KBRA Affirms All Ratings for MED 2024-MOB
9 May 2025 | New York
KBRA affirms its outstanding ratings for MED 2024-MOB, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited stable collateral performance since securitization.
At securitization, the transaction was secured by a $450.5 million non-recourse, first lien mortgage loan backed by a portfolio of 34 assets, all of which are medical office buildings. The assets primarily have a concentration of tenants affiliated with a nearby hospital or large healthcare network (30 properties, 91.3% of loan balance) of which 22 (62.5%) are near a hospital campus. Four properties (8.7%) are both unaffiliated and off campus. The portfolio assets are located in 13 states, the three largest of which are New York (six, 29.4%), Texas (eight, 20.4%), and Indiana (six, 10.1%). The floating rate loan has an initial two-year term with three one year extension options and requires monthly interest-only payments based on one-month Term SOFR plus a spread of 2.40%. The sponsor of the borrowing entities is Starwood Property Trust, Inc. (NYSE: STWD), an affiliate of Starwood Capital Group (SCG).
KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $42.3 million and a KBRA value of $473.0 million ($243 per sf). The resulting in-trust KLTV is 95.2%, compared to 95.0% at securitization. KBRA maintains a KPO of Perform on the loan.
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