KBRA Assigns Ratings to BX 2024-SLCT
27 Dec 2024 | New York
KBRA announces the assignment of ratings to six classes of BX 2024-SLCT, a CMBS single-borrower securitization.
The collateral for the transaction is a $615.0 million floating rate, interest-only mortgage loan. The loan has an initial two-year term with three, one-year extension options and requires monthly interest-only payments. The loan will be secured by the borrowers’ interests in 23 hotels including fee simple interests in 20 lodging properties totaling 3,549 keys (90.1% of loan balance) and the leasehold interests in three hotels totaling 409 keys (9.9%), all located in eight states and Washington, DC. For the TTM 9/2024 period, the portfolio’s occupancy was 74.5% with an average daily rate (ADR) of $205.64, resulting in revenue per available room (RevPAR) of $153.16. As of the TTM 9/2024 period, the portfolio achieved weighted average occupancy, ADR and RevPAR penetration rates of 101.3%, 97.0% and 98.4%, respectively.
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, and its ESG Global Rating Methodology, to the extent deemed applicable.
The results of our analysis yielded a KBRA net cash flow (KNCF) for the portfolio of approximately $73.9 million, which is 4.3% below the issuer’s NCF, and a KBRA value of approximately $705.6 million, which is 45.9% below the aggregate of the appraiser’s individual as-is values. The resulting in-trust KBRA Loan to Value (KLTV) is 87.2%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.
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