KBRA Assigns Preliminary Ratings to Benchmark 2025-V16
17 Jul 2025 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 12 classes of Benchmark 2025-V16, a $624.7 million CMBS conduit transaction collateralized by 31 commercial mortgage loans secured by 157 properties. The collateral properties are located throughout 39 MSAs, of which the three largest are New York (34.9% of pool balance), Washington - NoVA - MD (7.4%), and North - Central New Jersey (11.4%). The pool has exposure to all major property types, with six types representing more than 10.0% of the pool balance: mixed-use (20.3%), multifamily (19.1%), retail (14.1%), industrial, (12.6%), self-storage (11.7%), and office (11.0%). The loans have in-trust principal balances ranging from $4.1 million to $60.0 million for the largest loan in the pool, ILPT 2025 Portfolio (9.6%), a portfolio of 102 primarily industrial properties located in 30 states that together comprise 18.3 million sf which is currently 82.9% leased to over 120 tenants. The five largest loans, which also include 841-853 Broadway (9.0%), Bridgemarket Retail (8.8%), The Wharf (7.2%), and Prime Storage – NCRS Portfolio (6.5%), represent 41.1% of the initial pool balance, while the top 10 loans represent 60.5%.
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 15.2% 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, 39.1% less than third party appraisal values. The pool has an in-trust KLTV of 93.4% and an all-in KLTV of 100.6%. 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.
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