KBRA Assigns Preliminary Ratings to 1345 2025-AOA

NEW YORK--(BUSINESS WIRE)--KBRA announces the assignment of preliminary ratings to five classes of 1345 2025-AOA, a CMBS single-borrower securitization. The collateral for the transaction is a $650.0 million portion of an $850.0 million non-recourse, first lien mortgage loan. The whole loan also includes a $200.0 million future funding companion loan. The floating-rate, interest-only loan has an initial term of two years and allows three one-year extension options. The loan is secured by the borrower’s fee simple and leasehold interest in 1345 Avenue of the Americas, a 50-story, Class-A office tower containing 2.0 million sf. The building is located along Sixth Avenue between West 54th and 55th Streets in the Midtown neighborhood of New York City’s borough of Manhattan. As of June 2025, the property was 92.1% leased to over 25 tenants. The five largest tenants by base rent consist of Paul Weiss (42.6% of base rent), Allianz (12.6%), Intercontinental Exchange (6.3%), Fortress (5.7%), and Global Infrastructure (4.7%). Together, these top five tenants account for 71.9% of base rent and 63.2% of sf.

KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, its Methodology for Rating Interest-Only Certificates in CMBS Transactions, and its ESG Global Rating Methodology, to the extent deemed applicable.

The results of our analysis yielded a KBRA net cash flow (KNCF) for the subject of approximately $80.7 million, which is 24.7% below the issuer’s NCF, and a KBRA value of $1.0 billion, which is 48.3% below the appraiser’s value. The resulting in-trust KBRA Loan to Value (KLTV) is 84.3%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• CMBS: North American CMBS Property Evaluation Methodology
• CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
• CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
• Structured Finance: 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1009543