KBRA Assigns Ratings to BX 2024-AIR2
26 Sep 2024 | New York
KBRA announces the assignment of ratings to six classes of BX 2024-AIR2, a CMBS single-borrower securitization.
The collateral for the transaction is a $1.05 billion floating rate, interest-only mortgage loan. The loan has an initial two-year term with three, one-year extension options. The loan is secured by the borrowers’ fee simple interests in nine multifamily properties totaling 2,903 units. The complexes were built or substantially redeveloped between 1988 and 2022 and on average are approximately 18 years old. As of July 2024, the portfolio was 96.0% occupied, with individual occupancy rates ranging from 90.3% to 98.6%.
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction and its ESG Global Rating Methodology, to the extent deemed applicable.
The results of our analysis yielded an as-is KBRA net cash flow (KNCF) for the portfolio of approximately $73.0 million, which is 4.9% below the issuer’s NCF, and a KBRA value of approximately $1.03 billion, which is 25.5% below the appraiser’s portfolio value. The resulting in-trust KBRA Loan to Value (KLTV) is 102.1%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspections of six (79.2%) of the portfolio properties, and legal documentation review.
To access rating and relevant documents, click here.
Click here to view the report.