KBRA Affirms All Outstanding Ratings for BX 2024-PAT
19 Mar 2025 | New York
KBRA affirms all outstanding ratings for BX 2024-PAT, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited overall stable performance since securitization.
The transaction collateral is a $308.5 million non-recourse, first lien, floating-rate mortgage loan with an initial two-year term and three one-year extension options. The loan requires interest-only payments based on one-month SOFR plus an initial spread of 2.698%. The extension options can be exercised subject to no outstanding event of default, extension of the mezzanine loan if it is still outstanding, and purchase of a replacement interest rate cap for the term of the extension; however, the borrower is not required to satisfy LTV, debt yield, or DSC tests as a condition to exercising any of the extension options. There is a SOFR floor of 0.00%.
The loan is secured by the borrower’s fee simple interest in Park Avenue Tower, a 36-story, Class-A office tower containing 621,992 sf. The building is located between Park and Madison Avenues and spans the entire block between 55th and 56th Streets in Midtown Manhattan. The building was constructed in 1986 and acquired by Blackstone in 2014. In 2016, two major tenants vacated, and the sponsor began a major renovation and repositioning of the building. To date, the sponsor has invested $170.0 million ($273 per sf) for lobby and common area renovations, building and mechanical upgrades, tenant improvements and leasing costs, and converting underutilized basement space into amenity space. The property primarily consists of office space (584,881 sf) and also includes 21,914 sf of amenity space, 12,350 sf of retail space, and 2,847 sf of storage space. The property is 87.0% leased, compared to 87.1% at securitization.
KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $31.8 million and a KBRA value of $397.8 million ($640 per sf). The resulting KLTV is 77.6%, compared to 78.0% at securitization. KBRA maintains a KPO of Perform on the loan.
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