KBRA Upgrades Six Ratings and Affirms One Rating for BX 2021-XL2
11 Oct 2024 | New York
KBRA upgrades the ratings for six classes of certificates and affirms one rating for BX 2021-XL2, a CMBS single-borrower transaction. The rating actions follow a surveillance review of the transaction, which has exhibited improved performance since securitization as evidenced by higher KNCF and lower KLTV.
At securitization, the transaction collateral was a $2.2 billion ($128 per sf) non-recourse, first lien mortgage loan secured by the borrower’s fee simple and leasehold interests in 121 properties, consisting of 17.0 million sf located across 10 states. Since closing, 24 properties have been released with a total paydown of $700.1 million, resulting in a $1.5 billion ($115 per sf) loan collateralized by 97 properties, comprising 12.9 million sf located in nine states as of the September 2024 remittance period. The properties are primarily industrial assets (99.7%), consisting mostly of warehouse and light industrial properties. The floating-rate, interest-only loan has an initial term of two years and allows for three one-year extension options. According to the master servicer, the borrower plans to exercise its second option to extend the loan’s maturity date to October 2025.
KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $98.1 million and a KBRA Value of $1.2 billion ($92 per sf). The resulting in-trust KLTV is 124.9%, compared to 146.6% at last review and 168.6% at securitization. KBRA revises the KPO for the loan to Outperform from Perform.
Details concerning the classes with rating changes are as follows:
- Class B to AAA (sf) from AA- (sf)
- Class C to AA (sf) from A- (sf)
- Class D to AA- (sf) from BBB (sf)
- Class E to A (sf) from BBB- (sf)
- Class F to BBB (sf) from BB- (sf)
- Class G to BB (sf) from B- (sf)
To access rating and relevant documents, click here.
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