Fitch Affirms LB Commercial Mortgage Trust, Century City, Series, 1999-C2A.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms Century City Mortgage Trust Commercial Mortgage Pass-Through Certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size , Series 1999-C2A as follows: -- $3.0 million class B-1 at 'AA-'; -- $7.0 million class B-2 at 'A'; -- $3.0 million class B-3 at 'A-'; -- $9.0 million class B-4 at 'BBB'; -- $10.0 million class B-5 at 'BBB-'. The property's performance has improved since issuance and benefits from a strong in-fill location. However, given the major renovation and expansion project currently underway and the potential for a decline in performance during the construction phase, the deal is being affirmed at this time. The redevelopment consists of adding a second level of retail stores, relocating and expanding the AMC (Advanced Mezzanine Card) See AdvancedTCA. movie theater, creating an open air food court, and adding several new restaurants and retail stores. As of the March 2004 rent roll, in-line occupancy fell to 80.1% as compared to 90.0% at issuance. The decline in occupancy is primarily due to Westfield Corporation, Inc.'s, efforts to free up space to accommodate the reconfiguration and expansion. Based upon the mall's strong historical performance and location, it is likely that occupancy levels will return to prior levels once the re-development is completed. Fitch analyzed the servicer provided financial statement for year-end (YE) 2003 as part of the review. Fitch's net cash flow (NCF See National Cristina Foundation. ), which was adjusted for leases in place as of the March 2004 rent roll, normalized capital costs and non-cash items, was $20.7 million as compared to $18.0 million at issuance, a 15.2% increase. The corresponding debt service coverage ratio The debt service coverage ratio (DSCR), or debt service ratio, is the ratio of net operating income to debt payments on a piece of investment real estate. It is a popular benchmark used in the measurement of an income-producing property’s ability to produce (DSCR DSCR See: Debt-service coverage ratio ), based on a Fitch stressed refinance constant, and the actual loan balance, was 1.49 times (x) for YE 2003, as compared to 1.32x at issuance. The certificates evidence an interest in a trust consisting of the B-note portion ($32.0 million) of a first mortgage loan, with a whole loan current outstanding balance of $154.3 million as of June 2004. The A-note ($122.3 million) is held as collateral in the LB-UBS Commercial Mortgage Trust, Series 1999-C2. Century City Mall is located in Century City, West Los Angeles
Fitch will continue to monitor the transaction, as surveillance is ongoing. |
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