KBRA Affirms All Ratings for BX 2024-XL4
14 Feb 2025 | New York
KBRA affirms its outstanding ratings for BX 2024-XL4, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited an improvement in KLTV and KBRA debt yield since securitization. However, the magnitude of the changes does not warrant rating adjustments at this time.
At securitization, the transaction was secured by a $1.5 billion first-lien whole mortgage loan backed by a portfolio of 120 industrial properties with 13.95 million sf of space. Since closing, five property releases have reduced the portfolio to 115 properties and decreased the outstanding balance to $1.46 billion as of the January 2025 remittance period. The portfolio has 13.7 million sf of space in eight states that is leased to more than 350 tenants. The floating-rate, interest-only loan has an initial term of two years and allows three one-year extension options. The initial maturity is in February 2026. The sponsors of the borrowers are affiliates of Blackstone Real Estate Partners, which is managed by The Blackstone Group (NYSE: BX).
KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $114.8 million and a KBRA value of $1.51 billion ($111 per sf). The resulting in-trust KLTV is 96.4%, compared to 102.8% at securitization. KBRA assigned a KPO of Perform to the loan.
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