KBRA Downgrades All Ratings for GSMS 2013-PEMB
4 Oct 2024 | New York
KBRA downgrades the ratings for all classes of GSMS 2013-PEMB, a CMBS SASB transaction. The downgrades are driven by a decline in KBRA value since KBRA’s last ratings adjustment in October 2023. In addition, the rating changes consider the loan’s impending maturity in March 2025 and the challenges the borrower will face in obtaining a refinancing of the loan without providing additional equity.
The transaction collateral is a single, non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in a 535,446 sf portion of Pembroke Lakes Mall, a 1.1 million sf super-regional mall located in Pembroke Pines, Florida, approximately 18 miles southwest of Fort Lauderdale. The loan has an outstanding balance of $260.0 million ($486 per sf). The sponsor of the loan is Brookfield Property Partners, L.P.
KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $17.5 million and a KBRA value of $159.0 million ($297 per sf). The resulting in-trust KLTV is 163.5%, compared to 142.1% at last review and 78.5% at securitization. Based on KBRA’s analysis, there is an implied principal loss of about $101.0 million to the trust. KBRA maintains the loan’s K-LOC designation and its KPO of Underperform.
Details for the classes with rating changes are as follows:
- Class A to BBB- (sf) from A (sf)
- Class B to B (sf) from BB (sf)
- Class C to CCC (sf) from B (sf)
- Class D to CC (sf) from CCC (sf)
- Class E to C (sf) from CCC- (sf)
To access rating and relevant documents, click here.
Click here to view the report.