Morningstar Credit Ratings Assigns Preliminary Ratings for BAMLL Commercial Mortgage Securities Trust 2014-IP Commercial Mortgage Pass-Through Certificates 2014-IP (BAMLL 2014-IP) - FOX 54 WZDX – Huntsville News, Weather and Sports

Morningstar Credit Ratings Assigns Preliminary Ratings for BAMLL Commercial Mortgage Securities Trust 2014-IP Commercial Mortgage Pass-Through Certificates 2014-IP (BAMLL 2014-IP)

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SOURCE Morningstar, Inc.

NEW YORK, June 11, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction BAMLL Commercial Mortgage Securities Trust 2014-IP Commercial Mortgage Pass-Through Certificates (BAMLL 2014-IP). The preliminary ratings are based on information known to Morningstar as of June 11, 2014.

PRELIMINARY RATINGS (AS OF JUNE 11, 2014)


Balance/

Preliminary

Morningstar DSCR

Morningstar BLTV

Morningstar ELTV

Credit Support Levels

Class

Notional Amt

Ratings

Class A

$315,000,000

AAA

4.43x

52.3%

52.3%

28.410%

Class X

$315,000,000

AAA

N/A

N/A

N/A

N/A

Class B

$35,000,000

AA

3.98x

58.1%

58.1%

20.450%

Class C

$25,000,000

A+

3.71x

62.4%

62.4%

14.770%

Class D

$40,000,000

BBB+

3.36x

68.9%

68.9%

5.680%

Class E

$25,000,000

BBB-

3.17x

73.0%

73.0%

0.000%

Class R

N/A

NR

N/A

N/A

N/A

N/A

Class LR

N/A

NR

N/A

N/A

N/A

N/A

The key characteristics of the single-loan commercial real estate transaction supporting BAMLL 2014-IP are:

  • An initial balance of $440.0 million;
  • Five-year, fixed-rate interest-only loan that matures in June 2018;
  • The financing includes a $110.0 million mezzanine loan, which is co-terminus with the first mortgage and has interest-only payments for the full term of the loan, at a 6.5 percent interest rate;
  • Loan collateral is the fee and leasehold interest in 310 Greenwich Street, 40 Harrison Street, and 80 North Moore Street in New York, N.Y., more commonly known as Independence Plaza, encompassing a 1,328-unit residential development, along with 43,054 square feet of fully occupied grade-level retail space, an 18,600-square-foot elementary school, a 10,074-square-foot swimming pool facility, and a 230,000-square-foot parking garage with 550 parking spaces; and
  • The loan sponsor is a joint venture between Vornado Realty L.P. and Stellar Management. Vornado is is the operating partnership through which Vornado Realty Trust, a fully integrated real estate investment trust and one of the largest owners and managers of commercial real estate in the United States, conducts its business. Stellar Management, founded more than 25 years ago by Chief Executive Officer Laurence Gluck, is an experienced operator with more than 20,000 apartments and more than 2 million square feet of office and retail space owned or under management.

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 $37.9 million, which is lower than the arranger's NCF by 3.3 percent;
  • Interest-only debt service coverage ratio (DSCR) of 3.17x based on an interest rate of 2.7 percent;
  • Morningstar NCF debt yield of 8.6 percent;
  • Morningstar property value of $602.4 million, 33.3 percent lower than the appraised value; and
  • Beginning and ending loan-to-value (LTV) ratio of 73.0 percent.

For complete details about the preliminary ratings for this transaction, Morningstar's Presale Analysis Package, including the Presale 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 456,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 12 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 had approximately $164 billion in assets under advisement and management as of March 31, 2014. 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.

©2014 Morningstar, Inc. All Rights Reserved.

MORN-R

Media Contact:
Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

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