KBRA Affirms All Ratings for ARZ 2024-BILT

KBRA affirms all of its outstanding ratings for ARZ 2024-BILT, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited stable performance since securitization.

The transaction collateral consists of a $460.0 million non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in the Arizona Biltmore located in Phoenix, Arizona, the borrower’s leasehold interest in a portion of the common areas at the Arizona Biltmore Hotel Villas condominium, the rental management income payable to the borrower, and all intellectual property directly related to the trademark “Arizona Biltmore” held by the borrower. The subject property features 593 collateral keys as well as 112 keys that are contained within 56 vacation villas that participate in a hotel managed rental program. These villas are owned by third parties and do not serve as loan collateral. There is no existing subordinate debt and future additional subordinate indebtedness is not permitted. The sponsors are affiliates of Henderson Park Capital Partners and Pyramid Global Hospitality.

The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis produced a KNCF of $42.2 million and a KBRA value of $444.7 million ($749,832 per key). The resulting in-trust KLTV is 103.5%, a change from 102.9% at securitization. KBRA assigns a KPO of Perform for the loan based on the stable performance since securitization.

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