KBRA Affirms All Ratings for GRACE 2020-GRCE

KBRA affirms its outstanding ratings for GRACE 2020-GRCE, a $750.0 million CMBS SASB transaction. The affirmations follow a surveillance review of the transaction, which has exhibited stable performance and credit metrics since securitization.

The collateral for the transaction is a $750.0 million portion of a $1.25 billion non-recourse mortgage loan. The whole mortgage loan is represented by 20 pari-passu A notes totaling $883.0 million and four subordinate B notes totaling $367.0 million. The trust collateral includes four of the senior A notes totaling $383.0 million and the four subordinate B notes. The remaining 16 pari-passu A notes ($500.0 million) are not trust collateral.

The loan is secured by the borrower’s fee simple interest in the Grace Building, an office tower located at 1114 Avenue of the Americas in Midtown Manhattan. The asset is a 49-story, Class-A LEED Gold certified office tower containing approximately 1.6 million sf. The building was developed in 1974 and features 1.5 million sf of office space, 30,877 sf of retail space, 15,730 sf of storage space, and a subterranean parking garage containing 188 parking spaces. The fixed rate loan has a ten-year term and requires monthly interest-only payments based on an annualized interest rate of 2.69%.

KBRA analyzed the cash flow for the property utilizing information obtained from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $92.6 million and a KBRA value of $1.4 billion ($881 per sf). The resulting intrust KLTV is 91.2%, compared to 93.1% at last review and 91.6% at securitization. KBRA maintains the KPO of Perform on the loan.

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