NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) affirmed its ratings on all eight classes of COMM 2012-LTRT certificates, a $255.4 million CMBS large loan transaction (see ratings list below). The transaction collateral consists of two, non-recourse, first lien mortgage loans; however the loans are not cross-collateralized or cross-defaulted. Each loan is secured by a super-regional mall, the larger of which has an outstanding balance of $138.7 million and is secured by the borrower’s fee simple interest in 540,304 square feet (sf) of Westroads Mall, a 1.1 million sf super-regional mall located in Omaha, Nebraska. The second loan has an outstanding balance of $116.6 million and is secured by the borrower’s fee interest in 581,849 sf of The Oaks Mall, a 906,349 sf super-regional mall in Gainesville, Florida.

Westroads Mall has three traditional anchor tenants totaling 529,402 sf. These anchors include JCPenney, Von Maur, and Younkers, none of which are collateral for the loan. The Oaks Mall has five traditional mall anchor tenants totaling 557,867 sf. These anchors include Belk, Dillard’s, JCPenney, Macy’s and Sears. Belk and JCPenney are the only anchors that serve as collateral for the loan.

The transaction has exhibited stable operating performance since securitization. For the trailing twelve months (TTM) ending July 2013, in-line tenants at Westroads Mall occupying less than 10,000 sf generated sales of $474 per sf, up 3.5% from $458 per sf at securitization. The current sales performance is 35.0% above the International Council of Shopping Centers (ICSC) June 2013 median sales levels for the Midwest region of $351 per sf and 3.0% higher than the ICSC’s June 2013 national mall sales average of $460 per sf. For the TTM ended July 2013, in-line tenants at The Oaks Mall occupying less than 10,000 sf generated sales of $368 sf which is equivalent to securitization. This sales performance is 18.6% below the ICSC’s June 2013 median sales levels for the South region of $452 per sf and 20% below than the ICSC’s June 2013 national mall sales average of $460 per sf.

KBRA used information obtained from the trustee, U.S. Bank National Association, and servicer, KeyCorp Real Estate Capital Markets, Inc., to analyze the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of $28.5 million and a KBRA value of $340.1 million, both of which have improved 0.5% since issuance. The resulting in-trust KBRA Loan to Value (KLTV) is 75.1%.

Related Publications (available at https://www.krollbondratings.com):

COMM 2012-LTRT Presale ReportCMBS Property Evaluation GuidelinesCMBS Single Borrower and Large Loan Rating Methodology