KBRA Assigns Ratings to 1345 Trust 2025-AOA

KBRA announces the assignment of ratings to five classes of 1345 Trust 2025-AOA, a CMBS single-borrower securitization. The collateral for the transaction is a $650.0 million portion of an $850.0 million non-recourse, first lien mortgage loan. The whole loan also includes a $200.0 million future funding companion loan. The floating-rate, interest-only loan has an initial term of two years and allows three one-year extension options. The loan is secured by the borrower’s fee simple and leasehold interest in 1345 Avenue of the Americas, a 50-story, Class-A office tower containing 2.0 million sf. The building is located along Sixth Avenue between West 54th and 55th Streets in the Midtown neighborhood of New York City’s borough of Manhattan. As of June 2025, the property was 92.1% leased to over 25 tenants. The five largest tenants by base rent consist of Paul Weiss (42.6% of base rent), Allianz (12.6%), Intercontinental Exchange (6.3%), Fortress (5.7%), and Global Infrastructure (4.7%). Together, these top five tenants account for 71.9% of base rent and 63.2% of sf.

KBRA’s analysis of the transaction included a detailed evaluation of the property’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, its Methodology for Rating Interest-Only Certificates in CMBS Transactions, 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 subject of approximately $80.7 million, which is 24.7% below the issuer’s NCF, and a KBRA value of $1.0 billion, which is 48.3% below the appraiser’s value. The resulting in-trust KBRA Loan to Value (KLTV) is 84.3%. 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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Methodologies