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KBRA Upgrades Three Ratings and Affirms All Other Outstanding Ratings for GRACE 2020-GRCE

5 Nov 2026   |   New York

Contacts

KBRA upgrades the ratings of three classes of certificates and affirms all other ratings for GRACE 2020-GRCE, a $750.0 million CMBS SASB transaction. The rating actions follow a surveillance review of the transaction, which has exhibited improved performance since closing, primarily as a result of increases in base rent. The rating actions also reflect the high quality of the collateral property as well as the sponsor’s experience.

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 $99.7 million and a KBRA value of $1.4 billion ($915 per sf). The resulting all-in KLTV is 87.8%, compared to 90.1% at last review and 91.6% at securitization. KBRA maintains a KPO of Perform on the loan.

Details concerning the rating upgrades are as follows:

  • Class B to AA+ (sf) from AA (sf)
  • Class C to AA- (sf) from A+ (sf)
  • Class D to A- (sf) from BBB+ (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

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.

Information on certain affiliations between directors of KBRA Ratings and rated entities or related third parties 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 US 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. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. 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: 1017930