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KBRA Affirms All Ratings for 245 Park Avenue Trust 2017-245P

12 Jun 2025   |   New York

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KBRA affirms all outstanding ratings of 245 Park Avenue Trust 2017-245P, a CMBS SASB transaction. The affirmations follow a surveillance review of the transaction, which has improved performance since KBRA’s last review, primarily as a result of recent leasing. However, the magnitude of the change in KBRA value and KLTV does not warrant ratings adjustments at this time. In addition, the ratings affirmations also reflect the strong quality of the asset and the experience of the loan’s sponsor, SL Green Realty Corp. (SL Green).

The transaction collateral is secured by a $500.0 million portion of a $1.2 billion whole loan. The $500.0 million ($290 per sf) trust collateral consists of five pari passu A notes totaling $380.0 million and five subordinate B notes totaling $120.0 million. The remaining portion of the whole mortgage loan, which is not trust collateral, consists of 14 pari passu A notes totaling $700.0 million. The whole loan is collateralized by the borrower’s fee simple interests in a 44-story, 1.7 million square foot, Class-A, office tower located in the Grand Central submarket of New York City, New York.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $96.2 million and a KBRA value of $1.35 billion ($781 per sf). The resulting in-trust KLTV is 89.1%, in line with the 90.1% at KBRA’s last review and up from 79.6% at securitization. While the KLTV is in line with KBRA’s last review, the KBRA value includes a deduction for a portion of the estimated sponsor obligations related to free rent, tenant improvements, and leasing commissions resulting from recent leasing, which has increased property occupancy to from 81.2% to 89.2%. Due to the asset’s improved performance since last review, KBRA has revised the loan’s KPO to Perform from Underperform.

To access ratings and relevant documents, click here.

Click here to view the report.

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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.

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 U.S. 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. 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: 1009879

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