Press Release|CMBS
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KBRA Upgrades Four Ratings and Affirms Two Ratings for BX 2024-VLT4

12 Jun 2026   |   New York

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KBRA upgrades the ratings of four classes of certificates and affirms the ratings for two classes of certificates of BX 2024-VLT4, a CMBS single-borrower transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited an improvement in pool KLTV and KBRA debt yield since last review and securitization.

At securitization, the transaction was secured by a $1.4 billion non-recourse, first-lien mortgage loan backed by a portfolio of five properties. Since closing, one leased fee property located in San Antonio, Texas has been released and the outstanding balance has been reduced to $1.34 billion, as of the May 2026 remittance period. Currently, the portfolio has three properties that are improved with data centers, containing a gross building area (GBA) of about 1.1 million sf with 522,802 sf of raised floor area. Located in Ashburn, Virginia (two properties) and Piscataway, New Jersey (one), they provide 126.6 megawatts (MW) of capacity. The remaining property consists of the fee interest in a land parcel that has been leased to third parties. The sponsor is Quality Tech, LP, a Blackstone portfolio company.

The floating-rate interest-only loan has an initial term of two years and allows three one-year extension options. The initial maturity was June 9, 2026. According to the servicer, the borrower has submitted a request to extend the maturity date. At the time of KBRA’s review, the extension request was in process, and the terms of a replacement interest rate cap agreement were not yet finalized.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $118.6 million and a KBRA value of $1.49 billion ($11.8 million per MW / $1,394 per sf). The resulting in-trust KLTV is 90.0%, compared to 104.0% at last review and 101.4% at securitization. KBRA maintains a KPO of Perform for the loan.

Details concerning the classes with rating changes are as follows:

  • Class C to AA+ (sf) from AA (sf)
  • Class D to A+ (sf) from A- (sf)
  • Class E to BBB+ (sf) from BBB- (sf)
  • Class F to BB+ (sf) from BB- (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

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: 1015363