DBRS Morningstar Assigns Rating of AA (sf), Stable Trend, to Mortgage Loan Add On Made to John Hancock Windsor Owners Corporation

DBRS, Inc. (DBRS Morningstar) assigned a rating of AA (sf) with a Stable trend to the Mortgage Loan Add On due June 1, 2045 (the Mortgage Loan), made to John Hancock Windsor Owners Corporation Capital Relief.

The Mortgage Loan is secured by a 25-story, full-service cooperative apartment building known as Windsor Tower located in the Turtle Bay submarket of Midtown East Manhattan, immediately south of the United Nations Headquarters. Originally built in 1929 with common areas renovated in 2014, the property was converted to cooperative ownership in 1989. The coop features 798 apartments including 579 studios averaging 500 square feet (sf), 201 one-bedroom units averaging 700 sf, eight two-bedroom units averaging 900 sf, and 10 three-bedroom units averaging 1,750 sf. The Mortgage Loan, with a $7.51 million balance as of March 31, 2021, was made as an addition to an existing John Hancock loan with the then-outstanding balance of $32.7 million. Both loans mature on the same date. The AA (sf) rating reflects: (1) the expected stability of debt payments, given more than 30 years of operating history; (2) a significantly low loan-to-value ratio; (3) the property’s location in a well-established New York residential submarket; and (4) the expected financial support of the coop apartment unit owners to protect their ownership interests if payment problems arise on this underlying Mortgage Loan.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

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

The principal methodology is North American Single-Asset/Single-Borrower Ratings Methodology (March 2, 2021), which can be found on dbrsmorningstar.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 Morningstar Global Structured Finance. Related Methodologies document, which can be found on dbrsmorningstar.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.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

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 Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

This rating was disclosed to the John Hancock Life Insurance Company.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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