KBRA Downgrades Four Ratings and Affirms All Other Ratings for CSMC 2021-ADV

KBRA downgrades four ratings and affirms all of the other outstanding ratings for CSMC 2021-ADV, a $350 million single borrower transaction. KBRA simultaneously removes the Watch Downgrade (DN) status for Classes A, B, C, and D where they were placed on April 24, 2026 as a result of an increase in interest shortfalls for the transaction, after the April servicer remittance reported an increase in the ARA to $266.4 million and a corresponding ASER of $32.7 million. As of the July 2026 remittance, the ARA remains at $266.4 million, while cumulative ASER has increased to $37.7 million. Due to the magnitude of the current ASER, with the exception of Class A, none of the rated classes of certificates have received monthly interest distributions since April. Class A has been receiving distributions at about 94.0% of its monthly accrued interest.

The downgrades also reflect a continued decline in KNCF and KBRA value. The current in-trust KLTV is 358.1%, compared to 249.3% at last review and 130.5% at securitization. Property appraisals dated November 2025 valued the remaining assets at $126.8 million ($68 per sf), a decrease from the November 2024 values of $178.9 million ($95 per sf) and from $359.9 million ($162 per sf) at closing. With $14.3 million in outstanding P&I advances and total reported exposure of $402.0 million, both KBRA’s value and the appraised values indicate losses could impact all rated certificates.

The transaction collateral is a non-recourse, first lien mortgage loan secured by the borrower’s fee simple interests in seven suburban office properties. The portfolio currently encompasses 1.9 million sf with four properties in the Atlanta MSA (77.0% of ALA) and three in the Chicago MSA (23.0%). According to the December 2025 rent rolls, portfolio occupancy is 61.9%, down from 71.5% at KBRA’s last review and 85.0% at closing. In addition, leases that generate 21.8% of total base rent are scheduled to expire through year end 2027. The most recent servicer-reported occupancy and DSC are 71.0% and 0.53x, respectively, as of YE 2024.

The loan originally transferred to the special servicer on March 13, 2023, after the borrower defaulted on the March debt service payment. This came after the loan’s sponsor, Adventus Holdings, LP, a wholly owned subsidiary of Adventus Realty Trust, a Vancouver based Canadian REIT, announced a suspension of its monthly distributions in response to a changing interest rate environment and its impact on the REIT’s variable rate debt. According to the special servicer, workout strategy continues to be foreclosure and disposition of the assets individually. According to the special servicer commentary, all of the Atlanta area assets are foreclosed, and the Milton Park, Barrett Lakes IV, and Cantera Meadows assets are currently being marketed, but no additional sale price information was provided. TownPark Commons, was liquidated from the collateral in February 2025.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $9.6 million and a KBRA value of $97.7 million ($52 per sf) which considers an as-is distressed liquidation of the property. KBRA maintains the loan's K-LOC status and KPO of Underperform.

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 which will be dependent on the value of the asset and the disposition of the loan. The assessment will consider the expected and actual losses, as well as the magnitude and extent of accrued interest shortfalls on the certificates.

Details concerning the classes with ratings changes are as follows:

To access ratings and relevant documents, click here.

Related Publication

Methodologies