KBRA Assigns Ratings to BANK5 2024-5YR9
30 Aug 2024 | New York
KBRA is pleased to announce the assignment of ratings to 35 classes of BANK5 2024-5YR9, an $910.2 million CMBS conduit transaction collateralized by 33 commercial mortgage loans secured by 44 properties.
The collateral properties are located throughout 20 MSAs, of which the three largest are New York (22.4%), Houston (13.3%), and Philadelphia (9.9%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: retail (35.5%), mixed-use (21.4%), office (17.6%), and multifamily (15.4%). The loans have principal balances ranging from $3.1 million to $90.0 million for the largest loan in the pool, The Piazza (9.9%), which is secured by a 332-unit, Class-A, mid-rise multifamily complex located in Philadelphia, Pennsylvania. The five largest loans, which also include Baybrook Mall (9.7%), Potomac Tower (9.2%), BioMed 2024 Portfolio 2 (8.8%), and 640 5th Avenue (6.4%), represent 44.0% of the initial pool balance, while the top 10 loans represent 65.9%.
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, 37.2% less than third party appraisal values. The pool has an in-trust KLTV of 91.4% and an all-in KLTV of 99.1%. 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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