Fitch Affirms All Classes of UBS-BAMLL Trust 2012-WRM
CHICAGO -- June 19, 2013
Fitch Ratings has affirmed all classes of UBS-BAMLL Trust 2012-WRM commercial
mortgage pass-through certificates series 2012-WRM. A complete list of rating
actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations and Stable Rating Outlooks are the result of stable property
performance. As of year-end 2012 the servicer-reported net operating income
(NOI) was within 10% of Fitch's original analysis. Reported expenses at the
Roseville property were higher than issuance or historical levels. Fitch is
awaiting a response from the servicer via the 17g5 provider regarding the
increased expenses. Historical reimbursement rates at the property have been
near 100% so any expense increases are likely to be recovered in the next
reimbursement cycle. Occupancy at both properties was stable, and sales were
up approximately 7% at the Galleria at Roseville and stable at Main Place.
The Outlook remains Stable for all classes. No rating actions are expected
unless there are material changes in property occupancy or cash flow. The
property performance is consistent with issuance. The transaction is secured
by two properties and therefore more susceptible to event risk related to the
market, sponsor, or the largest tenants occupying the properties.
Initial Key Rating Drivers and Rating Sensitivity is further described in
Fitch's new issue report titled 'UBS-BAMLL Trust 2012-WRM Series 2012-WRM'
(July 19, 2012), which is available at www.fitchratings.com.
The transaction represents a securitization of the beneficial interests in in
two mortgage loans securing the Galleria at Roseville (Roseville) and
MainPlace regional malls located in Roseville and Santa Ana, CA, respectively.
Proceeds of the loan were used to pay down existing debt and pay closing costs
as well as return approximately $230 million in cash to the sponsor. The
certificates follow a sequential-pay structure.
The Galleria at Roseville (66.3%) is a 1.3-million sf super-regional mall
anchored by Macy's, JC Penney, Nordstrom, and Sears, each of which own their
respective spaces. Collateral is comprised of the 678,494 sf in-line space
that is currently leased to approximately 220 tenants including Pottery Barn,
Abercrombie and Fitch, Crate & Barrel, Forever 21, and H&M. As of a December
2012 rent roll, the property was approximately 95% leased on a total basis,
with in-line space at 90.6% leased. Trailing 12 months (TTM) in-line sales per
square foot (psf) were $597 ($479 psf excluding Apple) as of March 31, 2013.
MainPlace Mall (33.7%), located in Santa Ana, CA (Orange County), is a
1.1-million-sf super-regional mall anchored by Macy's, Macy's Men & Home,
Nordstrom, and JC Penney. Collateral for the loan is comprised of the inline
space and JC Penney and totals 616,591 sf. Nordstrom, Macys, and Macy's Men
and Home are non-owned anchors. While not the dominant center in its trade
area, sales psf at MainPlace have improved to $362 psf as of TTM March 2013
from 2009 levels of $308 psf. As of a December 2012 rent roll, the property
was approximately 96% leased.
The sponsor for the loan is Westfield America, Inc., a REIT that currently
holds interests in 55 shopping centers in markets including northern and
southern California, Chicago, southern Florida, New Jersey, and New York.
Total square footage is approximately 63 million square feet across the U.S.,
including interests in 50 super-regional shopping centers. Westfield America,
Inc. is part of The Westfield Group, which Fitch currently rates 'A-' with a
Fitch has affirmed the following classes:
--$284,000,000 class A 'AAAsf'; Outlook Stable;
--$284,000,000 interest-only class X-A* 'AAAsf'; Outlook Stable;
--$131,000,000 interest-only class X-B* 'BBB-sf'; Outlook Stable;
--$43,000,000 class B 'AAsf'; Outlook Stable;
--$36,000,000 class C 'Asf'; Outlook Stable;
--$39,000,000 class D 'BBBsf'; Outlook Stable;
--$13,000,000 class E 'BBB-sf'; Outlook Stable.
Additional information is available at 'www.fitchratings.com'.
A comparison of the transaction's Representations, Warranties, and Enforcement
(RW&E) mechanisms to those of typical RW&Es for the asset class is available
in the following report:
--'UBS-BAMLL Trust 2012-WRM Series 2012-WRM -- Appendix' (July 19, 2012).
Applicable Criteria and Related Research:
--'UBS-BAMLL Trust 2012-WRM Series 2012-WRM' (July 19, 2012);
--'Global Structured Finance Rating Criteria' (May 24, 2013);
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage
Transactions' (Sept. 21, 2012).
Applicable Criteria and Related Research:
UBS-BAMLL Trust 2012-WRM Series 2012-WRM
Global Structured Finance Rating Criteria
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
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ON THE FITCH WEBSITE.
R. Brook Sutherland, +1-312-606-2346
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
Mary MacNeill, +1-212-908-0785
Sandro Scenga, +1-212-908-0278 (New York)
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