KBRA Affirms All Ratings for CGCMT 2017-P7
14 Mar 2025 | New York
KBRA affirms all of its outstanding ratings for CGCMT 2017-P7, an $849.0 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has experienced an increase in KBRA’s estimated losses on nine of the K-LOCs (20.7% of the pool balance) since last ratings change in March 2024. However, the magnitude of the changes do not warrant ratings adjustments at this time.
As of the February 2025 remittance period, there are six specially serviced assets (17.9%), of which, one is REO (3.5%), one is in foreclosure (2.4%) and two are 90+ days delinquent (3.3%). KBRA identified a total of 10 K-LOCs (25.8%), including the specially serviced assets. These include:
Four of the top 10 loans (15.6%):
- Key Center Cleveland (4th largest, 5.1% of the pool balance)
- Hamilton Crossing (8th largest, 3.6%, 13.5% estimated loss severity)
- 229 West 43rd Street Retail Condo (9th largest, 3.5%, 92.5%)
- 111 Livingston Street (10th largest, 3.4%, 24.7%)
Six other K-LOCs have estimated losses (10.2%):
- Cahuenga West Office Building (2.8%, 8.8%)
- SAP Building (2.6%, 37.7%)
- The Tower at OPOP (2.3%, 30.9%)
- Residence In Orlando East UCF (1.2%, 3.2%)
- 400 Manley (1.0%, 27.2%)
- Shilo Inn Idaho Falls (0.5%, 83.2%)
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 98.4%, compared to 106.2% at last ratings change and 99.5% at issuance. The KDSC is 1.49x, compared to 1.52x at last ratings change and 1.78x at issuance.
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