KBRA Assigns Ratings to BX 2024-BRVE
16 Apr 2024 | New York
KBRA announces the assignment of ratings to five classes of BX 2024-BRVE, a CMBS single-borrower securitization.
The collateral for the transaction is a $428.5 million floating rate, interest-only mortgage loan. The loan has an initial two-year term with three, one-year extension options and requires monthly interest-only payments. The loan will be secured by the borrowers’ interests in 23 hotels including fee simple interests in 21 lodging properties totaling 3,678 keys (92.6% of loan balance) and the leasehold interests in two hotels totaling 324 keys (7.4%), all located in 10 states. The largest asset is the 1,260-key Hyatt Regency Atlanta (43.7%) located in downtown Atlanta. For 2023, the portfolio’s occupancy was 72.3% with an average daily rate (ADR) of $167.79, resulting in revenue per available room (RevPAR) of $121.36. As of year-end 2023, the portfolio achieved weighed average occupancy, ADR and RevPAR penetration rates of 108.7%, 108.2% and 118.1%, respectively.
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology and the application of our U.S. 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 portfolio of approximately $59.3 million, which is 8.8% below the issuer’s NCF, and a KBRA value of approximately $550.3 million, which is 40.1% below the aggregate of the appraiser’s individual as-is values. The resulting in-trust KBRA Loan to Value (KLTV) is 77.9%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.
To access rating and relevant documents, click here.
Click here to view the report.