KBRA Assigns Preliminary Ratings to BANK 2025-BNK49
10 Mar 2025 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 33 classes of BANK 2025-BNK49, a $929.2 million CMBS conduit transaction collateralized by 37 commercial mortgage loans secured by 65 properties.
The collateral properties are located throughout 20 MSAs, of which the three largest are Orange County (19.8%), New York (17.1%), and Dallas - Fort Worth (10.6%). The pool has exposure to most major property types, with three types representing more than 10.0% of the pool balance: office (37.6%), hospitality (21.4%), and retail (15.9%). The loans have principal balances ranging from $3.5 million to $92.3 million for the largest loan in the pool, Marriott Dallas Las Colinas (9.9%), which is secured by a 361-key, full-service hotel located in Irving, Texas. The five largest loans, which also include Discovery Business Center (9.7%), 660 Newport Center Drive (8.6%), Marriott World Headquarters (8.1%) and St. Rose Square (6.3%), represent 42.6% of the initial pool balance, while the top 10 loans represent 65.0%.
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 North American CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 11.5% 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, 36.5% less than third party appraisal values. The pool has an in-trust KLTV of 84.3% and an all-in KLTV of 86.0%. 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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