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Kroll Bond Rating Agency Assigns Preliminary Ratings to IMT Trust 2017-APTSKroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to three classes of IMT Trust 2017-APTS, a $536.0 million CMBS single-borrower transaction (see ratings list below). The collateral for the securitization consists of a $536.0 million non-recourse, first lien, fixed and floating-rate mortgage loan that is secured by the borrowers' fee simple interests in 11 multifamily properties totaling 4,488 units. The underlying collateral properties were built between 1980 and 2014. The assets are a mix of Class-A (68.1%) and Class-B (31.9%) properties located in 10 submarkets in three states, which include Texas (56.7%), Florida (26.5%), and California (16.8%). The sponsor is Blackstone Property Partners, an affiliate of The Blackstone Group L.P., a private equity, alternative asset management and financial services firm. KBRA's analysis of the transaction included a detailed evaluation of the properties' cash flows using our CMBS Property Evaluation Methodology, and the application of our CMBS Single Borrower and Large Loan Rating Methodology. The results of our analysis yielded a KBRA net cash flow (KNCF) for the portfolio of $38.0 million. To value the portfolio, KBRA applied a blended capitalization rate of 8.36% to arrive at a KBRA value of $454.5 million. The resulting KBRA Loan to Value (KLTV) is 117.9%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, seismic and appraisal reports, the management agreement, the results of our site inspections, and legal documentation review. For further details on KBRA's analysis, please see our Pre-sale Report, IMT Trust 2017-APTS, which was published today at www.kbra.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of ratings that differ from the preliminary ratings. Preliminary Ratings Assigned: IMT Trust 2017-APTS
*Notional balance **To satisfy the US risk retention rules, a third-party purchaser is expected to retain an "eligible horizontal residual interest" consisting of the Class HRR certificates, representing at least 5.0% of the fair value of all non-residual interests issued by the issuer on the closing date. Representations & Warranties Disclosure All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC (News - Alert) Rule 17g-7, to provide a description of a transaction's representations, warranties, and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA's disclosure for this transaction can be found in the report entitled IMT Trust 2017-APTS Representations & Warranties Disclosure. Related Publications: (available at www.kbra.com)
Follow us on Twitter (News - Alert)! About Kroll Bond Rating Agency KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP). View source version on businesswire.com: http://www.businesswire.com/news/home/20170623005383/en/ |
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