NEW YORK--(BUSINESS WIRE)--
Kroll Bond Rating Agency (KBRA) affirmed its ratings on all six PM classes of DBUBS 2011-LC3 Commercial Mortgage Trust (see ratings list below). The PM certificates were issued in conjunction with a $1.6 billion CMBS conduit/fusion transaction and derive their cash flow solely from the Providence Place Mall loan. The Providence Place Mall loan is a single $296.3 million non-recourse, first lien mortgage loan secured by a leasehold interest in 980,711 sf of Providence Place Mall, a 1.3 million sf super-regional mall located in Providence, Rhode Island. The land underlying the property is leased from the Rhode Island Economic Development Corporation under a 99-year ground lease expiring in 2096 with four, 99-year extension options.
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 5.203% and amortizes on a 30-year amortization schedule. Providence Place Mall has three anchors, Macy’s (200,000 sf), Nordstrom (197,000 sf), and JCPenney (116,691 sf). Macy’s and JCPenney own their improvements subject to ground leases with the borrower.
The transaction has exhibited stable performance since issuance. For the trailing twelve months (TTM) ending March 2013, in-line tenants occupying less than 10,000 sf generated sales of $618 per sf, a 0.2% decrease from $628 as of Full-Year 2012. The current sales performance is 34.4% above the International Council of Shopping Centers (ICSC) average national mall sales, which were $460 per sf as of June 2013, and 13.4% above ICSC US Northeast region sales, which were $545 per sf for the same period.
KBRA used information obtained from the trustee, US Bank National Association, and the servicer, Wells Fargo Bank, National Association, to analyze the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of $34.4 million and a KBRA value of $444.1 million, each of which has increased 0.4% since August 2012 and 2.5% since issuance. The resulting in-trust KBRA Loan to Value (KLTV) was 66.7%.
Class of Certificates
|Rating||Current Balance (USD)||Rating Action|
|Class PM-1||AAA (sf)||$134,508,519||Affirmed|
|Class PM-X||AAA (sf)||$187,160,172 (1)||Affirmed|
|Class PM-2||AAA (sf)||$32,900,000||Affirmed|
|Class PM-3||AA (sf)||$28,900,000||Affirmed|
|Class PM-4||A (sf)||$26,500,000||Affirmed|
|Class PM-5||BBB (sf)||$20,877,553||Affirmed|
Related Publications (available at https://www.krollbondratings.com):
- Providence Place Mall