KBRA Assigns Preliminary Ratings to BBCMS 2024-C28
5 Aug 2024 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 17 classes of BBCMS 2024-C28, an $804.9 million CMBS conduit transaction collateralized by 37 commercial mortgage loans secured by 85 properties.
The collateral properties are located throughout 21 MSAs, of which the three largest are Inland Empire (9.9%), Chicago (9.9%), and Jacksonville (9.7%). The pool has exposure to each major property type, with five types representing more than 10.0% of the pool balance: retail (23.5%), lodging (22.1%), mixed-use (16.9%), industrial (15.0%), and multifamily (11.4%). The loans have principal balances ranging from $850,000 to $80.0 million for the largest loan in the pool, Bridge Point Rancho Cucamonga (9.9%), which is comprised of two adjacent Class-A, LEED Gold certified warehouse and distribution facilities that together comprise 2.2 million sf, located in Ranch Cucamonga, California, approximately 45 miles east of Los Angeles. The five largest loans, which also include 900 North Michigan (9.9%), St. Johns Town Center (9.7%), Arizona Grand Resort and Spa (8.7%), and Morrison Yard (6.5%), represent 44.8% of the initial pool balance, while the top 10 loans represent 68.5%.
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 11.0% 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, 36.8% less than third party appraisal values. The pool has an in-trust KLTV of 82.3% and an all-in KLTV of 85.7%. 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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