KBRA Affirms All Ratings for NYO 2021-1290
14 Nov 2024 | New York
KBRA affirms its outstanding ratings for NYO 2021-1290, a CMBS SASB transaction. The affirmations follow a surveillance review of the transaction, which has exhibited improved performance since KBRA’s last review, which is in line with securitization. The rating affirmations also reflect the quality of the asset and experience of the loan’s majority sponsor.
The transaction is secured by a $950.0 million non-recourse, first lien mortgage loan, collateralized by 1290 Avenue of the Americas, a 43-story, Class-A, LEED Silver certified office tower containing 2.1 million sf located between West 51st and West 52nd Streets along 6th Avenue (Avenue of the Americas) in Midtown Manhattan. The majority sponsor of the loan is Vornado Realty Trust (Vornado). The floating rate loan had an initial two-year term with five one-year extension options. The initial loan term expired in November 2023 and the loan is in its first extension option period. It is currently on the watchlist for the upcoming maturity and the commentary notes that the servicer is awaiting documents from the borrower regarding the next extension. KBRA expects that the extension will be reflected in the next remittance report.
KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. As a result of new leasing at the property, KBRA is no longer utilizing a stabilized analysis to determine KNCF and KLTV, as was performed last year. The analysis produced a KNCF of $90.9 million and a KBRA value of $1.2 billion ($566 per sf). The resulting in-trust KLTV is 78.4%, compared to 83.1% at last review and 76.6% at securitization. KBRA revised the loan’s KPO to Perform from Underperform due to improved performance, in line with issuance.
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