DBRS Morningstar Assigns Rating of AA (sf), Stable Trend, to John Hancock Mortgage Loan Second Add On Loan Made to 205 West End Avenue Owners Corp.

DBRS, Inc. (DBRS Morningstar) assigned a rating of AA (sf) with a Stable trend to the John Hancock Mortgage Loan Second Add On Loan due August 1, 2043 (the Mortgage Loan), made to 205 West End Avenue Owners Corp.

The Mortgage Loan is secured by a 28-story co-operative apartment building containing 632 units located in Manhattan. The property was constructed in 1962. The property is part of an eight‐building complex called Lincoln Towers that contains approximately 3,800 units stretching from West 66th Street to West 70th Street between Amsterdam Avenue and Riverside Boulevard. The complex is situated on approximately 20 acres and is governed by the Lincoln Tower Community Association. The complex features a private five‐acre park and garden that includes playgrounds, walking paths, basketball courts, and an outdoor ice rink.

The Lender previously provided two additional loans secured by the property. All three loans are pari passu, and all mature on August 1, 2043. The AA (sf) rating reflects (1) the expected stability of debt payments; (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 co-op apartment unit owners to protect their ownership interests if payment problems arise on this underlying Mortgage Loan.

ESG CONSIDERATIONS
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 (February 28, 2022), 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.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.
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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