KBRA Affirms All Ratings for COMM 2012-CCRE1
3 Jul 2025 | New York
KBRA affirms all of its outstanding ratings for COMM 2012-CCRE1, a $41.2 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and expected loss and resulting recovery of the transaction's sole remaining loan, RiverTown Crossings Mall, for which a sale and assumption was finalized in August 2024, with a modification extending its maturity through June 2028. The loan returned to the master servicer in January 2025. The details of the loan are outlined below.
RiverTown Crossings Mall (K-LOC)
- The loan is collateralized by a 635,769 sf portion of a 1,271,394 sf, two-story, enclosed super-regional mall in Grandville, Michigan, approximately 10 miles south of Grand Rapids.
- KBRA maintains the loan's K-LOC designation based on its loan modification, prior status with the special servicer, and performance concerns. Despite initially pursuing a deed-in-lieu of foreclosure or another form of transition from the property in late 2022, the special servicer later reported that the borrower was interested in selling the asset with the potential buyer assuming the loan with modifications. In August 2024, Poag Development Group acquired the collateral for an undisclosed price and assumed the loan. Poag plans to add new use space, reposition underutilized parking areas, and redevelop the asset. The modification converted the loan to interest-only and the maturity was extended to June 2028. In October 2024, outstanding principal balance of the loan was reduced by $5.2 million.
- The servicer-reported occupancies and DSCs are: NA / 1.09x (YTD March 2025), 93.5% / 1.72x (YTD September 2023); at securitization these were 93.0% / 1.69x. An appraisal dated July 2024 valued the property at $71.6 million ($113 per sf), which is 71.7% below the $253.0 million ($398 per sf) value at issuance.
- KBRA's analysis resulted in an estimated loss of $61.2 million on a whole loan balance of $114.9 million (53.3% estimated loss severity). The loss is based on a KBRA liquidation value of $53.7 million ($84 per sf) which is equal to 75.0% of the appraisal. The value considers difficulty stabilizing the property while redeveloping the asset.
KBRA affirms the following ratings:
- Class D at CC (sf)
- Class E at C (sf)
- Class F at D (sf)
- Class G at D (sf)
Rating Sensitivities
Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as, the magnitude and extent of interest shortfalls, if any, on the certificates.
To access ratings and relevant documents, click here.