A CRED iQ Preliminary Analysis
DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE
Deal Overview
The BANK5 2024-5YR9 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of approximately $910.2 million. The deal is jointly managed by prominent financial institutions JP Morgan, Morgan Stanley, and Wells Fargo, and collateralized by 33 loans secured by 44 properties across a variety of sectors, including retail, mixed use, office, and multifamily. The strategic geographic distribution of these properties ensures balanced exposure across major markets, thereby reducing regional risks and enhancing overall portfolio stability. The deal’s conservative underwriting practices are reflected in its weighted average loan-to-value (LTV) ratio of 57.2%, and the weighted average mortgage interest rate is 6.59%, which provides attractive returns for investors.
Key Metrics
The loan pool for BANK5 2024-5YR9 is meticulously structured to include a mix of amortizing and interest-only loans, with 16.1% of the mortgage pool having scheduled amortization, ensuring gradual principal repayment and enhanced cash flow stability. The remaining 83.9% of the pool consists of interest-only payments throughout the loan term, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.65x, signifying strong cash flow relative to debt obligations and underscoring the financial robustness of the underlying properties. Moreover, the weighted average net operating income (NOI) debt yield of 11.8% highlights the high earning potential of the assets, further reinforced by rigorous underwriting standards.
Geography & Property Types
A key strength of the BANK5 2024-5YR9 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Retail properties, including anchored, super regional malls, unanchored, and single tenant properties, constitute 35.5% of the total balance, while mixed use properties account for 21.4% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Houston, and Philadelphia further mitigates risk by reducing exposure to regional economic downturns.
About CRED iQ
CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.
With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.
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