KBRA Assigns Ratings to BX 2024-BRBK
17 Oct 2024 | New York
KBRA announces the assignment of ratings to three classes of BX 2024-BRBK, a CMBS single-borrower securitization.
The collateral for the transaction is a $600.0 million floating rate, interest-only mortgage loan. The loan has an initial two-year term with three, one-year extension options. The loan is secured by the borrowers’ fee simple interests in four creative office properties totaling 2.1 million sf all located within Burbank, California, the largest media market in the United States. The complexes were built between 1984 and 2023 and on average are approximately 29 years old. As of September 2024, the portfolio was 74.1% occupied, with individual occupancy rates ranging from 38.7% to 100.0%.
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 an as-is KBRA net cash flow (KNCF) for the portfolio of approximately $56.5 million, which is 16.5% below the issuer’s NCF, and a KBRA value of approximately $629.5 million, which is 31.5% below the appraiser’s aggregate as-is values. The resulting in-trust KBRA Loan to Value (KLTV) is 95.3%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspections of each of the portfolio properties, and legal documentation review.
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