Press Release|CMBS

KBRA Downgrades All Ratings for GSMS 2018-RIVR

2 May 2024   |   New York


KBRA downgrades the ratings of seven classes for GSMS 2018-RIVR, a CMBS single borrower transaction. The ratings actions follow a surveillance review of the transaction. The downgrades are primarily driven by a deterioration in collateral performance stemming largely from declining occupancy in the context of a weak Chicago office market, as well as the loan’s non-performing status with the special servicer. The ratings actions also consider the likelihood of interest shortfalls reaching higher in the capital structure from special servicing fees and expenses along with the risk of the servicer limiting the amount of interest advancing on the loan given the amount of capital that may be required to maintain occupancy and operate the property.

The collateral for the transaction is a $309.8 million non-recourse, first lien floating rate mortgage loan secured by the borrower’s fee simple interest in 1.3 million sf of River North Point, a Class-A, LEED Gold certified office property located in the River North submarket of Chicago, Illinois, within the city’s CBD. The loan sponsor and non-recourse carve-out guarantor is Blackstone Real Estate Partners VIII L.P.

The loan transferred to the special servicer on May 11, 2023, after the borrower, an affiliate of Blackstone Inc. (Blackstone) indicated that it would be unable to remit amounts owed under the loan as a result of declining property cash flow, tenant payment delinquencies, and a deterioration in the asset’s office market. In addition, the sponsor indicated that it will not support the property with additional equity. The loan’s third extension matured in July 2023, and it was not extended further. As of the April 2024 reporting, the loan’s status is non-performing matured balloon, there are $3.6 million in outstanding P&I advances, and it carries an ARA of $168.5 million. According to the special servicer’s commentary, the property was listed for sale with JLL in late 2023; however, a listing price has not been provided.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $13.6 million and a KBRA value of $147.6 million ($114 per sf). The resulting in-trust KLTV is 209.9%, compared to 129.8% at last review and 99.6% at securitization. Based on KBRA’s value, it is likely that the trust will incur principal losses upon final disposition of the asset. KBRA maintains the loan’s K-LOC status and its KPO of Underperform.

Details for the classes with ratings changes are as follows:

  • Class A to A- (sf) from AAA (sf)
  • Class B to BBB- (sf) from AA- (sf)
  • Class C to BB- (sf) from A- (sf)
  • Class D to B- (sf) from BBB- (sf)
  • Class E to CCC (sf) from BB- (sf)
  • Class F to CC (sf) from B- (sf)
  • Class G to C (sf) from CCC (sf)

To access rating and relevant documents, click here.

Click here to view the report.

Related Publication



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004181

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