KBRA Assigns Ratings to BX 2025-LUNR
5 Jun 2025 | New York
KBRA announces the assignment of ratings to four classes of BX 2025-LUNR, a CMBS single-borrower securitization. The collateral for the transaction is a $1.0 billion floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrowers’ fee simple interests in 59 primarily industrial assets. In total, the portfolio contains 11.6 million sf and the properties are located across 13 states, the five largest of which are California (29.5%), Florida (15.7%), Indiana (12.0%), Ohio (7.9%), and Georgia (7.7%). As of April 2025, the portfolio was 96.2% leased to over 145 unique tenants.
KBRA’s analysis of the transaction included a detailed evaluation of the property’s 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 subject of approximately $71.0 million, which is 11.0% below the issuer’s NCF, and a KBRA value of approximately $917.3 million, which is 39.4% below the appraiser’s as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 109.0%. 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 property, and legal documentation review.
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