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KBRA Affirms All Ratings for MSC 2021-230P

19 Aug 2025   |   New York

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KBRA affirms all ratings for MSC 2021-230P, a CMBS SASB transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a decline in performance since KBRA’s last ratings change in August 2024. However, the magnitude of the change in KBRA value and KLTV does not warrant rating adjustments at this time.

The transaction collateral is a non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in a 34-story, 1.4 million sf, Class-A LEED Gold Certified office building. The property, known as the Helmsley Building, is located at 230 Park Avenue between East 45th and East 46th Streets in the Grand Central submarket of New York City’s Manhattan borough. The loan had an initial maturity date of December 9, 2023, and it was not extended. The loan’s sponsors are affiliates of RXR Realty, LLC.

The loan transferred to the special servicer on October 19, 2023, for imminent maturity default and the borrower subsequently defaulted on the January 2024 payment. According to the August 2025 reporting, the floating rate loan has an outstanding balance of $670.0 million ($481 per sf) and the mortgage loan status is performing matured balloon. The loan has $26.7 million in outstanding advances for taxes and insurance, but the prior outstanding P&I advances have been repaid. According to the servicer, the special servicer is engaged in discussions with both the senior mezzanine lender and the borrower, while simultaneously pursuing foreclosure through a dual-track process.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. According to the rent roll, two former top 10 tenants, Voya Financial (previously 10.5% of base rent) and Clarion Partners (5.2%), vacated at lease expiration in 2025. As a result, the property is currently operating at an occupancy level that is lower than recent property history. As a result, KBRA performed a stabilized analysis of KNCF and KBRA value. The analysis produced a KNCF of $44.1 million and a KBRA adjusted value of $489.1 million ($351 per sf). The current KLTV is 137.0%, a change from 131.3% at last review and 107.8% at issuance. The change in KLTV from issuance is primarily due to an increase in our capitalization rate (8.00% versus 7.25% at securitization) and, most recently, additional deductions from value to account for lease rollover costs through 2026. An appraisal dated October 2024 valued the asset at $770.0 million ($553 per sf), a 36.7% decrease from $1.22 billion ($876 per sf) at securitization. KBRA maintains the loan’s K-LOC status and KPO of Underperform due to the decline in value since issuance and the loan’s foreclosure status with the special servicer.

To access ratings and relevant documents, click here.

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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.

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