NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to the 1211 Avenue of the Americas Trust 2015-1211 securitization, a $1.04 billion CMBS single borrower transaction (see ratings list below).
The collateral for the securitization consists of a single, non-recourse, first lien, fixed-rate mortgage loan that is secured by the borrower’s fee simple interest in 1211 Avenue of the Americas. The 1.9 million square foot (sf), 45-story, Class-A office tower is located on Avenue of the Americas (6th Avenue) between 47th and 48th Streets in Midtown Manhattan within New York City. The property was built in 1973 and initially served as the headquarters for Celanese Corporation. The subject office tower is comprised of 1.8 million sf of office space, 124,381 sf of retail space, and 2,645 sf used for storage and the management office. As of May 2015, the property was 91.3% leased to 14 tenants. The two largest tenants at the property are 21st Century Fox, a High Quality Credit Worthy Tenant (HQCWT), and Ropes & Gray, an American Lawyer (AM Law) Top 25 law firm. Together, these two tenants account for 71.6% of the total sf and 77.3% of total base rent. The subject serves as the global corporate headquarters for 21st Century Fox, the multi-national entertainment and media conglomerate that accounts for 54.5% of the subject’s total sf and 57.3% of total base rent. The borrower is owned by a joint venture between Ivanhoé Cambridge Inc. and Beacon Capital Partners.
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 $91.5 million. To value the property, we applied a 7.25% capitalization rate to arrive at a KBRA value of $1.26 billion and a KBRA Loan to Value (KLTV) of 82.0%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental and appraisal reports; our own on-site inspection of the property and legal documentation.
For further details on KBRA’s analysis of the transaction, please see our Pre-Sale Report, entitled 1211 Avenue of the Americas Trust 2015-1211, which was published today at www.kbra.com.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
Preliminary Ratings Assigned: 1211 Avenue of the Americas Trust 2015-1211
| Class | Class Balance (US$) | Expected Rating | |||||||||
| A-1A1 | AAA(sf) | $100,000,000 | |||||||||
| A-1A2 | AAA(sf) | $490,000,000 | |||||||||
| X-A | AAA(sf) | $590,000,000(1) | |||||||||
| X-B | AA-(sf) | $119,000,000(2) | |||||||||
| B | AA-(sf) | $119,000,000 | |||||||||
| C | A-(sf) | $79,000,000 | |||||||||
| D | BBB-(sf) | $110,800,000 | |||||||||
| E | BB-(sf) | $136,200,000 |
(1) Notional balance equal to the aggregate certificate
balance of the Class A-1A1 and A-1A2 certificates.
(2)
Notional balance equal to the certificate balance of the Class B
certificates.
Representations & Warranties 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 in the offering document when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled 1211 Avenue of the Americas Trust 2015-1211 Representations & Warranties Disclosure Report.
Related Publications (available at www.kbra.com):
CMBS
Presale Report: 1211 Avenue of the Americas Trust 2015-1211
CMBS
Property Evaluation Guidelines, published March 3, 2015
CMBS
Single Borrower and Large Loan Rating Methodology, published March 3,
2015
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
