KBRA assigns rating to BOS 2026-LYRK Boston CMBS deal

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Ciaran Ryan

05.05.2026

KBRA assigns rating to BOS 2026-LYRK Boston CMBS deal — KBRA rates Boston CMBS deal

A new commercial mortgage-backed securities transaction tied to a recently built Boston office tower is entering the market with one class now rated. The $360.0 million loan is backed by Lyrik, a Class-A Back Bay property that is 93.4% leased as of April 2026 and heavily concentrated among five major tenants.

Highlights

KBRA assigned a rating to BOS 2026-LYRK, a $360.0 million CMBS deal backed by a five-year, interest-only, fixed-rate loan on a newly built Boston office tower.
Lyrik, a 495,275 square foot LEED Gold office/retail property, is 93.4% leased as of April 2026, with 95.7% of base rent stemming from five tenants.
KBRA's property value estimate of $359.7 million is 33.8% below the appraiser’s, resulting in a loan-to-value ratio of 100.1% and signaling valuation caution for office-backed securitizations.

Transaction structure and property profile

As reported by Kroll Bond Rating Agency, the rating applies to one class of BOS 2026-LYRK, a CMBS single-borrower securitization backed by a $360.0 million non-recourse first lien mortgage loan.

The fixed-rate loan has a five-year term and requires monthly interest-only payments based on an assumed coupon of 5.95%. The collateral is the borrower’s leasehold interest in Lyrik, a 20-story, LEED Gold certified office building at Boylston Street and Massachusetts Avenue in Boston’s Back Bay neighborhood.

The 495,275 square foot tower was built in 2024 and consists mainly of office space, which accounts for 457,263 square feet, with the remaining 38,012 square feet used for retail. As of April 2026, the property is 93.4% leased to 11 tenants.

The five largest tenants are CarGurus, Lego, Weil, Gotshal & Manges LLP, Rivian and Avra. Together they represent 95.7% of total base rent and 90.2% of the building’s total square footage, indicating a high concentration of income from a small tenant group.

Valuation and credit implications for the Boston office market

KBRA says its analysis produced a net cash flow of about $29.7 million for the property, 10.3% below the issuer’s net cash flow estimate. The agency also calculated a value of $359.7 million, which is 33.8% below the appraiser’s valuation, resulting in an in-trust KBRA loan-to-value ratio of 100.1%.

In assessing the deal, KBRA says it applied its North American CMBS Property Evaluation Methodology, its North American CMBS Single Borrower & Large Loan Rating Methodology, and its Global Structured Finance Counterparty Methodology. It also considered ESG factors where applicable, along with third-party engineering, environmental and appraisal reports, a site inspection and a review of legal documentation.

The transaction adds to investor scrutiny on large office-backed securitizations in major U.S. urban markets, where lease rollover, tenant concentration and valuation gaps remain central credit considerations. In this case, the building’s recent construction, high occupancy and roster of prominent tenants support the asset, while the lower KBRA valuation underscores ongoing caution around office market pricing.

Together’s CRE-6 public securitisation in the UK was previously covered by our publication, focusing on a small-balance commercial real estate loan pool and the provisional ratings assigned across several note classes. We highlighted how the rating analysis weighed collateral composition, interest-rate mismatch hedging via swaps, credit enhancement, and stressed cash-flow performance alongside servicing and legal-structure considerations.

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