KBRA Assigns Preliminary Ratings to Benchmark 2026-V25
9 Nov 2026 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 16 classes of Benchmark 2026-V25, a $683.3 million CMBS conduit transaction collateralized by 35 commercial mortgage loans secured by 75 properties. The collateral properties are located throughout 27 MSAs, of which the three largest are New York (15.1% of pool balance), Dallas – Forth Worth (10.2%), and St. Louis (10.0%). The pool’s three largest property type exposures are office (32.0%), multifamily (28.5%), and retail (14.3%). The largest loan in the pool, Legacy Central (10.0%), is a 706,395 sf, suburban office property located in Plano, Texas, approximately 24 miles north of the Dallas CBD. The five largest loans, which also include West County Center (10.0%), Google Campus Phase II (7.3%), Fairfield Inn & Suites Brooklyn (4.4%), and Elder Portfolio (4.4%), represent 36.0% of the initial pool balance, while the top 10 loans represent 54.8%.
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 determines KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our North American CMBS Property Evaluation Methodology. On a weighted average basis, the pool’s KNCF was 13.6% less than the issuer’s cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were 36.3% less than third-party appraisal values. The pool has an in-trust and all-in KLTV of 95.7%. The process also deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each loan which, in conjunction with pool concentration and other relevant factors, are used to assign our credit ratings.
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