KBRA Assigns Preliminary Ratings to BANK5 2025-5YR15

KBRA is pleased to announce the assignment of preliminary ratings to 33 classes of BANK5 2025-5YR15, a $556.3 million CMBS conduit transaction collateralized by 30 commercial mortgage loans secured by 67 properties. The collateral properties are located throughout 33 MSAs, of which the three largest are New York (22.9% of pool balance), Palm Beach County (9.9%), and Minneapolis (9.9%). The pool has exposure to all major property types, with three types representing more than 10.0% of the pool balance: office (27.2%), mixed-use (24.9%), and retail (22.7%). The loans have in-trust principal balances ranging from $2.7 million to $55.0 million for the largest loan in the pool, 150 & 120 Palmetto Crossed Group (9.9%), two adjacent, Class-A, suburban office properties located in Boca Raton, Florida that together contain 177,735 sf. The five largest loans, which also include Ridgedale Center (9.9%), 1535 Broadway (8.2%), 7 Penn Plaza (7.6%) and Turtle Creek Village (6.4%), represent 41.9% of the initial pool balance, while the top 10 loans represent 65.6%.

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 14.5% 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, 40.1% less than third party appraisal values. The pool has an in-trust KLTV of 88.7% and an all-in KLTV of 91.9%. 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