Trez Capital launches a new commercial mortgage-backed security (CMBS) conduit
Trez Capital Group LP, a short-term bridge lender to experienced commercial developers, has launched their new Trez Commercial Mortgage LP, which will focus on providing long-term financing on stabilized income producing commercial properties across Canada.
The Trez CMBS platform build-out is being led by partner and managing director Ross Brennan, who was previously president and CEO of Otera Capital (Caisse de dépôt et placement du Québec), where he oversaw $12.5 billion of assets. Prior to Otera, Mr. Brennan was a founding Principal of the Canadian CMBS business, having started TD Bank’s and Colliers International’s CMBS conduits, originating over $3 billion of mortgage product into CMBS issues.
Commercial Mortgage-Backed Securities are fixed rate investment grade bonds rated by at least two rating agencies. They have a multi-class structure starting with investment-grade bonds that are rated AAA and extending all the way down to non-investment grade. The investment grade bonds are sold to investors depending on their risk/reward appetite. All of the underlying mortgages placed into a CMBS bond have fixed terms with yield maintenance requirements so prepayments are mitigated.