KBRA Assigns Ratings to Benchmark 2025-V14
15 Apr 2025 | New York
KBRA is pleased to announce the assignment of ratings to 13 classes of Benchmark 2025-V14, a $939.2 million CMBS conduit transaction collateralized by 35 commercial mortgage loans secured by 61 properties.
The collateral properties are located throughout 17 MSAs, of which the three largest are New York (13.9%), Seattle (8.6%), and Boston (8.0%). The pool has exposure to all major property types, with two types representing more than 10.0% of the pool balance: multifamily (45.5%) and office (29.0%). The loans have principal balances ranging from $4.5 million to $70.0 million for the largest loan in the pool, Project Midway (7.5%), which is comprised of three office buildings and five life science lab/office buildings totaling 1.3 million sf located across three states, Massachusetts, California, and Washington. The five largest loans, which also include Las Olas City Centre (7.5%), Redmond Town Center (7.5%), The Link (7.5%), and Local Boise (6.3%), represent 36.1% 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 11.2% 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, 36.1% less than third party appraisal values. The pool has an in-trust KLTV of 92.9% and an all-in KLTV of 99.4%. 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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