KBRA Downgrades Two Ratings and Affirms All Other Ratings for MSCI 2015-MS1
28 May 2026 | New York
KBRA downgrades two ratings and affirms all other ratings for MSCI 2015-MS1. The transaction has been reduced to five loans and a balance of $170.9 million from 54 loans and $885.4 million at securitization. Four of the five remaining loans (96.8% of the pool balance) have been identified as KBRA Loans of Concern (K-LOCs). The rating actions are based on KBRA's estimated losses of $42.4 million (which, if realized, would impact Class E and below) and the expected resolution of each of the assets.
As of the May 2026 remittance, three of the five remaining loans (73.4%) are specially serviced. Of the specially serviced loans, two (42.1%) are in foreclosure and one (31.3%) has a non-performing matured balloon status. The Hilton Garden Inn W 54th Street loan ($40.0 million, 23.4%) had its maturity date extended to April 2027 and is current at this time. The Signature Apartments loan ($5.5 million, 3.2%) was structured with a 15-year term maturing in May 2030. The details of the remaining K-LOC loans are outlined below.
300 South Riverside Plaza Fee ($67.0 million, 39.2%, K-LOC, Specially Serviced, Foreclosure)
- The loan is collateralized by the borrower’s fee interest in the air rights associated with the 2.1-acre parcel of land beneath 300 South Riverside Plaza, a 22-story, 1.1 million sf office property in the West Loop submarket of downtown Chicago, Illinois.
- The loan failed to pay off at its March 2025 maturity, resulting in a trigger event. Cash management is in place and a new ARD interest rate is now in effect. With the new interest rate in effect, the ground lease income is insufficient to cover debt service on the loan. Foreclosure was filed in February 2026, and receivership motion was filed in March 2026. The lender is dual tracking foreclosure while discussing workout alternatives with the borrower. According to the September 2025 rent roll, the subject property was 62.5% occupied. The final maturity date is in March 2045.
- KBRA's analysis resulted in an estimated loss $15.4 million on a whole loan balance of $167.0 million (9.2% estimated loss severity), of which $67.0 million is allocated to this trust. The loss is based on a KBRA liquidation value of $155.3 million ($147 per sf) and projected total exposure of $170.7 million. The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.
Waterfront at Port Chester ($53.5 million, 31.3%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)
- The loan is collateralized by a 349,743 sf, anchored retail center located in Port Chester, New York, approximately 33 miles northwest of Midtown Manhattan.
- The loan failed to pay off at its April 2025 maturity date and holds a non-performing matured balloon status with the special servicer. The property has suffered a decline in performance stemming from declining occupancy. Previously, the borrower submitted an unacceptable DPO proposal to the lender. The lender is dual tracking foreclosure with workout discussions.
- The servicer reported an occupancy and DSC of 78.0% and 1.21x for the TTM period ended September 2025.
- An appraisal dated June 2025 valued the property at 80.0 million ($229 per sf), which is 55.1% below the $178 million ($509 per sf) value at issuance. The loan was assigned an ARA of $24.2 million in July 2025, resulting in a cumulative ASER of $501,872. KBRA's analysis resulted in an estimated loss of $58.3 million on a whole loan balance of $133.5 million (65.9% estimated loss severity), of which $53.5 million is allocated to this trust. The loss is based on a KBRA liquidation value of $50.3 million ($144 per sf) and projected total exposure of $138.3 million. The value is derived from a direct capitalization approach using a KNCF of $4.3 million and a capitalization rate 8.50%.
Stony Island Retail Center ($4.9 million, 2.9%, K-LOC, Specially Serviced, Foreclosure)
- The loan is collateralized by a 29,332 sf retail property in Chicago, Illinois.
- The loan failed to pay off at its May 2025 maturity. The subject's former largest tenant, Dollar Tree (55.0% of collateral sf) vacated the subject at its May 2025 lease expiration, dropping physical occupancy to 45.0%. The Lender has filed for foreclosure and appointment of a receiver, and will continue to dual track the proceedings until a resolution is reached.
- The servicer reported an occupancy and DSC of 45.0% and 1.69x for the YTD period ended June 2025.
- An appraisal dated June 2025 valued the property at $4.5 million ($153 per sf), which is 46.8% below the $8.5 million ($288 per sf) value at issuance. The loan was assigned an ARA of $1.0 million in September 2025, resulting in a cumulative ASER of $3,839. KBRA's analysis resulted in an estimated loss of $972,554 on a whole loan balance of $4.9 million (19.8% estimated loss severity). The loss is based on a KBRA liquidation value of $4.5 million and projected total exposure of $5.5 million. The value is based on the most recent appraisal.
Details concerning the ratings adjustments are as follows:
- Class E to CCC (sf) from B- (sf)
- Class F to CC (sf) from CCC (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.