NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigned its final ratings to seven classes of COMM 2012-LTRT, a $259 million CMBS large loan transaction. Concurrently, we have withdrawn our preliminary ratings on the certificates, which were assigned on September 10, 2012 (see our ratings listed below).
The collateral for the securitization is comprised of two, non-recourse, first lien mortgage loans. The loans which are not cross-collateralized or cross-defaulted are each secured by a mall property. The larger loan is secured by the borrowers’ fee simple interests in 540,304 sf of Westroads Mall, a 1.1 million sf super-regional mall located in Omaha, Nebraska. The second loan is secured by 581,849 sf of the Oaks Mall, a 906,349 sf super-regional mall located in Gainesville, Florida. Both properties have maintained average occupancy rates of at least 94.9% since 2008, and have experienced increasing in-line sales per sf in recent years. The loans have a ten year term and are structured with a 30-year amortization schedule.
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flow using our CMBS Property Evaluation Guidelines, and the application of our CMBS Single Borrower and Large Loan Rating Methodology. The results of our analysis yielded a KBRA Net Cash flow (KNCF) of $28.3 million. Our resulting KBRA Loan to Value (KLTV) was 77.3% for Westroads Mall and 75.6% for the Oaks Mall. To value the properties, we selected capitalization rates of 8.25% for Westroads Mall and 8.50% for the Oaks Mall, respectively. The aggregate KBRA value was $338.5 million, which was 27.8% less than the collateral’s aggregate third party appraisal values. In our analysis of the transaction, we also reviewed and considered third party engineering and environmental reports, as well as our own on-site inspection of the property and the competition.
For complete details on the analysis, please see our presale Report, COMM 2012-LTRT, published on September 10, 2012 at www.krollbondratings.com.
Final Ratings Assigned: COMM 2012-LTRT
* Notional Amount
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