KBRA Assigns Preliminary Ratings to Benchmark 2025-V13
3 Feb 2025 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of Benchmark 2025-V13, a $767.4 million CMBS conduit transaction collateralized by 35 commercial mortgage loans secured by 120 properties.
The collateral properties are located throughout 41 MSAs, of which the three largest are New York (38.5%), Houston (7.2%), and Kansas City (6.0%). The pool has exposure to all major property types, with five types representing more than 10.0% of the pool balance: multifamily (27.0%), retail (22.4%), self-storage (13.2%), lodging (10.1%), and industrial (10.0%). The loans have principal balances ranging from $3.2 million to $76.5 million for the largest loan in the pool, State Farm Data Center Portfolio (10.0%), which is comprised of two powered shell data center properties located in Kansas and Texas that together comprise 12,000 kW of built capacity in 322,208 sf. The five largest loans, which also include Brooklyn Jonas Portfolio (7.5%), Prime 15 Portfolio (7.0%), Pinnacle Hills Promenade (6.8%), and Herald Center (6.5%), represent 37.8% of the initial pool balance, while the top 10 loans represent 62.5%.
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 11.1% 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, 39.5% less than third party appraisal values. The pool has an in-trust KLTV of 90.7% 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.
To access ratings and relevant documents, click here.
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