Press Release|CMBS

KBRA Affirms All Outstanding Ratings for CGCMT 2015-GC27

30 Jan 2026 | New York

KBRA affirms all outstanding ratings for CGCMT 2015-GC27, a $102.0 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and expected payoff and recoveries of the transaction's three remaining loans. As of the January 2026 remittance period, there is one specially serviced REO asset (6.9%). KBRA identified two loans (98.0%) as K-LOCs, including the specially serviced asset. The details of the two K-LOCs are outlined below.

393-401 Fifth Avenue (largest, 91.1%, K-LOC, Watchlist)

The loan is collateralized by two adjoining Class-B office buildings totaling 218,162 sf located in the Midtown area of New York City’s borough of Manhattan. The development is comprised of two, eight-story buildings that feature contiguous floor plates between the second and sixth floors, 12,460 sf of ground-floor retail space, and 24-hour security. Brookfield Office Properties Inc. is the loan sponsor.
KBRA maintains the loan’s K-LOC designation and KPO of Underperform due to its matured performing status and news that the largest tenant, American Eagle (88.2% of collateral sf) vacated its space at the subject property to move into a 338,000 sf lease at 63 Madison Avenue, which is also located in the Midtown South submarket. The loan transferred to special servicing in May 2024 for imminent monetary default ahead of the January 2025 loan maturity. The borrower was able to secure a loan extension through July 2026, with an additional one-year extension option available for a potential final maturity date of July 2027. This was made possible as the master servicer watchlist commentary indicates the borrower has made steps to re-lease the property. Industry sources have reported a new tenant has signed a 10-year lease for nearly 50% of the collateral sf; however, further details were not provided by the servicer for inclusion in our analysis.
The servicer-reported occupancies and DSCs are: 90.0% / 2.05x (YTD March 2025), 90.0% / 2.05x (FY 2024); at closing, these were 79.9% / 1.68x. KBRA's analysis resulted in an estimated loss given default of $42.3 million (45.5% estimated loss severity) on the loan balance of $93.0 million based on a value of $53.2 million ($244 per sf). The value is derived from a direct capitalization approach using stabilized KNCF of $5.9 million, a capitalization rate of 8.50% and a downward adjustment to account for TI/LC costs to re-tenant the American Eagle space.

Kohl's Westerville (2nd largest, 6.9%, K-LOC, REO, Specially Serviced)

The asset is a 99,380-sf, single-tenant retail property located in Westerville, Ohio, which is located just outside of Columbus, Ohio. The subject was built in 1974 and later renovated in 2011. The single tenant, Kohl's, operates pursuant to a lease scheduled to expire in October 2026; although not provided, the master servicer commentary indicates the tenant has executed a five-year lease renewal through 2031.
KBRA maintains the asset's K-LOC designation and KPO of Underperform due to its REO status with the special servicer. During the May 2023 remittance, the loan became 30-days delinquent following a downward trend in financial performance. Foreclosure proceedings initiated in February 2024, and a receiver sale was completed in early 2025, with the asset recognized as REO in May 2025. The REO team has engaged a broker to market the property with final disposition expected to occur by March 2026.
The servicer-reported occupancies and DSCs are: 100% / N/A (YTD June 2025), 100% / N/A (FY 2024); at closing, these were 100% / 1.50x. An appraisal dated September 2025 valued the asset at $6.4 million ($64 per sf), which is 43.0% below the $11.2 million ($112 per sf) value at issuance. KBRA's analysis resulted in an estimated loss of $1.9 million (27.6% estimated loss severity) based on a value of $5.5 million ($56 per sf). The value is derived from a direct capitalization approach using KNCF of $510,849 and a capitalization rate of 9.25%.

The remaining loan, Walgreens - Carthage, NC (2.0%) is on the master servicer's watchlist as it failed to payoff by its ARD. The borrower listed the property for sale but was unable to close in time to meet the ARD. The final scheduled maturity date for this loan is in January 2045.

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 continuing magnitude and extent of interest shortfalls on the certificates.

To access ratings and relevant documents, click here.

KBRA Affirms All Outstanding Ratings for CGCMT 2015-GC27

Rating Sensitivities

Related Publications

Methodologies