KBRA Assigns Ratings to Benchmark 2024-V9
29 Aug 2024 | New York
KBRA is pleased to announce the assignment of ratings to 12 classes of Benchmark 2024-V9, an $892.1 million CMBS conduit transaction collateralized by 32 commercial mortgage loans secured by 74 properties.
The collateral properties are located throughout 24 MSAs, of which the three largest are New York (10.9%), Dallas – Fort Worth (10.0%), and Washington – NoVA - MD (6.4%). The pool has exposure to most major property types, with four types representing more than 10.0% of the pool balance: retail (25.1%), multifamily (23.9%), mixed-use (12.6%), and industrial (11.9%). The loans have principal balances ranging from $3.7 million to $89.0 million for the largest loan in the pool, Stonebriar Centre (10.0%), which is secured by a 1.1 million sf portion of a 1.8 million sf, superregional mall located in Frisco, Texas, approximately 25 miles north of Dallas. The five largest loans, which also include Churchill Portfolio (9.5%), Memphis and Chicago Industrial Portfolio (8.4%), Quantico Corporate Center (6.4%), and NYC Multifamily Portfolio (5.7%), represent 40.0% of the initial pool balance, while the top 10 loans represent 62.2%.
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 11.1% 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, 38.1% less than third party appraisal values. The pool has an in-trust KLTV of 94.9% 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.
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