KBRA Downgrades Two Ratings and Affirms All Other Ratings for JPMCC 2021-BOLT

KBRA downgrades ratings for two classes of JPMCC 2021-BOLT, a CMBS single-borrower transaction. The outstanding ratings are simultaneously removed from Watch Downgrade (DN) where they were placed on December 3, 2024 because of a modification that resulted in interest shortfalls to Classes B and below, and affirmed. The rating actions follow a surveillance review of the transaction and are driven by the collateral’s continued decline in financial performance, and the risk of interest shortfalls, which will continue and may increase further up the capital structure as the loan is resolved. The loan was transferred to the special servicer in June 2024 ahead of its maturity default in August 2024. The loan was modified in September 2024 and subsequently returned to the master servicer.

The transaction collateral is a non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in Aspiria, formerly known as the Sprint Corporate Headquarters; a 20-building suburban office park containing 3,721,308 sf and situated on 190.4 acres in Overland Park, Kansas. The floating-rate loan has an outstanding balance of $232.5 million ($62 per sf) as of February 2025. The loan, which had an initial maturity date of August 2023, was modified and extended to August 2024. The borrower failed to pay off the loan by the modified maturity date, at which time it was modified a second time, extending the final maturity to August 2025. The modification also included an adjustment to the payment terms and has resulted in ongoing interest shortfalls to classes B, C, D and the VRR interest.

The review utilized information obtained from the trustee and servicer to analyze the loan collateral. Due to the decline in occupancy following the space reduction by T-Mobile, KBRA performed a stabilized analysis to derive KNCF and KBRA value. The analysis assumed a stabilized occupancy rate of 70.0%, in line with KBRA’s estimate at last review. The analysis produced a stabilized KNCF of $10.5 million, down 8.7% from last review and 20.9% from KNCF at closing ($13.2 million), and a value of $95.6 million ($26 per sf). The value was derived using a direct capitalization approach using a cap rate of 10.0% and included a deduction for stabilization costs. The resulting in-trust KLTV is 243.1%, compared to 238.7% at last review and 139.7% at securitization. KBRA maintains the loan’s K-LOC designation and KPO of Underperform due to the decline in collateral occupancy and performance since closing, as well as its maturity default and ensuing modification.

Details concerning the classes with ratings changes are as follows:

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