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Morningstar Credit Ratings Assigns Preliminary Ratings for Aventura Mall Trust 2013-AVM Commercial Mortgage Pass-Through Certificates, Series 2013-AVM (Aventura Mall 2013-AVM)

Thursday, December 05, 2013

Morningstar Credit Ratings Assigns Preliminary Ratings for Aventura Mall Trust 2013-AVM Commercial Mortgage Pass-Through Certificates, Series 2013-AVM (Aventura Mall 2013-AVM)

12:30 EST Thursday, December 05, 2013

NEW YORK, Dec. 5, 2013 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction Aventura Mall Trust 2013-AVM, Commercial Mortgage Pass-Through Certificates, Series 2013-AVM. The preliminary ratings are based on information known to Morningstar as of Dec. 5, 2013.

PRELIMINARY RATINGS (AS OF DEC. 5, 2013)

Balance/

Preliminary

Morningstar DSCR

Morningstar BLTV

Morningstar ELTV

Credit Support Levels

Class

Notional Amt

Ratings

Class A

$747,000,000

AAA

3.25x

50.0 %

50.0%

37.75%

Class X-A

$747,000,000

AAA

N/A

N/A

N/A

N/A

Class X-B

$138,000,000

AAA

N/A

N/A

N/A

N/A

Class B

$138,000,000

AA-

2.74x

59.2%

59.2%

26.25%

Class C

$101,000,000

A-

2.46x

66.0%

66.0%

17.83%

Class D

$94,000,000

BBB-

2.25x

72.3%

72.3%

10.00%

Class E

$120,000,000

BB

2.02x

80.3%

80.3%

0.00%

The key characteristics of the single-loan commercial real estate transaction supporting Aventura Mall 2013-AVM are:

  • Initial pool balance of $1.20 billion;
  • Seven-year, interest-only loan that matures in December 2020;
  • No subordinate or mezzanine debt is included in the transaction;
  • Loan collateral is 1 million square feet of anchor and in-line space in the 2.1 million-square-foot Aventura Mall in Aventura, Fla.;
  • The mall offers a diverse mix of upscale luxury, bridge-to-luxury, and national mid-tier tenants; and
  • Comparable in-line sales less than 10,000 square feet are very strong at $1,302 per square foot (excluding sales from Apple).

Based on information provided on the arranger's website, Morningstar's analysis of the loan yielded the following Morningstar metrics:

  • Net cash flow (NCF) of $91 million;
  • Morningstar's NCF is lower than the arranger's NCF by 6.2 percent;
  • Weighted-average interest-only debt service coverage ratio (DSCR) of 2.02x based on the actual loan payment terms;
  • Morningstar NCF debt yield of 7.6 percent;
  • Morningstar property value of $1.49 billion, 33.9 percent lower than the appraised value; and
  • Beginning and ending loan-to-value (LTV) ratio of 80.3 percent.

For complete details about the preliminary ratings for this transaction, Morningstar's Pre-Sale analysis package, including the Pre-Sale Report and the Representations Warranties and Enforcement Mechanisms, is available under the "Ratings Reports" tab on https://ratingagency.morningstar.com. Information subsequently received could result in the assignment of final ratings that differ from the preliminary ratings.

About Morningstar Credit Ratings, LLC and Morningstar, Inc. Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured credit research and ratings, and offers a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 437,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 10 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and has more than $176 billion in assets under advisement and management as of Sept. 30, 2013. The company has operations in 27 countries.

Morningstar, Inc. is not an NRSRO and its credit ratings on corporate and municipal issuers are not NRSRO credit ratings.

©2013 Morningstar, Inc. All Rights Reserved.

MORN-R

SOURCE Morningstar, Inc.

For further information: Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

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