KBRA Affirms All Ratings for FREMF 2016-K54
21 Mar 2025 | New York
KBRA affirms all of its outstanding ratings for FREMF 2016-K54, a $1.2 billion CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation’s (Freddie Mac) K-Deal program. The affirmations follow a surveillance review of the transaction, which has exhibited stable pool performance since KBRA's last ratings change in March 2024.
As of the February 2025 remittance period, none of the loans are specially serviced or delinquent; however, KBRA identified six K-LOCs (9.5% of the pool balance), of which two (3.2%) have estimated losses. These include two top 10 loans:
- Twenty One Eleven Holly Hall Apartments (4th largest, 2.8% of the pool, 13.6% estimated loss severity)
- Woodchase Apartments Homes (7th largest, 2.4%)
One additional K-LOC has an estimated loss:
- Chestnut Crossing (0.4% of the pool balance, 21.8% estimated loss severity)
The remaining three K-LOCs do not have an estimated loss and represents 3.9% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 94.5%, compared to 94.8% at KBRA's last ratings change and 114.0% at securitization. The WA KDSC is 1.80x, compared to 1.79x at KBRA's last ratings change and 1.42x at securitization.
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