DBRS Morningstar Confirms All Ratings on BAMLL Commercial Mortgage Securities Trust 2013-WBRK

DBRS Limited (DBRS Morningstar) confirmed its ratings on all classes of the Commercial Mortgage Pass-Through Certificates, Series 2013-WBRK issued by BAMLL Commercial Mortgage Securities Trust 2013-WBRK as follows:

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

All trends are Stable.

The rating confirmations and Stable trends are reflective of the collateral’s overall strong in-line sales performance and stable occupancy rate, as further outlined below. The loan is secured by the fee and leasehold interest in approximately 490,000 square feet (sf) of a 1.5 million-sf super-regional mall, Willowbrook Mall. The mall is in an affluent area in Wayne, New Jersey, about 20 miles northwest of Manhattan. The subject is a fixed-rate loan that was structured with a 12-year term and is scheduled to mature in March 2025. The loan sponsor and operator is Brookfield Property Partners L.P. (Brookfield; rated BBB (low) with a Stable trend by DBRS Morningstar), which acquired the subject property with its acquisition of General Growth Properties in 2018.

At issuance, the mall’s noncollateral anchors included Bloomingdale’s, Macy’s, Sears, and Lord & Taylor. The Sears space was partially leased to Dave & Buster’s, Yard House, and BJ’s Wholesale Club, with the latter expected to open in 2022 as reported by a June 2022 article published by Patch.com. The former Lord & Taylor space was temporarily backfilled by Shopper’s Find as per a NorthJersey.com article dated June 2021; however, the tenant remains on the mall’s online directory as of this review. As of the March 2022 rent roll, the collateral portion of the subject was 94.8% occupied, with the largest tenants including Zara (5.1% of the net rentable area (NRA); lease expiry in July 2027), H&M (4.9% of the NRA; lease expiry in January 2029), Old Navy (4.0% of the NRA; lease expiry in July 2027), and Gap (3.9% of the NRA; lease expiry in September 2024).

According to the tenant sales report for the trailing 12 months (T-12) ended March 31, 2022, in-line tenants occupying less than 10,000 sf (excluding Apple) reported sales of $708 per square foot (psf), which is above sales for the T-12 period ended June 30, 2021, and pre-pandemic sales at YE2019 of $596 psf and $658 psf, respectively. Tenants occupying more than 10,000 sf reported sales of $417 psf for the T-12 period ended March 31, 2022, an improvement from the figure of $339 psf for the T-12 period ended June 30, 2021, but below YE2019 sales of $458 psf. Dave and Buster’s reported a sales figure of $293 psf for the T-12 period ended March 31, 2022, compared with the YE2021 figure of $102 psf, while Cinemark reported sales of $325,000 and $324,000 per screen, respectively.

As of the most recent financials, the loan reported a debt service coverage ratio (DSCR) of 2.57 times (x) for the T-3 period ended March 31, 2022, an increase from the YE2021 DSCR of 2.48x but below the YE2020 and YE2019 figures of 2.79x and 3.19x, respectively. Net cash flow (NCF) was reported at $32.9 million on an annualized basis from March 2022, in line with the YE2021 figure of $32.2 million, compared with the pre-pandemic NCF of $41.3 million from YE2019. Although in-place cash flows remain depressed from pre-pandemic levels, DBRS Morningstar believes the overall risk profile is stable considering the improving DSCR, strong in-line sales, historically stable occupancy rates, and the sponsor’s ability to backfill some of the dark anchor spaces.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

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/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

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

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for this transaction.

The DBRS Viewpoint platform provides additional information on this transaction and underlying loans including DBRS Morningstar metrics, commentary, servicer-reported cash flows, and other performance-related data. For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com.

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

The principal methodology is North American CMBS Surveillance Methodology (March 4, 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.

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 under Related Documents or by contacting us at [email protected].

The rated entity or its related entities did 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.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

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

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