KBRA Affirmed Ratings on All Classes of MSC I Trust 2012-STAR

MSC I Trust 2012-Star Surveillance Report

Business Wire


Kroll Bond Rating Agency (KBRA) affirmed its ratings on all nine classes of MSC I Trust 2012-STAR certificates, a $334.1 million Single-Borrower CMBS Transaction (see ratings list below). The transaction collateral is a single, non-recourse, first lien mortgage loan secured by a fee simple interest in 722,595 sf of North Star Mall, a 1.2 million sf super-regional mall located in San Antonio, Texas.

The proceeds from the mortgage loan were used by GGP Limited Partnership (GGP) to refinance existing debt. The loan bears interest at an annualized rate of 3.934% and amortizes on a 30-year amortization schedule. North Star Mall has four anchors, Macy’s (239,000 sf), Dillard’s (203,616 sf), JCPenney (173,198 sf) and Saks Fifth Avenue (113,508 sf). Macy’s and Dillard’s both own their improvements, including the underlying land. Saks Fifth Avenue owns a large portion (79,510 sf) of its space, which it operates subject to a reciprocal easement agreement (REA) that expires in 2035. Macy’s operates its store subject to an REA with affiliates of the sponsor that expires in 2031, and the REA associated with Dillard’s has expired.

The transaction has exhibited stable performance since issuance. For the trailing twelve months (TTM) ending May 2013, in-line tenants occupying less than 10,000 sf generated sales of $794 per sf, a 3.9% increase from $764 per sf as of the TTM period ending May 2012. The current sales performance is 71% above the International Council of Shopping Centers (ICSC) average national mall sales, which were $464 per sf as of May 2013, and 74% above ICSC U.S. Southern region sales, which were $456 per sf as of May 2013. Excluding the Apple Store, average in-line tenant sales were $660 per sf, up 1.7% since closing ($649 per sf).

KBRA used information obtained from the trustee, US Bank National Association, and servicer, Berkadia Commercial Mortgage LLC, to analyze the Association, and servicer, Berkadia Commercial Mortgage LLC, to analyze the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of $31.9 million and a KBRA value of $424.8 million, both of which have declined 0.6% since issuance. The resulting in-trust KBRA Loan to Value (KLTV) was 78.7%.

Class       Rating       Balance (USD)       Rating Action
A-1       AAA (sf)       64,631,493       Affirmed
A-2       AAA (sf)       161,200,000       Affirmed
X-A11       AAA (sf)       64,631,493       Affirmed
X-A21       AAA (sf)       161,200,000       Affirmed
X-B1       AAA (sf)       56,800,000       Affirmed
B       AA (sf)       32,600,000       Affirmed
C       A (sf)       24,200,000       Affirmed
D       BBB+ (sf)       20,053,000       Affirmed
E       BBB- (sf)       31,447,000       Affirmed

1Notional Amount


Related Publications (available at https://www.krollbondratings.com):

CMBS Presale Report: MSC I Trust 2012-STAR Pre-Sale Report
CMBS Property Evaluation Guidelines
CMBS Single Borrower and Large Loan Rating Methodology

Kroll Bond Rating Agency
Analytical Contacts:
Allison Werry, 646-731-2335
David Chan, 646-731-2413
Steve Kuritz, 917-530-5096
Sarah Woo, 646-731-2361


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