KBRA Affirms All Ratings for MSC 2013-ALTM

KBRA affirms all ratings for MSC 2013-ALTM, a $139.0 million CMBS SASB transaction. The affirmations follow a surveillance review of the transaction, whose performance has been stable since KBRA’s last ratings adjustments in December 2022.

The transaction collateral is a single, non-recourse, first lien mortgage loan with an outstanding balance of $139.0million as of November 2024. The mortgage loan has a 12-year term maturing in February 2025. The loan is secured by the borrower’s fee simple interest in a 636,566 sf portion of Altamonte Mall, a 1.2 million sf super-regional mall. The property is located in Altamonte Springs, Florida, approximately 12 miles north of Orlando, and is currently anchored by Dillard’s, JCPenney and Macy’s, of which only JCPenney serves as collateral for the loan. Sears, a former non-collateral anchor at the subject closed its store in August 2018 and the site remains vacant. The loan sponsor is a 50/50joint venture between Brookfield Property Partners L.P. (BPY) and New York State Common Retirement Fund (NYSCRF).

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF.The analysis produced a KNCF of $12.2 million and a KBRA value of $116.0 million ($184 per sf). The resulting in-trust KLTV is 119.8%, compared to 117.1% at last review, 115.5% at KBRA’s last ratings change in December 2022, and 80.9% at securitization. KBRA identifies the loan as a K-LOC and maintains the loan’s KPO of Underperform based on the loan’s impending maturity in February 2025 and the challenges the borrower will face in obtaining a refinancing of the loan without providing additional equity, in addition to the property continuing to perform below underwritten expectations.

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