KBRA Assigns Ratings to WFCM 2024-5C1
25 Jul 2024 | New York
KBRA is pleased to announce the assignment of ratings to 14 classes of WFCM 2024-5C1, a $731.9 million CMBS conduit transaction collateralized by 32 commercial mortgage loans secured by 48 properties.
The collateral properties are located throughout 25 MSAs, of which the three largest are New York (19.2%), Houston (18.8%), and Los Angeles (9.3%). The pool has exposure to all major property types, with three types representing more than 10.0% of the pool balance: multifamily (44.2%), office (21.0%), and mixed-use (15.2%). The loans have principal balances ranging from $3.2 million to $73.0 million for the largest loan in the pool, 9950 Woodloch (10.0%), a 601,151 sf, Class-A, LEED Silver certified suburban office building located in The Woodlands, Texas, approximately 30 miles north of the Houston CBD. The five largest loans, which also include Falls Houston Multifamily Portfolio (8.8%), 640 5th Avenue (6.9%), Lotus 315 & Essence 144 (6.8%), and The Archive Apartments (6.5%), represent 39.0% of the initial pool balance, while the top 10 loans represent 61.8%.
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 North American CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 9.5% 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, 36.1% less than third party appraisal values. The pool has an in-trust KLTV of 91.6% and an all-in KLTV of 93.4%. 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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