Press Release|CMBS
View PDF

KBRA Downgrades Two Ratings and Affirms All Other Ratings for BX 2024-BIO2

13 Aug 2026   |   New York

Contacts

KBRA downgrades two ratings and affirms all other ratings for BX 2024-BIO2, a CMBS single-borrower transaction. The rating actions follow a surveillance review of the transaction and reflect deterioration in the collateral's performance and value since securitization, driven by lower occupancy and net cash flow. We also considered the life sciences sector’s weak leasing fundamentals.

The transaction’s collateral is a $516.7 million portion of a $716.7 million non-recourse, first lien mortgage loan. The fixed-rate loan has a five-year term and requires monthly interest-only payments that are based on a weighted interest rate of 5.895%. The loan’s maturity date is in August 2029. The loan is secured by the borrowers’ fee simple interest in seven life science lab/office buildings (97.2% of total allocated loan amount) and one parking garage (2.8%). The portfolio has 995,458 sf of office and lab space within three of the largest life science markets in the U.S. in Massachusetts (56.8%) and California (43.2%). The sponsor of the borrower is BioMed Realty, L.P., an affiliate of The Blackstone Group (NYSE: BX).

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $56.2 million and a KBRA value of $710.1 million ($713 per sf). The resulting in-trust KLTV is 100.9%, compared to 88.9% at last review and 90.2% at securitization. As a result of the property’s decline in financial performance since issuance, KBRA revised the loan’s KPO to Underperform from Perform.

Details concerning the classes with ratings changes are as follows:

  • Class C to BBB (sf) from A- (sf)
  • Class D to BB (sf) from BBB- (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1016504