KBRA Assigns Preliminary Ratings to BBCMS 2025-5C38
3 Nov 2025 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 12 classes of BBCMS 2025-5C38, an $834.2 million CMBS conduit transaction collateralized by 41 commercial mortgage loans secured by 76 properties. The collateral properties are located throughout 37 MSAs, of which the three largest are New York (29.6% of pool balance), San Jose (6.6%), and Long Island (5.2%). The pool has exposure to all major property types, with five types representing more than 10.0% of the pool balance: office (23.9%), lodging (23.2%), mixed-use (17.7%), retail (13.4%), and multifamily (12.5%). The loans have in-trust principal balances ranging from $2.6 million to $76.0 million for the largest loan in the pool, City Square White Plains (9.1%), a Class-A, 621,070 sf, mixed-use multifamily/office complex located in White Plains, New York, approximately 27 miles northeast of Midtown Manhattan. The five largest loans, which also include ESA Portfolio (7.2%), Hyatt Place Portfolio (7.2%), Netflix HQ (6.6%) and Red Rock Portfolio (5.9%), represent 35.9% of the initial pool balance, while the top 10 loans represent 59.2%.
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 9.7% 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, 36.7% less than third party appraisal values. The pool has an in-trust KLTV of 95.3% and an all-in KLTV of 96.6%. 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.
Click here to view the report.