KBRA Assigns Preliminary Ratings to Benchmark 2024-V8
24 Jun 2024 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of Benchmark 2024-V8, a $1.0 billion CMBS conduit transaction collateralized by 35 commercial mortgage loans secured by 81 properties.
The collateral properties are located throughout 23 MSAs, of which the three largest are New York (26.1%), Long Island (8.9%), and Salt Lake City (6.9%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: retail (26.4%), multifamily (23.9%), office (14.7%), and mixed-use (14.0%). The loans have principal balances ranging from $2.4 million to $97.1 million for the largest loan in the pool, 640 5th Avenue (9.6%), a 314,533 sf, Class-A, LEED Gold certified, mixed-use retail and office building located in the Plaza District neighborhood of New York City’s borough of Manhattan. The five largest loans, which also include City Creek Center (6.9%), Showcase I (6.9%), Sugarloaf Mills (6.5%), and Hilton Garden Inn & Canopy – Chicago Central Loop (6.4%), represent 36.4% of the initial pool balance, while the top 10 loans represent 59.6%.
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 U.S. CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 13.4% 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, 41.4% less than third party appraisal values. The pool has an in-trust KLTV of 89.7% and an all-in KLTV of 92.2%. 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 rating and relevant documents, click here.
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