KBRA Assigns Preliminary Ratings to BMO 2025-5C11
11 Jun 2025 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 17 classes of BMO 2025-5C11, a $698.1 million CMBS conduit transaction collateralized by 37 commercial mortgage loans secured by 62 properties.
The collateral properties are located throughout 16 MSAs, of which the three largest are New York (45.3%), Boston (10.9%), and Dallas - Fort Worth (7.0%). The pool has exposure to most major property types, with three types representing more than 10.0% of the pool balance: multifamily (47.3%), mixed-use (21.0%), and retail (17.2%). The loans have principal balances ranging from $2.7 million to $60.0 million for the largest loan in the pool, One Grove (8.6%), which is a 193-unit, high-rise multifamily building located in Jersey City, New Jersey, three miles west of Midtown Manhattan. The five largest loans, which also include 1499 Bedford Avenue (7.6%), 347-363 Flushing Avenue (7.2%), Turtle Creek Village (7.0%), and Brickyard Square (5.2%), represent 35.6% of the initial pool balance, while the top 10 loans represent 56.8%.
KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of the underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our North American CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 7.8% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 36.1% less than third party appraisal values. The pool has an in-trust KLTV of 96.9% and an all-in KLTV of 97.3%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings.
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