KBRA Assigns Preliminary Ratings to Jackson Park Trust 2019-LIC

NEW YORK--()--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to six classes of Jackson Park Trust 2019-LIC, a $725.0 million CMBS single-asset, single-borrower transaction.

The collateral for the transaction consists of a $725.0 million portion of a $1.0 billion non-recourse, first lien mortgage loan. The fixed rate loan has a ten-year term and requires monthly interest-only payments. The loan is secured by the borrower’s fee simple interest in the Jackson Park, a 1,871-unit luxury multifamily complex located in Long Island City, New York.

The property was newly constructed by Tishman Speyer and began leasing in late 2017 and was 96.1% occupied as of August 2019. The property is comprised of three apartment towers ranging from 42 to 53 stories and one five-story amenity building which offers an extensive list of on-site amenities and services. The property also features approximately 10,400 sf of ground floor retail space and a subterranean garage containing 140 parking spaces

KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flow using our U.S. CMBS Property Evaluation Methodology, and the application of our U.S. CMBS Single Borrower and Large Loan Rating Methodology. The results of our analysis yielded a KBRA net cash flow (KNCF) for the property of $65.3 million. We applied a capitalization rate of 7.25% and arrived at a KBRA value of $900.5 million and a KBRA Loan to Value (KLTV) of 110.0%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental and appraisal reports; management agreement; the results of our site inspection; and legal documentation.

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 ratings that differ from the preliminary ratings.

For further details on KBRA’s analysis, please see our pre-sale report published at www.kbra.com. To access ratings, reports and disclosures, click here.

Preliminary Ratings Assigned: Jackson Park Trust 2019-LIC

Class

Initial Class Balance

Expected

KBRA Rating

A

$215,460,000

AAA (sf)

B

$45,790,000

AA+ (sf)

C

$87,020,000

A (sf)

D

$77,995,000

BBB (sf)

E

$90,725,000

BB (sf)

F

$95,285,000

B (sf)

G

$76,475,000

NR

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:

Christina Chou, Associate
(646) 731-3387
cchou@kbra.com

Michael Brown, Managing Director
(646) 731-2307
mbbrown@kbra.com

Susannah Keagle, Senior Director
(646) 731-3357
skeagle@kbra.com

Business Development:

Michele Patterson, Managing Director
(646) 731-2397
mpatterson@kbra.com

Contacts

Analytical:

Christina Chou, Associate
(646) 731-3387
cchou@kbra.com

Michael Brown, Managing Director
(646) 731-2307
mbbrown@kbra.com

Susannah Keagle, Senior Director
(646) 731-3357
skeagle@kbra.com

Business Development:

Michele Patterson, Managing Director
(646) 731-2397
mpatterson@kbra.com