KBRA Assigns Ratings to WFCM 2025-5C4
29 May 2025 | New York
KBRA is pleased to announce the assignment of ratings to 14 classes of WFCM 2025-5C4, a $581.6 million CMBS conduit transaction collateralized by 32 commercial mortgage loans secured by 84 properties.
The collateral properties are located throughout 19 MSAs, of which the three largest are New York (34.6%), East Bay (9.7%), Cincinnati (6.7%). The pool has exposure to all major property types with five types representing more than 10.0% of the pool balance: multifamily (33.8%), office (18.2%), retail (15.3%), lodging (11.5%) and mixed-use (11.2%). The loans have principal balances ranging from $3.8 million to $50.0 million for the largest loan in the pool, 931 Carroll Street (8.6%), a 214-unit high-rise multifamily complex located in the Prospect Lefferts Garden neighborhood of New York City’s borough of Brooklyn. The five largest loans, which also include Treasure Valley Marketplace (8.2%), 655 Third Avenue (7.7%), Marriott Cincinnati Airport (6.7%), and 240 West 73rd Street (6.2%), represent 37.4% of the initial pool balance, while the top 10 loans represent 59.0%.
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 10.4% 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, 34.2% less than third party appraisal values. The pool has an in-trust KLTV of 92.6% and the all-in KLTV is also 92.6%. 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.
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