KBRA Places Four Ratings for CSMC 2021-ADV on Watch Downgrade

KBRA places four ratings for CSMC 2021-ADV on Watch Downgrade (DN). The Watch placements are based on an increase in interest shortfalls, which as of the April 2026 reporting are affecting all of the transaction’s rated classes. The remittance reported an increase in the Appraisal Reduction Amount (ARA) to $266.4 million from $198.2 million and a $32.7 million Appraisal Subordinated Entitlement Reduction (ASER). Prior to the April reporting, Classes E and below had not received monthly interest distributions since April 2025. Class D had been receiving distributions of about 78.0% to 95.0% of its monthly accrued interest.

The transaction collateral is a non-recourse, first lien mortgage loan secured by the borrower’s fee simple interests in seven suburban office properties. The portfolio currently encompasses 1.9 million sf with four properties in the Atlanta MSA (77.0% of ALA) and three in the Chicago MSA (23.0%). The loan has an outstanding balance of $350.0 million ($187 per sf) as of April 2026.

KBRA downgraded ratings for five classes following a surveillance review of the transaction in August 2025. The downgrades were driven by a decline in collateral performance, weakness in the collateral properties’ submarkets, and interest shortfalls impacting Class D and lower.

The loan originally transferred to the special servicer on March 13, 2023, after the borrower defaulted on the March debt service payment. This came after the loan’s sponsor, Adventus Holdings, LP, a wholly owned subsidiary of Adventus Realty Trust, a Vancouver based Canadian REIT, announced a suspension of its monthly distributions in response to a changing interest rate environment and its impact on the REIT’s variable rate debt.

According to April reporting, the mortgage loan status is non-performing matured balloon, there are currently $12.7 million in outstanding P&I advances and the workout strategy continues to be foreclosure and disposition of the assets. According to the July 2025 servicer commentary, all of the Atlanta area assets are foreclosed, and one asset, TownPark Commons, was liquidated from the collateral in February 2025. The servicer reported occupancy and DSC of 67.6% and 0.53x as of December 2024.

Appraisals dated November 2025 valued the remaining assets at $126.8 million ($57 per sf), a decrease from the November 2024 values of $178.9 million ($95 per sf) and from $359.9 million ($162 per sf) at closing. Portfolio occupancy, according to the November appraisals, decreased to 62.3%. KBRA will continue to monitor the transaction and the underlying loan's performance and will seek to resolve or update the Watch Downgrade status within 90 days.

Details concerning the classes with ratings placed on Watch are as follows:

To access ratings and relevant documents, click here.

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