KBRA Assigns Preliminary Ratings to BBCMS 2025-C35

KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of BBCMS 2025-C35, a $795.3 million CMBS conduit transaction collateralized by 33 commercial mortgage loans secured by 101 properties. The collateral properties are located throughout 35 MSAs, of which the three largest are New York (26.9% of pool balance), Washington - NoVA - MD (13.6%), and Boston (9.4%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: mixed-use (31.1%), retail (28.6%), office (13.2%), and multifamily (12.0%). The loans have in-trust principal balances ranging from $996,975 to $79.0 million for the largest loan in the pool, Rentar Plaza (9.9%), a 1.5 million sf, Class-B, mixed-use industrial and retail building located in the Middle Village neighborhood of New York City’s borough of Queens. The five largest loans, which also include BioMed MIT Portfolio (9.4%), 29-33 Ninth Avenue (9.4%), Marriott World Headquarters (9.4%) and Washington Square (8.8%), represent 47.0% of the initial pool balance, while the top 10 loans represent 68.2%.

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 12.3% 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, 39.8% less than third party appraisal values. The pool has an in-trust KLTV of 84.1% and an all-in KLTV of 87.8%. 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 ratings and relevant documents, click here.

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Methodologies