KBRA Affirms All Ratings for UBS 2012-C1
3 Oct 2025 | New York
KBRA affirms all of its outstanding ratings for UBS 2012-C1, a $71.9 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's remaining loan, Poughkeepsie Galleria. KBRA's estimated loss for the loan is higher than at our last ratings changes in October 2022; however, the change is not meaningful enough to warrant a ratings adjustment. The details of the loan are outlined below.
Poughkeepsie Galleria (K-LOC)
- The loan is collateralized by a 691,325 sf portion of a 1.2 million sf super-regional mall located in Poughkeepsie, New York. Mall anchors Dick’s Sporting Goods, Macy’s, and Target, of which only Dick’s Sporting Goods is loan collateral. Former anchor tenants Sears (non-collateral) and JCPenney (collateral) closed their stores in 2020. The loan sponsor is The Pyramid Companies
- KBRA maintains the loan’s K-LOC designation and its KPO of Underperform based on the weak collateral performance. The loan was originally transferred to the special servicer in April 2020 for imminent monetary default and subsequently failed to pay off at its November 2021 maturity date. The loan was returned to the master servicer in November 2023 after a modification was executed in July. Terms of the agreement include the extension of the loan’s maturity date to January 2025, with two one-year extension options thereafter, and a reduced cash interest rate of 3.30575% and PIK interest based on a 3.30575% rate.
- The servicer-reported occupancies and DSCs are: 70.0% / 2.07x (YTD June 2024), 58.0% / 1.81x (FY 2023), 56.0% / 0.76x (FY 2022), 66.0% / 0.82x (FY 2021); at closing these were 87.0% / 1.28x. An appraisal dated March 2023 valued the asset at $68.0 million ($98 per sf), which is 71.3% below the $237.0 million ($343 per sf) value at issuance. As of September 2025, cumulative non-recoverable interest allocated to the Poughkeepsie Galleria asset totaled $8.2 million. In September 2023, $2.9 million in net interest shortfalls was added to the loan’s principal balance, resulting in a current trust loan balance of $74.8 million and a total outstanding loan balance of $136.0 million. A $61.2 million pari passu piece was securitized in the UBSC 2011-C1 transaction, which is not rated by KBRA.
- As of September 2025 the loan is current on payments and not specially serviced. However, in the event of a default, KBRA estimates a value of $36.6 million ($53 per sf) for the loan, which considers a potential distressed liquidation of the asset. KBRA’s analysis resulted in an estimated loss of $128.3 million (94.4% estimated loss severity) on the whole loan balance of $136.0 million.
KBRA affirms the following ratings:
- Class E at CC (sf)
- Class F at C (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.