KBRA Affirms All Ratings for BX 2023-XL3
20 Dec 2024 | New York
KBRA affirms its outstanding ratings for BX 2023-XL3, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited an improvement in KLTV and KBRA debt yield since securitization. However, the magnitude of the changes does not warrant rating adjustments at this time.
At securitization, the transaction was secured by a $1.0 billion first-lien whole mortgage loan backed by a portfolio of 109 industrial properties with 8.5 million sf of space. Since closing, nine property releases have reduced the portfolio to 100 properties and decreased the outstanding balance to $727.9 million as of December 2024. The portfolio has 6.9 million sf of space in nine states that is leased to more than 350 tenants. The floating-rate, interest-only loan has an initial term of two years and allows three one-year extension options. The initial maturity is in December 2025. The sponsors of the borrowers are affiliates of Blackstone Real Estate Partners, which is managed by The Blackstone Group (NYSE: BX).
KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $60.9 million and a KBRA value of $838.7 million ($121 per sf). The resulting in-trust KLTV is 86.8%, compared to 100.2% at securitization. KBRA assigns a KPO of Perform to the loan.
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