KBRA Assigns Ratings to BANK5 2025-5YR14

KBRA is pleased to announce the assignment of ratings to 14 classes of BANK5 2025-5YR14, a $884.4 million CMBS conduit transaction collateralized by 25 commercial mortgage loans secured by 74 properties.

The collateral properties are located throughout 24 MSAs, of which the three largest are New York (13.2%), Salinas, CA (9.4%), Chicago (8.6%), and Washington - NoVA - MD (7.7%). The pool has exposure to all major property types, with five types representing more than 10.0% of the pool balance: office (24.2%), retail (20.4%), multifamily (17.3%), lodging (14.4%) and manufactured housing community (10.5%). The loans have principal balances ranging from $4.8 million to $88.0 million for the largest loan in the pool, SE Workforce MHC Portfolio (9.9%), which is comprised of 37 manufactured housing communities (MHCs) containing 1,919 pads. The properties are located in four states: Florida (18 properties, 62.0% of loan balance), North Carolina (12 properties, 24.7%), Tennessee (four properties, 7.7%), and South Carolina (three properties, 5.6%). The five largest loans, which also include Harden Ranch Plaza (9.4%), 1401 H (7.7%), Grand Plaza (7.6%), and 8044 Montgomery (6.8%), represent 41.4% of the initial pool balance, while the top 10 loans represent 66.2%.

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 11.4% 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, 36.0% less than third party appraisal values. The pool has an in-trust KLTV of 96.0% and an all-in KLTV of 97.6%. 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.

To access ratings and relevant documents, click here.

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Methodologies