Kroll Bond Rating Agency Assigns Preliminary Ratings to BAMLL 2015-ASTR

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to three classes of the BAMLL 2015-ASTR securitization, a $273.5 million 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 leasehold interest in 51 Astor Place, a 12-story, Class A, LEED Gold Certificate office building located on an entire city block in the Midtown South market of Manhattan. The property, which was built in 2013, contains 385,831 sf which is predominately comprised of office space; of the total space, 71,315 sf (18.5%) is used for educational purposes and 26,884 sf (7.0%) is used for retail. As of May 2015, the property was 96.8% leased to 11 tenants. The largest tenants at the property are IBM Watson Group, a High Quality Credit Worthy Tenant (HQCWT), St. John’s University, 1stdibs, Claren Road Asset Management (HQCWT) and Tudor Investment Corporation. Collectively, these five tenants account for 79.9% of the total sf and 75.4% of total base rent. IBM Watson Group is the largest tenant at the subject property and occupies 143,836 sf that it uses as its global headquarters. IBM Watson Group accounts for 37.3% of the total sf and 38.3% of total base rent. The loan sponsor is Edward J. Minskoff Equities, Inc.

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 $21.5 million. To value the property, we applied a 7.00% capitalization rate to arrive at a KBRA value of $307.0 million ($796 per sf) and an in trust KBRA Loan to Value (KLTV) of 89.1%. The financing includes $96.5 million of subordinate mezzanine debt held outside the trust. Inclusive of this debt, the all-in KLTV is 120.5%. In addition, the loan documents permit future mezzanine indebtedness if certain conditions are satisfied. As part of 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 BAMLL 2015-ASTR, 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: BAMLL 2015-ASTR
Class			Expected Rating			Balance (US$)
A			AAA(sf)			$143,700,000
X-A			AAA(sf)			$143,700,000(1)
X-B			NR			$59,200,000(1)
B			AA-(sf)			$33,500,000
C			NR			$25,700,000
D			NR			$31,100,000
E			NR			$39,500,000
1 Notional 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 disclosed in the offering documents when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled BAMLL 2015-ASTR Representations & Warranties.

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

CMBS Presale Report: BAMLL 2015-ASTR

CMBS Property Evaluation Guidelines, published March 3, 2015

CMBS Single Borrower and Large Loan Rating Methodology, published March 3, 2015

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).

View source version on businesswire.com: http://www.businesswire.com/news/home/20150722006495/en/

Analytical:
Kroll Bond Rating Agency
Leslie Brown, 646-731-2475
[email protected]
or
Michael Brown, 646-731-2307
[email protected]
or
Robin Regan, 646-731-2358
[email protected]
or
Keith Kockenmeister, 646-731-2349
[email protected]
or
Follow us on Twitter!
@KrollBondRating

Source: Kroll Bond Rating Agency

---

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

---

You May Also Be Interested In

• AbCellera prices $200M public offering of shares and warrants
• Bank of America to acquire up to 49.9% stake in Jio Credit for ~$1.9B
• Emera completes sale of New Mexico Gas to Bernhard Capital