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KBRA Downgrades Five Ratings and Affirms All Other Ratings for CGCMT 2015-GC29

10 Mar 2026   |   New York

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KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of CGCMT 2015-GC29. The CMBS conduit transaction’s original balance of $1.1 billion and loan count of 86 have currently factored down to the $240.3 million (21.5% of original balance) and four loans, respectively.

The rating actions are based on, among other factors, KBRA’s identification of KBRA Loans of Concern (K-LOC) which amount to 100% of the outstanding collateral; its estimated probability of default-adjusted losses of $103.7 million (if realized, would impact Class D and below) and related recoveries; historical accumulated losses of $3.3 million; the current interest shortfalls of $0.5 million which impact Class H; and the possibility of shortfalls rising higher in the capital structure in a sustained manner while the servicer resolves the transaction’s specially serviced assets.

As of the February 2026 remittance period, the four K-LOCs are all specially serviced, of which one is performing matured (52.0%), one is current with a modification (21.8%), one is in foreclosure (18.6%), and one is nonperforming matured (7.6%). The details of the assets are outlined below.

Selig Office Portfolio ($125.0 million, 52.0%, K-LOC, Specially Serviced, Performing Matured Balloon)

  • The loan is collateralized by nine office properties in Seattle, Washington totaling 1.6 million sf. The properties range in size from 35,432 sf to 447,792 sf and seven were developed by an affiliate of the sponsor, Martin Selig Real Estate, between 1971 and 1986.
  • The loan was transferred to the special servicer in November 2024 because the borrower indicated it would not be able to pay off or refinance the loan by the April 2025 maturity. A custodial receiver was appointed and a forbearance was executed through January 6, 2026. The borrower is in discussion with the special servicer for a potential extension or modification.
  • According to the November 2025 rent roll, the portfolio was 58.2% leased, down from 67.5% at last review and down from 92.4% at issuance. Lease rollover through YE 2026, inclusive of MTM leases, represent 17.9% of total base rent. The servicer-reported DSC is 1.57x (YTD September 2025). An appraisal report dated August 2025 indicates a valuation of $341.2 million ($210 per sf), which is 37.3% below the $544.5 million ($334 per sf) value at issuance. As a result, an ARA of $20.1 million was assigned to the loan in October 2025.
  • KBRA's analysis resulted in an estimated loss of $168.9 million (44.6% estimated loss severity) on a whole loan balance of $379.1 million. The loss is based on a KBRA liquidation value of $212.2 million ($130 per sf) and projected total exposure of $381.1 million. The value is derived from a direct capitalization approach using a KNCF of $19.9 million and a blended capitalization rate of 9.38%.

Parkchester Commercial ($52.4 million, 21.8%, K-LOC, Specially Serviced, Current)

  • The loan is collateralized by a 541,232 sf, mixed-use retail/office property with three parking garages. The asset is situated in the Parkchester South condominium complex within the Parkchester neighborhood of the Bronx, New York, approximately 13 miles northeast of the New York City CBD. The subject collateral consists of retail/commercial condominium units that contain multi-level retail space anchored by Macy’s and Marshall’s, office/professional space, parking facilities and storage.
  • According to the November 2025 rent roll, the property was 69.3% leased, compared to 78.1% at last review and 93.2% at issuance. Lease rollover is minimal through 2027. The loan transferred to the special servicer in March 2025 for maturity default. A modification closed in November 2025; however, the terms of the modification have not been disclosed. As of the February 2026 remittance, the loan is current. The servicer-reported DSC is 0.24x (YTD September 2025). An appraisal report dated May 2025 indicates a valuation of $71.0 million ($131 per sf), which is 36.6% below the $112.0 million ($206 per sf) value at issuance.
  • KBRA's analysis resulted in an estimated loss of $18.7 million (35.8% estimated loss severity) on a loan balance of $52.4 million. The loss is based on a KBRA liquidation value of $35.9 million ($66 per sf) and projected total exposure of $54.7 million. The value is derived from a direct capitalization approach using a stabilized KNCF of $3.2 million and a capitalization rate of 8.75%, and an adjustment to account for TI/LC costs and income lost during the stabilization period.

170 Broadway ($44.7 million, 18.6%, K-LOC, Specially Serviced, Foreclosure)

  • The loan is collateralized by a mixed-use retail and hotel property located at the corner of Broadway and Maiden Lane in the Downtown/Financial District of New York City’s borough of Manhattan. The property is comprised of two condominium units, one of which serves as collateral for the subject loan. The collateral portion of the property includes a 16,134 sf retail space that is 100% leased to The Gap, pursuant to a NNN lease that expires in February 2030, five years after the maturity of the subject loan.
  • The loan transferred to the special servicer in December 2024 due to imminent maturity default. Trigild was appointed as the receiver in October 2025. The tenant continues to pay as agreed and as of February 2026 the loan is current. The servicer-reported DSC is 1.32x (YTD September 2025). An appraisal report dated October 2025 indicates a valuation of $40.0 million ($2,479 per sf), which is 60.0% below the $100.0 million ($6,198 per sf) value at issuance. As a result, an ARA of $17.7 million was assigned to the loan in February 2026.
  • KBRA's analysis resulted in an estimated loss of $20.9 million (46.9% estimated loss severity) on a whole loan balance of $62.5 million and a projected total exposure of $65.0 million. The loss is based on a KBRA liquidation value of $35.6 million ($2,209 per sf). The value is derived from a direct capitalization approach using a KNCF of $3.4 million and a capitalization rate of 9.5%.

400 Plaza Drive ($18.2 million, 7.6%, K-LOC, Specially Serviced, Nonperforming Matured Balloon)

  • The loan is collateralized by a four-story, 258,459 sf, Class-B office building located in Secaucus, New Jersey, approximately seven miles northeast of Midtown Manhattan.
  • The loan transferred to the special servicer in January 2024 and a receiver was appointed in May 2024. According to the special servicer, an offer to purchase the property has been approved and the purchase and sale agreement is being finalized.
  • As of the September 2025 rent roll, the property is 25.5% leased, compared to 49.5% at last review and 79.6% at closing. Given the subject property’s current level of operations, KBRA performed a stabilized analysis to derive both property value and KLTV. The subject’s stabilized analysis assumes that the property’s current occupancy will increase to 70.0%, which is consistent with the REIS submarket occupancy plus additional credit loss due to upcoming tenant rollover (48.2% of base rent in 2026).
  • The servicer-reported DSC is 0.06x (FY 2025). An appraisal report dated February 2025 indicates a valuation of $15.5 million ($60 per sf), which is 48.3% below the $30 million ($60 per sf) value at issuance. As a result, an ARA of $3.4 million was assigned to the loan in June 2025, resulting in a cumulative ASER of $37,452.
  • KBRA's analysis resulted in an estimated loss of $8.3 million (45.6% estimated loss severity) on a loan balance of $18.2 million. The loss is based on a KBRA liquidation value of $11.3 million ($44 per sf). The value is based on an income capitalization approach, using a stabilized KNCF of $1.5 million and a capitalization rate of 9.50%, adjusted for income lost during the stabilization period.

Details concerning the class with a rating change are as follows:

  • Class C to BBB (sf) from A- (sf)
  • Class PEZ to BBB (sf) from A- (sf)
  • Class D to CCC (sf) from B (sf)
  • Class E to CC (sf) from CCC (sf)
  • Class F to C (sf) from CC (sf)

KBRA affirms the following ratings:

  • Class B at AA (sf)
  • Class G at C (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.

Related Publication

Methodologies

Disclosures

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: 1013705