KBRA Assigns Ratings to BMO 2024-5C8
19 Dec 2024 | New York
KBRA is pleased to announce the assignment of ratings to 13 classes of BMO 2024-5C8, a $991.8 million CMBS conduit transaction collateralized by 40 commercial mortgage loans secured by 98 properties.
The collateral properties are located throughout 29 MSAs, of which the three largest are New York (36.2%), Atlanta (7.1%), and Washington - NoVA - MD (5.8%). The pool has exposure to all major property types, with three types representing more than 10.0% of the pool balance: multifamily (42.6%), retail (20.6%), and mixed-use (18.4%). The loans have principal balances ranging from $3.7 million to $71.0 million for the largest loan in the pool, Queens Center (7.2%), a 412,033 sf portion of a 968,757 sf, super-regional mall located in New York City’s borough of Queens, approximately seven miles east of Midtown Manhattan. The five largest loans, which also include 310 Grand Concourse (7.1%), ICONIQ Multifamily Portfolio (6.5%), Black Spruce - Briarwood and Prospect (6.5%), and Colony Square (6.0%), represent 33.2% of the initial pool balance, while the top 10 loans represent 54.6%.
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 11.0% 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, 38.0% less than third party appraisal values. The pool has an in-trust KLTV of 93.7% and an all-in KLTV of 98.2%. 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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