Press Release|CMBS

KBRA Places all Ratings of NCMF 2022-MFP on Watch Developing

27 Mar 2024   |   New York


KBRA places all ratings of NCMF 2022-MFP, a $346.0 million CMBS SASB transaction, on Watch Developing. The Watch action is primarily driven by the loan's transfer to the special servicer following the borrower’s failure to either repay the loan or exercise its first extension option by the March 8, 2024 maturity date.

The floating-rate loan had a two-year initial term with three one-year extension options and requires monthly interest-only payments. The borrower had entered into an interest rate cap agreement with a strike rate of 1.75% for the initial term of the loan. A replacement interest rate cap agreement is required to be obtained for the duration of the extended term with a strike price equal to the lesser of (a) a strike rate that will cause the DSCR to be equal to or in excess of 1.20x and (b) 1.75%. According to the special servicer, the borrower intends to repay the loan in the near term but a forbearance agreement has not yet been approved and the loan has not been extended. A new interest rate cap agreement has not been provided.

The loan is secured by the borrower’s fee simple interests in 11 workforce housing multifamily properties and one student housing property totaling 2,746 units. The properties range in size from 52 to 773 units and were built between 1929 and 2021, and have an average age of 49 years. The properties are in six states across six MSAs: Indianapolis (41.3% of ALA), Dallas - Fort Worth (19.9%), Nashville (14.5%), Boone, NC (11.6%), Las Vegas (9.6%), and Los Angeles (3.2%). The servicer-reported occupancies and DSCs are: 89.0% / 1.13x (YTD September 2023); 93.0% / 1.02x (FY 2022); at issuance these were 95.0% / 1.66x.

KBRA will continue to monitor the transaction and loan performance and will seek to resolve or update the Watch Developing status within 90 days.

To access rating and relevant documents, click here.



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003644

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