Kroll Bond Rating Agency Assigns Final Ratings to RBS 2013-SMV
NEW YORK -- February 21, 2013
Kroll Bond Rating Agency (KBRA) assigned its final ratings to eight classes of
RBS 2013-SMV, a $295.0 million CMBS single borrower transaction. Concurrently,
we have withdrawn our preliminary ratings on the certificates, which were
assigned on January 29, 2013 (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 a
1.16 million sf regional mall known as Shops at Mission Viejo. The Property is
located in Mission Viejo, California and features over 130 major and in-line
tenants that are predominately leased to national retailers. The mall is
anchored by Forever XXI, Macy’s Men’s, Children & Furniture Gallery, Macy’s
Women’s & Home and Nordstrom. The Macy’s stores own their own improvements and
the underlying land.
The mall is owned by the Borrower of the loan, the Shops at MV, LLC. The
borrower is owned in the form of a joint venture consisting of Simon Property
Group, L.P. (“SPGLP”) which has a 51% interest, and IMI Woodfield LLC, which
has a 49% interest. SPGLP is a subsidiary of Simon Property Group, Inc.
(Simon) and owns all of SPG’s real estate properties and other assets. Simon
is a publicly traded real estate investment trust. The property is managed by
Simon Management Associates, LLC, a Simon affiliate. The collateral was 95.6%
occupied as of December 1, 2012. Comparable in-line sales were $583 per sf for
the trailing 12 months ending September 2012, resulting in an occupancy ratio
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 $27.8 million.
To value the property, we applied a 7.50% capitalization rate to arrive at a
KBRA value of $370.2 million. Our resulting KBRA Loan to Value (KLTV) was
79.7%. In our analysis of the transaction, we also reviewed and considered
third party engineering and environmental reports, as well as our own on-site
inspection of the property and the competition.
For complete details on the analysis, please see our presale report, RBS
2013-SMV Trust, published at www.krollbondratings.com.
Final Ratings Assigned: RBS 2013-SMV Trust
Class Final Rating Balance (US$)
A AAA(sf) $179,000,000
X-A AAA(sf) $179,000,000
X-B AAA(sf) $56,000,000
B AA(sf) $28,000,000
C A(sf) $28,000,000
D BBB-(sf) $37,000,000
E BB+(sf) $13,000,000
F BB+(sf) $10,000,000
* Notional Amount
Related publications (available at www.krollbondratings.com):
CMBS: RBS 2013-SMV 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).
Leo Jacobo, 646-731-2325
Keith Kockenmeister, 646-731-2349
Press spacebar to pause and continue. Press esc to stop.