KBRA Affirms All Ratings For BPR 2023-BRK2

KBRA affirms its outstanding ratings for BPR 2023-BRK2, a CMBS SASB transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight improvement in collateral performance since securitization.

The transaction’s collateral is a non-recourse, first-lien mortgage loan with an outstanding balance of $700.0 million as of September 2024. The fixed-rate, interest-only loan has a five-year term and is collateralized by 1.9 million sf of Oakbrook Center, a 2.3 million sf open-air super-regional mall in Oakbrook, Illinois. The collateral also includes 264,157 sf of office space as well as the leased fee interest in Le Meridian hotel. The loan sponsor is a joint venture between Brookfield and Institutional Mall Investors LLC (IMI), a co-investment platform majority owned by California Public Employees' Retirement System (CalPERS).

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $77.5 million and a KBRA value of $1.0 billion ($456 per sf). The resulting in-trust KLTV is 68.7%, compared to 72.3% at securitization. KBRA assigns a KPO of Perform to the loan.

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