Goldman, Citigroup to sell $788.5 mln CMBS

Goldman Sachs Group Inc and Citigroup Inc will sell a $788.5 million commercial mortgage-backed security, according to a term sheet sent to investors, in the largest deal of its kind since volume began crawling back after the financial crisis. The issue would be the sixth since the CMBS market re-opened in December, but just one of a few that include multiple loans. It is expected to price next week, according to the term sheet obtained by Reuters. Multi-borrower issues are seen as most important to the $700 billion market, which is facing enormous credit needs. More than $1.2 trillion in commercial property loans will be maturing in the coming years, and it is unclear how many can be helped by CMBS since many are lacking the equity or revenue required under today’s more stringent underwriting standards.