KBRA Assigns Preliminary Ratings to BFLD 2025-5MW CMBS Securitization

Strategic Insights -

The Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to three classes of BFLD 2025-5MW, a CMBS single-borrower securitization, secured by a $985.0 million portion of a $1.25 billion interest-only mortgage loan. The loan is backed by the borrower's fee simple interest in 5 Manhattan West, a 16-story, Class-A office tower containing 1.7 million square feet. The property, built in 1969 and renovated in 2017, is 100.0% leased to 16 office and retail tenants, with JP Morgan Chase, Amazon, and Interpublic Group among the top five tenants accounting for 85.0% of base rent and 83.3% of total square footage.

Key Takeaways:

  • The collateral for the transaction is a $985.0 million portion of a $1.25 billion interest-only mortgage loan, with a fixed rate of 6.35% and a five-year term.
  • The property, 5 Manhattan West, is a 16-story, Class-A office tower containing 1.7 million square feet, located in the Hudson Yards section of Manhattan.
  • The property is 100.0% leased to 16 office and retail tenants, with the top five tenants by base rent comprising JP Morgan Chase, Amazon, Interpublic Group, New York City - FISA, and S&P Global.
  • The resulting in-trust KBRA Loan to Value (KLTV) is 112.2%, with a KBRA net cash flow (KNCF) for the subject of approximately $86.7 million, which is 25.4% below the issuer's NCF.
  • KBRA's analysis of the transaction included a review of third-party engineering, environmental, and appraisal reports, site inspection results, and legal documentation review.

Statistics:

  • $985.0 million: The size of the collateral for the transaction.
  • 1.7 million sf: The square footage of the 5 Manhattan West property.
  • 6.35%: The fixed interest rate of the loan.
  • 5 years: The term of the loan.
  • 100.0%: The current occupancy rate of the property.
  • 15 office and retail tenants: The number of leases in place at the property.
  • JP Morgan Chase, Amazon, Interpublic Group, New York City - FISA, and S&P Global: The top five tenants by base rent at the property.
  • 85.0%: The percentage of base rent accounted for by the top five tenants.
  • 83.3%: The percentage of total square footage accounted for by the top five tenants.
  • $1.25 billion: The total size of the interest-only mortgage loan.
  • 112.2%: The resulting in-trust KBRA Loan to Value (KLTV).
  • $86.7 million: The KBRA net cash flow (KNCF) for the subject.

Sources:

  • KBRA announces the assignment of preliminary ratings to three classes of BFLD 2025-5MW, a CMBS single-borrower securitization.