KBRA Assigns Ratings to ALA 2025-OANA
13 Jun 2025 | New York
KBRA announces the assignment of ratings to five classes of ALA 2025-OANA, a CMBS single-borrower securitization. The collateral for the transaction is a $2.4 billion floating rate mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrower’s fee simple and leasehold interests in Ala Moana Center, a 2.4 million sf outdoor super-regional mall, as well as two adjacent office buildings known as Ala Moana Building and Ala Moana Pacific Center, which total approximately 360,000 sf combined. The collateral is situated on a 61.2-acre parcel along the Pacific Ocean, and is approximately two miles from the Honolulu CBD, approximately one mile from Waikiki, and approximately seven miles from Honolulu International Airport. As of February 2025, the collateral was 92.7% leased.
KBRA’s analysis of the transaction included a detailed evaluation of the asset’s cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction and its ESG Global Rating Methodology, to the extent deemed applicable.
The results of our analysis yielded a KBRA net cash flow (KNCF) for the property of approximately $195.4 million, which is 5.0% below the issuer’s NCF, and a KBRA value of approximately $2.85 billion, which is 35.1% below the appraiser’s as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 84.9%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.
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