KBRA Affirms All Ratings for GSMS 2012-BWTR

KBRA affirms ratings for all classes of GSMS 2012-BWTR, a CMBS SASB securitization. The affirmations follow a surveillance review of the transaction, which has exhibited performance generally in line with KBRA’s last ratings change in December 2022.

The transaction collateral consists of a first lien mortgage loan secured by 657,414 sf of Bridgewater Commons, a 992,561 sf super-regional mall and adjacent lifestyle center located in Bridgewater, New Jersey. The loan has an outstanding principal balance of $299.2 million ($455 per sf) as of December 2024. The mall is anchored by Macy’s (223,222 sf) and Bloomingdale’s (150,525 sf), the latter of which serves as collateral for the loan.

The loan’s sponsor is Pacific Retail Capital Partners (PRCP), which acquired the collateral property on May 12, 2023, after the loan failed to pay off at its original December 1, 2022 maturity date. The loan was assumed by PRCP, modified and extended to November 1, 2024. The modification included three additional one-year options to extend, subject to debt yield hurdles of 7.75%, 8.50% and 9.25%, respectively. According to the servicer, the borrower has exercised the first option, extending the loan to October 31, 2025.

The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis produced a KNCF of $22.9 million and a KBRA value of $218.2 million ($332 per sf). The resulting KLTV is 137.1%, a change from 138.1% at last review and 69.3% at securitization. The KBRA value considers the as-is distressed liquidation value of the asset and implies that the trust has a high risk of incurring losses if the special servicer disposes of the asset in a workout scenario. KBRA maintains the loan’s K-LOC designation and KPO of Underperform due to a decline in performance since issuance.

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