KBRA Affirms Rating for BBCMS 2018-CHRS
15 Aug 2024 | New York
KBRA affirms its outstanding rating for BBCMS 2018-CHRS, a CMBS SASB transaction. The affirmation follows a surveillance review of the transaction, which has exhibited a slight decline in performance since securitization. However, the magnitude of the change in KBRA value and KLTV do not warrant a rating change at this time. The rating affirmation also reflects the high quality and competitive position of the collateral property as well as the sponsors’ experience.
The collateral for the transaction is a $284.3 million portion of a $550.0 million non-recourse, first lien mortgage loan. The whole mortgage loan is represented by 13 pari passu A notes totaling $338.0 million and three subordinate B notes totaling $212.0 million. The trust collateral includes three of the senior A notes totaling $72.3 million and the three subordinate B notes. The whole loan has an outstanding balance of $550.0 million ($1,030 per sf) as of August 2024. Unless otherwise specified, all references to the mortgage loan in this report refer to the whole mortgage loan.
The first lien mortgage loan is secured by the borrower’s fee simple interest in 533,772 sf of the Christiana Mall, a 1.3 million sf super-regional mall located in Newark, Delaware, approximately 10 miles southwest of the Wilmington CBD and 40 miles southwest of the Philadelphia CBD. The loan is also secured by the borrower’s leasehold interest in a 4.2-acre portion of the parking lot at the property. The property benefits from the State of Delaware’s lack of a state sales tax and as a result the mall achieves sales that exceed what the demographics for its trade area would appear to support. The sponsors of the borrower are Brookfield Property Partners (NYSE: BPY) and MS Prime Property Fund.
The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis produced a KNCF of $40.9 million and a KBRA value of $527.5 million ($988 per sf). The resulting KLTV is 104.3%, a change from 104.7% at last review and 90.6% at securitization. KBRA maintains a KPO of Perform for the loan.
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