KBRA Assigns Preliminary Ratings to Benchmark 2024-V6
11 Mar 2024 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of Benchmark 2024-V6, a $1.1 billion CMBS conduit transaction collateralized by 37 commercial mortgage loans secured by 62 properties.
The collateral properties are located throughout 18 MSAs, of which the three largest are New York (17.2%), Dallas – Fort Worth (10.4%), and Atlanta (8.7%). The pool has exposure to all major property types, with five types representing more than 10.0% of the pool balance: office (23.5%), lodging (18.1%), retail (16.8%), mixed-use (14.3%), and multifamily (10.7%). The loans have principal balances ranging from $3.3 million to $80.0 million for the largest loan in the pool, Prime Storage - Hudson Valley Portfolio (7.3%), which is comprised of 14 self-storage facilities in the Hudson Valley area of lower New York State, approximately 70 miles north of Midtown Manhattan. The five largest loans, which also include Warwick Melrose & Allerton (7.2%), Panorama Tower (6.6%), Kenwood Towne Centre (6.0%), and Vero Office Portfolio (6.0%), represent 33.0% of the initial pool balance, while the top 10 loans represent 55.0%.
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 U.S. CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 12.7% 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, 39.1% less than third party appraisal values. The pool has an in-trust KLTV of 91.4% and an all-in KLTV of 91.7%. 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.
To access rating and relevant documents, click here.
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