KBRA assigns ratings to BX 2026-VLT10 data center CMBS deal in Ohio

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KBRA rates Ohio data center CMBS

Highlights

KBRA assigns ratings to six classes of BX 2026-VLT10, a CMBS backed by a 10-year interest-only, 20-year maturity, non-recourse mortgage loan.
The $1.17 billion KBRA asset value is 27.2% below the appraiser’s figure, while KBRA net cash flow of $84.5 million is 18.9% below the issuer's.
The New Albany, Ohio data center is 100% leased to a single hyperscale tenant under a 20-year lease expiring July 2045, supporting a 108.4% KBRA LTV ratio.

Transaction structure and rating basis

As reported by KBRA, the agency assigns ratings to six classes of BX 2026-VLT10, a CMBS single-borrower securitization backed by a non-recourse mortgage loan. The fixed-rate loan is structured with a 10-year Anticipated Repayment Date and a 20-year final maturity, with monthly interest-only payments required during the first 10 years.

If the loan is not repaid by the ARD, a cash sweep period is triggered for the rest of the term. Under that structure, excess cash flow remaining after payment of the initial interest rate is used to pay down the certificates sequentially, first through the related interest-bearing components, then ARD additional interest, and then the component HRR.

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. The agency also applies its Global Structured Finance Counterparty Methodology to assess counterparty risk in the transaction.

Ohio data center collateral and valuation metrics

The loan is secured by the borrowers' fee simple interests in a purpose-built data center in New Albany, Ohio, about 18 miles northeast of the Columbus central business district. The property has about 432,824 square feet of gross building area, including 258,773 square feet of data hall space, and provides 66 megawatts of capacity.

KBRA describes the asset as having N+1 UPS redundancy and a designated Power Usage Effectiveness of less than 1.5. The property is 100% leased to a single hyperscale tenant that the agency classifies as a high quality credit worthy tenant, under a 20-year lease expiring in July 2045.

The agency's analysis produces a KBRA net cash flow of about $84.5 million, 18.9% below the issuer's net cash flow, and a KBRA value of about $1.17 billion, 27.2% below the appraiser's as-is valuation. That results in an in-trust KBRA loan-to-value ratio of 108.4%, with the review also incorporating engineering, environmental and appraisal reports, a site inspection, and legal documentation.

Our earlier coverage of PMT Loan Trust 2026-INV6 outlined KBRA’s ratings on a prime RMBS transaction backed by 1,123 fixed-rate mortgages tied mainly to investment properties and second homes. We noted key collateral metrics such as the weighted average original LTV and borrower credit scores, along with KBRA’s use of loan-level analysis (REALM), cash flow modeling, and legal/documentation review in forming its ratings.

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