KBRA Assigns Preliminary Ratings to BX 2024-BIO2
July 18 2024 - 6:07PM
Business Wire
KBRA announces the assignment of preliminary ratings to four
classes of BX 2024-BIO2, a CMBS single-borrower securitization.
The collateral for the transaction is a $560.0 million portion
of a $760.0 million non-recourse, first lien mortgage loan. The
fixed rate loan has a five-year term and requires monthly
interest-only payments that are based on an assumed coupon of
6.25%. The loan is secured by the borrowers’ fee simple interests
in seven life science lab/office buildings (97.2% of total
allocated loan amount) and one parking garage (2.8%). In total, the
portfolio contains 995,458 sf of lab/office space and is located
within three of the largest life science markets in the US across
two states, Massachusetts (four properties, 56.8% of total
allocated loan amount) and California (four, 43.2%). As of April
2024, the portfolio was 93.8% leased to 13 unique tenants.
KBRA’s analysis of the transaction included a detailed
evaluation of the properties’ cash flows using our North American
CMBS Property Evaluation Methodology and the application of our
North American CMBS Single Borrower & Large Loan Rating
Methodology. In addition, KBRA also relied on its Global Structured
Finance Counterparty Methodology for assessing counterparty risk in
this transaction and its ESG Global Rating Methodology, to the
extent deemed applicable.
The results of our analysis yielded a KBRA net cash flow (KNCF)
for the property of approximately $61.0 million, which is 14.8%
below the issuer's NCF, and a KBRA value of approximately $794.6
million, which is 27.6% below the appraiser’s aggregate as-is
value. The resulting in-trust KBRA Loan to Value (KLTV) is 95.6%.
In our analysis of the transaction, we also reviewed and considered
third party engineering, environmental, and appraisal reports, the
results of our property site inspections, and legal documentation
review.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan
Rating Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005175
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Analytical Contacts
Michael Polkow, Associate Director (Lead Analyst) +1
646-731-2453 michael.polkow@kbra.com
Michael McGorty, Senior Director +1 646-731-2393
michael.mcgorty@kbra.com
Nitin Bhasin, Senior Managing Director, Global Head of CMBS
(Rating Committee Chair) +1 646-731-2334 nitin.bhasin@kbra.com
Business Development Contact
Daniel Stallone, Managing Director +1 646-731-1308
daniel.stallone@kbra.com