KBRA Assigns Preliminary Ratings to One Bryant Park Trust 2019-OBP

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) announces the assignment of preliminary ratings to two classes of One Bryant Park Trust 2019-OBP, a CMBS single-borrower securitization.

The collateral for the transaction is a $950.0 million non-recourse, first lien mortgage loan that is cross-defaulted with another $650.0 million subordinate Liberty Bonds Loan that is held in a separate trust. The Loans are secured by the borrower’s leasehold interest in a 2.4 million sf office property at One Bryant Park, New York (the subject property), also known as The Bank of America Tower. Both, the CMBS Loan and Liberty Bond Loan are fixed-rate, interest-only loans, each with an Anticipated Repayment Date (ARD) of September 13, 2029. The final maturity date for the loans are September 13, 2049 and September 15, 2069, respectively. The interest rate for the loans will be established at closing and are estimated to be 3.25% for the initial terms and 8.25% post ARD. The Liberty Bonds are offered through a separate trust and will be subordinated in priority of payment to the CMBS Loan. For further information on Liberty Bonds, see Second Priority Liberty Revenue Refunding Bonds, Series 2019 press release.

The asset is a 2.4 million sf, 51-story, Class-A office building located in Midtown Manhattan. The building was constructed by affiliates of the sponsors, The Durst Organization and Bank of America, in 2009. The building consists of 2.1 million sf of office space, 132,563 sf of below grade cellar space, 56,772 sf of theatre space and 49,288 sf of retail space. The building is located along Avenue of the Americas, between 42nd and 43rd Streets.

As of July 2019, the property was 99.2% leased to 15 tenants. The subject property serves as Bank of America’s New York headquarters, which occupies 77.9% of the property’s total square footage and accounts for 64.1% of the total base rent. Bank of America, which is also the co-sponsor for the subject loan, is a High Quality Credit Worthy Tenant (HQCWT). The five largest tenants at the property include Akin Gump Strauss Hauer & Feld, LLC (11.7% of total sf, 25.2% of base rent), a law firm; Royal Realty Corp. (3.6%, 3.8%), a sponsor affiliate; Roundabout Theater Co. (2.4%, 0.2%), a non-profit theater company which operates the 1,000-seat Stephen Sondheim Theatre at the property; and Marathon Asset Management, LP (1.6%, 2.9%), an investment manager. Together, the largest five tenants account for 97.3% of the total sf and 96.3% of total base rent.

KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology and the application of our U.S. CMBS Single Borrower & Large Loan Rating Methodology. KBRA also considered the structure of the subordinate Liberty Bonds Loan that serves as collateral for Liberty Bonds, which is held in a separate trust, using its Public Finance General Revenue Bond Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, to the extent deemed applicable.

The results of our analysis yielded a KBRA net cash flow (KNCF) of $125.4 million. To value the property, we applied a capitalization rate of 6.50% to arrive at a KBRA value of $1.9 billion. The resulting KBRA Loan to Value (KLTV), calculated on the total debt balance of $1.6 billion, is 83.0%. 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 property, and legal documentation review.

For further details on KBRA’s analysis, please see our pre-sale report, One Bryant Park Trust 2019-OBP, published at www.kbra.com.

To access ratings, reports and disclosures, click here.

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.


Preliminary Ratings Assigned: One Bryant Park Trust 2019-OBP


Initial Class Balance

Expected KBRA Rating



AAA (sf)



AAA (sf)

1 In satisfaction of the U.S. risk retention rules, New York State Teachers’ Retirement System, a third party, is expected to purchase the Class HRR certificates, which are intended to be an “eligible horizontal residual interest.”




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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.


Analytical Contacts:

Ravish Kamath, Director

(646) 731-2328

[email protected]

Michael Brown, Managing Director

(646) 731-2307

[email protected]

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