DBRS Morningstar Confirms All Classes of BBCMS 2020-BID Mortgage Trust.
ENPNewswire-September 28, 2021--DBRS Morningstar Confirms All Classes of BBCMS 2020-BID Mortgage Trust
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Release date- 27092021 - DBRS, Inc. (DBRS Morningstar) confirmed the ratings on all classes of Commercial Mortgage Pass-Through Certificates, Series 2020-BID issued by BBCMS 2020-BID Mortgage Trust as follows.
Class A at AAA (sf)
Class X-CP at AAA (sf)
Class B at AA (high) (sf)
Class C at A (high) (sf)
Class X-EXT at A (low) (sf)
Class D at BBB (high) (sf)
Class E at BB (high) (sf)
Class HRR at BB (sf)
All trends are Stable.
The rating confirmations are reflective of the generally stable performance since the October 2020 close date. The servicer reports no delinquencies or other defaults and there have been no Coronavirus Disease (COVID-19)-related relief requests submitted by the borrower.
The underlying mortgage loan for the subject transaction is collateralized by the borrower's fee-simple interest in a Class A office building in the Upper East Side submarket of Manhattan, New York. The building benefits from the long-term tenancy of Sotheby's, which executed a new 15-year triple net lease with three 10-year extension options in concurrence with the closing of the mortgage loan. In addition to having been at the property since 1980, Sotheby's was also reported to have invested more than $50 million in its space in 2018 and 2019 alone. At closing, DBRS Morningstar noted the subject property is also well positioned to capture space demands in the area in the event that the Sotheby's space needs change, as the subject is well located in close proximity to a cluster of major medical office space users, including New York-Presbyterian/Weill Cornell Hospital and the Hospital for Special Surgery.
DBRS Morningstar also notes that the property benefits from a substantial floor value based on its desirable location on the Upper East Side. The appraiser's concluded land value was approximately $485 million, or at least $1,100 per square foot, which covers the entire whole loan balance, including the $60 million mezzanine loan, and provides additional downside protection. The transaction also benefits from an upfront interest reserve of approximately $16.7 million, which was funded by the borrower at close.
Despite its long history and prominent position in the global auction industry, Sotheby's raised significant doubt regarding its ability to operate as a going concern in its 2019 annual...
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