KBRA Upgrades Six Ratings and Affirms All Other Ratings for BX Commercial Mortgage Trust 2021-SOAR

KBRA upgrades the ratings for six classes and affirms all other ratings for BX Commercial Mortgage Trust 2021-SOAR, a CMBS single-borrower transaction. The rating actions follow a surveillance review of the transaction, which has exhibited improved performance since securitization as evidenced by higher KNCF and lower KLTV.

At securitization, the transaction was secured by a $1.63 billion first-lien whole mortgage loan backed by a portfolio of 112 industrial properties with 22.9 million sf of space in total. Since closing, 18 property releases have decreased the portfolio to 94 properties and reduced the outstanding balance to $1.43 billion as of June 2024. The portfolio now has 21.0 million sf of space that is leased to about 300 distinct tenants. The floating-rate, interest-only loan has an initial term of two years and allows for three one-year extension options. The borrower has opted to exercise its second option to extend the loan to June 2025.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $111.6 million and a KBRA value of $1.40 billion ($66 per sf). The resulting in-trust KLTV is 102.4%, down from 124.7% at last review and 140.0% at securitization. KBRA revises its KPO on the loan to Outperform from Perform.

Details concerning the classes with rating changes are as follows:

Class B to AAA (sf) from AA (sf)

Class C to AA+ (sf) from A+ (sf)

Class D to AA- (sf) from BBB+ (sf)

Class E to A+ (sf) from BBB- (sf)

Class F to BBB (sf) from BB- (sf)

Class G to BB (sf) from B- (sf)

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