Fitch Affirms Aventura Mall Trust 2013-AVM

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed the Aventura Mall Trust 2013-AVM, commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmation is due to stable collateral performance since origination. At issuance the property was 99.8% occupied; occupancy as of the third quarter 2015 rent roll was 100%. The servicer reported third quarter 2015 net cash flow (NCF) debt service coverage ratio (DSCR) was 2.42x, compared to 2.20x at year-end (YE) 2014 and 2.13x at issuance.

The transaction is secured by the Aventura Mall, a 2.1 million square foot (sf) (collateral consisting of approximately 1 million sf of space owned by the borrower and approximately 900,000 sf of space on ground leases to anchor tenants) super-regional mall located in Aventura, FL. The property is anchored by Bloomingdales, Macy's Home & Men, Macy's, Nordstrom, (all on ground leases), Sears (non-owned) and JC Penney. The mall underwent a $131 million renovation and expansion that was completed in 2008. Additionally, a 241,000 sf, three-level expansion that includes a retail wing and parking garage is under construction and Fitch is currently waiting on a progress update from the Master Servicer.

The interest-only, fixed-rate (3.75%) loan has a seven-year term which matures Dec. 1, 2020. The loan is sponsored jointly by Turnberry Retail Holdings, LP (66.7%) and Simon Property Group (33.3%).

As part of its review, Fitch analyzed the performance of the loan and its underlying collateral. Fitch modeled cash flow based on the year-end 2014 OSAR, as well as the Sept. 2015 rent roll. The Fitch stressed DSCR for the loan is 1.02x, compared to 0.99x modeled at issuance. The Fitch stressed loan-to-value ratio is 86%, which is based on capitalization of the Fitch-adjusted net cash flow at a rate of 7.00%, compared to 88.3% modeled at issuance. As it is considered one of the top regional malls in the country, Fitch applied a stressed capitalization rate lower than the typical range for retail properties. The trailing twelve month (TTM) September 2015 total comparable inline sales were $1,420 psf ($1,154 psf without Apple) compared to $1,426 psf ($1,175 psf without Apple) the prior year. Additionally, the TTM September 2015 total inline occupancy cost was 11.4%.

RATING SENSITIVITIES

The rating is expected to remain stable as it is anticipated the property will continue to perform within expectations. No rating actions are expected unless there are material changes in property occupancy or cash flow. Fitch will continue to monitor the mall's performance to ensure that revenues and expenses considered at the time of Fitch's initial ratings remain in line over the loans' terms.

Initial Key Rating Drivers and Rating Sensitivity is further described in the New Issue report titled 'Aventura Mall Trust 2013-AVM' (January 16, 2014)', which is available at www.fitchratings.com.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following class as indicated:

--$747 million class A at 'AAAsf'; Outlook Stable.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 27 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870009

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

Aventura Mall Trust 2013-AVM -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=729097

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=996155

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=996155

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151207006434/en/

Fitch Ratings
Primary Analyst
Darren Liss
Director
+1-212-908-0753
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: [email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• KKR Invests in Indian Ticketing and Live Entertainment Platform BookMyShow
• Wix.com Ltd. Notice of September 22, 2026 Application Deadline for Class Action Lawsuit - Contact Lewis Kahn, Esq. at Kahn Swick & Foti, LLC, Before Application Deadline
• Capricor Therapeutics, Inc. Notice of September 28, 2026 Application Deadline for Class Action Lawsuit - Contact Lewis Kahn, Esq. at Kahn Swick & Foti, LLC, Before Application Deadline