BMO 2026-5C16 Mortgage Trust Announces Servicing Shift for Three Loans

What Happened

• BMO 2026-5C16 Mortgage Trust filed an Item 1.01 8‑K reporting that on August 26, 2026 it issued its Series 2026-5C16 commercial mortgage certificates under a Pooling and Servicing Agreement (PSA). Three whole loans—Holiday Inn Hotel Chelsea, Fairfield Times Square, and HP Plaza (the “Servicing Shift Whole Loans”)—were initially required to be serviced under that PSA.
• On August 28, 2026 the related Servicing Shift Lead Notes for those loans were contributed to a separate securitization (Benchmark 2026‑V23 Mortgage Trust). As a result, servicing and administration of the three loans are required to transfer to the Benchmark 2026‑V23 Pooling and Servicing Agreement (PSA dated August 1, 2026). The Benchmark 2026‑V23 PSA (filed as Exhibit 4.1) names Deutsche Mortgage & Asset Receiving Corporation as depositor, Midland Loan Services (PNC) as master servicer, K‑Star Asset Management LLC as special servicer, Computershare Trust Company, N.A. as trustee/certificate administrator, and Park Bridge Lender Services LLC as operating advisor.

Key Details

• Dates: Closing of BMO 2026‑5C16 certificates — August 26, 2026; contribution to Benchmark 2026‑V23 securitization — August 28, 2026; Benchmark PSA dated August 1, 2026.
• Special servicing fee for a Servicing Shift Whole Loan when specially serviced: 0.25% per annum, with a minimum monthly special servicing fee of $3,500.
• Workout fee on collections during a loan workout: 1.0% of each collection (excludes late/default interest), capped at $1,000,000 and with a $25,000 minimum per workout.
• Liquidation fee on proceeds from liquidation or REO: 1.0%, capped at $1,000,000 and with a $25,000 minimum.
• Property inspections: at least annually for allocated loan amounts ≥ $2,000,000 and at least every 24 months for amounts < $2,000,000 (inspections to commence in 2027).

Why It Matters

• The filing documents a formal transfer of servicing responsibility for three sizable loans from the BMO 2026‑5C16 structure to the Benchmark 2026‑V23 structure. For investors, that means a different servicing and special‑servicer team will administer those loans and collect associated servicing and workout fees.
• The Benchmark PSA’s fees and inspection requirements (detailed above) may affect how workouts, liquidations, and ongoing asset oversight are handled — relevant to cash flow timing and recovery processes for the loans involved. The Benchmark PSA is attached as an exhibit for investors who want to review the full servicing terms.