KBRA Downgrades Two Ratings of CGCMT 2015-GC31 to D (sf) Following Realization of Principal Losses

KBRA downgrades the ratings of the Class F and Class G certificates to D (sf) from C (sf) for CGCMT 2015-GC31, a CMBS conduit transaction, following realized losses allocated to the outstanding balances of the classes. The realized losses were caused by the reimbursement of non-recoverable advances to the servicer for the specially serviced 135 South LaSalle loan (largest, 26.3% of the pool balance). Cumulative realized losses for the transaction as of May 2025 totaled $35.4 million, of which $34.4 million has been advanced by the trust to reimburse the servicer for the 135 South LaSalle loan. To date, there has been one disposition – the August 2018 discounted payoff of the Infinity Corporate Center loan ($5.9 million balance at disposition), which resulted in a realized loss of $1.1 million. The outstanding balance of the Class F certificates was allocated $4.0 million in realized losses (27.1% of the original certificate balance) and the $12.2 million outstanding balance of the Class G certificates was reduced to zero from the realized losses allocated in May 2025.

The 135 South LaSalle loan is collateralized by a 1.3 million sf office building located within the Central Loop submarket of Chicago. The property was formerly the headquarters of LaSalle Bank, which was acquired by Bank of America in 2007. The loan was transferred to the special servicer in December 2021 following the departure of Bank of America, which leased 61.1% of the collateral sf until its lease expiration in July 2021. The loan was determined to be non-recoverable in April 2024. According to the servicer, a potential modification is being negotiated. Following the reimbursement of advances to the servicer in April and May 2025, outstanding principal and interest advances, taxes and insurance advances, other advances, and cumulative accrued advance interest for the 135 South LaSalle loan were reduced to zero.

KBRA’s other ratings of outstanding certificates for the transaction are unchanged at this time. KBRA previously downgraded the ratings of eight classes in the transaction in June 2024 based on KBRA’s estimated losses.

Details concerning the classes with ratings changes are as follows:

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the likelihood of ultimate payment of principal and accrued interest on the rated securities. 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.

For additional details, please see the CGCMT 2015-GC31 Surveillance Report linked below.

To access ratings and relevant documents, click here.

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