KBRA Assigns Preliminary Ratings to BX 2026-VLT10
KBRA announces the assignment of preliminary ratings to six classes of BX 2026-VLT10, a CMBS single-borrower securitization. The collateral for the transaction is a $1.26 billion non-recourse, first-lien mortgage loan. The fixed-rate loan will be structured with a 10-year Anticipated Repayment Date (ARD), and a 20-year final maturity. During the first 10 years, the loan will require monthly interest-only payments. After the ARD, if the loan is not paid off, a cash sweep period will be triggered for the remainder of the loan term whereby all excess cash flow remaining after the payment of the initial interest rate will be used to pay down the certificates sequentially; provided, that, the corresponding interest-bearing components will be paid down first, then the ARD additional interest, and then the component HRR.
The loan will be secured by the borrowers’ fee simple interests in a purpose-built data center asset located in New Albany, Ohio, approximately 18 miles northeast of the Columbus CBD. The collateral contains a gross building area (GBA) of approximately 432,824 sf, of which 258,773 sf is data hall space, and provides 66 megawatts (MW) of capacity. The asset has an N+1 UPS redundancy and a designated Power Usage Effectiveness (PUE) of less than 1.5. The property is 100% leased to a single hyperscale tenant, a high quality credit worthy tenant (HQCWT) as determined by KBRA, who occupies the data center on a 20-year lease that expires in July 2045.
