KBRA Assigns Ratings to BX 2024-XL4
15 Feb 2024 | New York
KBRA announces the assignment of ratings to six classes of BX 2024-XL4, a CMBS single-borrower securitization.
The collateral for the transaction is a $1.5 billion floating rate, interest-only mortgage loan. The loan has an initial two-year term with three, one-year extension options and requires monthly interest-only payments based on a SOFR cap of 5.00%. The loan is secured by the borrowers’ fee simple interests in 120 industrial assets. In total, the portfolio contains 14.0 million sf and is located in eight states throughout the US. The top five markets include Nevada (28.1% of allocated loan amount), Pennsylvania (21.9%), California (17.9%), Texas (9.9%) and North Carolina (7.7%). As of December 2023, the property was 96.5% leased to 384 unique tenants.
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology and the application of our U.S. 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 a KBRA net cash flow (KNCF) for the property of approximately $110.0 million, which is 7.6% below the issuer’s NCF, and a KBRA value of approximately $1.5 billion, which is 38.9% below the appraiser’s aggregate as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 102.8%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.
To access ratings and relevant documents, click here.
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