Press Release|CMBS
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KBRA Affirms All Ratings for BX 2024-BRBK

14 Oct 2025   |   New York

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KBRA affirms all its outstanding ratings for BX 2024-BRBK, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited stable collateral performance since securitization.

The transaction collateral is a $600.0 million non-recourse, first-lien mortgage loan. The floating-rate loan is structured with an initial two-year term and includes three one-year extension options, for a fully extended maturity in October 2029. The loan requires monthly interest-only payments based on one-month Term SOFR plus a spread of 4.133%. The initial maturity date is October 2026.

The loan is secured by the borrowers’ fee simple interests in four creative office properties located in Burbank, California, totaling 2.1 million sf. The properties range in size from 259,864 sf to 928,954 sf and were constructed between 1984 and 2009. Since 2017, the portfolio has undergone $112.7 million ($54 per sf) in capital improvements. As of March 2025, the portfolio was 74.5% occupied, with individual occupancy rates ranging from 35.7% to 100%. The loan sponsor is a JV of Blackstone Property Partners L.P. and affiliates of Worthe Real Estate Group, Inc.

The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis produced a KNCF of $58.1 million and a KBRA value of $626.7 million ($298 per sf). KBRA adjusted this value upward by $18.7 million to account for the upfront general TI/LC reserve of $30.0 million and the sponsor’s guarantee of free rent that was not reserved at issuance. The KBRA adjusted value is $645.4 million ($307 per sf). The resulting KLTV is 93.0%, compared to 95.3% at securitization. KBRA assigns a KPO of Perform to the loan.

To access ratings and relevant documents, click here.

Click here to view the report.

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Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011769