Credit Suisse re-enters CMBS market with hotel deal

Credit Suisse has re-entered the new-issue CMBS market for the first time since shedding its commercial real estate loan origination business in 2011, reports IFR. The bank is pre-marketing the $186.8m CSMC 2014-SURF transaction, underpinned by one two-year, floating-rate commercial mortgage loan.

The loan has five one-year extension options, and is secured by a first-priority lien mortgage on the borrowers’ interest in the 198-room Shutters on the Beach hotel and the 129-room Casa del Mar hotel, both resorts in the Santa Monica/Los Angeles area.

The mortgage loan is interest-only for its entire term, meaning there will be no scheduled amortization during the loan term.

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“The hotels’ reputations, oceanfront locations, and recent $21.3-million renovation and redevelopment are competitive advantages against many of their Santa Monica and Beverly Hills competitors,” said Richard Reilly, who led a team of S&P analysts that rated the new offering.

The loan has an initial two-year term with a February 2016 initial scheduled maturity, with five, one-year extension options.