KBRA Assigns Ratings to Benchmark 2024-V10
30 Sep 2024 | New York
KBRA is pleased to announce the assignment of ratings to 13 classes of Benchmark 2024-V10, a $738.0 million CMBS conduit transaction collateralized by 32 commercial mortgage loans secured by 100 properties.
The collateral properties are located throughout 18 MSAs, of which the three largest are New York (26.5%), Los Angeles (15.3%), and Honolulu (9.3%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: mixed-use (28.1%), multifamily (26.3%), office (20.5%), and retail (10.3%). The loans have principal balances ranging from $5.0 million to $73.5 million for the largest loan in the pool, BioMed 2024 Portfolio 2 (10.0%), which is comprised of seven life science/office properties and one parking garage. The five largest loans, which also include Hyatt Centric Hotel & Shops Waikiki Beach (9.3%), Culver Collection (8.9%), Bronx Terminal Market (8.1%), and Moffett Towers Building D (6.3%), represent 42.7% of the initial pool balance, while the top 10 loans represent 63.5%.
KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of the underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our North American CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 12.9% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 38.5% less than third party appraisal values. The pool has an in-trust KLTV of 91.4% and an all-in KLTV of 97.9%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings.
To access rating and relevant documents, click here.
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