KBRA Issues ACREC 2025-FL3 Ramp-Up Completion Update

KBRA issues an update on ACREC 2025-FL3, following the ramp-up completion date. ACREC 2025-FL3 is a $1.1 billion managed CRE CLO securitization, with a 30-month reinvestment period that commenced with a six-month ramp-up period. The ramp-up completion date occurred on July 26, 2025, on the 180th day after the closing date. The transaction documents permit the roll over of a maximum of $5.0 million of unused ramp proceeds to be utilized during the reinvestment period.

At securitization, the transaction was collateralized by 22 multifamily mortgage loans with an aggregate cutoff date in-trust balance of $876.0 million, $107.6 million of cash collateral for the anticipated acquisition of three pre-identified assets, and $116.4 million of cash collateral for additional ramp collateral. The cash collateral was to be used for the acquisition of previously unidentified whole loans and senior pari passu participation interests, and funded companion participations relating to existing assets during the ramp-up period, subject to satisfaction of the eligibility criteria and so long as no event of default is occurring.

Of the $116.4 million of cash collateral for additional ramp collateral, $112.0 million utilized to acquire three unidentified assets, and $1.8 million was used for the acquisition of senior participations related to three loans. The three unidentified acquisitions include:

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