Kroll Bond Ratings Affirms Ratings on All Classes of GSMS 2012-BWTR

NEW YORK--()--Kroll Bond Rating Agency (KBRA) affirmed its ratings on all six classes of GSMS 2012-BWTR 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 640,210 square feet (sf) of Bridgewater Commons, a 992,561 sf super-regional mall located in Bridgewater, New Jersey. Bridgewater Commons has three traditional mall anchor tenants totaling 502,876 sf. These anchors include Bloomingdale’s, Lord & Taylor and Macy’s. Bloomingdale’s serves as collateral for the loan, and the remaining anchors own their improvements and underlying land. The loan sponsor is Four States Properties, LLC, a joint venture between GGP Limited Partnership, an affiliate of General Growth Properties, Inc. and Fourmall Acquisition, LLC. Fourmall Acquisition, LLC is a joint venture between the New York State Teachers’ Retirement System (NYSTRS) and the Commingled Pension Trust Fund of JPMorgan Chase Bank, National Association, which is managed by JPMorgan Asset Management – Global Real Estate Assets.

Bridgewater Commons has experienced strong sales and occupancy since securitization, despite declines in both. For the TTM period ending June 2013, comparable in-line tenants occupying less than 10,000 sf generated sales of $763 per sf for the mall and $717 per sf, inclusive of the adjacent lifestyle center, down 2.5% from $782 and $735 per sf, respectively, at securitization. Excluding the Apple Store, comparable in-line tenants generated sales of $599 per sf for the same period, reflecting a decrease of 5.8% from $636 per sf at securitization. Recent sales performance, excluding the Apple Store, however, is 33.1% above the International Council of Shopping Center’s (ICSC’s) average US mall sales of $450 per sf and 10.5% higher than the ICSC US Northeast region sales, which were $542 per sf as of September 2013.

KBRA used information obtained from the trustee, U.S. Bank National Association, and servicer, Wells Fargo National Association, to analyze the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of $31.1 million and a KBRA value of $428.9 million, both of which have declined 1.0% since issuance. The resulting in-trust KBRA Loan to Value (KLTV) is 69.9%.

             
Class   Rating   Balance (USD)   Rating Action
A   AAA (sf)   217,590,000   Affirmed
X-A¹   AAA (sf)   217,590,000   Affirmed
X-B¹   AAA (sf)   39,410,000   Affirmed
B   AA- (sf)   39,410,000   Affirmed
C   A- (sf)   28,700,000   Affirmed
D   BBB(sf)   14,300,000   Affirmed

¹ 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):

GSMS 2012-BTWR Pre-Sale Report
CMBS Property Evaluation Guidelines
CMBS Single Borrower and Large Loan Rating Methodology

Contacts

Kroll Bond Rating Agency (KBRA)
Analytical Contacts:
Allison Werry, 646-731-2335
awerry@krollbondratings.com
or
Gretel Braverman, 215-353-0449
gbraverman@krollbondratings.com
or
Sarah Woo, 646-731-2361
swoo@krollbondratings.com
or
William Petersen, 215-882-5860
wpetersen@krollbondratings.com

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Contacts

Kroll Bond Rating Agency (KBRA)
Analytical Contacts:
Allison Werry, 646-731-2335
awerry@krollbondratings.com
or
Gretel Braverman, 215-353-0449
gbraverman@krollbondratings.com
or
Sarah Woo, 646-731-2361
swoo@krollbondratings.com
or
William Petersen, 215-882-5860
wpetersen@krollbondratings.com