Press Release|CMBS
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KBRA Downgrades Five Ratings and Affirms Two Ratings for MRCD 2019-PARK

9 Jan 2026   |   New York

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KBRA downgrades five ratings and affirms the remaining two ratings for MRCD 2019-PARK, a CMBS single-borrower transaction. The downgrades reflect the loan’s ongoing maturity default and specially serviced status, coupled with collateral performance that has not recovered to issuance levels. The asset also requires at least $53.2 million of capital repairs and maintenance to address the poor condition of some portions of the property. The loan transferred to the special servicer in March 2024 for imminent default ahead of its December 2024 maturity date. A receiver was appointed in May 2025 and assumed operational control of the property. The current disposition strategy is to improve the overall quality of the asset to maximize the recovery at disposition.

The transaction collateral consists of a $955.0 million portion of a $1.5 billion non-recourse, first lien mortgage. The whole mortgage loan is represented by eight pari passu A notes totaling $547.0 million, a subordinate B note totaling $708.0 million, and a subordinate C note totaling $245.0 million. The trust collateral includes one senior A note totaling $247.0 million and the $708.0 subordinate B note. The non-trust collateral consists of the remaining seven pari passu A notes totaling $300.0 million that were contributed to seven other CMBS conduit securitizations, three of which are rated by KBRA. The C note was contributed to MRCD 2019-PRKC, a SASB transaction not rated by KBRA. The loan is collateralized by the borrower’s fee simple interest in 3,165 units of the 3,221-unit Parkmerced multifamily complex in San Francisco, California. The collateral property encompasses 11 high-rise apartment towers and 154 townhouse buildings, as well as 10 common area amenity buildings. The property spans 152 acres and is reportedly the largest single multifamily property in San Francisco.

The review utilized information obtained from the trustee and servicer to analyze the loan collateral. As performance has improved since last review, KBRA performed an as-is analysis to derive KNCF, property value, and KLTV. KBRA utilized a stabilized analysis for all of the previous reviews. The as is analysis produced a KNCF of $43.5 million and a KBRA value of $664.6 million ($209,994 per unit). The resulting KLTV is 188.8%, up from 175.9% (stabilized) at the last ratings change in January 2025, and up from 129.4% at securitization. KBRA’s value takes into consideration the complexity and length of time required for the receiver to renovate the property and resolve the loan. KBRA maintains the loan’s K-LOC designation and its KPO of Underperform due to the status with the special servicer, maturity default, and the decline in financial performance and occupancy since issuance.

Details concerning the classes with ratings changes are as follows:

  • Class A to AA- (sf) from AAA (sf)
  • Class B to A- (sf) from AA- (sf)
  • Class C to BBB- (sf) from A- (sf)
  • Class D to BB (sf) from BBB- (sf)
  • Class E to B+ (sf) from BB- (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.

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: 1012946