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CBA
Mortgage Corp. Series 1993 CBA-C1
Transaction Overview
Transaction type: Commercial Mortgage
Backed Securitization
Total Transaction Size: $541 Million
Transaction Background
After two unsuccessful attempts to
dispose of their commercial real estate portfolio, Kemper Financial contacted
Cheslock, Bakker & Associates, Inc. to discuss alternative strategies.
Recognizing that a bulk sale of Kemper's mortgages would not offer the
most efficient execution, CBA proposed to originate and securitize new
mortgages.
Transaction Summary
After an initial review of 200 loans
of varying maturities, property types and locations, CBA recommended that
115 new loans, each with identical terms, be created. Approximately $215
million (39%) of the transaction provided first mortgage financing for
Kemper owned properties; the remaining $326 million refinanced mortgages
were held by Kemper. CBA securitized and sold the investment-grade tranches,
and retained $60 million of non-investment grade tranches. The $541 million
transaction consisted of 40% office, 30% industrial and 30% retail properties
located in 19 states. At the time of issuance, this was the largest private
label (non-RTC) commercial mortgage securitization.
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