KBRA Assigns Ratings to BMO 2025-5C10
16 May 2025 | New York
KBRA is pleased to announce the assignment of ratings to 18 classes of BMO 2025-5C10, a $628.0 million CMBS conduit transaction collateralized by 34 commercial mortgage loans secured by 67 properties. The collateral properties are located throughout 19 MSAs, of which the three largest are New York (31.5% of pool balance), North – Central New Jersey (10.9%), and San Diego (8.1%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: multifamily (22.0%), mixed-use (21.3%), hospitality (18.5%), and retail (18.4%). The loans have in-trust principal balances ranging from $3.1 million to $60.0 million for the largest loan in the pool, Marriott JFK (9.6%), an 11-story, 360-key, full-service hotel located in the Jamaica neighborhood of New York City’s borough of Queens, adjacent to the JFK International Airport. The five largest loans, which also include NJ Asden Portfolio (9.6%), 1535 Broadway (7.2%), Muse at Torrey Pines (7.2%) and Herald Center (4.9%), represent 38.4% of the initial pool balance, while the top 10 loans represent 59.5%.
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 12.2% 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, 39.0% less than third party appraisal values. The pool has an in-trust KLTV of 90.2% and an all-in KLTV of 97.1%. 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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