KBRA Assigns Preliminary Ratings to IRV 2025-200P

KBRA announces the assignment of preliminary ratings to four classes of IRV 2025-200P, a CMBS single-borrower securitization.

The collateral for the transaction is a $1.5 billion floating rate, interest-only mortgage loan. The fixed rate loan has a 10-year term and requires monthly interest-only payments based on an assumed interest rate of 6.25%. The loan is secured by the borrower’s fee simple, grant of term and leasehold interests in 200 Park Avenue, which is commonly known as the MetLife Building, a 58-story, Class-A office tower containing 3,065,495 sf. The building spans an entire city block bounded by DePew Place to the east, Vanderbilt Avenue to the west, Grand Central Terminal to the south, and East 45^th Street to the north in Midtown Manhattan. The property was originally built in 1963 as the Pan American World Airways Building. As of December 2024, the property was 94.1% leased to over 45 tenants. The five largest tenants by base rent include Metlife (14.5% annual base rent), Gibson, Dunn & Crutcher, LLP (10.7%), Paul Hastings LLP (9.2%), Winston and Strawn LLP (8.0%), and Golub Capital LLC (6.4%). Together, these top five tenants account for 48.7% of total base rent and 46.2% of the total sf.

KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction and its ESG Global Rating Methodology, to the extent deemed applicable.

The results of our analysis yielded a KBRA net cash flow (KNCF) for the subject of approximately $134.0 million, which is 18.4% below the issuer’s NCF, and a KBRA value of approximately $1.91 billion, which is 25.5% below the appraiser’s as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 78.3%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• CMBS: North American CMBS Property Evaluation Methodology
• CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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: 1007848

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