KBRA Assigns Preliminary Ratings to BBCMS 2025-5C33
18 Feb 2025 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of BBCMS 2025-5C33, an $892.4 million CMBS conduit transaction collateralized by 44 commercial mortgage loans secured by 111 properties.
The collateral properties are located throughout 26 MSAs, of which the three largest are are New York (26.0%), Palm Beach County (6.2%), and Chicago (5.6%). The pool has exposure to all major property types, with five types representing more than 10.0% of the pool balance: mixed-use (19.4%), self-storage (16.8%), office (15.6%), multifamily (14.5%), and lodging (11.9%). The loans have principal balances ranging from $2.2 million to $61.5 million for the largest loan in the pool, Saban MHC Portfolio (6.9%), which is comprised of 11 manufactured housing communities containing 1,990 pads located in Indiana (1,107 pads), Kansas (491 pads), and Oklahoma (482 pads). The five largest loans, which also include CityLine Axis Storage Portfolio (6.5%), Marriott Boca Raton (6.2%), Prime 15 Portfolio (6.1%), and Project Midway (5.8%), represent 31.4% of the initial pool balance, while the top 10 loans represent 55.9%.
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 11.9% 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, 37.9% less than third party appraisal values. The pool has an in-trust KLTV of 94.1% and an all-in KLTV of 98.8%. 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.
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