DBRS Confirms Five Classes of FREMF 2011-K15 Mortgage Trust, Series 2011-K15

DBRS Limited (DBRS) has today confirmed all five classes of the Multifamily Mortgage Pass-Through Certificates Series 2011-K15 issued by FREMF 2011-K15 Mortgage Trust, Series 2011-K15 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class B at A (high) (sf)
-- Class X1 at AAA (sf)
-- Class X2 at AAA (sf)

All trends are Stable.

The rating confirmations reflect the overall stability of the pool’s performance since issuance. The pool comprises 91 fixed-rate loans secured by 91 multifamily properties located across 30 states. The transaction closed in November 2011, and since issuance, the outstanding principal balance has been reduced by 3.0% as a result of amortization. According to the most recent year-end financials, the transaction had a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.60 times (x) and 10.8%, respectively. The WA DSCR and debt yield at issuance were 1.40x and 9.2%, respectively.

As of the March 2015 remittance, there are no loans on the servicer’s watchlist and no loans in special servicing. The DBRS analysis took into account the largest 15 loans, which account for 45.8% of the current pool balance. According to annualized Q3 2014 financials, the Top 15 loans have experienced an average net cash flow growth of 19.2% over the DBRS underwritten figures.

The largest loan in the pool is West End 25 (Prospectus ID#1, 9.0% of the current pool balance). At 9.0% of the current pool balance, the subject loan is considerably larger than the second-largest loan, which makes up 3.9% of the pool balance. The collateral is a LEED Gold certified luxury apartment building built in 1973 in the west end neighborhood of Washington, D.C. According to the September 2014 rent roll, the property was 95.4% occupied, with average monthly rents of $3,541 per unit. Rental rates and occupancy rates were in line with DBRS expectations at issuance in 2011. According to the most recent full year reporting, the reported DSCR was 1.46x.

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 March 2015 Monthly 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 applicable methodologies are North American CMBS Rating Methodology (March 2015) and CMBS North American Surveillance Methodology (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.