Press Release|CMBS

KBRA Assigns Preliminary Ratings to BX 2024-VLT4

30 May 2024   |   New York


KBRA announces the assignment of preliminary ratings to six classes of BX 2024-VLT4, a CMBS single-borrower securitization.

The collateral for the transaction is a $1.4 billion floating rate, interest-only mortgage loan. The loan has an initial two-year term with three, one-year extension options and requires monthly interest-only payments. The loan will be secured by the borrowers’ fee simple interests in five properties: three data centers and two land parcels that have been ground-leased. The three data centers provide 122.0 MW of power capacity, encompass 1.1 million sf of gross building area and 522,802 sf of raised floor area. Two of the three data centers are located in Ashburn, Virginia, and the third is located in Piscataway, New Jersey. As of May, 2024, the data centers were 100% leased to approximately 120 unique tenants.

KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology and the application of our U.S. CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, and its ESG Global Rating Methodology, to the extent deemed applicable.

The results of our analysis yielded a KBRA net cash flow (KNCF) for the property of approximately $115.6 million, which is 17.6% below the issuer’s NCF, and a KBRA value of approximately $1.38 billion, which is 35.7% below the aggregate of the appraiser’s individual as-is values. The resulting in-trust KBRA Loan to Value (KLTV) is 101.4%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the properties, and legal documentation review.

To access rating and relevant documents, click here.

Click here to view the report.



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004472

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