Morgan Stanley Bank of America Merrill Lynch Trust 2025-C35 Annual Report - How They Did This Year

Hey there! Thinking about Morgan Stanley Bank of America Merrill Lynch Trust 2025-C35? Let's break down their past year in simple terms. We'll chat over coffee, helping you understand how they're doing. This will help you see if it fits your investments.

First, know this isn't a typical company selling products or services. Morgan Stanley Bank of America Merrill Lynch Trust 2025-C35 is a trust. Think of it as a special fund. It holds many commercial mortgage loans, a "pool" of them. When you invest, you invest in the income from these real estate loans. This income mainly comes from regular principal and interest payments on the properties. This report covers their activities for the fiscal year ending December 31, 2025.

The trust bought these loans through various loan purchase agreements. Sellers included Bank of America, Argentic Real Estate Finance 2 LLC, Morgan Stanley Mortgage Capital Holdings LLC, Citi Real Estate Funding Inc., and Starwood Mortgage Capital LLC. This happened around July 2025, during the trust's setup. The trust officially began on July 24, 2025. It issued Commercial Mortgage Pass-Through Certificates, Series 2025-C35. Detailed documents, like "Pooling and Servicing Agreements" and "Trust and Servicing Agreements," explain how to manage these loans. They cover how payments are distributed, who services the loans, and what happens in a default.

So, what kind of loans does this trust hold? It's a mix of commercial properties. The trust holds many commercial mortgage loans. These loans are secured by various properties that generate income. Here are some of the biggest loans. These figures are from the trust's start date, July 1, 2025. This "cut-off date" is usually the last day of the month before certificates are issued:

• BioMed MIT Portfolio Mortgage Loan: This is a big one. It made up about 9.95% of the trust's total initial loan amount. It's part of a larger loan. This larger loan includes other equal-footing loans. It also has "subordinate companion loans." These get paid after others if problems arise. This structure helps finance larger properties or portfolios. A single trust might not handle them alone.
• Marriott World Headquarters Mortgage Loan: This loan was about 8.8% of the trust's initial total value. Like many others, it's one piece of a bigger loan. Other investors share this loan, often through other CMBS trusts.
• 32 Old Slip - Leased Fee Mortgage Loan: This loan made up about 6.0% of the initial total value. This loan is secured by the borrower's interest in the land. The land is leased to a tenant who owns the building.
• Honolulu FBI Office Mortgage Loan: This loan was about 4.6% of the initial total value.
• MIC Parking Portfolio Mortgage Loan: This loan was about 3.9% of the initial total value.
• Washington Square Mortgage Loan: This loan was about 3.5% of the initial total value.
• Greene Town Center Mortgage Loan: This loan was about 2.1% of the initial total value.
• Discovery Business Center Mortgage Loan: This loan was about 1.8% of the initial total value.
• Ansonia Commercial Condominium Mortgage Loan: This smaller loan was about 0.7% of the initial total value.

You'll notice a common theme. Many of these are "loan combinations." This trust owns a piece of a larger mortgage loan. It shares these with other trusts or entities. This means they share the risk and payments. It also allows turning very large commercial real estate loans into securities. These loans would be too big for a single trust. "Co-Lender Agreements" or "Agreements Between Note Holders" detail how these loans are split. They also explain how parties manage them. These agreements highlight the shared structure. They outline each noteholder's rights and duties.

Who's Managing These Loans? (The Servicers)

Specialized companies called "servicers" keep these loans running smoothly. Think of them as managers for different parts of a big apartment complex. Each major loan in the trust has its own servicers. Their roles are clear in the Pooling and Servicing Agreements. These agreements explain how to collect payments. They also cover property management and default procedures. Here's a breakdown of key players and their roles:

• Midland Loan Services is the main "master servicer" for many loans. They collect payments, send funds to the trustee, and handle general administration. They also directly manage some bigger loans as a "primary servicer." These include Marriott World Headquarters, Honolulu FBI Office, MIC Parking Portfolio, Greene Town Center, and Discovery Business Center loans. Primary servicers are the first contact for borrowers.
• Argentic Services Company LP and Rialto Capital Advisors, LLC are "special servicers." They handle different sets of loans. Their job is to step in if a loan has problems. This happens if a borrower can't pay, or if a property needs foreclosure or management during default. Argentic handles loans like MIC Parking Portfolio, Honolulu FBI Office, and Greene Town Center. Rialto steps in for loans like 32 Old Slip, Washington Square, and Discovery Business Center. Special servicers can modify loans or sell properties. This helps the trust recover the most money.
• CWCapital Asset Management LLC is the special servicer for the Marriott World Headquarters Mortgage Loan.
• KeyBank National Association is both the primary and special servicer for the BioMed MIT Portfolio Mortgage Loan. This means one company handles all servicing for this important asset.
• Trimont LLC is a "primary servicer" for several loans.

Understanding these details about the trust's structure, its key loans, and the servicers involved can help you get a clearer picture of this investment opportunity.