Press Release|CMBS

KBRA Downgrades Seven Ratings, Affirms One Rating, and Withdraws Three Ratings for GSMS 2015-GC30

12 Sep 2025 | New York

KBRA downgrades the ratings of seven classes of certificates and affirms one rating for GSMS 2015-GC30, a $268.4 million CMBS conduit transaction. Simultaneously, KBRA removes the ratings of seven classes of certificates from Watch Downgrade (DN), where they were placed on June 18, 2025. The rating actions follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's nine remaining assets, all of which are identified as K-LOCs. Of these, seven (93.7% of the pool balance) are specially serviced, including four assets (68.7%) which are non-performing matured, one (16.1%) that is REO, and one (6.7%) that is in foreclosure. The details of all remaining assets are outlined below.

Contemporaneous to the affirmations and downgrades of the ratings of the seven outstanding classes, KBRA subsequently withdraws the ratings of three classes of interest-only (IO) certificates in accordance with KBRA’s Methodology for Rating Interest-Only Certificates, as there are fewer than 10 loans remaining in the pool.

Selig Office Portfolio (largest, 45.5%, K-LOC, Specially Serviced)

The loan is collateralized by nine office properties in Seattle, Washington totaling 1.6 million sf. The properties range in size from 35,432 sf to 447,792 sf. Seven properties were developed by an affiliate of the sponsor, Martin Selig Real Estate, between 1971 and 1986.
KBRA identified the loan as a K-LOC and maintains its KPO of Underperform based on its non-performing matured status with the special servicer, and a continuing decline in collateral occupancy since last review. The loan was transferred to the special servicer in November 2024 as the borrower indicated they would not be able to pay off or refinance the loan. The borrower and special servicer are negotiating a potential extension or modification. According to the October 2024 rent roll, the portfolio was 67.5% leased, down from 77.7% at last review and down from 92.4% at issuance. Furthermore, lease rollover through YE 2026, inclusive of MTM leases, represents 40.4% of total base rent across 108 leases. The borrower failed to pay off the loan at its scheduled April 2025 maturity date and subsequently received two 90-day forbearances, through the October 2025 payment. Negotiations regarding a potential loan extension are ongoing.
The servicer reported occupancies and DSCs are: 65.0% / 1.52x (YTD March 2025); 65.0% / 1.77x (FY 2024); at closing these were 97.8% / 2.06x. KBRA's analysis resulted in an estimated loss of $131.9 million (34.7% estimated loss severity) on a whole loan balance of $379.1 million. The loss is based on a KBRA liquidation value of $248.3 million ($153 per sf). The value is derived from a direct capitalization approach using a KNCF of $23.3 million and a blended capitalization rate of 9.38%.

Bank of America Plaza (2nd largest, 16.1%, K-LOC, REO)

The asset comprises a 30-story, 742,244 sf, Class-A office building located in downtown St. Louis, Missouri.
KBRA maintains the asset’s K-LOC designation and KPO of Underperform due to its REO status. The loan was transferred to the special servicer in May 2023 due to imminent monetary default as a result of a decline in occupancy and cash flow. According to the March 2025 rent roll, collateral occupancy has fallen to 48.1% from 56.8% at last review and 80.9% at closing. The decline is primarily attributable to Bank of America (largest, 36.8% of base rent, 22.5% of collateral sf) downsizing their footprint at their June 2023 lease expiration; however, the tenant extended its lease for a 170,630 sf portion of their space through June 2028. According to REIS, downtown St. Louis office submarket conditions have drastically deteriorated in recent years. Comparable Class-A office properties within the submarket have experienced an average vacancy of 38.8% and rent of $18.17 per sf, as of February 2025. According to the special servicer, the asset became REO during the August 2025 remittance period when the trust emerged as the highest bidder at the foreclosure auction in July. According to the special servicer, the property is not currently listed for sale.
The servicer reported occupancies and DSCs are: 49.0% / -0.27x (YTD March 2025); 50.8% / 1.22x (YTD September 2024); at closing these were 89.0% and 1.45x. An updated appraisal dated December 2024 valued the asset at $8.4 million ($11 per sf), which represents an 88.4% decline from its $72.5 million value at issuance ($98 per sf). The servicer deemed the loan non-recoverable in April 2024. As of April 2025, the asset carries an ARA of $36.6 million; cumulative non-recoverable interest is $859,926 and cumulative advances total $232,955. KBRA’s analysis resulted in an estimated loss of $37.4 million (82.8% estimated loss severity) on the whole loan balance of $43.5 million. The loss is based on a KBRA liquidation value of $7.7 million ($10 per sf), which is derived from a direct capitalization approach using a stabilized KNCF of $1.3 million and a capitalization rate of 11.50%, as well as a deduction of $3.5 million to account for lease up costs.

311 California Street (3rd largest, 9.2%, K-LOC, Specially Serviced)

The loan is collateralized by an 89,196 sf, Class-B, mid-rise office building located in the San Francisco CBD.
KBRA maintains the loan’s K-LOC designation and KPO of Underperform, primarily due to its non-performing matured status with the status with the special servicer after failing to pay off at its scheduled April 2025 maturity date. According to the February 2025 rent roll, the asset was 79.8% leased, compared to 75.2% at last review and 85.7% at closing. The FY 2024 servicer NCF was $1.8 million, which represents a 4.1% decline from the issuer's underwritten expectations at securitization. As of August 2025, discussions regarding a loan extension were ongoing.
The servicer reported occupancies and DSCs are: 78.5% / 1.27x (TTM March 2025); 78.5% / 1.84x (FY 2024); at closing these were 85.7% / 1.92x. At this time, KBRA does not estimate a loss on this $25.0 million loan.

Hilton Scotts Valley (4th largest, 9.0%, K-LOC, Specially Serviced)

The loan is collateralized by a 174-key full-service hotel in the Scotts Valley submarket of Santa Cruz, California. The property was built in 1999 and renovated from 2011-2014. The hotel has 7,900 sf of meeting space, a restaurant, an outdoor pool, and a fitness center.
KBRA maintains the loan’s K-LOC designation and KPO of Underperform due to its non-performing matured status with the special servicer after failing to pay off at its scheduled March 2025 maturity date. The annualized TTM ended March 2025 servicer NCF was $1.7 million representing a 36.7% decline from $2.8 million underwritten by the issuer at securitization. The decline can be attributed to a substantial increase in administrative and sales and marketing expenses per the most recent servicer financials. According to the June 2025 STR Report, the hotel reported an occupancy, ADR, and RevPAR of 74.1%, $171 and $127, respectively, which compares to 79.7%, $155, and $123 at issuance. For the TTM ended June 2025, the hotel underperformed its competitive set, as evidenced by its RevPAR penetration rate of 64.7%, which compares to 80.1% at last review and 90.2% at closing.
The servicer reported occupancies and DSCs are: 74.0% / 1.04x (TTM March 2025); 75.0% / 0.92x (FY 2024); at closing these were 80.7% / 1.65x. KBRA's analysis resulted in an estimated loss of $5.8 million (24.9% estimated loss severity) on the loan balance of $21.7 million. The loss is based on a KBRA liquidation value of $17.5 million ($100,575 per key), which considers a distressed non-stabilized disposition of the asset.

170 Broadway (5th largest, 6.7%, K-LOC, Foreclosure)

The loan is collateralized by a mixed-use retail and hotel property located at the corner of Broadway and Maiden Lane in the Downtown/Financial District of Manhattan. The property comprises two condominium units, one of which serves as collateral for the subject loan. The collateral portion of the property is a 16,134 sf retail space that is 100% leased to The Gap, pursuant to a NNN lease that expires in February 2030, five years after the maturity of the subject loan.
KBRA maintains the loan's K-LOC designation and KPO of Underperform based on the asset’s foreclosure status with the special servicer. The Gap attempted to terminate its lease in 2020 due to the coronavirus pandemic which caused the borrower to file a lawsuit against the tenant. The loan became delinquent and was transferred to the special servicer in July 2020. Ultimately, a court ruled in favor of the borrower. The Gap paid all past due rent into the lockbox and the loan was returned to the master servicer in December 2021. The loan transferred back to the special servicer in December 2024 due to imminent maturity default. As of the August 2025 remittance period, the lender has filed for foreclosure and appointment of a receiver. The loan was current in payment as of August 2025.
The servicer reported occupancies and DSCs are: 100% / 1.32x (YTD June 2024); 100% / 1.27x (FY 2024); at closing, these were 100% / 1.22x. KBRA's analysis resulted in an estimated loss of $12.5 million (19.7% estimated loss severity) on the whole loan balance of $63.2 million. The loss is based on a KBRA liquidation value of $51.0 million ($3,158 per sf). The value is derived from a direct capitalization approach using a KNCF of $4.1 million and a capitalization rate of 8.00%.

The four remaining assets account for 14.5% of the pool balance:

132-40 Metropolitan Avenue (6th largest, 6.0%, K-LOC, Specially Serviced) is collateralized by a 36,072 sf unanchored retail strip located in Jamaica, New York. KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its non-performing matured status with the special servicer after failing to pay off at its scheduled May 2025 maturity date. According to the December 2024 rent roll, inclusive of leasing updates, the property was 75.8% leased, compared to 100% at last review and closing. The decline in occupancy can be directly attributed to the loss of Walgreens (former largest, 40.0% of base rent, 24.2% of collateral sf) in January 2025. Mitigating some concern, there is no scheduled lease rollover until 2030. Additionally, the borrower is in the process of securing refinancing. At this time, KBRA does not estimate a loss on the loan balance of $16.3 million.
River Drive III (7th largest, 4.3%, K-LOC, Watchlist) is collateralized by a 96,593 sf, Class-A office building located in Elmwood Park, New Jersey, approximately 18 miles northwest of Midtown Manhattan. KBRA identified the loan as a K-LOC and assigned it a KPO of Underperform due to the loan’s performing matured status after failing to pay off at its scheduled May 2025 maturity date. According to the July 2025 rent roll, the asset is fully leased, which compares to 92.4% at issuance. The borrower was granted a two-month forbearance to July 2025 and remains current in payment. At this time, KBRA does not estimate a loss on the loan balance of $11.6 million.
Chadwick & Grayson (8th largest, 2.2%, K-LOC, Specially Serviced) is collateralized by a 105,475 sf suburban office building located in Virginia Beach, Virginia. KBRA identified the loan as a K-LOC and assigned it a KPO of Underperform due to its non-performing matured status after failing to pay off at its scheduled April 2025 maturity date. The FY 2024 servicer NCF was $653,795, which is 3.2% below the issuer's underwritten expectations at securitization. According to the June 2025 rent roll, the asset was 76.3% occupied, compared to 75.0% at issuance. Lease rollover through YE 2026 represents 25.5% of base rent across nine leases. At this time, KBRA does not estimate a loss on the loan balance of $6.0 million.
Shops of Walterboro (9th largest, 2.0%, K-LOC, Watchlist) is collateralized by a 53,000 sf, shadow-anchored shopping center in Walterboro, South Carolina, approximately 50 miles west of Charleston. KBRA identified the loan as a K-LOC and assigned it a KPO of Underperform due to the loan’s performing matured status after failing to pay off at its scheduled May 2025 maturity date. According to the June 2025 rent roll, the asset was 94.0% occupied, compared to 92.5% at issuance. Lease rollover through YE 2026 represents 4.3% of base rent across one lease. The asset is currently being listed for sale at an asking price of $10.3 million ($192 per sf). At this time, KBRA does not estimate a loss on the loan balance of $5.4 million.

Details concerning the rating changes are as follows:

Class B to BBB- (sf) from AA- (sf) DN
Class PEZ to BB- (sf) from A- (sf) DN
Class C to BB- (sf) from A- (sf) DN
Class D to CCC (sf) from B- (sf) DN
Class E to CC (sf) from CCC (sf) DN
Class F to C (sf) from CC (sf) DN
Class X-D to CCC (sf) from B- (sf) DN

Details concerning the affirmed rating is as follows:

Class A-S at AAA (sf)

Details concerning the withdrawn ratings are as follows:

Class X-A to WR (sf) from AAA (sf)
Class X-B to WR (sf) from AAA (sf)
Class X-D to WR (sf) from CCC (sf)

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as the magnitude and extent of interest shortfalls, if any, on the certificates.

To access ratings and relevant documents, click here.

KBRA Downgrades Seven Ratings, Affirms One Rating, and Withdraws Three Ratings for GSMS 2015-GC30

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