MF1 2019-FL2, Ltd.: Rating Report

The initial collateral consists of 38 floating-rate mortgage loans secured by 39 transitional multifamily properties totaling $654.6 million (67.4% of the total fully funded balance), excluding $68.4 million of remaining future funding commitments and $248.2 million of pari passu debt. Of the 38 loans, there are two unclosed, delayed-close loans as of November 20, 2019, representing 4.1% of the initial pool balance, including Bella Solano Apartments (#18) and Timberland Apartments (#23). If a delayed-close loan is not expected to close or fund prior to the purchase termination date, then the Issuer can use unused proceeds to acquire a replacement mortgage asset referred to as Haven Garden & Hidden Chalet with a cut-off date balance of $6.5 million. Additionally, during a 90-day period following the closing date, the Issuer can bring an estimated $15.4 million of future funding participations into the pool, resulting in a target deal balance of $670.0 million. The loans are mostly secured by currently cash flowing assets, most of which are in a period of transition with plans to stabilize and improve the asset value. Of these loans, 32 have remaining future funding participations totaling $68.4 million, which the Issuer may acquire in the future. Please see the chart below for participations that the Issuer will be allowed to acquire.