$5.5 Billion In CMBS Exposed To Toy’s “R” Us Bankrutpcy

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Trepp findings show that 109 outstanding loans totaling about $5.5 billion currently carry Toys “R” Us exposure. A large portion of the loans are CMBS 2.0 and 3.0 notes issued after 2010. Backed by 123 Toys “R” Us and Babies “R” Us stores, the $404.7 million Toys R Us portfolio is the loan with the largest CMBS exposure. The loan is the only one behind the single-asset/single-borrower TRU 2016-TOYS transaction, and also includes a $102.4 million freely payable portion. Those 123 collateral properties span a combined five million square feet across 29 different states. The loan, which amortizes on a 30-year schedule, features relatively conservative underwriting metrics. At securitization in 2016, DSCR (NCF) and LTV clocked in at 1.85x and 58.3%, respectively.

  • The $380 million Bronx Terminal Market loan, which is split into a $140 million piece that makes up 12.06% of COMM 2014-CR17, a $135 million note that comprises 13.96% of COMM 2014-CR18, and a $105 million piece that represents 10.13% of COMM 2014-UBS3. Toys “R” Us is listed as the fourth-largest tenant (8.43% of the net rentable area) at the 912,333 square-foot, superregional mall in Bronx, New York with a lease that runs through January 2020.

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  • The $123 million The Plant San Jose note, which makes up 8.76% of WFRBS 2013-C14 and matures in May 2023. As the second-largest tenant, Toys “R“ Us/Babies “R“ Us occupies 13.35% of the 485,895 square-foot regional mall in San Jose, California under a lease that expires in January 2023. The retail center was 90% occupied for the first quarter of 2017 and generated a DSCR (NCF) of 2.75x.
  • Toys “R“ Us is the second-largest anchor behind the $61.1 million Plaza La Cienega note, which comprises 6.13% of JPMBB 2013-C14. Backing the loan is a 308,146 square-foot, mixed-use property in Los Angeles, California. The retailer leases 20.11% of the property’s space through November 2020. Scheduled to mature in August 2023, the loan generated a DSCR (NCF) of 1.97x on an occupancy rate of 98% last year.
  • The $31.5 million Summerhill Square loan is secured by a 125,862 square-foot community shopping center in East Brunswick, New Jersey. Toys “R“ Us occupies 51.45% of the retail center’s space on a lease that runs through December 2023. For the 2016 fiscal year, the property was fully leased while DSCR (NCF) clocked in at 1.50x. Scheduled to mature in May 2023, the loan represents 2.28% of the remaining collateral behind MSBAM 2013-C10.

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