KBRA announces the assignment of preliminary ratings to five classes of CGCMT 2023-PRM3, a CMBS single-borrower securitization.

The collateral for the transaction is a $405.0 million component of a $470.0 million non-recourse, first lien mortgage loan that is expected to be originated by Citi Real Estate Funding Inc. on or about June 28, 2023. The fixed rate loan has a five-year term and requires monthly interest-only payments based on an assumed fixed rate of 6.39%. The loan is secured by the borrower’s fee simple interest in 45 self-storage properties. The properties are branded as Prime Storage facilities and total 3.1 million sf. Overall, 41.0% of the portfolio’s self-storage sf is climate-controlled. The properties are located in 23 different MSAs across 15 states, with two state exposures each representing more than 10.0% of the pool balance: New York (31.1%) and Georgia (18.8%). The assets were built between 1945 and 2017 and are, on average, approximately 26 years old.

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Related Publications

• U.S. CMBS Single Borrower & Large Loan Rating Methodology
• U.S. CMBS Property Evaluation Methodology

• Methodology for Rating Interest-Only Certificates in CMBS Transactions

• 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.

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