Morningstar DBRS assigns BBB rating to Santa Ana retail mortgage loan

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Santa Ana retail mortgage rating

Highlights

Morningstar DBRS assigned a BBB rating with a Stable trend to the 5.03% mortgage loan due April 1, 2032, for Ginsborg Boys, LLC and NMC Santa Ana, LLC.
The Santa Ana retail center securing the loan is 94% occupied, but about 50% of leases expire within the loan term, prompting $202,957 in tenant improvement and leasing commission allowances.
The loan features a 75.7% loan-to-value ratio based on a $27.4 million appraised value, a 1.5x debt service coverage ratio, and a $20.8 million balance as of June 2026.

Loan profile and property fundamentals

As reported by Morningstar DBRS, the 5.03% mortgage loan due April 1, 2032, made to Ginsborg Boys, LLC and NMC Santa Ana, LLC, has been assigned a BBB credit rating with a Stable trend. The loan is secured by the fee-simple interest in a retail center at 2303 - 2341 South Bristol Street, about three miles southwest of downtown Santa Ana, California.

The property sits at the corner of Bristol Street and Warner Avenue in an established retail corridor surrounded by densely populated residential neighborhoods. Built in 1956 and renovated in 2008, the center has a diversified tenant base and is expected to be anchored by Sprouts, while El Super Grocery serves as a shadow anchor.

According to the rent roll dated September 30, 2025, the center is 94% occupied. Morningstar DBRS says lease rollover risk remains elevated because about 50% of leases are scheduled to expire within the loan term or by the end of 2032, and it has included about $202,957 in tenant improvement and leasing commission costs to reflect potential re-leasing needs.

Credit metrics and market implications

The rating reflects several operating and balance sheet measures cited in the credit analysis, including a loan-to-value ratio of 75.7% based on a concluded property value of $27.4 million. Morningstar DBRS also points to stable and predictable cash flows, a debt service coverage ratio of 1.5 times, a current amortizing loan balance of $20.8 million as of June 2026, and a debt yield of 9.9%.

The agency says supportive qualitative adjustments for property quality, cash flow volatility, and market fundamentals also underpin the assessment. It adds that no environmental, social, or governance factors had a significant or relevant effect on the credit analysis, and notes that all credit ratings remain subject to ongoing surveillance that can lead to upgrades, downgrades, review actions, confirmation, or discontinuation.

Our earlier article on Morningstar DBRS’s ratings for Oceanview Commercial Mortgage Trust 2026-1 explained how the agency assigned top-tier ratings to the deal’s senior CMBS classes backed by 184 legacy Signature Bank loans across 211 properties. It highlighted key credit considerations such as the pool’s diversification and leverage metrics, while also flagging structural documentation gaps and heavy concentration in the New York metro area as factors that could increase sensitivity to regional disruptions and rate resets.

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