KBRA assigns ratings to CONE 2026-DFW3 CMBS deal backed by Texas data center loan

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KBRA rates Texas data center CMBS

Highlights

KBRA assigns ratings to seven classes of CONE 2026-DFW3 CMBS deal secured by two Texas data centers and one land parcel totaling 472,099 square feet.
The portfolio is 99.8% leased to 35 tenants as of December 2025, offering 76.5 megawatts capacity and reflecting strong digital infrastructure demand.
KBRA's net cash flow estimate is $88.6 million (9.3% below issuer), with a KBRA value of $1.09 billion (30.5% below appraisal), and a 96.1% loan-to-value ratio.

Transaction structure and asset profile

As reported by Kroll Bond Rating Agency, the ratings cover seven classes of CONE 2026-DFW3, a CMBS single-borrower securitization tied to a fixed-rate, non-recourse loan with a five-year term and monthly interest-only payments.

The collateral consists of the borrowers’ fee simple interests in two purpose-built data center assets and one excess land parcel about 30 miles north of the Dallas central business district. The portfolio totals about 472,099 square feet of gross building area, including 190,091 square feet of raised floor area, and provides 76.5 megawatts of capacity.

As of December 2025, the portfolio is 99.8% leased to 35 tenants, indicating limited vacancy across the assets backing the transaction. The concentration in data center real estate also places the deal within a property segment tied to digital infrastructure demand.

Cash flow analysis and market significance

KBRA says its review includes analysis under its North American CMBS Property Evaluation Methodology and its North American CMBS Single Borrower & Large Loan Rating Methodology, along with its Global Structured Finance Counterparty Methodology for counterparty risk assessment.

The agency’s analysis produces a KBRA net cash flow of about $88.6 million, 9.3% below the issuer’s net cash flow figure. It also assigns a KBRA value of about $1.09 billion, which is 30.5% below the appraiser’s as-is valuation, resulting in an in-trust KBRA loan-to-value ratio of 96.1%.

KBRA adds that it reviews third-party engineering, environmental and appraisal reports, as well as site inspection findings and legal documentation. For the commercial mortgage-backed securities market, the deal highlights continued use of data center assets as collateral for large-scale structured finance transactions in Texas.

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