Kroll Bond Rating Agency has assigned preliminary investment grade ratings to
The company specifically assigned preliminary ratings ranging from a top investment grade AAA(sf) to BBB-minus(sf) to six classes in the transaction. Three received preliminary AAA(sf) ratings, one received a A(sf) rating and the remaining two received the BBB-minus(sf) rating. There is one unrated residual interest class.
The collateral for the securitization is a single, first-lien mortgage loan originated by Wells Fargo that is secured by the borrower’s leasehold interest in a 1.9 million square feet office property at 120 Broadway in New York, according to Kroll. It consists of 1.8 million square feet of office space and 72,186 square feet of retail and storage space. Wells also is the servicer and special servicer on the deal.
Loan proceeds were used to retire $285 million of existing debt and fund approximately $25 million of reserves. The previous debt consisted of a $215 million A-note securitized in the MSCI 2006-HQ9 transaction, a $25 million B-note, and a $45 million mezzanine loan.
As of March 2013, the property was 92.4% leased to 74 tenants, including the New York State Attorney General, Tower Group Inc. and Securities Industry and Financial Markets Association. The loan has a seven year term and requires monthly interest-only payments calculated using an annualized rate of 2.72%.
