KBRA Assigns Ratings to BANK5 2024-5YR12

KBRA is pleased to announce the assignment of ratings to 35 classes of BANK5 2024-5YR12, an $876.0 million CMBS conduit transaction collateralized by 27 commercial mortgage loans secured by 153 properties.

The collateral properties are located throughout 29 MSAs, of which the three largest are New York (31.3%), Kansas City (7.4%), and Orange County (6.7%). The pool has exposure to all major property types, with six types representing more than 10.0% of the pool balance: retail (20.2%), mixed-use (17.3%), manufacturing housing community (16.2%), multifamily (13.4%), office (12.7%), and self-storage (10.3%). The loans have principal balances ranging from $4.5 million to $85.0 million for the largest loan in the pool, Queens Center (9.7%), a 1.0 million sf, super-regional mall located in New York City’s borough of Queens, approximately seven miles east of Midtown Manhattan. The five largest loans, which also include Mini Mall Self Storage (9.5%), Elevate on Main (8.3%), Gateway Center North (7.4%), and Polsinelli Headquarters (7.4%), represent 42.3% of the initial pool balance, while the top 10 loans represent 73.1%.

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 9.6% 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, 38.4% less than third party appraisal values. The pool has an in-trust KLTV of 94.6% and an all-in KLTV of 97.4%. 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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Methodologies