Article: BMO 2023-5C1 Mortgage Trust Contributes to Commercial Mortgage Securitization Transaction
On September 28, 2023, BMO 2023-5C1 Mortgage Trust, along with several other entities, contributed to a commercial mortgage securitization transaction called BANK5 2023-5YR3 Securitization. This transaction involves the issuance of the BANK5 2023-5YR3 Certificates, which are commercial mortgage pass-through certificates.
BMO 2023-5C1 Mortgage Trust issued the BMO 2023-5C1 Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2023-5C1 on August 16, 2023. This issuance was made pursuant to a Pooling and Servicing Agreement, dated August 1, 2023, between BMO Commercial Mortgage Securities LLC, as the depositor, and several other parties including KeyBank National Association, 3650 REIT Loan Servicing LLC, Pentalpha Surveillance LLC, and Computershare Trust Company, National Association.
As part of the contribution to the BANK5 2023-5YR3 Securitization, the servicing and administration of certain mortgage loans, referred to as Servicing Shift Whole Loans, will be transferred from the Pooling and Servicing Agreement to the BANK5 2023-5YR3 Pooling and Servicing Agreement. The Servicing Shift Whole Loans include the 11 West 42nd Street Whole Loan, the Short Pump Town Center Whole Loan, and the Heritage Plaza Whole Loan.
The BANK5 2023-5YR3 Pooling and Servicing Agreement is a separate agreement between the BANK5 2023-5YR3 Depositor, which is Banc of America Merrill Lynch Commercial Mortgage Inc., and other parties including Wells Fargo Bank, National Association, Greystone Servicing Company LLC, and Pentalpha Surveillance LLC.
The terms of servicing the Servicing Shift Mortgage Loans under the BANK5 2023-5YR3 Pooling and Servicing Agreement are similar to those outlined in the original Pooling and Servicing Agreement. However, there are some differences, including the following:
1. The Outside Special Servicer for each Servicing Shift Whole Loan will earn a special servicing fee payable monthly, which will be the greater of a per annum rate of 0.25% or a rate resulting in a special servicing fee of $3,500 per month.
2. In the event of a workout of a Servicing Shift Whole Loan, the Outside Special Servicer will be entitled to a workout fee. The fee will vary depending on the loan: for the 11 West 42nd Street Whole Loan, the fee is 0.50%; for the Short Pump Town Center Whole Loan, the fee is 1.00%; and for the Heritage Plaza Whole Loan, the fee is 0.75%. There is also a minimum workout fee of $25,000 for any particular workout of a Servicing Shift Whole Loan.
3. The Outside Special Servicer will be entitled to a liquidation fee when the Servicing Shift Whole Loan is liquidated. The fee is 0.50% for the 11 West 42nd Street Whole Loan, 0.75% for the Heritage Plaza Whole Loan, and 1.00% for the Short Pump Town Center Whole Loan.
Overall, the contribution of BMO 2023-5C1 Mortgage Trust and the Servicing Shift Whole Loans to the BANK5 2023-5YR3 Securitization allows for the transfer of servicing and administration responsibilities to the BANK5 2023-5YR3 Pooling and Servicing Agreement. This transaction represents a significant step in the securitization of commercial mortgages and demonstrates the collaborative efforts of various financial institutions.