KBRA Affirms All Outstanding Ratings for CGCMT 2015-P1
2 Jul 2026 | New York
KBRA affirms all outstanding ratings for CGCMT 2015-P1, a CMBS conduit transaction. The transaction has been reduced to one loan and a balance of $91.1 million from 45 loans and $1.1 billion at securitization. The remaining asset has been identified as a KBRA Loan of Concern (K-LOC). The affirmations are based on KBRA's expected resolution of the remaining loan and our estimated loss of $21.6 million (which, if realized, would impact only class G, reducing it to a factor of 0.61).
As of the June 2026 remittance period, the remaining asset is specially serviced, and is a performing matured balloon as the loan failed to pay off by its May 2026 maturity date; however, the loan remains current. The details of the remaining loan are outlined below:
The Decoration & Design Building ($91.1 million, 100%, Specially Serviced, Performing Matured Balloon)
- The loan is collateralized by a 588,512 sf wholesale design center and showroom located in Midtown Manhattan. The property was developed on a 0.8-acre site in 1963 and was acquired by the sponsor in 1996. The property is subject to a 25-year ground lease that commenced in 2024 and has one 15-year extension option remaining. The loan documents required the borrower to exercise the current 25-year ground lease option. The ground rent reset in 2024 to $5.8 million and is expected to grow at an average annual rate of 3.8% over the next 25 years.
- The occupancy at the property has trended downward since closing, falling below 80.0% in 2021, and since that time, occupancy has failed to recover. Additionally, leases representing 17.9% of total base rent are scheduled to expire through year-end 2026. The loan transferred to the special servicer in April 2026 for imminent maturity default and failed to pay off by its May 2026 maturity date. As of June 2026, the borrower has not reported its intentions to resolve the loan post-maturity.
- The servicer reported an occupancy and DSC of 63.0% and 1.14x for the FY 2025.
- KBRA's analysis resulted in an estimated loss of $35.7 million (23.8% estimated loss severity) on the whole loan balance of $150.2 million, of which $21.6 million of the estimated loss is allocated to this transaction. The estimated loss is based on a KBRA liquidation value of $115.4 million ($196 per sf) and total projected exposure of $151.1 million. As the asset is performing below historical levels, KBRA performed a stabilized analysis to determine KNCF and value. KBRA applied a capitalization rate of 8.75% to the stabilized KNCF of $10.9 million, resulting in a value of $124.1 million ($211 per sf). KBRA adjusted this value downward by $8.7 million to account for TI/LC costs and income lost during the stabilization period, resulting in the adjusted value.
Details concerning the rating affirmations are as follows:
- Class D at BBB- (sf)
- Class E at BB (sf)
- Class F at BB- (sf)
Rating 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.