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NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) announces preliminary rating assignment of nine categories of MHP Commercial Mortgage Trust 2021-STOR, a single-borrower CMBS securitization.
The collateral for the transaction is a $ 468.0 million non-recourse first mortgage. The variable rate loan has an initial term of two years with three options for one year extension and requires monthly interest payments based solely on one month’s LIBOR. The loan is secured by the borrower’s fee simple interest in 57 self-storage properties. The portfolio properties total 4.0 million square feet, including 678,097 square feet of commercial and parking space, with assets ranging from 16,022 square feet to 175,750 square feet. The properties self-storage space comprises 3.3 million square feet (26,694 units) of total space, with self-storage space ranging from 13,682 square feet (100 units) to 113,419 square feet (1 125 square feet). Overall, 29.6% of self-storage sf in the portfolio (24.6% of total sf) are air-conditioned. The properties are located in 23 different MSAs in 13 states, with four state exposures each representing more than 10.0% of the pool balance: New Jersey (20.1%), Virginia (13.0%), Maine ( 12.9%) and South Carolina (12.2%). The assets were built between 1960 and 2014 and are on average around 26 years old. In May 2021, the portfolio had a weighted average occupancy rate of 93.1%.
KBRA’s transaction analysis included a detailed property cash flow valuation using our US CMBS property valuation methodology and the application of our US CMBS Single Borrower & Large Loan Rating methodology. In addition, KBRA also relied on its overall structured finance counterparty methodology to assess the counterparty risk in this transaction and its overall ESG rating methodology, to the extent deemed applicable.
The results of our analysis yielded a KBRA Net Cash Flow (KNCF) of $ 29.8 million, or 7.1% less than the issuer’s NCF, and a KBRA value of approximately $ 337.7 million. of dollars, or 45.8% less than the value of the expert’s portfolio for the subject. The resulting KBRA Loan to Value (KLTV) trust is 138.6%. In our analysis of the transaction, we have also reviewed and taken into account third party technical, environmental and valuation reports; the results of our site inspection; and review of legal documentation.
Click here to view the report. To access the assessments and relevant documents, click here.
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Disclosures
Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (when they are a key factor in changing the credit rating or rating outlook) can be found in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine The credit rating is available in the Information Disclosure Form (s) located here.
Here you will find information about the meaning of each rating category.
Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA’s policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.
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