KBRA Affirms All Classes of Aventura Mall Trust 2018-AVM
14 Jun 2024 | New York
KBRA affirms all of its outstanding ratings of Aventura Mall Trust 2018-AVM, a CMBS SASB transaction. The affirmations follow a surveillance review of the transaction, which has been stable since last review. The slight decrease in KBRA value and increase in KLTV since issuance does not warrant ratings adjustments at this time. The ratings affirmations also reflect the high quality of the collateral property as well as the sponsor’s experience.
The collateral for the transaction is a $750.0 million portion of a $1.75 billion non-recourse, first lien mortgage loan. The whole mortgage loan is represented by 24 pari passu A notes totaling $1.41 billion and four subordinate B notes totaling $343.3 million. The trust collateral includes four of the senior A notes totaling $406.7 million and the four subordinate B notes. The non-trust collateral consists of the remaining 20 pari passu A notes ($1.0 billion) which were securitized in 15 other transactions. The whole loan has an outstanding balance of $1.75 billion ($1,437 per sf) as of June 2024. The sponsors are Simon Property Group, LP (NYSE: SPG) and an individual affiliated with Turnberry Associates.
The mortgage loan is secured by the borrower’s fee simple interest in a 1.2 million-sf portion of Aventura Mall, a 2.8 million sf super-regional mall in Aventura, Florida, 18 miles north of the Miami CBD. The mall anchors are Macy’s (299,011 sf), Bloomingdales (251,831 sf), Macy’s Men & Home (225,000 sf), JCPenney (193,759 sf), and Nordstrom (167,000 sf). Only JCPenney serves as collateral for the loan. The other anchor tenants own their stores and lease the underlying land from an affiliate of the sponsors. Each anchor tenant, except for JCPenney, is either an HQCWT or a subsidiary of an HQCWT. The largest major tenants are national retailers such as Apple (HQCWT), Equinox Fitness, H&M, Zara and AMC Theatres.
The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis produced a KNCF of $139.9 million and a KBRA value of $2.1 billion ($1,702 per sf). The resulting in-trust KLTV is 84.4% compared to 86.2% at last review and 79.3% at securitization. KBRA maintains the KPO of Perform.
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