KBRA affirms BXP Trust 2017-GM CMBS ratings as GM Building loan performance softens

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KBRA affirms GM Building CMBS

Highlights

KBRA affirms all outstanding ratings on BXP Trust 2017-GM following surveillance review, despite a slight decline in transaction performance since issuance.
The CMBS deal is backed by a $2.30 billion loan secured by the 2.0 million-square-foot General Motors Building in Manhattan, with $1.55 billion of trust collateral.
Current KLTV stands at 81.5%, up from 77.9% at issuance, with KNCF at $183.4 million and KBRA value of $2.8 billion for the underlying asset.

Surveillance review supports rating stability

As reported by Kroll Bond Rating Agency, all outstanding ratings on BXP Trust 2017-GM remain affirmed following a surveillance review of the CMBS SASB transaction. The agency says the transaction has posted a slight decline in performance since issuance, but the change is not severe enough to justify rating adjustments at this time.

KBRA says the affirmations reflect the quality and location of the underlying asset, the sponsor's track record owning high-quality office properties, and limited lease rollover exposure through the loan's maturity and beyond. The loan remains classified by KBRA with a KPO of Perform.

Manhattan office collateral anchors the deal

The transaction is backed by a non-recourse, first-lien mortgage loan secured by the borrower's fee simple interest in the 2.0 million-square-foot General Motors Building in Manhattan, New York City. As of June 2026, the whole loan balance stands at $2.30 billion, or $1,156 per square foot, including $1.55 billion of trust collateral, equal to $781 per square foot.

Boston Properties, a publicly traded real estate investment trust, holds a 60.0% ownership interest in the borrower as sponsor. Using information from the trustee and servicer, KBRA calculates a KNCF of $183.4 million and a KBRA value of $2.8 billion, or $1,423 per square foot, resulting in a KLTV of 81.5%, compared with 82.0% at the last review and 77.9% at issuance.

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