KBRA announces the assignment of preliminary ratings to five classes of NYC Trust 2024-3ELV, a CMBS single-borrower securitization.

The collateral for the transaction is a $500.0 million non-recourse, first lien mortgage loan that will be co-originated by Goldman Sachs Bank USA and Wells Fargo Bank, N.A. The floating rate loan is expected to have a two-year initial term with three 12-month extension options and require monthly interest-only payments. The loan is secured by the borrower’s leasehold interest in 3Eleven, a Class A, newly built 60-story multifamily tower that includes 14,495 sf of ground floor retail space. The building is located on 11^th Avenue between West 29^th Street and West 30^th Street on the border of the Hudson Yards and Chelsea neighborhoods in New York City’s borough of Manhattan. The property contains a total of 938 units, of which 703 (75.0%) are market rate and 235 (25.0%) are subject to affordability guidelines. In conjunction with the affordable units, the property is subject to a 35-year real estate tax exemption. As of June 2024, the residential portion of the property is 97.9% leased.

KBRA’s analysis of the transaction included a detailed evaluation of the property’s 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 subject of approximately $37.9 million, which is 6.1% below the issuer’s NCF, and a KBRA value of approximately $561.6 million, which is 39.6% below the appraiser’s as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 89.0%. 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.

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: 1004781

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