KBRA Upgrades Six Ratings and Affirms One Rating for EQUS 2021-EQAZ
1 Nov 2024 | New York
KBRA upgrades the ratings for six classes of certificates and affirms one rating for EQUS 2021-EQAZ, a CMBS single-borrower transaction. The rating actions follow a surveillance review of the transaction, which has exhibited improved performance since securitization as evidenced by higher KNCF and lower KLTV.
The floating-rate loan was originally structured with an initial two-year term with three one-year extension options and a fully extended maturity date of October 2026. The second extension option has been exercised with the next maturity being October 2025.
The transaction is secured by an $805.9 million first-lien whole mortgage loan backed by the borrower's fee simple interests in 73 industrial properties and leasehold interest in one industrial property. The portfolio encompasses 7.3 million sf with properties located in the Phoenix MSA (60 properties, 90.0% of loan amount) and the Tucson MSA (14, 10.0%). The assets, which range in size from 27,900 sf to 258,888 sf, were built between 1970 and 2019 and on average are 37 years old.
KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $55.4 million and a KBRA value of $689.3 million ($94 per sf). The resulting in-trust KLTV is 116.9%, down from 127.6% at last review and 142.2% at securitization. KBRA revised the KPO to Outperform from Perform on the loan.
Details concerning the classes with rating changes are as follows:
- Class B to AAA (sf) from AA+ (sf)
- Class C to AA (sf) from A+ (sf)
- Class D to A (sf) from BBB+ (sf)
- Class E to BBB (sf) from BBB- (sf)
- Class F to BB (sf) from BB- (sf)
- Class G to B (sf) from B- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.