KBRA Assigns Ratings to BANK5 Trust 2024-5YR6
6 May 2024 | New York
KBRA is pleased to announce the assignment of ratings to 31 classes of BANK5 2024-5YR6, a $984.3 million CMBS conduit transaction collateralized by 46 commercial mortgage loans secured by 54 properties.
The collateral properties are located throughout 24 MSAs, of which the three largest are New York (13.1%), Los Angeles (12.5%), and Washington – NoVA - MD (7.8%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: retail (46.2%), multifamily (13.8%), mixed-use (13.7%), and lodging (13.6%). The loans have principal balances ranging from $2.5 million to $70.0 million for the largest loan in the pool, Kenwood Towne Centre (7.1%), which is secured by a 1.0 million sf, super regional mall located in Cincinnati, Ohio, approximately 12 miles northeast of the city’s CBD. The five largest loans, which also include Kleban Retail Portfolio (7.1%), Western Digital Milpitas Campus (6.4%), Jordan Creek Town Center (6.2%), and Galleria at Tyler (6.1%), represent 32.9% of the initial pool balance, while the top 10 loans represent 53.2%.
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 9.9% 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, 38.1% less than third party appraisal values. The pool has an in-trust KLTV of 90.6% and an all-in KLTV of 90.7%. 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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