KBRA Assigns Preliminary Ratings to BBCMS 2024-5C27
17 Jun 2024 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 17 classes of BBCMS 2024-5C27, an $800.8 million CMBS conduit transaction collateralized by 50 commercial mortgage loans secured by 98 properties.
The collateral properties are located throughout 39 MSAs, of which the three largest are New York (20.5%), Los Angeles (7.4%), and Houston (7.0%). The pool has exposure to all major property types, with three types representing more than 10.0% of the pool balance: multifamily (39.2%), industrial (17.2%), and office (13.1%). The loans have principal balances ranging from $3.3 million to $78.4 million for the largest loan in the pool, GNL Industrial Portfolio (9.8%), which is secured by 19 industrial properties and one office building located in 12 states that together comprise 3.9 million sf. The five largest loans, which also include Champion MSU Student Housing Portfolio (5.5%), 620 W 153rd Street (4.6%), 1640 Sepulveda (4.5%), and University Pointe (4.5%), represent 28.9% of the initial pool balance, while the top 10 loans represent 44.4%.
KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of the underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our U.S. CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 12.2% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 37.1% less than third party appraisal values. The pool has an in-trust KLTV of 92.8% and an all-in KLTV of 93.6%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings.
To access rating and relevant documents, click here.
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