NEW YORK--(BUSINESS WIRE)--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%.
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* Notional Class
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.
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