KBRA Assigns Preliminary Ratings to BFLD 2024-WRHS
24 Jun 2024 | New York
KBRA announces the assignment of preliminary ratings to eight classes of BFLD 2024-WRHS, a CMBS single-borrower securitization.
The collateral for the transaction is a $608.4 million floating rate, interest-only mortgage loan. The loan has an initial two-year term with three, one-year extension options and requires monthly interest-only payments based on a SOFR cap of 5.20%. The loan is secured by the borrowers’ fee simple interests in 83 industrial assets. In total, the portfolio contains 9.9 million sf and is located in eight states throughout the US, the five largest of which are Texas (20.9% of allocated loan amount), Ohio (19.2%), Georgia (18.9%), Illinois (13.5%), and Indiana (11.0%). As of July 2024, the portfolio was 94.5% leased to approximately 200 unique tenants.
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology and the application of our U.S. CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, its Methodology for Rating Interest-Only Certificates in CMBS Transactions, and its ESG Global Rating Methodology, to the extent deemed applicable.
The results of our analysis yielded a KBRA net cash flow (KNCF) for the property of approximately $42.6 million, which is 10.4% below the issuer's NCF, and a KBRA value of approximately $586.0 million, which is 42.1% below the appraiser’s aggregate as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 103.8%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our property site inspections, and legal documentation review.
To access rating and relevant documents, click here.
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