Kroll Bond Rating Agency Assigns Preliminary Ratings to GSMS 2012-TMSQ

NEW YORK--()--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings for the GSMS 2012-TMSQ transaction (see ratings list below). GSMS 2012-TMSQ is a CMBS large loan transaction collateralized by a $208 million first lien mortgage loan.

The loan is secured by the borrowers’ fee simple interest in a 93,263 sf, 23 story retail and signage building at 1471 Broadway in the Times Square section of New York. The area attracts over 35 million visitors on a yearly basis, making the area highly desirable for advertisers, and the property is one of the most prominent buildings in the world in terms of large neon and vinyl advertising signage. Approximately 85% of the property’s base rental income is derived from 18 LED and vinyl signs affixed to the exterior of the building. Three floors of the building, which are comprised of approximately 13,989 sf, are also used by Walgreens for retail selling space. The property is also the home of the annual ball drop on New Year’s Eve.

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 & Large Loan Rating Methodology. The results of our analysis yielded a KBRA Net Cash flow (KNCF) of $23.1 million and a KBRA value of $307.5 million. Our resulting KBRA Loan to Value (KLTV) was 67.6% In our analysis of the transaction, we also reviewed and considered third party engineering, environmental and appraisal reports, our own on-site inspection of the property and the competition and legal documentation and opinions.

For complete details on the analysis, please see our presale Report, GSMS 2012-TMSQ published today at www.krollbondratings.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: GSMS 2012-TMSQ

           
Class               Expected Rating               Balance (US$)
A               AAA (sf)               $138,692,000
X-A               AAA (sf)               $138,692,000*
X-B               AAA (sf)               $30,417,000*
B               AA+ (sf)               $30,417,000
C               A (sf)               $23,519,000
D               BBB+ (sf)               $15,372,000

* Notional Amount

             

 

             
 

17g-7 Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled CMBS: GSMS 2012-TMSQ 17g-7 Disclosure Report.

Related publications (available at www.krollbondratings.com):
CMBS Single Borrower and Large Loan Rating Methodology
CMBS 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.

Contacts

Analytics:
Kroll Bond Rating Agency, Inc.
Michael Brown, 646-731-2307
mbbrown@krollbondratings.com
or
Monika Joshi, 646-731-2360
mjoshi@krollbondratings.com
or
Keith Kockenmeister, 646-731-2349
kkockenmeister@krollbondratings.com
or
Robin Regan, 646-731-2339
rregan@krollbondratings.com

Sharing

Contacts

Analytics:
Kroll Bond Rating Agency, Inc.
Michael Brown, 646-731-2307
mbbrown@krollbondratings.com
or
Monika Joshi, 646-731-2360
mjoshi@krollbondratings.com
or
Keith Kockenmeister, 646-731-2349
kkockenmeister@krollbondratings.com
or
Robin Regan, 646-731-2339
rregan@krollbondratings.com