Press Release|CMBS
View PDF

KBRA Affirms All Ratings for BX 2023-XL3

12 Dec 2025   |   New York

Contacts

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, thirteen property releases have reduced the portfolio to 96 properties and decreased the outstanding balance to $716.0 million as of November 2025. The portfolio has 6.4 million sf of space in seven 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 was December 9, 2025. The borrower has exercised their first extension option, extending the loan to December 9, 2026. 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 $58.9 million and a KBRA value of $792.1 million ($124 per sf). The resulting in-trust KLTV is 90.4%, compared to 100.2% at securitization. KBRA maintains a KPO of Perform on the loan.

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

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: 1012728