KBRA Affirms All Ratings for Jackson Park Trust 2019-LIC
10 May 2024 | New York
KBRA affirms all of its outstanding ratings for Jackson Park Trust 2019-LIC, a CMBS SASB. The affirmations follow a surveillance review of the transaction, which has exhibited a decline in financial performance compared to securitization mainly due to higher operating expenses; however, the asset’s performance has improved since last review from rent growth and improved occupancy.
The transaction collateral consists of a $725.0 million portion of a $1.0 billion non-recourse, first lien mortgage loan. The whole mortgage loan is represented by ten pari passu A notes totaling $550.0 million and two subordinate B notes totaling $450.0 million. The trust collateral includes five of the senior A notes totaling $275.0 million and the two subordinate B notes. The non-trust collateral consists of the remaining five pari passu A notes totaling $275.0 million that were contributed to three other CMBS securitizations. The loan is secured by the borrower’s fee simple interest in a property consisting of three luxury apartment towers ranging from 42 to 53 stories and one five-story amenity building located within New York City’s Queens Borough in Long Island City (LIC). Built in 2018, the apartment towers contain 1,871 units and feature 10,399 sf of ground floor retail space. The fixed-rate loan has a ten-year term and requires monthly IO payments based on an annualized interest rate of 3.25%.
The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis produced a KNCF of $59.5 million and a KBRA value of $820.1 million ($438,296 per unit). The resulting all-in KLTV is 121.9% compared to 127.4% at last review and 111.0% at securitization. KBRA maintains a KPO of Underperform.
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