KBRA Assigns Preliminary Ratings to BX 2026-AIRC
2 Nov 2026 | New York
KBRA announces the assignment of preliminary ratings to four classes of BX 2026-AIRC, a CMBS single-borrower securitization. The collateral for the transaction is a $3.340 billion floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrower’s fee simple and leasehold interests in 29 multifamily properties. In total, the portfolio contains 9,389 units and the properties are located across eight states and Washington D.C., the five largest of which are Florida (34.2%), California (30.6%), Maryland (9.0%), Colorado (6.0%), and Pennsylvania (5.7%). The complexes, which range in size from 78 to 770 units, were built between 1958 and 2022 and on average are approximately 37 years old. As of October 2026, the portfolio was 94.2% leased.
KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American 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.
The results of our analysis yielded a KBRA net cash flow (KNCF) for the subject of approximately $221.4 million, which is 3.5% below the issuer’s NCF, and a KBRA value of $3.12 billion, which is 27.9% below the appraiser’s aggregate as-is values. The resulting in-trust KBRA Loan to Value (KLTV) is 107.1%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the properties, and legal documentation review.
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