KBRA Assigns Preliminary Ratings to BAMLL 2025-ASHF
5 Feb 2025 | New York
KBRA announces the assignment of preliminary ratings to six classes of BAMLL 2025-ASHF, a CMBS single-borrower securitization.
The collateral for the transaction is a $580.0 million floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrowers’ interests in 16 hotels including fee simple interests in 15 lodging properties totaling 3,851 keys (92.2% of loan balance) and the fee simple and leasehold interest in one hotel totaling 294 keys (7.8%), all located in 11 states. For the TTM 10/2024 period, the portfolio’s occupancy was 71.1% with an average daily rate (ADR) of $183.07, resulting in revenue per available room (RevPAR) of $130.19. As of the TTM 10/2024 period, the portfolio achieved weighed average occupancy, ADR and RevPAR penetration rates of 107.8%, 103.9% and 112.3%, respectively.
KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flows using our North American CMBS Property Evaluation Methodology, and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, and its ESG Global Rating Methodology, to the extent deemed applicable.
The results of our analysis yielded a KBRA net cash flow (KNCF) for the portfolio of approximately $53.9 million, which is 13.3% below the issuer’s NCF, and a KBRA value of approximately $498.8 million, which is 42.1% below the aggregate of the appraiser’s individual as-is values for each property. The resulting in-trust KBRA Loan to Value (KLTV) is 116.3%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.
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