KBRA Assigns Ratings to NYC Trust 2024-3ELV
8 Aug 2024 | New York
KBRA announces the assignment of ratings to five classes of NYC Trust 2024-3ELV, a CMBS single borrower securitization.
The collateral for the transaction is a $500.0 million non-recourse, first lien mortgage loan co-originated by Goldman Sachs Bank USA and Wells Fargo Bank, N.A. The floating rate has a two-year initial term with three 12-month extension options and requires monthly interest-only payments. The loan is secured by the borrower’s leasehold interest in 3Eleven, a Class A, newly built 60-story multifamily tower that includes 14,495 sf of ground floor retail space. The building is located on 11th Avenue between West 29th Street and West 30th Street on the border of the Hudson Yards and Chelsea neighborhoods in New York City’s borough of Manhattan. The property contains a total of 938 units, of which 703 (75.0%) are market rate and 235 (25.0%) are subject to affordability guidelines. In conjunction with the affordable units, the property is subject to a 35-year real estate tax exemption. As of June 2024, the residential portion of the property is 97.9% leased.
KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flows using our North American CMBS Property Evaluation Methodology, and the application of our North American 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 subject of approximately $37.9 million, which is 6.1% below the issuer’s NCF, and a KBRA value of approximately $561.6 million, which is 39.6% below the appraiser’s as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 89.0%. 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 rating and relevant documents, click here.
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