KBRA Affirms All Ratings for LIFE 2022-BMR2
15 May 2025 | New York
KBRA affirms all of its outstanding ratings for LIFE 2022-BMR2, a $2.88 billion CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight worsening in credit metrics in part due to a decline in occupancy since securitization. However, the magnitude of the change in KBRA value and KLTV does not warrant rating changes at this time.
The transaction collateral is a non-recourse, first lien, floating-rate mortgage loan with an initial two-year term and three one-year extension options. The loan requires interest-only payments based on one-month SOFR plus an initial spread of 1.83%. The borrower has entered into an interest rate cap agreement with a strike rate of 5.50% for the initial loan term . The initial loan term expired on May 9, 2024 According to the master servicer, the borrower has provided notice of its intent to exercise the second one-year extension option.
The loan is secured by the borrowers’ fee simple, leasehold, or leased fee interests in 24 assets:, including 18 properties with a mix of laboratory and office uses (86.6%), four office properties (11.3%), one land parcel (1.8%), and one multifamily development (0.3%). The assets are primarily leased by life sciences tenants that utilize their space for office and/or laboratory use. The portfolio properties collectively encompass over 5.1 million sf. Occupancy has dropped to 75.5% from 94.0% at securitization.
KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $195.9 million and a KBRA value of $2.65 billion ($518 per sf). The resulting KLTV is 108.6%, compared to 104.4% at last review and 101.2% at securitization. KBRA maintains a KPO of Underperform on the loan.
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