Kroll Bond Rating Agency Assigns Final Ratings to GSMS 2012-BWTR
NEW YORK -- December 21, 2012
Kroll Bond Rating Agency (KBRA) assigned its final ratings to six classes of
GSMS 2012-BWTR, a $300.0 million CMBS single borrower transaction.
Concurrently, we have withdrawn our preliminary ratings on the certificates,
which were assigned on December 7, 2012 (see our ratings listed below).
The transaction is collateralized by a single, non-recourse, first lien
mortgage loan. The loan is secured by the borrower’s fee simple interest in
546,411 sf of an 898,762 sf, three story super-regional mall known as
Bridgewater Commons and an adjacent 93,799 sf lifestyle center known as The
Village at Bridgewater (the “Property”). The Property is located in
Bridgewater, New Jersey and features over 150 major and in-line tenants that
are predominately leased to national retailers. The mall is anchored by
Bloomingdale’s, Lord & Taylor and Macy’s. Lord & Taylor and Macy’s own their
improvements and the underlying land.
The mall is indirectly owned by Four State Properties, LLC (“Sponsor”), a
joint venture between GGP Limited Partnership, an affiliate of General Growth
Properties, Inc. (“GGP”), which owns 35% of the Sponsor, and Fourmall
Acquisition, LLC, which owns 65% of the Sponsor. Fourmall Acquisition, LLC is
a joint venture between the New York State Teachers’ Retirement System and the
Commingled Pension Trust Fund of JPMorgan Chase Bank, National Association,
which is managed by JPMorgan Asset Management – Global Real Assets. The
Property is managed by General Growth Management, Inc., an affiliate of GGP.
The collateral was 97.9% occupied as of September 30, 2012. Comparable in-line
sales were $782 per sf for the trailing 12 months ending August 2012,
resulting in an occupancy ratio of 14.2%.
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 $31.4 million.
To value the property, we applied a 7.25% capitalization rate to arrive at a
KBRA value of $433.0 million. Our resulting KBRA Loan to Value (KLTV) was
69.3%. In our analysis of the transaction, we also reviewed and considered
third party engineering and environmental reports, as well as our own on-site
inspection of the property and the competition.
For complete details on the analysis, please see our presale report, GSMS
2012-BWTR, published at www.krollbondratings.com.
Final Ratings Assigned: GSMS 2012-BWTR
Class Expected Rating Balance (US$)
A AAA (sf) $217,590,000
X-A* AAA (sf) $217,590,000
X-B* AAA (sf) $39,410,000
B AA- (sf) $39,410,000
C A- (sf) $28,700,000
D BBB (sf) $14,300,000
* Notional Amount
Related publications (available at www.krollbondratings.com):
CMBS: GSMS Trust 2012-BWTR 17g-7 Disclosure Report
CMBS Single Borrower and Large Loan Rating Methodology
CMBS Property Evaluation Guidelines, published June 10, 2011
About Kroll Bond Rating Agency
KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings
by creating new standards for assessing risk and by offering accurate, clear
and transparent ratings. 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).
Kroll Bond Rating Agency
Yee Cent Wong, 646-731-2374
Keith Kockenmeister, 646-731-2349
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