Fitch Affirms COMM 2015-3BP
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying collateral since issuance. The subject is Three Bryant Park, a 41-story, class A office building located within the Grand Central submarket of Midtown Manhattan. Between 2007 and 2008, approximately $305 million was spent redeveloping the property. Upgrades included a new exterior facade, new mechanical systems and a renovated public plaza. The superior property quality and excellent location make this one of Manhattan's premier buildings.
As of the September 2015 rent roll, the property is 95.6% leased, including a large swath of retail space currently in build-out by Whole Foods. The top five office tenants account for 79.2% of the net rentable area (NRA) and include headquarter locations for MetLife (35.5% of the NRA through April 2029), Dechert (20.1% through July 2023) and Standard Charter Bank (9.2% through March 2026). Leases representing 44.7% of the NRA are scheduled to roll during the loan term. There is no upcoming roll in 2016 or 2017.
The loan is interest-only for the full 10-year term. There is $215 million of mezzanine debt outstanding, and the sponsor has the option to incur an additional $200 million of additional mezzanine debt conditional upon certain performance thresholds. SITQ US Investments Inc., which is controlled by Ivanhoe Cambridge, acts as sponsor for the loan.
RATING SENSITIVITIES
All classes maintain Stable Outlooks. Due to the recent issuance of the transaction and stable performance of the property, Fitch does not expect positive or negative ratings migration unless material economic or asset-level changes to the pool metrics warrant such changes.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following ratings:
--$637 million class A at 'AAAsf', Outlook Stable;
--$637 million class X-A* at 'AAAsf', Outlook Stable;
--$81 million class B at 'AA-sf', Outlook Stable;
--$75 million class C at 'A-sf', Outlook Stable;
--$100 million class D at 'BBB-sf', Outlook Stable.
*Interest-only class X-A is equal to the notional balance of class A.
Fitch does not rate the class E or F certificates.
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