NEW YORK--(BAMLL 2012-PARK, a $300.0 million CMBS single borrower transaction. Concurrently, we have withdrawn our preliminary ratings on the certificates, which were assigned on November 26, 2012 (see our ratings listed below).)--Kroll Bond Rating Agency (KBRA) assigned its final ratings to two classes of
The transaction is collateralized by a single, non-recourse, first lien mortgage loan. The loan is secured by the borrower’s fee simple in 101 Park Avenue, a 48-story, 1.25 million sf, Class A, office property located two blocks south of Grand Central Terminal in New York, NY. As of October 2012, the property was 96.0% leased, primarily to law firm and financial service tenants, including Morgan Lewis & Bockius and Kelly Drye & Warren LLP. Approximately 52% of the building’s total sf is occupied by tenants who have had a presence at the building since it was constructed in 1982. Additionally, the property’s average lease rate for the office space over the past decade is 99.3%.
KBRA’s analysis of the transaction included a detailed evaluation of the property’s 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 $47.9 million and a KBRA value of $617.7 million. The resulting KBRA Loan to Value (KLTV) was 48.6% and the KBRA Debt Service Coverage during the term (KDSCt) was 4.50x. Our analysis of the transaction included evaluation of third party engineering, environmental and appraisal reports, as well as our own on-site inspection of the property and the competition.
Final Ratings Assigned: BAMLL 2012-PARK
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Related publications (available at www.krollbondratings.com):
CMBS: BAMLL 2012-PARK 17g-7 Disclosure Report
CMBS Single Borrower and Large Loan Rating MethodologyCMBS Property Evaluation Guidelines, published June 10, 2011
About Kroll Bond Rating Agency
Kroll Bond Rating Agency, Inc. (www.krollbondratings.com) is registered with the SEC as a nationally recognized statistical rating organization (NRSRO). Kroll Bond Rating Agency was established in 2010 to restore trust in credit ratings by establishing new standards for assessing risk and by offering accurate, clear, and transparent ratings.