Fitch Ratings has assigned final ratings and Rating Outlooks on BLOX Trust 2021-BLOX commercial mortgage pass-through certificates series 2021-BLOX as follows.

RATING ACTIONSENTITY/DEBT	RATING		PRIOR

BLOX 2021-BLOX

A

LT	AAAsf 	New Rating		AAA(EXP)sf

B

LT	NRsf 	New Rating		NR(EXP)sf

C

LT	NRsf 	New Rating		NR(EXP)sf

D

LT	NRsf 	New Rating		NR(EXP)sf

E

LT	NRsf 	New Rating		NR(EXP)sf

HRR

LT	NRsf 	New Rating		NR(EXP)sf

VIEW ADDITIONAL RATING DETAILS

$112,100,000 class A 'AAAsf'; Outlook Stable.

The following classes are not rated by Fitch:

$22,535,000 class B;

$22,052,000 class C;

$26,695,000 class D;

$11,368,000 class E and

$10,250,000(a) class HRR.

(a) Horizontal credit risk retention interest

The final ratings are based on information provided by the issuer as of Aug. 31, 2021.

Transaction Summary

The trust certificates represent the beneficial interests in the five-year, fully-extended floating-rate mortgage loan securing the leasehold interests in Spring District Block 16 and Block 24, two newly-constructed office properties totaling 542,680 sf, located in Bellevue, WA. The trust certificates are expected to follow a sequential-pay structure.

Loan proceeds were used to recapitalize the property, fund a $174,949 upfront reserve to cover a late delivery penalty for Block 24, and cover $4.3 million of closing costs. According to media reports, the sponsor purchased the fee simple interests in Block 16 in October 2020 for $365.0 million, and purchased the fee simple interest in Block 24 in May 2021 for $200.0 million. The sponsor subsequently sold the leased fee interests in Block 16 and Block 24 to a third-party entity.

KEY RATING DRIVERS

Long-Term Creditworthy Tenant: The collateral consists of two office buildings, both leased to Facebook, Inc., a creditworthy tenant, with leases that expire June 30, 2033 and Oct. 31, 2033, which are approximately seven years beyond the loan's fully extended maturity date. The leases do not have any termination options and include two renewal options, with the first renewal option for seven years and the second option for five years. Facebook is reportedly investing a significant amount of money into the buildout and finishes in their spaces.

Property Quality and Location: Both properties feature large floorplates, multiple rooftop decks, bicycle storage, lockers, a restaurant-quality kitchen and a dining hall. The properties are located within the Spring District development, which is a new development that will feature offices, retail and dining options, residential uses and a hotel once fully completed in 2023. A Spring District light rail station is also expected to be delivered in 2023, which will provide access to the Bellevue CBD.

Leasehold Interest: The collateral consists of the leasehold interest in Block 16 and Block 24. Both ground leases are newly executed and have a term of 99 years. The initial ground rent across both ground leases is $7,250,000. The ground rent is structured with semiannual escalations based on the non-seasonally adjusted U.S. City Average All Items CPI for all Urban Consumers (CPI-U). The ground lease contains lender provisions that include notices of default, cure rights and the ability to assign the lease to the lender without the lessor's consent.

Institutional Sponsorship: The sponsor of the loan is Brookfield Premier Real Estate Partners Office Holding LLC, which is a core-plus fund managed by Brookfield Asset Management and is partially owned by Brookfield Property Partners. The fund focuses on long-term ownership in office, retail, multifamily and industrial properties across the U.S. Brookfield Asset Management's global real estate portfolio consists of 318 office properties totaling 167 million sf, 179 retail properties totaling 154 million sf, 156 multifamily properties totaling 51,595 units and 156 hospitality properties totaling approximately 31,000 keys.

Moderate Fitch Leverage: The $205.0 million mortgage loan ($378psf) has a Fitch debt service coverage ratio (DSCR) and loan to value ratio (LTV) of 0.91x and 97.8%, respectively. The most junior Fitch-rated bond within the transaction has a Fitch DSCR of 1.67x and an LTV of 53.49%.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Declining cash flow decreases property value and capacity to meet its debt service obligations. The table below indicates the model implied rating sensitivity to changes to the same one variable, Fitch NCF:

Original Rating: 'AAAsf'

10% NCF Decline: 'AA-sf'

20% NCF Decline: 'BBB+sf'

30% NCF Decline: 'BB+sf'

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Improvement in cash flow increases property value and capacity to meet its debt service obligations. However, Fitch only expects to rate the 'AAAsf' class and further upgrades are not possible for this transaction.

Best/Worst Case Rating Scenario

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Fitch was provided with Form ABS Due Diligence-15E (Form 15E) as prepared by Ernst & Young LLP. The third-party due diligence described in Form 15E focused on a comparison and re-computation of certain characteristics with respect to the mortgage loan and related mortgaged property in the data file. Fitch considered this information in its analysis and it did not have an effect on Fitch's analysis or conclusions.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS

A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by clicking the link to the Appendix. The appendix also contains a comparison of these RW&Es to those Fitch considers typical for the asset class as detailed in the Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions'.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.

(C) 2021 Electronic News Publishing, source ENP Newswire