GMAC Japan Completes $126M Securitization

TOKYO-GMAC Commercial Mortgage Japan has securitized a multi-borrower conduit transaction. The transaction consisted of 13 non-recourse loans totaling $126 million secured by 19 individual real estate assets, including office, retail, hotel and multifamily assets.The loans, entrusted to the JMAC 2 Trust, are collateralized by real estate trust beneficial interests (TBIs). The Tokyo branch of Credit Suisse First Boston Securities (Japan) Ltd. arranged and structured the transaction. Dawson Steven Lin of GMACCM Japan was the agent the transaction. Premier Asset Management Company is both primary and special servicer for the transaction.GMACCM Japan is part of GMAC Commercial Holding Asia, the Asian arm of U.S.-based GMAC Commercial Holding Corp. of Horsham, PA. This was GMACCM Japan’s second multi-borrower securitization following its first such securitization (JMAC Limited/JMAC1) in October 2003. According to Fitch, GMACCMJ sold three loans to an affiliate of Credit Suisse First Boston for securitization, and GMACCMJ and the affiliate of CSFB entrusted 10 and three loans respectively. The TBIs were transferred to the beneficiary arranged by Credit Suisse First Boston Securities (Japan) Limited. Fitch has assigned investment-grade ratings to the bulk of the TBIs, which indicates a relatively low probability of default. Fitch states that the strengths of the transaction include: collateral and location quality asset diversity; quality of loan credit assessment; asset diversity; the originators’ strong loan origination and underwriting practices; and the structural integrity of the transaction including servicer advances. Fitch’s concerns include: the inclusion of hotel properties that are considered to be relatively volatile asset types; seismic concentration; limited scheduled amortization; and loan concentration. However, Fitch states that “conservative assumptions made to the stabilized collateral cash flow and the competitive position of the properties, together with the structural features implemented, will mitigate the above risks.”