KBRA announces the assignment of preliminary ratings to six classes of DATA 2023-CNTR, a CMBS single-borrower securitization.

The collateral for the transaction is a $450.0 million non-recourse, first lien mortgage loan that is expected to be co-originated by Barclays Capital Real Estate Inc. (40.0%), Morgan Stanley Bank, N.A. (30.0%) and Citi Real Estate Funding Inc. (30.0%) on or about July 14, 2023. The fixed rate loan is expected to have a 10-year term and require monthly interest-only payments based on an assumed fixed rate of 5.75%. The loan is secured by a two-building data center complex containing a gross building area of 790,339 sf with 67.4 megawatts of rentable power located in Elk Grove Village, Illinois, approximately 23 miles northwest of the Chicago CBD. As of June 2023, the center was 86.7% leased by sf to 23 tenants.

The results of our analysis yielded a KBRA net cash flow (KNCF) for the property of approximately $48.6 million, which is 19.9% below the issuer’s NCF, and a KBRA value of approximately $555.8 million, which is 38.7% below the appraiser’s as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 81.0%. 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 ratings and relevant documents, click here.

Click here to view the report.

Related Publications

• U.S. CMBS Single Borrower & Large Loan Rating Methodology
• U.S. CMBS Property Evaluation Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology
• Methodology for Rating Interest-Only Certificates in CMBS Transactions

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.

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