KBRA Affirms All Ratings for UBS 2012-C1
2 Oct 2026 | New York
KBRA affirms all of its outstanding ratings for UBS 2012-C1, a $71.9 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's remaining loan, Poughkeepsie Galleria. KBRA's estimated loss for the loan is higher than at our last ratings changes in October 2021; however, the change is not meaningful enough to warrant a ratings adjustment. The details of the loan are outlined below.
Poughkeepsie Galleria ($74.8 million, 100.0%, K-LOC, Specially Serviced, Current)
- The loan is collateralized by a 691,325 sf portion of a 1.2 million sf super-regional mall located in Poughkeepsie, New York. Mall anchors Dick’s Sporting Goods, Macy’s, and Target, of which only Dick’s Sporting Goods is loan collateral. Former anchor tenants Sears (non-collateral) and JCPenney (collateral) closed their stores in 2020. The loan sponsor is The Pyramid Companies
- The loan transferred to the special servicer in May 2026 due to the borrower’s default under the terms of the Reinstatement, Modification and Extension Agreement. The borrower has since submitted a loan modification proposal, which is currently under consideration as the special servicer evaluates its options with respect to enforcement of the loan documents. The loan was previously modified in July 2023, extending the maturity date to January 2025, with two one-year extension options thereafter, and reducing the cash interest rate to 3.30575%, with PIK interest based on a 3.30575% rate. As of the September 2026 remittance period, the loan has $7.8 million of cumulative non-recoverable interest allocated to the trust.
- The servicer reported an occupancy and DSC of 70.0% and 0.79x for the YTD period ended June 2026. An appraisal dated March 2023 valued the asset at $68.0 million ($98 per sf), which is 71.3% below the $237.0 million ($343 per sf) value at issuance. In September 2023, $2.9 million in net interest shortfalls was added to the loan’s principal balance, resulting in a current trust loan balance of $74.8 million and a total outstanding loan balance of $136.0 million. A $61.2 million pari passu piece was securitized in the UBSC 2011-C1 transaction, which is not rated by KBRA.
- KBRA's analysis resulted in an estimated loss of $145.7 million (107.2% estimated loss severity) on a whole loan balance of $136.0 million, of which $80.2 million of the estimated loss is allocated to this trust. The loss is based on a KBRA liquidation value of $37.1 million ($54 per sf) and total projected exposure of $182.9 million. The liquidation value is derived from a direct capitalization approach using a KNCF of $5.6 million and a capitalization rate of 15.00%.
Details concerning the rating affirmations are as follows:
- Class E at CC (sf)
- Class F at C (sf)
Ratings 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.