Kroll Bond Ratings Affirms Ratings on All Classes of BAMLL 2012-PARK

NEW YORK--()--Kroll Bond Rating Agency (KBRA) affirmed its ratings on two classes of BAMLL 2012-PARK certificates, a $300.0 million CMBS single borrower transaction (see ratings list below). The transaction collateral consists of a single, non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in 1.3 million square feet (sf) of 101 Park Avenue, a 48-story, Class-A office building located two blocks from Grand Central Terminal in New York, NY.

The property had an economic occupancy of 80% as of November 2013, which declined significantly from 96% at securitization. The decline in occupancy followed the lease expiration of UBS and the Royal Bank of Scotland (13.5% of total sf), both of which were dark at securitization but subleasing 100% and 67% of their leased space, respectively. As the subject was able to maintain average economic office occupancy of 95.5% since 2008 and is currently performing below market, KBRA used a stabilized analysis to determine KNCF and KBRA value.

KBRA used information obtained from the trustee, Deutsche Bank Trust Company Americas, and servicer, KeyBank National Association, to analyze the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of $47.1 million and a KBRA value of $594.5 million, which have declined 1.6% and 3.8% since issuance, respectively. The resulting in-trust KBRA Loan to Value (KLTV) is 50.5%.

                               
  Class       Rating       Balance (USD)       Rating Action  
  A       AAA (sf)       300,000,000       Affirmed  
  X*       AAA (sf)       300,000,000       Affirmed  

* Notional Class

 
 

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 at http://www.krollbondratings.com/regulatory/17g-7.

Related Publications (available at https://www.krollbondratings.com):

BAMLL 2012-PARK Presale Report

CMBS Property Evaluation Guidelines

CMBS Single Borrower and Large Loan Rating Methodology

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Allison Werry, 646-731-2335
awerry@krollbondratings.com
or
Gretel Braverman, 215-882-5843
gbraverman@krollbondratings.com
or
Sarah Woo, 646-731-2361
swoo@krollbondratings.com
or
William Petersen, 215-882-5861
wpetersen@krollbondratings.com

Sharing

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Allison Werry, 646-731-2335
awerry@krollbondratings.com
or
Gretel Braverman, 215-882-5843
gbraverman@krollbondratings.com
or
Sarah Woo, 646-731-2361
swoo@krollbondratings.com
or
William Petersen, 215-882-5861
wpetersen@krollbondratings.com