NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) affirmed its ratings on all seven classes of BB-UBS Trust 2012-SHOW certificates, an $835.0 million CMBS single borrower transaction (see ratings list below). The transaction collateral consists of a single, non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in 836,006 square feet (sf) of Fashion Show Mall, a 1.9 million sf super-regional and destination mall located in Las Vegas, Nevada. Fashion Show Mall has seven traditional mall anchor tenants totaling 1.2 million sf. These anchors include Dillard’s, Nordstrom, Macy’s, Neiman Marcus, Saks Fifth Avenue, Forever 21, and Macy’s Men. Forever 21 and Macy’s Men serve as collateral for the loan and the remaining anchors own their improvements and underlying land.
Fashion Show Mall is currently undergoing redevelopment and since securitization it has experienced an increase in sales volume, despite a decline in occupancy. Comparable in-line tenants occupying less than 10,000 sf generated sales of $1,125 per sf, up 6.5% from $1,056 per sf at securitization. Recent sales performance was 144.6% above the International Council of Shopping Center’s (ICSC’s) median national sales average of $460 per sf and 101.3% higher the ICSC US West region of $559 per sf as of August 2013. Excluding the Apple Store, average in-line tenant sales were $933 per sf, up 5.9% from $881 at securitization. Occupancy decreased from 99.2% at securitization to 92.2% as of June 2013, which was influenced by the redevelopment project at the property.
KBRA used information obtained from the trustee, U.S. Bank National Association, and servicer, Wells Fargo National Association, to analyze the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of $77.8 million and a KBRA value of $1.1 billion, both of which have declined 0.2% since issuance. The resulting in-trust KBRA Loan to Value (KLTV) is 75.1%.
| Class | Rating | Balance (USD) | Rating Action | |||||||||
| A | AAA (sf) | 539,500,000 | Affirmed | |||||||||
| X-A* | AAA (sf) | 539,500,000 | Affirmed | |||||||||
| X-B* | AAA (sf) | 82,600,000 | Affirmed | |||||||||
| B | AA (sf) | 82,600,000 | Affirmed | |||||||||
| C | A (sf) | 77,800,000 | Affirmed | |||||||||
| D | BBB+ (sf) | 42,100,000 | Affirmed | |||||||||
| E | BBB- (sf) | 93,000,000 | Affirmed | |||||||||
|
* Notional Class |
||||||||||||
17g-7 Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found at https://www.krollbondratings.com/regulatory/17g-7.
Related Publications (available at https://www.krollbondratings.com):
BB-UBS
Trust 2012-SHOW Presale Report
CMBS
Property Evaluation Guidelines
CMBS
Single Borrower and Large Loan Rating Methodology
