Goldman Sachs Said to Sell CMBS Tied to Hawaiian Shopping Mall
Goldman Sachs Group Inc. sold $1.4 billion of bonds backed by debt on a Hawaiian mall, according to a person familiar with the offering.
A $1 billion slice carrying top grades and maturing in 9.91 years yields 135 basis points more than the benchmark swap rate, said the person, who declined to be identified because the terms aren’t public. A portion rated Baa3 by Moody’s Investors Service, the lowest investment-grade ranking, yields 260 basis points more than the benchmark.
The deal is composed of a single loan on a 2.42 million square-foot property in Honolulu, Hawaii, according to Morningstar Inc. The mortgaged parcel consists primarily of the Ala Moana Center, an open-air mall anchored by stores including Macy’s and Neiman Marcus, Morningstar said in a report earlier this month.
Wall Street banks have arranged about $8 billion in deals backed primarily by shopping malls, office buildings and hotels in 2012, according to data compiled by Bloomberg. Banks issued $28 billion in 2011. Sales are forecast to climb as high as $45 billion this year, according to Credit Suisse Group AG.
The market for bonds tied to everything from skyscrapers to strip malls was roiled this month by the auction of $7.5 billion in commercial real estate debt assumed by the Federal Reserve Bank of New York in the rescue of American International Group Inc.
Relative yields on benchmark securities narrowed by as much as 15 basis points, or 0.15 percentage point, to 225 basis points over the swap rate last week after the district bank completed the sale, according to JPMorgan Chase & Co.
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