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KBRA Affirms All Ratings for LSTAR 2017-5

12 Mar 2026   |   New York

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KBRA affirms all outstanding ratings for LSTAR 2017-5, a $466.2 million CRE multi-borrower transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in realized losses since KBRA’s last rating adjustments in March 2025. The realized losses are due to the August 2025 modification of the Charlotte Plaza loan ($40.8 million, 8.8% of the pool balance), which resulted in a $50.0 million principal write-down of the loan’s $120.0 million outstanding balance at the time. A $29.2 million allocation of the write-down from the pari-passu note securitized in the LSTAR 2017-5 transaction was applied to the securitization’s non-rated certificates. Despite the realized losses and KBRA's estimated losses from K-LOCs, ratings adjustments are not warranted at this time.

As of the February 2026 remittance period, there are two specially serviced assets (12.0%), including The Frontier loan (9.5%) that transferred to special servicing on February 17, 2026. KBRA identified six K-LOCs (37.0%), including the specially serviced assets. Of the K-LOCs, four (17.3%) have estimated losses. The K-LOCs are depicted in the table below.

Loss Given Default (000s) Loss Severity 4 Greenwich Financial Center OF $47,410 10.2% N C N Maturity 03/06/2026 - - 5 The Frontier MU $44,173 9.5% Y C N Specially Serviced 03/21/2025 - - 1 Charlotte Plaza OF $40,833 8.8% N C Y Prior SS 07/27/2017 $11,114 27.2% 16 Dowlen Town Center RT $15,090 3.2% N C N DSCR 05/05/2020 $6,209 41.1% 23 West Loop Portfolio (PepperCorn) MU $13,052 2.8% N C N DSCR 03/14/2024 $2,052 15.7% 25 Whitehorse Road OF $11,747 2.5% Y NPM N Specially Serviced 10/05/2022 $9,229 78.6% Total K-LOCs $172,306 37.0% $28,604 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

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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.

Doc ID: 1013906