KBRA affirms ratings on ALA 2025-OANA CMBS deal backed by Ala Moana Center

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KBRA affirms ALA 2025 CMBS ratings

Highlights

KBRA affirms ratings on ALA 2025-OANA CMBS backed by a $2.4 billion first lien mortgage loan following stable collateral performance since securitization.
The floating-rate loan has an initial two-year term, three one-year extension options, and monthly interest-only payments at one-month Term SOFR plus 2.05%.
KBRA cites an in-trust KLTV of 84.6%, KNCF of $196.1 million, and KBRA value of $2.9 billion for the Ala Moana Center-backed transaction.

Surveillance review supports rating affirmation

As reported by Kroll Bond Rating Agency, the affirmations follow a surveillance review of ALA 2025-OANA, a CMBS single-borrower transaction that has shown stable collateral performance since securitization.

The collateral consists of a $2.4 billion non-recourse, first lien mortgage loan. The floating-rate loan has an initial two-year term, three one-year extension options, and requires monthly interest-only payments based on one-month Term SOFR plus a spread of 2.05%.

KBRA says its review used information from the trustee and servicer to assess the loan collateral. The analysis produced a KNCF of $196.1 million and a KBRA value of $2.9 billion, or $1,043 per square foot, while the resulting in-trust KLTV stands at 84.6% versus 84.9% at securitization; KBRA assigned the loan a KPO of Perform.

Honolulu asset profile underpins transaction

The loan is secured by the borrower’s fee simple and leasehold interests in Ala Moana Center, a 2.4 million square foot outdoor super-regional mall, along with the Ala Moana Building and Ala Moana Pacific Center, two adjacent office properties totaling about 360,000 square feet.

The 61.2-acre property sits along the Pacific Ocean, about two miles from Honolulu’s central business district, one mile from Waikiki, and seven miles from Honolulu International Airport. KBRA describes the subject as the world’s largest open-air mall and one of the most productive retail assets globally.

Originally built in 1959, the mall has been updated and expanded over time and now includes 10 anchor tenants and more than 350 tenants overall, many of them luxury retailers. Its anchors include Macy’s, Nordstrom, Bloomingdale’s, Neiman Marcus, Target, Dave & Buster’s, Saks Off Fifth, Zara, Old Navy, and Barnes & Noble.

In our earlier coverage of KBRA’s surveillance update on Pinnacle Bancorp, we noted that the agency kept all key ratings unchanged and maintained Stable outlooks across the parent company and its subsidiary banks. The review reaffirmed senior and subordinated debt ratings and short-term obligations, signaling no material shift in KBRA’s view of the group’s credit standing and supporting continuity for investors assessing credit risk.

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