Press Release|CMBS

KBRA Affirms All Ratings for BX 2024-BRVE

14 Apr 2025   |   New York

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KBRA affirms ratings for all classes of BX 2024-BRVE, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited overall stable performance since securitization.

The transaction collateral is a $428.5 million non-recourse, first lien, floating-rate mortgage loan with an initial two-year term with three one-year extension options. The loan requires interest-only payments based on one-month Term SOFR plus an initial spread of 2.638%. The extension options are subject to no outstanding event of default, and purchase of a replacement interest rate cap for the term of the extension; however, the borrowers are not required to satisfy LTV, debt yield, or DSC tests as a condition to exercising any of the extension options. There is a SOFR floor of 0.00%.

The loan is secured by the borrower’s fee simple interests in 21 lodging properties totaling 3,678 keys (92.6% of loan balance), and the leasehold interests in two hotels totaling 324 keys (7.4%). The portfolio consists of one full-service hotel, the 1,260-key Hyatt Regency Atlanta, which accounts for 43.7% of the loan balance and 22 other hotels that comprise nine select-service properties (26.5%, 1,302 keys), eight extended-stay properties (19.0%, 886 keys) and five limited-service properties (10.8%, 554 keys). The hotels, which range in size from 72 to 1,260 keys, were built between 1967 and 2018 and are in 10 states. The loan sponsor is Blackstone Operating Partnership, L.P. (“Blackstone”).

The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis produced a KNCF of $62.1 million and a KBRA value of $576.2 million ($143,982 per key). The resulting KLTV is 74.4%, compared to 77.9% at securitization. KBRA assigns a KPO of Perform to the loan.

To access ratings and relevant documents, click here.

Click here to view the report.

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Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1009057

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