Press Release|CMBS
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KBRA Assigns Preliminary Ratings to CHI 2026-FRKLN

25 Aug 2026   |   New York

Contacts

KBRA announces the assignment of preliminary ratings to seven classes of CHI 2026-FRKLN, a CMBS single-borrower securitization. The collateral for the transaction is a $340.0 million floating rate, interest only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and will require monthly interest-only payments. The loan will be secured by the borrower’s fee simple interest in The Franklin, a Class A, LEED Gold certified office complex comprised of two towers and approximately 2.5 million sf located in the West Loop submarket of Chicago. The 60-story tower at 227 West Monroe Street was built in 1989 and the 35-story tower at 222 West Adams Street was built in 1992. The property was acquired by the sponsor in 2004 and as of August 2026, the property was 79.1% leased to 93 unique tenants. The five largest tenants by base rent include The Options Clearing Corp. (9.3% of total base rent), RW Baird (9.3%), Amazon Web Services (9.1%), Guggenheim (6.8%), and Trade Desk (4.0%). Together, these top five tenants account for 38.5% of total base rent and 30.5% of the total 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.

The results of our analysis yielded a KBRA net cash flow (KNCF) for the subject of approximately $39.5 million, which is 12.9% below the issuer’s NCF, and a KBRA value of approximately $405.4 million, which is 29.2% below the appraiser’s prospective market value at loan closing with a funded reserve account (including Databricks). The resulting in-trust KBRA Loan to Value (KLTV) is 83.9%. 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

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.

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