NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of DBJPM 2016-SFC, a $306.9 million CMBS single borrower transaction (see ratings list below).
The collateral for the transaction is a $306.9 million portion of a $558.0 million non-recourse, first lien mortgage loan secured by the borrower’s fee simple and leasehold interests in Westfield San Francisco Centre. Major retail tenants include Abercrombie & Fitch, Express, H&M, J. Crew, Microsoft, Victoria’s Secret, and Zara as well as the non-collateral anchors Bloomingdale’s and Nordstrom. The mall also includes four office tenants, the largest of which is San Francisco State University. As of April 2016, Westfield San Francisco Centre was 97.6% occupied.
KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flow using our CMBS Property Evaluation Methodology 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 $51.4 million. To value the property, we applied a blended capitalization rate of 7.31% to arrive at a KBRA value of $703.3 million and a KBRA Loan to Value (KLTV) of 79.3%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, seismic and appraisal reports, our own on-site inspection of the property and its competitors, and legal documentation.
For further details on KBRA’s analysis, please see our Pre-Sale Report, entitled DBJPM 2016-SFC, which was published today at www.kbra.com.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final that differ from the preliminary ratings.
Preliminary Ratings Assigned: Shops at Crystals 2016-CSTL
| Class | Expected Rating | Balance (US$) | ||||||
| A | AAA(sf) | $150,000,000 | ||||||
| X-A | AAA(sf) | $185,000,0001 | ||||||
| B | AA-(sf) | $35,000,000 | ||||||
| C | A-(sf) | $59,629,000 | ||||||
| D | BBB-(sf) | $62,313,000 |
1Notional balance
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 to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled DBJPM 2016-SFC Representations & Warranties Disclosure.
Related publications:
CMBS
Property Evaluation Methodology
CMBS
Single Borrower and Large Loan Rating Methodology
Methodology
for Rating Interest-Only Certificates in CMBS Transactions
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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).
