KBRA Assigns Preliminary Ratings to BMO 2024-5C6
5 Sep 2024 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of BMO 2024-5C6, a $675.2 million CMBS conduit transaction collateralized by 31 commercial mortgage loans secured by 46 properties.
The collateral properties are located throughout 17 MSAs, of which the three largest are New York (27.2%), Boston (10.6%), and Palm Beach County (7.8%). The pool has exposure to most major property types, with five types representing more than 10.0% of the pool balance: multifamily (28.9%), office (23.5%), retail (14.6%), mixed-use (14.0%), and lodging (11.2%). The loans have principal balances ranging from $4.0 million to $55.0 million for the largest loan in the pool, Bronx Terminal Market (8.1%), a 918,779 sf anchored retail power center located in the Concourse neighborhood of New York City’s borough of the Bronx, approximately six miles north of Midtown Manhattan. The five largest loans, which also include Prime Northeast Portfolio (7.8%), Northbridge Centre (7.8%), Linx (7.8%), and Cocoa Grand Apartments (6.9%), represent 38.6% of the initial pool balance, while the top 10 loans represent 59.6%.
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 9.4% 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, 36.7% less than third party appraisal values. The pool has an in-trust KLTV of 93.0% and an all-in KLTV of 97.5%. 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.
Click here to view the report.