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KBRA Assigns Preliminary Ratings to CGCMT 2019-SST2Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to eight classes of CGCMT 2019-SST2, a CMBS single asset, single borrower (SASB) transaction. The collateral for the transaction is a $180.0 million, non-recourse, first lien mortgage loan secured by the borrower's fee simple interests in 29 self-storage properties. The portfolio properties total 2.1 million sf (17,978 units) with assets ranging from 37,705 sf (320 units) to 171,320 sf (1,352 units). The self-storage space at the properties comprises 1.9 million sf (17,186 units) of the total space, with the remainder consisting of parking and other commercial space. Overall, 29.8% of the portfolio's self-storage sf (26.9% of total sf) is climate-controlled. The properties are located in 18 different MSAs across 10 states, with three state exposures each representing more than 10.0% of the pool balance: California (35.8%), Florida (21.6%) and Nevada (10.4%). The assets were built between 1979 and 2014 and are on average approximately 21 years old. As of October 2018, the portfolio had a weighted average occupancy rate of 86.9%. KBRA's analysis of the transaction included a detailed evaluation of the properties' cash flows using our U.S. CMBS Property Evaluation Methodology and the application of our U.S. CMBS Single Borrower & Large Loan Rating Methodology. The results of our analysis yielded a KBRA net cash flow (KNCF) for the portfolio of $15.6 million. To value the portfolio, KBRA applied a blended capitalization rate of 8.85% to arrive at a KBRA value of $176.6 million. The resulting KBRA Loan to Value (KLTV) is 101.9%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports; the results of our site inspections of the properties; and legal documentation. For further details on KBRA's analysis, please see our pre-sale report, CGCMT 2019-SST2, published at www.kbra.com. To access ratings, reports and disclosures, click here. 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 final ratings that differ from the preliminary ratings. Preliminary Ratings Assigned: CGCMT 2019-SST2
1Notional balance. 2To satisfy the US risk retention rules, Citi Real Estate Funding Inc. is expected to purchase the VRR Interest which is expected to be an "eligible vertical interest". The VRR Interest will equal approximately 5.0% of the aggregate initial certificate balance of all ABS (News - Alert) interests. 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 available here. Related Publications: (available at www.kbra.com)
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Twitter About KBRA and KBRA Europe KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA. View source version on businesswire.com: https://www.businesswire.com/news/home/20190219005659/en/ |
