KBRA Assigns Preliminary Ratings to BX 2024-VLT5
18 Oct 2024 | New York
KBRA announces the assignment of preliminary ratings to six classes of BX 2024-VLT5, a CMBS single-borrower securitization.
The collateral for the transaction is a $755.0 million fixed-rate, interest-only mortgage loan. The loan will be structured with a 10-year ARD, a 12-year final maturity and will require monthly interest-only payments. The loan will be secured by the borrowers’ fee simple interests in a portfolio of three data center properties. All three data centers are fully leased and provide 99.6 MW of power capacity, encompass 690,770 sf of gross building area and 378,048 sf of raised floor area. All three assets are located in the Northern Virginia Market, of which two are located in Manassas, Virginia, and the third is located in Sterling, Virginia. As of October, 2024, the data centers were 100% leased to two unique hyperscale tenants.
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction and its ESG Global Rating Methodology, to the extent deemed applicable.
The results of our analysis yielded a KBRA net cash flow (KNCF) for the property of approximately $59.0 million, which is 23.1% below the issuer’s NCF, and a KBRA value of approximately $732.1 million, which is 40.7% below the aggregate of the appraiser’s individual as-is values. The resulting in-trust KBRA Loan to Value (KLTV) is 103.1%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the properties, and legal documentation review.
To access ratings and relevant documents, click here.
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