DBRS Assigns Stable Trends to and Confirms Ratings of Mortgage Loans Made to Paramount Apartments Limited

DBRS Limited (DBRS) assigned Stable trends to and confirmed the ratings of BBB (low) on the 3.510% Mortgage Loan due February 1, 2025 and the 3.530% Mortgage Loan due February 1, 2025 (collectively, the Mortgage Loans) made to Paramount Apartments Limited.

The Mortgage Loans, which have a combined current outstanding balance of $43.8 million, are secured by Paramount Apartments, a 174-unit apartment complex that also includes 3,800 square feet of street-level commercial space. The property is located at 1545-1551 South Park Street in downtown Halifax. DBRS’s current ratings reflect the credit quality of the loans, supported by a DBRS Exit Debt Yield of 9.2% based on DBRS’s stabilized net cash flow, which is 4.6% lower than the 2018 reported net operating income. Based on DBRS’s cap rate of 7.50%, the Mortgage Loans represent current and maturity DBRS Loan-to-Value ratios of 95.0% and 81.1%, respectively.

The ratings have been assigned at the request of the Lender.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is the North American CMBS Surveillance Methodology, which can be found on www.dbrs.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document, which can be found on www.dbrs.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

This rating was initiated at the request of the lender.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

DBRS Limited
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Toronto, ON M5H 3M7 Canada