KBRA Assigns Ratings to BX 2024-VLT4
18 Jun 2024 | New York
KBRA announces the assignment of ratings to six classes of BX 2024-VLT4, a CMBS single-borrower securitization.
The collateral for the transaction is a $1.4 billion 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. The loan will be secured by the borrowers’ fee simple interests in five properties: three data centers and two land parcels that have been ground-leased. The three data centers provide 122.0 MW of power capacity, encompass 1.1 million sf of gross building area and 522,802 sf of raised floor area. Two of the three data centers are located in Ashburn, Virginia, and the third is located in Piscataway, New Jersey. As of May, 2024, the data centers were 100% leased to approximately 120 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, 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 $115.6 million, which is 17.6% below the issuer’s NCF, and a KBRA value of approximately $1.38 billion, which is 35.7% below the aggregate of the appraiser’s individual as-is values. The resulting in-trust KBRA Loan to Value (KLTV) is 101.4%. 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.
To access rating and relevant documents, click here.
Click here to view the report.