Class 300P-A at AA (low) (sf)
Class 300P-B at A (low) (sf)
Class 300P-C at BBB (low) (sf)
Class 300P-D at BB (low) (sf)
Class 300P-E at B (high) (sf)
Class 300P-RR at B (high) (sf)
All trends are Stable.
The Amazon Seattle Loan-Specific Certificates are secured by the fee-simple interest in Amazon Seattle as well as its leasehold interest under a parking lease covering certain spaces at an adjacent parking garage. Amazon
The seller recently completed a transformative repositioning of the property that focused on re-imagining the interior office, retail, common areas, amenities, and building infrastructure. In connection with the redevelopment,
Approximately 95.4% of the property's base rent is derived from Amazon, which is investment grade rated by Moody's (A2), Fitch (A+), and S&P (AA-). The property is 87.8% occupied by Amazon (95.4% of base rent), which leases 100% of the office space subject to a NNN lease through
During the initial nine-year term of the loan, the property's rollover profile is exposed only to Victrola Coffee, which represents only 0.3% of the NRA and 0.3% of base rent. The WA remaining lease term at the property is 12.3 years, which results in a stable, long-term cash flow stream with contractual rent increases built into Amazon's lease.
The property is in one of the most desirable submarkets in
The ongoing Coronavirus Disease (COVID-19) pandemic continues to pose challenges and risks to virtually all major commercial real estate (CRE) property types and has created uncertainty about future demand for office space, even in gateway markets that have historically been highly liquid. Despite the disruptions and uncertainty, the collateral has been largely unaffected and Amazon is current on all lease obligations. Approximately 99.6% of the occupied sf and 99.6% of the base rent was paid in February and
The Amazon lease includes a clause that permits Amazon to terminate the lease for certain Phase III expansion premises known as Level 1 (17,649 sf, 2.3% of NRA), and
The
The Amazon Seattle loan is structured with an ARD in
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.
All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.
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Notes:
All figures are in
With regard to due diligence services, DBRS Morningstar was provided with the Form ABS Due Diligence-15E (Form-15E), which contains a description of the information that a third party reviewed in conducting the due diligence services and a summary of the findings and conclusions. While due diligence services outlined in Form-15E do not constitute part of DBRS Morningstar's methodology, DBRS Morningstar used the data file outlined in the independent accountant's report in its analysis to determine the ratings referenced herein.
The principal methodology is the North American Single-Asset/Single-Borrower Ratings Methodology (
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/375376.
For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.
For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.
The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrsmorningstar.com.
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Ratings
Date Issued Debt Rated Action Rating Trend Attributes
i
US = Lead Analyst based in USA
CA = Lead Analyst based in
EU = Lead Analyst based in EU
E = EU endorsed
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
12-Apr-21 Class 300P-A Provis.-New AA (low) (sf) Stb US
12-Apr-21 Class 300P-B Provis.-New A (low) (sf) Stb US
12-Apr-21 Class 300P-C Provis.-New BBB (low) (sf) Stb US
12-Apr-21 Class 300P-D Provis.-New BB (low) (sf) Stb US
12-Apr-21 Class 300P-E Provis.-New B (high) (sf) Stb US
12-Apr-21 Class 300P-RR Provis.-New B (high) (sf) Stb US
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