KBRA Assigns Preliminary Ratings to LEX 2026-450

NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA announces the assignment of preliminary ratings to seven classes of LEX 2026-450, a CMBS single-borrower securitization. The collateral for the transaction is a $407.5 million non-recourse, first lien mortgage loan. The floating rate, interest-only loan has an initial two-year term with three, one-year extension options. The loan is secured by the borrower’s leasehold interest in 450 Lexington Avenue, a 40-story, Class-A, LEED Gold certified office building containing 950,269 sf. The building is located in the Grand Central submarket of Midtown Manhattan in New York City. As of January 2026, the property was 99.9% leased to 12 tenants. The five largest tenants at the property include Davis Polk & Wardell LLP (DPW) (52.5% of base rent), Warburg Pincus (29.8%), PSP (4.0%), American Industrial Partners (3.9%), and Chaincode Labs (3.6%). Together, these top five tenants account for 93.7% of total base rent and 96.5% of the total sf.

KBRA’s analysis of the transaction included a detailed evaluation of the property’s 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 $31.5 million, which is 35.2% below the issuer’s NCF, and a KBRA value of $388.1 million, which is 43.8% below the appraiser’s value. The resulting in-trust KBRA Loan to Value (KLTV) is 105.0%. 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 Single Borrower & Large Loan Rating Methodology
• CMBS: North American CMBS Property Evaluation 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: 1013405

Contacts

Analytical Contacts

Ian Johnson, Associate (Lead Analyst)
+1 646-731-1273
ian.johnson@kbra.com

James Wang, Managing Director
+1 646-731-2450
james.wang@kbra.com

Nitin Bhasin, Senior Managing Director, Global Head of CMBS (Rating Committee Chair)
+1 646-731-2334
nitin.bhasin@kbra.com

Business Development Contact

Andrew Foster, Senior Director
+1 646-731-1470
andrew.foster@kbra.com