KBRA Assigns Ratings to BBCMS 2025-C32
12 Feb 2025 | New York
KBRA is pleased to announce the assignment of ratings to 18 classes of BBCMS 2025-C32, an $999.7 million CMBS conduit transaction collateralized by 48 commercial mortgage loans secured by 125 properties.
The collateral properties are located throughout 33 MSAs, of which the three largest are are Orange County (9.0%), Dayton-Springfield, OH (8.9%), and Baltimore (7.7%). The pool has exposure to all major property types, with five types representing more than 10.0% of the pool balance: mixed-use (22.8%), retail (22.6%), multifamily (16.4%), lodging (13.3%), and industrial (10.8%). The loans have principal balances ranging from $2.5 million to $90.0 million for the largest loan in the pool, Shops at Mission Viejo (9.0%), a 1.0 million sf portion of, a 1.2 million sf, super-regional mall located in Mission Viejo, California, approximately 50 miles southeast of Los Angeles. The five largest loans, which also include Greene Town Center (8.9%), Metro Portfolio (7.0%), Winn-Dixie Industrial Portfolio (6.0%), and MIC Parking Portfolio (5.2%), represent 36.1% of the initial pool balance, while the top 10 loans represent 56.3%.
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 10.1% 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, 37.2% less than third party appraisal values. The pool has an in-trust KLTV of 93.5% and an all-in KLTV of 94.0%. 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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