KBRA Assigns Preliminary Ratings to BBCMS 2024-C30
28 Oct 2024 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of BBCMS 2024-C30, an $846.5 million CMBS conduit transaction collateralized by 41 commercial mortgage loans secured by 113 properties.
The collateral properties are located throughout 27 MSAs, of which the three largest are New York (13.9%), Detroit (9.1%), and Minneapolis (7.3%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: retail (40.3%), office (13.7%), multifamily (11.9%), and self-storage (10.8%). The loans have principal balances ranging from $2.1 million to $80.0 million for the largest loan in the pool, Newport Centre (9.5%), a 1.1 million sf, super-regional mall located in Jersey City, New Jersey, approximately four miles southwest of Midtown Manhattan. The five largest loans, which also include Ford Logistics Center (9.1%), Twin Cities Premium Outlets (7.3%), Governor's Square Portfolio (6.6%), and St. Johns Town Center (6.5%), represent 38.9% of the initial pool balance, while the top 10 loans represent 60.1%.
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 10.4% 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, 37.8% less than third party appraisal values. The pool has an in-trust KLTV of 88.1% and an all-in KLTV of 89.5%. 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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