NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) affirmed its ratings on all seven classes of MSBAM 2012-CKSV certificates, a $403.0 million CMBS large loan transaction (see ratings list below). The transaction collateral consists of two, non-recourse, first lien mortgage loans; however the loans are not cross-collateralized or cross-defaulted. Each loan is secured by a super-regional mall, the larger of which has current balance of $216.0 million and is secured by the borrower’s fee simple interest in 630,798 square feet (sf) of Clackamas Town Center, a 1.4 million sf super-regional mall located in Happy Valley, Oregon. The second loan has a balance of $187.0 million and is secured by the borrower’s fee simple and leasehold interests in 605,563 sf of Sunvalley Shopping Center, a 1.4 million sf super-regional mall located in Concord, California.
Clackamas Town Center has five traditional mall anchor tenants totaling 774,842 sf. These anchors include JCPenney, Macy’s, Macy’s Home, Nordstrom and Sears, all of which own their improvements and underlying land. Sunvalley Shopping Center has four traditional mall anchor tenants totaling 839,654 sf. The anchors, JCPenney, Macy’s, Macy’s Men & Home and Sears, all own their improvements and operate subject to ground leases.
The collateral securing the larger of the two loans, Clackamas Town Center (53.6% of trust balance), has exhibited stable operating performance since securitization. However, Sunvalley Shopping Center (46.4% of trust balance) experienced a modest decline in occupancy, as well as lower sales volumes and KNCF. On an overall basis, the portfolio's aggregate KNCF declined by 1.1% and its weighted average occupancy declined slightly from 93.8% to 93.3%. At Clackamas Town Center, comparable in-line tenants occupying less than 10,000 sf generated sales of $450 per sf for the trailing twelve months (TTM) ending June 2013, a 2.7% increase from $438 per sf at issuance. Recent sales performance was 4.8% below the International Council of Shopping Center’s (ICSC) median national sales average of $460 per sf and 20.8% below the Western region of $553 per sf as of July 2013. At Sunvalley Shopping Center, comparable in-line tenants occupying less than 10,000 sf generated sales of $437 per sf for the TTM period ending March 2013, a 3.5% decrease from $453 per sf at issuance. This sales performance is 1.5% below the ICSC median national sales average of $460 per sf and 18.1% below the Western region of $553 per sf as of July 2013.
KBRA used information obtained from the trustee, Wells Fargo National Association, and servicer, KeyBank National Association, to analyze the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of $45.4 million and a KBRA value of $559.6 million, both of which have declined 1.1% since issuance. The resulting in-trust KBRA Loan to Value (KLTV) is 72.0%.
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* Notional Class
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