KBRA Assigns Ratings to BX 2024-BIO2
15 Aug 2024 | New York
KBRA announces the assignment of ratings to four classes of BX 2024-BIO2, a CMBS single-borrower securitization.
The collateral for the transaction is a $516.7 million portion of a $716.7 million non-recourse, first lien mortgage loan. The fixed rate loan has a five-year term and requires monthly interest-only payments, and is secured by the borrowers’ fee simple interests in seven life science lab/office buildings (97.2% of total allocated loan amount) and one parking garage (2.8%). In total, the portfolio contains 995,458 sf of lab/office space and is located within three of the largest life science markets in the US across two states, Massachusetts (four properties, 56.8% of total allocated loan amount) and California (four, 43.2%). As of April 2024, the portfolio was 93.8% leased to 13 unique 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 $61.0 million, which is 14.8% below the issuer's NCF, and a KBRA value of approximately $794.6 million, which is 27.6% below the appraiser’s aggregate as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 90.2%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our property site inspections, and legal documentation review.
To access rating and relevant documents, click here.
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