DBRS Morningstar Confirms Rating of Mortgage Loan Made to Albert & Lyon Equities Inc., Albert & Lyon Properties LP and Canderel CSQ Ottawa LP - Constitution Square

DBRS Limited (DBRS Morningstar) confirmed the rating on the following mortgage loan made to Albert & Lyon Equities Inc., Albert & Lyon Properties LP and Canderel CSQ Ottawa LP – Constitution Square by a major Canadian financial institution:

-- Mortgage Loan at A (low)

The trend is Stable.

The rating confirmation reflects the overall stable performance of the transaction, which remains in line with DBRS Morningstar’s expectations. The mortgage loan is secured by Constitution Square, a Class A office and retail complex located in Ottawa’s central business district (CBD). The in-place vacancy of the property was 9.8% as of February 1, 2021, which was higher than the submarket vacancy of 7.7% for the Class A office properties in Ottawa CBD as reported by CBRE Limited’s MarketView Ottawa Office, Q1 2021. While the overall property occupancy remained relatively flat since last year, the YE2020 net operating income declined by approximately 3.70% from the prior year primarily because of decreases in parking and storage rents and miscellaneous revenue.

ESG CONSIDERATIONS
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.

Notes:
The principal methodology is North American CMBS Surveillance Methodology (March 26, 2021), which can be found on dbrsmorningstar.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on dbrsmorningstar.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

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 related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.

This rating was not initiated at the request of the lender

The rated entity or its related entities did not 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.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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