Long Beach Corporate Center mortgage loan wins BBB rating from Morningstar DBRS

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Dan Blystone

28.04.2026

Long Beach Corporate Center mortgage loan wins BBB rating from Morningstar DBRS — Long Beach loan rated BBB

A commercial mortgage backed by a mixed office and medical office property in Long Beach, California, secures a new BBB credit rating with a Stable trend from Morningstar DBRS. The loan matures on November 1, 2030, and is tied to a building that is 97.4% occupied, with a tenant mix anchored by government and medical office users.

Highlights

Morningstar DBRS assigns a BBB rating with Stable trend to the 2.95% mortgage loan, due November 1, 2030, for Long Beach Corporate Center LLC.
The 96,122 square-foot property is 97.4% occupied as of December 2024, with nearly 40% leased long-term to the State of California and agencies, but 69% of area rolls before end-2029.
Key credit metrics include a 74.8% loan-to-value ratio, $12.9 million property valuation, 2.3x debt service coverage, 11.4% debt yield, and $9.7 million loan balance as of April 2026.

Loan profile and property fundamentals

As reported by Morningstar DBRS, DBRS Inc. assigns a BBB credit rating with a Stable trend to the 2.95% mortgage loan due November 1, 2030, made to Long Beach Corporate Center LLC. The mortgage is secured by the fee-simple interest in a 96,122 square-foot mixed office and medical office building with a parking garage in Long Beach, California.

The property sits on a 2.19-acre site near several hospitals, supporting its medical office positioning. Built in 1989, the building has a diversified tenant base with a notable concentration of government and healthcare-related occupancy.

According to the December 2024 rent roll cited in the rating rationale, the property is 97.4% occupied. Nearly 40% of the building is leased on a long-term basis to the State of California and other government agencies, although 69% of the net rental area rolls before the end of 2029, increasing refinancing and re-leasing attention over the medium term.

Cash flow metrics and credit implications

Morningstar DBRS says the rating reflects a 74.8% loan-to-value ratio based on its concluded property value of $12.9 million, along with what it describes as strong operating performance and stable, predictable cash flows. The agency also cites a debt service coverage ratio of 2.3 times, a debt yield of 11.4%, and an amortizing loan structure with a current balance of $9.7 million as of April 2026.

The credit analysis also includes approximately $192,288 in tenant improvement and leasing commission expenses to capture potential re-leasing costs. In addition, Morningstar DBRS points to supportive qualitative adjustments tied to property quality, cash flow volatility, and local market fundamentals in the Long Beach submarket.

Our earlier coverage of Morningstar DBRS’s ratings on the Mello Warehouse Securitization Trust 2026-1 transaction explained how the agency graded a warehouse-note deal backed by a three-year revolving facility of loanDepot-originated first-lien residential mortgages. We highlighted the note structure and credit enhancement levels, along with key collateral parameters such as minimum 720 FICO and a maximum 85% weighted-average LTV, framing how these inputs support the assigned tranche ratings.

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