DBRS Confirms Ratings of BAMLL 2013-WBRK

DBRS Limited (DBRS) has today confirmed the ratings of the following Commercial Mortgage Pass-Through Certificates, Series 2013-WBRK issued by BAMLL 2013-WBRK:

-- Class A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (high) (sf)

The trends are Stable.

The rating confirmations reflect the current performance of the transaction, which is in line with the DBRS expectations at issuance. The transaction closed in April 2013 and consists of a $360 million loan secured by the fee and leasehold interest in an enclosed, partial two-story super-regional mall located in Wayne, New Jersey. The fee interest consists of 462,878 square feet (sf) of major tenant and in-line space, while the leasehold interest consists of 28,275 sf of in-line space that is subject to a long-term ground lease with Lord & Taylor. The mall is anchored by Bloomingdale’s, Macy’s, Lord & Taylor and Sears, though they do not serve as collateral for the loan.

According to the November 2014 rent roll, the property was 99.4% occupied, with collateral occupancy totaling 97.5%. Major in-line tenants include Old Navy (5.1% of the in-line net rentable area (NRA); lease expires in August 2016), Gap (3.9% of the in-line NRA; lease expires in September 2024) and XXI Forever (3.2% of the in-line NRA; lease expires in January 2019). Other notable in-line tenants include Steve Madden, True Religion, ALDO, J. Crew, Coach and, Michael Kors, among others. The property has maintained an occupancy rate above 97.0% since issuance, and there are 15 tenants with leases that will expire within the next 12 months, representing only 2.3% of the total NRA. The property is located in a highly in-fill location that serves a high income demographic, and based on the September 2014 Tenant Sales Report, most major tenants’ sales on a per sf basis have remained in line with performance at issuance. Further, the property continues to exhibit strong performance with a YE2013 debt service coverage ratio (DSCR) of 2.78 times (x), an improvement over the DBRS underwritten DSCR of 2.49x, and the loan benefits from General Growth Properties Inc.’s sponsorship.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction, including details on the largest loans in the pool. The February 2015 Monthly CMBS Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com

Notes:
All figures are in U.S. dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American CMBS Surveillance (January 2015), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.