KBRA Assigns Ratings to BMO 2025-C11
28 Feb 2025 | New York
KBRA is pleased to announce the assignment of ratings to 14 classes of BMO 2025-C11, a $906.9 million CMBS conduit transaction collateralized by 63 commercial mortgage loans secured by 82 properties.
The collateral properties are located throughout 14 MSAs, of which the three largest are New York (43.2%), Orange County (7.2%), and North - Central New Jersey (6.5%). The pool has exposure to most major property type with four types representing more than 10.0% of the pool balance: multifamily (28.7%), office (16.7%), retail (16.2%), and self-storage (11.6%). The loans have principal balances ranging from $403,516 to $65.0 million for the largest loan in the pool, Shops at Mission Viejo (7.2%), a 1.0 million sf portion of a 1.2 million sf, super-regional mall located in Mission Viejo, California, approximately 50 miles southeast of Los Angeles. The five largest loans, which also include UOVO QPN (7.2%), 340 Mt Kemble (6.5%), Ali'i Place (5.1%), and 29-33 Ninth Avenue (5.0%), represent 30.9% of the initial pool balance, while the top 10 loans represent 50.8%.
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 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 12.0% 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, 37.0% less than third party appraisal values. The pool has an in-trust KLTV of 87.8% and an all-in KLTV of 88.5%. 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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