KBRA Places All Ratings of CGCMT 2021-PRM2 on Watch Developing

KBRA places all ratings of CGCMT 2021-PRM2, a single-borrower transaction, on Watch Developing. The Watch action is due to the borrower’s request for a 60-day loan extension prior to the October 2024 maturity date.

The floating-rate, interest-only loan originally had a two-year term with three one-year extension options. The loan reached its initial maturity in October 2023, but the borrower used its first option and extended the loan to October 2024. The borrower did not repay the loan by the October 9 maturity date and instead requested a 60-day loan extension while it works to refinance the debt. The request is under review, according to the servicer. The loan, which has not transferred to special servicing, is paid current as of October and is listed as a matured performing loan.

The transaction is secured by a $340.0 million first-lien whole mortgage loan backed by a portfolio of 21 self-storage properties (71.8% of the loan balance) and one mixed-use property (28.2%). The self-storage properties operate under the Prime Storage brand. The non-recourse carveout guarantors are Prime Storage Fund II, LP, Prime Storage Fund II (Cayman), LP, Prime Storage Fund II IDF, LP, and Robert Moser. The loan sponsor is Robert Moser, the founder and CEO of Prime Group Holdings LLC, a full-service vertically integrated real estate owner-operator focused on self-storage facilities in North America.

The servicer reported an NOI DSC of 1.02x for the six months ended June 2024 (based on an interest rate of 7.948% and six-month NOI of $14.4 million).

KBRA will continue to monitor the transaction and loan performance and will seek to resolve or update the Watch Developing status within 90 days.

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