCC loans) and broker price opinion data (GECC loans). FICO scores were provided for all of the HCC loans, with a weighted average FICO score of 727. Harvest Commercial Capital, LLC Harvest Commercial Capital, LLC is a Delaware limited liability company that originates, owns, sells and services first-lien small balance commercial loans backed generally by multi-purpose commercial real estate. HCC originates conventional loans and first-lien loans pursuant to the U.S. Small Business Administration's ("SBA") 504 loan program. HCC is majority owned by an affiliate of Medalist Partners, LP, an SEC (News - Alert) registered investment manager with approximately $2.7 billion of assets under management across strategies in asset-backed private credit, structured credit and CLOs. HCC was founded in February 2016 and is based in Laguna Hills, CA (News - Alert). View source version on businesswire.com: https://www.businesswire.com/news/home/20191209005022/en/ |
