KBRA Affirms All Ratings for BX Trust 2022-IND
12 Apr 2024 | New York
KBRA affirms its outstanding ratings for BX Trust 2022-IND, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited an improvement in KLTV and KBRA debt yield since securitization. However, the magnitude of the changes does not warrant rating adjustments at this time.
At securitization, the transaction was secured by a $1.76 billion first-lien whole mortgage loan backed by a portfolio of 116 properties (115 industrial and one office) with 19.2 million sf of space. Since closing, 16 property releases (11 since last review) have decreased the portfolio to 100 properties and reduced the outstanding balance to $1.35 billion as of the March 2024 remittance period. The portfolio has 14.9 million sf of space that is leased to about 150 tenants. The properties are in 14 states. The floating-rate, interest-only loan has an initial term of two years and allows three one-year extension options. The initial maturity is in April 2024, but the servicer reported that the borrower has requested to exercise its first 12-month extension option. The sponsors of the borrowers are affiliates of Blackstone Real Estate Partners, which is managed by The Blackstone Group (NYSE: BX).
KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $89.2 million and a KBRA value of $1.17 billion ($78 per sf). The resulting in-trust KLTV is 115.6%, compared to 120.4% at last review and 130.2% at securitization. KBRA maintains a KPO of Perform on the loan.
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