Beneficial interests in the holdings of a $250 million mortgage, secured by a lien on the Westfield Galleria at Roseville, a 1.3 million square-foot super-regional mall in Roseville, Calif.
The enclosed, mall serves the Sacramento regional area, and features about 220 stores and restaurants.
WEST's interest are ultimately backed by a five-year, fixed-rate, interest-only loan on the galleria, Fitch said, adding that the asset has a stressed loan-to-value (LTV) ratio of 47%, and debt yield of 17%, the rating agency said.
The transaction, WEST Trust 2025-ROSE, issues notes through three tranches of notes, one each of A, X and HRR, according to Fitch Ratings. All the notes have a legal final maturity date of April 2035. The class A notes benefit from a credit enhancement representing 5.09% of the note balance.
Barclays Capital is among the group of underwriters, which includes Morgan Stanley and Societe Generale, according to Fitch, and their respective corporate entities originated the loans and sold them to the transaction.
Fitch assigns ratings of AAA and AA to the class A and X and HRR, respectively.
The property is competitive, with overall sales of about $570 million in 2021, slightly off from $619.5 million in 2022. The property features anchors Macy's, JCPenney and Nordstrom, with Cinemark, a 14-screen theater, Round One, Crate & Barrel, Zara and H&M among the property's top 10 tenants, Fitch said.
Apple, Saint Laurent, Tiffany & Co., and Gucci are among the luxury tents that line the mall's walkways and other common areas, according to Fitch.
As of the January 2025 rent roll, the property was 95.6% leased, and had maintained an average occupancy level of 95.7% since 2019. In 2022, TKTK spent $23.4 million to purchase the two-level former Sears site, and after renovations it designated the lower level to surface parking, and dedicated the upper-level space to Cinemark, according to Fitch.
There are several credit drawbacks, however, including a shortage of upfront reserves to cover outstanding landlord obligations. Those obligations include $3.5 million in free/gap rent, and $12.9 million of tenant improvements or leasing commissions, according to Fitch.
