NEW YORK--(BUSINESS WIRE)--Aug 21, 2018--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of AAA(sf) preliminary ratings to the Class A and Class X certificates of BAMLL 2018-PARK, a CMBS single asset, single borrower (SASB) securitization.

The collateral for the transaction is a $365.0 million, non-recourse, first lien mortgage loan. The fixed-rate loan requires interest-only payments and has a 10-year term. The loan is secured by the borrower’s fee simple interest in 101 Park Avenue, a 1.3 million sf, 48-story, Class-A office building located in Midtown Manhattan approximately two blocks south of Grand Central Terminal. The building includes 1.2 million sf of office space and approximately 105,000 sf of retail, storage, and garage space.

As of May 2018, the subject was 89.7% leased to 30 tenants. The three largest tenants (41.1% of square footage; 48.5% of base rent) are each law firms: Morgan Lewis & Bockius LLP; Kelley Drye & Warren LLP; and Curtis, Mallet-Prevost, Colt & Mosle LLP.

KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flows using our and the application of our . The results of our analysis yielded a KBRA net cash flow (KNCF) of $49.8 million. To value the property, we applied a capitalization rate of 7.50% to arrive at a KBRA Value of $664.2 million and a KBRA Loan to Value (KLTV) of 55.0%. In our analysis of the transaction, we also reviewed and considered third-party engineering, environmental, and appraisal reports; the results of our site inspection of the subject; and legal documentation.

For further details on KBRA’s analysis, please see our pre-sale report, entitled , which was published today at .

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Representations & Warranties 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 in the report entitled .

Related Publications: (available at www.kbra.com )

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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CONTACT: Kroll Bond Rating Agency

Analytical Contacts:

Patrick McQuinn, 646-731-2445

Director

pmcquinn@kbra.com

or

Michael Brown, 646-731-2307

Senior Director

mbbrown@kbra.com

or

Dayna Carley, 646-731-2391

Senior Director

dcarley@kbra.com

or

Mathew Holmes, 646-731-2441

Senior Analyst

mholmes@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Kroll Bond Rating Agency

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PUB: 08/21/2018 12:15 PM/DISC: 08/21/2018 12:15 PM

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