OREANDA-NEWS. November 25, 2015. Fitch Ratings has issued a presale report on BBCMS Trust 2015-SRCH Commercial Mortgage Pass Through Certificates Series 2015-SRCH

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--\\$58,000,000 class A-1a notes 'AAAsf'; Outlook Stable;
--\\$202,000,000 class A-2a notes 'AAAsf'; Outlook Stable;
--\\$260,000,000 class X-Aab notes 'AAAsf'; Outlook Stable;
--\\$140,000,000 class X-Bab notes 'BBB-sf'; Outlook Stable;
--\\$46,000,000 class Ba notes 'AA-sf'; Outlook Stable;
--\\$39,000,000 class Ca notes 'A-sf'; Outlook Stable;
--\\$55,000,000 class Da notes 'BBB-sf'; Outlook Stable and
--\\$30,000,000 class Ea notes 'BB+sf'; Outlook Stable

a.Privately placed pursuant to Rule 144A.
b.Notional amount and interest-only

The expected ratings are based upon information provided as of Nov. 16, 2015

The certificates represent the beneficial interests in the mortgage loan securing the fee simple interest in three single-tenant office buildings leased to Google in Sunnyvale, CA. Proceeds of the loan were used to repay \\$482.8 million in construction financing, fund reserves of \\$71.0 million, pay closing costs and return approximately \\$85.7 million of equity to the sponsor. The certificates will follow a sequential-pay structure.

The loan is sponsored by Jay Paul Company a privately held real estate firm based in San Francisco that focuses on the acquisition, development and management of commercial properties across California.

KEY RATING DRIVERS

Superior Property Quality in Strong Location: The newly constructed office buildings are located in Sunnyvale, CA, which currently has an estimated vacancy rate of 5.2% per the appraisal. The three buildings hold a LEED-Gold designation and will be some of the most technologically advanced in the area. The complex also includes a 52,500-square-foot amenities building for the sole use of tenants, which will include fitness and weight equipment, studios for classes, full locker rooms and is expected to include an outdoor pool upon final completion.

Single-Tenant Lease Exposure: The three buildings are leased by a single tenant, Google, Inc. (Google). Google has accepted delivery of the three buildings, no outs in its lease, and is expected to invest approximately \\$188.6 million (\\$200 psf) to complete their buildout. Google is one of the world's largest technology companies with an estimated market capitalization of \\$515 billion as of November 2015. It is one of the largest landlords and occupiers in the Silicon Valley market and has already leased the next three office buildings in the development (Phase II), construction of which has already commenced.

Amortization: The loan is interest-only for the first four years and eight months and then amortizes on a 30-year schedule, resulting in seven years of amortization. At maturity, the trust balloon balance is estimated to be \\$372.1 million, resulting in an approximate 13.5% reduction to the initial loan amount.

Reserves: Up-front reserves of approximately \\$71.0 million were funded to address all outstanding landlord obligations, including tenant improvements, leasing costs and free rent periods. The loan includes a cash flow sweep to be used to build reserves to \\$25 per square foot (psf) during the final two years of the lease term if Google does not give notice to renew.

RATING SENSITIVITIES

Fitch found that the 'AAAsf' class could withstand an approximate 51.7% decrease to the estimated in-place NCF prior to experiencing \\$1 of loss to the 'AAAsf' rated class. Fitch performed several stress scenarios in which the Fitch net cash flow (NCF) was stressed. Fitch determined that a 32.5% reduction in Fitch's implied NCF would cause the notes to break even at a 1.0x DSCR, based on the actual debt service.

Fitch evaluated the sensitivity of the ratings for class A and found that an 8.1 % decline in Fitch's implied NCF would result in a one-category downgrade, while a 36.8% decline would result in a downgrade to below investment grade.

The Rating Sensitivity section in the presale report includes a detailed explanation of additional stresses and sensitivities. Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report. The presale report is available to all investors on Fitch's web site 'www.fitchratings.com'.

DUE DILIGENCE USAGE

Fitch was provided with third-party due diligence information from Ernst and Young, LLP. The third-party due diligence information was provided on ABS Due Diligence Form-15E and focused on a comparison and re-computation of certain characteristics with respect to the mortgage loan and related mortgaged properties in the data file. Fitch considered this information in its analysis, and the findings did not have an impact on our analysis.