KBRA Assigns Preliminary Ratings to BANK5 2024-5YR5

KBRA is pleased to announce the assignment of preliminary ratings to 33 classes of BANK5 2024-5YR5, a $518.6 million CMBS conduit transaction collateralized by 24 commercial mortgage loans secured by 25 properties.

The collateral properties are located throughout 18 MSAs, of which the three largest are Los Angeles (14.3%), Washington - NoVA - MD (9.9%), and San Jose (9.6%). The pool has exposure to each property type with three types representing more than 10.0% of the pool balance: retail (42.4%), office (17.6%), and mixed-use (14.2%). The loans have principal balances ranging from $1.8 million to $51.5 million for the largest loan in the pool, Tysons Corner Center (9.9%), which is secured by the overlapping fee simple and leasehold interest in a 1.8 million sf, super-regional mall located in McLean, Virginia, approximately 13 miles west of Washington, DC. The five largest loans, which also include 11755 Wilshire (9.9%), Nvidia Santa Clara (9.6%), Sun Center Plaza (9.2%), and 33 West State Street and 50 East State Street (7.7%), represent 46.4% of the initial pool balance, while the top 10 loans represent 73.5%.

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 U.S. CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 9.3% 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, 38.7% less than third party appraisal values. The pool has an in-trust KLTV of 82.5% and an all-in KLTV of 85.3%. 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 rating and relevant documents, click here.

Click here to view the report.

Methodologies