A 44-story, class A office tower in New York City's financial district is at the heart of a $800 million commercial mortgage-backed securities (CMBS) deal from the LBTY 2026-225L.
The single-asset single-borrower (SASB) deal will sell seven tranches of notes to investors, with a closing date of February 24. All the notes have a rated final distribution date of February 2043, according to Kroll Bond Rating Agency.
The underlying loan will refinance a $900 million whole loan on 225 Liberty Street, which was also securitized through the LBTY 2016-225L, KBRA said. That financing aligned with a 2015 renovation that repositioned the lobby and upgraded environmental systems, among other modernizations.
The 2.3 million square-foot, LEED Gold building has a net operating income of $78.1 million, and net cash flow of $74.6 million, KBRA said. With collateral square foot value of $557, the address also has a cap rate of 5.69%, the rating agency said.
BPI Properties is the loan sponsor, while CREFI,
The fixed-rate, non-recourse mortgage is expected to have a five-year term, and the property is under a ground lease agreement with Battery Park City Authority, which extends through 2119. The annual base rent is followed by fixed increases, plus payment in lieu of taxes, based on values that New York City assesses.
KBRA notes that the first mortgage, which serves as trust collateral, has a loan-to-value (LTV) ratio of 107%. That leverage level is higher than the average for the 61 SASB deals that it rated over the last 24 months, the rating agency said.
But the deal also has a number of mitigating characteristics. As of November 2025, the property was 90.1% leased to 19 tenants, including Brookfield, accounting for 27.0% of base rent; Confidential Tenant, with 14.9%; People Inc., representing 13.0%; and Bank of America, with 6.7%. Those top tenants account for 72.1% of total base rents, and 65.8% of the total square footage.
KBRA expects to assign AAA, AA-, A-, BBB-, BB-, B and B- to classes A, B, C, D, E, and F, respectively. Asset Securitization Report's deal database finds that Moody's Ratings expects to assign Aaa, Aa3 and A3 to classes A, B and C.
