DOCSLIB.ORG

CPTS 2019-CPT Mortgage Trust

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
CPTS 2019-CPT Mortgage Trust Presale: CPTS 2019-CPT Mortgage Trust October 29, 2019 PRIMARY CREDIT ANALYST Preliminary Ratings John V Connorton III New York Market value decline Debt yield (1) 212-438-3892 Class Preliminary rating(i) Preliminary amount ($) LTV (%) (%)(ii) (%)(iii) john.connorton A AAA (sf) 269,952,000 45.0 72.2 16.2 @spglobal.com X AAA (sf) 269,952,000(iv) N/A N/A N/A SECONDARY CONTACT B AA- (sf) 59,990,000 55.0 66.1 13.2 Ryan Butler New York C A- (sf) 44,992,000 62.5 61.4 11.6 (1) 212-438-2122 D BBB- (sf) 117,845,000 71.7 55.7 10.2 ryan.butler @spglobal.com E NR 139,950,000 82.1 49.3 8.9 F NR 32,271,000 84.5 47.9 8.6 VRR interest NR 35,000,000 N/A N/A N/A Note: This presale report is based on information as of Oct. 29, 2019. The ratings shown are preliminary. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. Accordingly, the preliminary ratings should not be construed as evidence of final ratings. This report does not constitute a recommendation to buy, hold, or sell securities. (i)The certificates will be issued to qualified institutional buyers according to Rule 144A of the Securities Act of 1933. (ii)Reflects the approximate decline in the $2.302 billion "as-is" appraised value that would be necessary to experience a principal loss at the given rating level. (iii)Based on S&P Global Ratings' net cash flow and the associated whole loan balance. (iv)Notional balance. The notional amount of the class X certificates will be equal to the class A certificates balance. LTV--Loan-to-value, which is based on S&P Global Ratings Services' value. NR--Not rated. N/A--Not applicable. Profile Expected Nov. 9, 2019 closing date Collateral The trust's assets will consist primarily of a $700,000,000 portion (the trust loan) of a $1,200,000,000 whole loan made to the borrower. The trust loan (together with $500,000,000 of companion loans that are not asset of the trust) is secured by, among other things, the borrower's fee simple interest in Century Plaza Towers, two 44-story, class A office buildings comprising 2.4 million sq. ft. in the Century City submarket of Los Angeles. Of the $700,000,000 trust loan portion, $665,000,000 will be offered, and $35,000,000 will be retained by affiliates of the loan sellers German American Capital Corp., Wells Fargo Bank N.A., and Morgan Stanley Mortgage Capital Holdings LLC. Payment Principal payments will be made sequentially to the class A, then B, then C, then D, then E, and then F structure certificates. Interest payments on the certificates will be made to the class A and Xcertificates pro rata, based on the interest due, and then sequentially to the class B, then C, then D, then E, and then F certificates. Realized losses will be allocated in reverse sequential order. Loan sellers German American Capital Corp., Wells Fargo Bank N.A., and Morgan Stanley Mortgage Capital Holdings LLC. www.standardandpoors.com October 29, 2019 1 © S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings' permission. See Terms of Use/Disclaimer 2328497 on the last page. Presale: CPTS 2019-CPT Mortgage Trust Profile (cont.) Borrower One Hundred Towers LLC, a recycled bankruptcy-remote, special-purpose entity. The borrower is a joint venture between the Commingled Pension Trust Fund (Strategic Property) of JPMorgan Chase Bank N.A. and a joint venture between an institutional account managed by both Hines and Hines Investment Management Holdings L.P. Master Wells Fargo Bank N.A. servicer Special Situs Holdings LLC. servicer Trustee Wilmington Trust N.A. Rationale The preliminary ratings assigned to CPTS 2019-CPT Mortgage Trust's commercial mortgage pass-through certificates reflect S&P Global Ratings' view of the collateral's historical and projected performance, the sponsor's and manager's experience, the trustee-provided liquidity, the loan's terms, and the transaction's structure. We determined that the loan has a beginning and ending loan-to-value (LTV) ratio of 84.5%, based on S&P Global Ratings' value. All S&P Global Ratings' LTVs, debt yields, and debt-service coverage ratio (DSCR) metrics are calculated based on the $1.2 billion whole loan balance. Transaction- And Property-Level Strengths The transaction exhibits the following strengths: - The property is well-located in the Century City submarket of Los Angeles, a master-planned commercial, retail, and residential community with state-of-the-art office buildings, the Westfield Century City Shopping Center, high-end restaurants, apartments, and hotels. - The mortgage collateral comprises two 44-story, class A office towers, totaling 2.4 million square feet (sq. ft.) The buildings were constructed in 1975 and had approximately $87.0 million ($35.80 per sq. ft.) in renovations from 2006 through 2013, with $32.0 million ($13.17 per sq. ft.) in 2008 alone. Since 2014, an additional $47.9 million of capital has been invested in the buildings to update the restrooms, multitenant corridors, and lobbies, and to create a new tenant-only fitness center. The buildings have above-average finishes and are in excellent condition. They are also Leadership In Energy And Environmental Design (LEED) gold-certified. The buildings are part of the larger Century Park Complex, a 14-acre complex that includes 2000 Avenue of the Stars (not part of the collateral), a four acre-central park, and a six-level subterranean paid-parking garage with 6,566 spaces. - The trust loan balance has moderate leverage, with an S&P Global Ratings LTV of 84.5%, based on S&P Global Ratings' valuation. The LTV, based on the appraiser's valuation, is 52.1%. Our estimate of the collateral's long-term sustainable value is 38.3% lower than the appraiser's "as-is" valuation. - The trust loan balance has a debt service coverage (DSC) of 2.83x, calculated using a 3.0045% in-place mortgage note interest rate and S&P Global Ratings' net cash flow (NCF). - The property was 92.8% occupied as of September 2019, as calculated by S&P Global Ratings, versus 79.2% at the time of the prior securitization of the asset in 2014. Both the property and www.standardandpoors.com October 29, 2019 2 © S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings' permission. See Terms of Use/Disclaimer 2328497 on the last page. Presale: CPTS 2019-CPT Mortgage Trust its submarket have experienced strong demand growth since then. CBRE-EA's Century City submarket class A vacancy rate stands at 4.2% as of third quarter of 2019, continuing the downward trend begun in 2012. Along with Beverly Hills and Santa Monica, Century City has been one of the top three performing markets in Greater Los Angeles area. The property has benefited from the substantial capital improvements invested over the past several years. Market rents, as detailed by CBRE-EA, have increased approximately 13% since 2014, while the weighted average in-place rents at the property have increased more than 50%. - The property is 92.8% leased, as calculated by S&P Global Ratings, to more than 120 distinct tenants across approximately 1.2 million sq. ft. of office space in the North Tower, approximately 1.2 million sq. ft. of office space in the South Tower, and approximately 39,500 sq. ft. of ground floor retail space. The property is home to several law firms that hold an American Lawyer's Am Law 100 ranking, a measure of the 100-largest law firms in the U.S. by financial performance. We believe the granularity of the rent roll and the presence of strong credit tenants are a significant credit positive for the loan. - The largest tenants include Bank of America ('A-'; 5.2% of the net rentable area [NRA], 5.2% of the total in place rents, and $57.0 gross per sq. ft.), Manatt Phelps & Phillips (Am Law No. 105; 4.8% of NRA, 4.9% of total in place rents, and $62.3 gross per sq. ft.), JPMorgan Chase Bank N.A. ('A+'; 4.1% of NRA, 4.1% of total in place rents and $57.0 gross per sq. ft.), Kirkland & Ellis (AM Law No. 1; 3.6% of NRA, 4.0% of total in place rents, and $68.8 gross per sq. ft.), and Greenberg Glusker (3.5% of NRA, 3.9% of total in place rents, and $66.0 gross per sq. ft.). We included the present value of future rent steps for 14 investment-grade tenants in our valuation, increasing it by approximately 1.1%. - The loan has experienced sponsors, J.P. Morgan Asset Management (JPMAM) and Hines Interests L.P. JPMAM is a premier real estate and infrastructure investment manager that manages various asset classes from real estate to hedge funds. As of June 2019, JPMAM had $2.2 trillion in total assets under management, $66 billion of which were real estate assets. Hines is a privately owned, international real estate firm that builds, acquires, and manages properties in over 214 cities in 24 countries and has approximately $120.6 billion of assets under management. - The transaction is structured so that the borrower is responsible for expenses that would typically result in shortfalls to the certificateholders, such as special servicing, work-out, and liquidation fees, as well as costs and expenses for appraisals and inspections that the special servicer conducts.
Load more

Recommended publications
  • 2000 Avenue of the Stars Draft Environmental Impact
    2000 AVENUE OF THE STARS DRAFT ENVIRONMENTAL IMPACT REPORT Lead Agency: LOS ANGELES DEPARTMENT OF CITY PLANNING 200 North Spring Street 7 th Floor Los Angeles, California 90012 SCH #2002011024 ENV-2001-4027-EIR Project Applicant: TRAMMELL CROW COMPANY 2049 Century Park East Suite 2650 Los Angeles, California 90067 EIR Consultant: ENVICOM CORPORATION 28328 Agoura Road Agoura Hills, California 91301 August 2002 TABLE OF CONTENTS SECTION PAGE I. INTRODUCTION 1 II. EXECUTIVE SUMMARY 2 III. PROJECT DESCRIPTION 46 IV. ENVIRONMENTAL SETTING 66 V. ENVIRONMENTAL IMPACT ANALYSIS 74 A. AESTHETICS 74 1. Visual Qualities 74 2. Light and Glare 89 3. Shading 93 B. AIR QUALITY 101 1. Emissions 101 2. Wind 120 C. BIOLOGICAL RESOURCES 123 D. CULTURAL RESOURCES 128 E. GEOLOGY 133 F. HAZARDS AND HAZARDOUS MATERIALS 141 G. HYDROLOGY/WATER QUALITY 149 H. LAND USE 154 I. NOISE 175 J. POPULATION AND HOUSING 187 K. PUBLIC SERVICES 197 1. Fire Protection 197 2. Police Protection 201 3. Schools 203 4. Libraries 207 L. RECREATION AND PARKS 209 M. TRANSPORTATION/TRAFFIC 213 N. UTILITIES AND SERVICE SYSTEM 248 1. Wastewater 248 2. Stormwater 252 3. Water Supply 256 4. Solid Waste 262 5. Electricity 267 VI. ALTERNATIVES 272 VII. SIGNIFICANT ENVIRONMENTAL EFFECTS AND IRREVERSIBLE 303 ENVIRONMENTAL CHANGES VIII. GROWTH INDUCING IMPACTS 304 IX. MITIGATION MONITORING PLAN 306 X. PREPARERS OF THE EIR, CONTACTS AND REFERENCES 323 XI. ACRONYMS AND ABBREVIATIONS 329 2000 Avenue of the Stars Project Draft EIR ENV-2001-4027-EIR Page i August 2002 TABLE OF CONTENTS LIST OF TABLES
    [Show full text]
  • II. Environmental Setting
    II. Environmental Setting A. Overview of Environmental Setting This section provides a brief overview of the regional and local setting of the Century Plaza Mixed-Use Development (“Proposed Project”). The Proposed Project would be developed on an approximately 250,000-square-foot (5.74-acre) site (“Project Site”) located at the southwest corner of the intersection of Avenue of the Stars and Constellation Boulevard in the Century City area of the City of Los Angeles (“City”). Century City is a highly urbanized regional center in the western portion of the City. The Project Site is currently developed with the 16-story Hyatt Regency Century Plaza Hotel (“Existing Hotel”) as well as a spa/health club, restaurants, conference rooms, a ballroom, and a lounge. More complete and specific discussions of the environmental setting as it relates to each of the environmental issues analyzed in this Draft Environmental Impact Report (“Draft EIR”) are included in the environmental setting discussions contained within Section IV (Environmental Impact Analysis). A list of related projects, which is used as the basis for the discussions of cumulative impacts throughout Section IV (Environmental Impact Analysis) of this Draft EIR, is provided at the end of this section. 1. Regional Setting Downtown Los Angeles is located approximately 9 miles east of the Project Site and the Pacific Ocean is approximately 6 miles west of the Project Site (see Figure II-1, Regional and Vicinity Map, on page II-2). Regional access to the Project Site is available from both the San Diego Freeway (I-405) and the Santa Monica Freeway (I-10), which are located approximately 1.9 miles west and 1.75 miles south of the Project Site, respectively.
    [Show full text]
  • Westside Purple Line Extension Final Supplemental Environmental
    November 2017 Westside Purple Line Extension Final Supplemental Environmental Impact Statement and Section 4(f) Evaluation Appendix E: Noise Reports LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY WESTSIDE PURPLE LINE EXTENSION PROJECT, SECTION 2 ADVANCED PRELIMINARY ENGINEERING Contract No. PS‐4350‐2000 Section 2 Construction Noise and Vibration Evaluation – Revision 1 Prepared for: Prepared by: 777 South Figueroa Street, Suite 1100 Los Angeles, CA 90017 ATS Consulting 215 North Marengo Avenue Pasadena, CA 91101 May 24, 2017 Section 2 Construction Noise and Vibration Evaluation – Revision 1 Table of Contents Table of Contents PREFACE ........................................................................................................................................ P-1 1.0 INTRODUCTION ..................................................................................................................1-1 2.0 CONSTRUCTION ACTIVITIES .................................................................................................2-1 2.1 Wilshire/Rodeo ................................................................................................................ 2-1 2.2 Century City Constellation ............................................................................................... 2-2 3.0 PRE-CONSTRUCTION NOISE MEASUREMENTS ......................................................................3-1 4.0 CONSTRUCTION NOISE LIMITS .............................................................................................4-1
    [Show full text]
  • Watt Plaza Winter 2015 Newsletter
    2 015 Volume Watt Plaza 1 WINTeR NEWS Issue New Century City Public Sculpture Exhibition Underway for 2015 By: Barbara Brekke Following last year’s success of the “Gwynn Murrill on Avenue of the Stars” public art exhibition, the Sculpture Committee of the Arts FCouncil of the Century City Chamber of Commerce and the Century City Arts & Culture Foundation are currently at work installing a new public sculpture exhibition. With its objective to bring more art to the community, the Arts Council has a more expansive vision this time around for its “Century City Sculpture 2015.” Starting in February, 19 installations from 10 esteemed artists will be on display in front of office buildings, plazas, parkways and green belts for a unique, year-long exhibition. “The mission of the exhibition is to bring to the public a sense of spirit, to provoke their imagination and arouse their curiosity,” said Carl Schlosberg, the exhibition’s curator and Chair of the Sculpture Committee. Carl, a longtime Century City resident, spearheaded the Gwynn Murrill exhibition and is instrumental in organizing the “Century City Sculpture 2015.” “The intention is to blend art, architecture and the landscape,” Carl added. At Watt Plaza, two bold pieces will be installed in front of the exterior fountain: Bret Price’s steel Ball of Chain and David Buckingham’s colorful steel Big X. According to Carl, Watt Plaza’s “green grass, flow of water and impeccable environment” create the ideal setting for the two pieces that have come to symbolize “love and kisses” for him. What’s InsIde employee neWs gReen Tips “They are two totally different sculptures, opposite of each other, employee Spotlight earth day + yet they also have commonality,” Carl explained.
    [Show full text]
  • Iv. Environmental Setting
    IV. ENVIRONMENTAL SETTING IV. ENVIRONMENTAL SETTING A. OVERVIEW OF ENVIRONMENTAL SETTING The proposed 2000 Avenue of the Stars Project site is comprised of four parcels (two ground lots and two air space lots) totaling approximately 14.02 acres, situated southeasterly of the intersection of Avenue of the Stars and Constellation Boulevard. While the Project site encompasses the entire block bounded by Avenue of the Stars, Century Park East, Constellation Boulevard and Olympic Boulevard, redevelopment would be limited to a 9.2 acre portion. Geographic Setting and Access The Project site is located in Century City, which is situated in the Los Angeles basin on the southern side of the Santa Monica Mountains. Century City is located in West Los Angeles and is generally bounded by Santa Monica Boulevard to the north, Century Park West to the west, Pico Boulevard to the south, and the Beverly Hills/Los Angeles city limit to the east. The site and its vicinity are on relatively level terrain with a slight prevailing slope gradient towards the southwest. The site and surrounding area have been previously developed. The Project site is currently developed with a six-level subterranean parking structure and four commercial buildings (the two eight-story buildings at 2020 and 2040 Avenue of the Stars and the two 44-story Century Plaza Towers at 2029 and 2049 Century Park East). A paved plaza area providing benches and a small flower garden is located between the two sets of buildings. Regional access to the site is provided by nearby freeways consisting of the Santa Monica (I-10) Freeway, approximately one and three-quarter miles to the south, and the San Diego (Route 405) Freeway, located about two miles to the west.
    [Show full text]
  • Iii. Project Description
    III. PROJECT DESCRIPTION III. PROJECT DESCRIPTION A. INTRODUCTION The Trammell Crow Company is currently seeking approval of a proposal to redevelop 9.20 acres of a 14.02-acre site within Century City, at the southeast corner of Constellation Boulevard and Avenue of the Stars (Figure PD-1, Regional Location, and Figure PD-2 Project Location). The Project site is currently developed with commercial structures that include 3,067,338 square feet (sf) of office space, retail space, a theater, a multiplex cinema, restaurants, and a health club. The proposed Project, referred to as 2000 Avenue of the Stars, includes demolition of two structures on the Project site and construction of a new commercial office building. The proposed building would also provide restaurant, retail, and cultural space, as described further below. The two existing Century Plaza Towers would remain unchanged. The proposed Project is designed to replace two existing buildings, which no longer meet current standards of operation. The office space contained within the structures representative of Class B-C buildings8, and the presence of materials such as asbestos make any renovations short of complete reconstruction prohibitive. The new Project would meet the demand for modern office space in Century City and provides a more efficient use of the property. B. PROJECT LOCATION The proposed Project site comprises the block that is bounded by Constellation Boulevard to the north, Avenue of the Stars to the west, Olympic Boulevard to the south, and Century Park East to the east. As shown in Figure PD-2, the site includes the two buildings at 2020 and 2040 Avenue of the Stars, the Century Plaza Towers on the east side of the block (2029 and 2049 Century Park East), and the diamond- shaped plaza between these buildings.
    [Show full text]
  • 3. Shading the Effects of Shading by One Building Upon Another Can Be
    V. ENVIRONMENTAL IMPACT ANALYSIS A.3 Aesthetics – Shading 3. Shading The effects of shading by one building upon another can be either positive or negative depending upon the site-specific circumstances of the properties involved. A potential benefit of shading for adjacent structures may be a cooling effect gained during warm weather. Negative consequences of shading include the loss of natural light for passive or active solar energy applications or the loss of warming influences during cool weather. Factors influencing the relative impact of shadow effects are site-specific and include differences in terrain elevation between involved properties, the height and bulk of structures, the time of year, the duration of shading in a day, and the sensitivity of adjacent land uses to loss of sunlight. Shadows cast by structures vary in length and direction throughout the day and from season to season. Shadow lengths increase during the "low sun" or winter season and are longest on December 21-22, the winter solstice. The winter solstice, therefore, represents the worst-case shadow condition and the potential for loss of access to sunlight that a project could cause is greatest. Shadow lengths are shortest on June 21-22, the summer solstice. Shadow lengths on the spring and fall equinoxes, March 20-21 and September 22-23 respectively, would fall midway between the summer and winter extremes. Shadows are cast to the west by objects during the morning hours when the sun is coming up on the horizon in the east. During late morning and early afternoon the shadows of objects move northerly and by late afternoon they are cast easterly in response to the apparent movement of the sun across the sky from east to west.
    [Show full text]