Morningstar DBRS assigns AA (high) rating to Northbridge Park Co-Op mortgage loan

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Northbridge Co-Op mortgage rating

Highlights

Morningstar DBRS assigns AA (high) rating with Stable trend to Northbridge Park Co-Op's 3.64% mortgage loan secured by a 280-unit property in Fort Lee, NJ.
The $17.6 million amortizing loan balance as of May 2026 reflects a loan-to-value ratio of 13.2% and debt yield of 53.1%, supporting strong credit metrics.
As of September 23, 2023, the property is 100% occupied with a debt service coverage ratio of 9.7 times and no significant ESG factors affecting the rating.

Loan profile and property fundamentals

As reported by Morningstar DBRS, DBRS, Inc. assigns a credit rating of AA (high) with a Stable trend to the 3.64% mortgage loan made to Northbridge Park Co-Op, Inc. The mortgage is secured by the fee-simple interest in a 280-unit mid-rise cooperative property at 2200 North Central Road in Fort Lee, New Jersey.

The 14-story building, constructed in 1965 on a 4.75-acre site, includes 112 one-bedroom units, 112 two-bedroom units, and 56 three-bedroom units. The property also includes an attached three-story garage with more than 350 parking spaces, along with amenities such as an outdoor pool, tennis courts, a fitness center, community room, children's play areas, dry cleaning and package valet, and washer-dryer units on each floor.

Morningstar DBRS says the property is positioned near I-95 and the George Washington Bridge, directly across the Hudson River from Washington Heights in Manhattan. The agency says the surrounding area combines single-family and multifamily housing with retail and commercial activity concentrated along major roads including Lemoine Avenue and Palisade Avenue.

Credit metrics support stable outlook

As of the September 23, 2023 rent roll, the property is reported to be 100% occupied, although Morningstar DBRS bases its rental revenue analysis on market rents and a 5% vacancy assumption. The rating reflects a loan-to-value ratio of 13.2% based on the agency's concluded value of $133.3 million, as well as strong operating performance and stable, predictable cash flows.

Morningstar DBRS also cites a debt service coverage ratio of 9.7 times, a current amortizing loan balance of $17.6 million as of May 2026, and a debt yield of 53.1%. The agency says qualitative adjustments for cash flow volatility, property quality, and market fundamentals further support the assessment.

The agency says no environmental, social, or governance factors have a significant or relevant effect on the credit analysis. It also notes that all credit ratings remain subject to surveillance and can be upgraded, downgraded, placed under review, confirmed, or discontinued.

Our earlier article on the Morningstar DBRS AA (high) rating for the Chastleton Cooperative mortgage loan explained how low leverage and steady property cash flow supported a Stable trend. It outlined the Washington, D.C. co-op’s full occupancy, market-based rent and vacancy assumptions in underwriting, and key credit metrics such as LTV, DSCR, and debt yield that pointed to limited near-term credit risk.

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