Nomura's $719M solo SASB: one bank, 3,321 units, no syndicate
A single balance sheet will write nine figures against a stabilized rent roll again. It still will not do it against a construction budget.
Nomura Securities put up all $719 million of the KELR 2026-MF mortgage itself. No syndicate, no club, no A-note sale. The borrower is Keller Investment Properties, a Salt Lake City area owner that had never done a CMBS deal and had financed with agency debt. The collateral is 12 multifamily properties plus one student-housing asset serving Utah Valley University, 3,321 units across Utah, Nevada and Arizona. Newmark brokered it. Commercial Observer reports it is the largest sole-bank SASB in about two years, that the AAA class priced at SOFR plus 135 basis points, and that leverage is 77 percent.
Why it matters
Set it against the other side of the risk curve. Three days ago we covered Bank OZK cutting real estate to 47.6 percent of loans and capping new commitments at $500 million. Both things are true at once, and the gap between them is the whole story. Capital did not come back. Capital came back for finished, leased, cash-flowing units and stayed gone for the dirt. One balance sheet will write nine figures against a stabilized rent roll in about 60 days. It will not do that against a construction budget.
The numbers
We pulled the Form ABS-15G that Nomura’s depositor filed with the SEC on July 7, along with the Ernst & Young agreed-upon procedures report attached to it. Three things in it are not in the press coverage.
The loan is interest-only for its entire term including every extension option. E&Y was instructed to set the amortization term to zero and to treat the balance at the initial maturity date as identical to the original balance. On a two-year term with three one-year extensions, that is up to five years with no principal retired.
The coverage math runs on two different SOFRs. The interest rate was recalculated off an assumed SOFR of 3.65000 percent. The assumed annual debt service that the DSCR divides by was recalculated off the spread plus 3.37020 percent, roughly 28 basis points lower.
And every core loan document E&Y reviewed was a draft treated as executed. The mortgage loan agreement is dated July 2, the guaranty, non-consolidation opinion, environmental indemnity, allocated loan amount schedule and cash management agreement July 6. The portfolio appraisal is dated June 29. That is what a 60-day close looks like from the inside.
What’s next
Proceeds refinance $696 million of existing debt and fund $22.2 million of closing costs and reserves, so nothing new gets built with this money. Watch whether a second bank matches it. Until one does, treat the solo balance sheet as an exit for stabilized product, not a construction bid. More national coverage.