KBRA Assigns Preliminary Ratings to BBCMS 2024-5C29
11 Sep 2024 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of BBCMS 2024-5C29, a $1.1 billion CMBS conduit transaction collateralized by 55 commercial loans secured by 144 properties.
The collateral properties are located throughout 35 MSAs, of which the three largest are New York (15.6%), Boston (7.5%), and Greensboro-Winston Salem-High Point, NC (7.0%). The pool has exposure to all major property type segments, with four types representing more than 10.0% of the pool balance: multifamily (39.8%), retail (18.5%), industrial (14.9%), and office (11.7%). The loans have principal balances ranging from $3.0 million to $74.2 million for the largest loan in the pool, Arch Portfolio (7.0%), which is comprised of three garden-style multifamily complexes totaling 813 units all located in Winston Salem, North Carolina. The five largest loans, which also include 277 Park Avenue (6.6%), Artisan Foods Portfolio (5.9%), Estates at Palm Bay (5.7%), and Baybrook Mall (5.7%), represent 30.8% of the initial pool balance, while the top 10 loans represent 48.9%.
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 10.7% 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, 36.9% less than third party appraisal values. The pool has an in-trust KLTV of 92.4% and an all-in KLTV of 96.0%. 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.
Click here to view the report.