Press Release|CMBS
KBRA Affirms All Ratings for UBS-BB 2013-C6
10 Apr 2025 | New York
KBRA affirms all of its outstanding ratings for UBS-BB 2013-C6 a $127.8 million CMBS conduit transaction. The affirmations reflect stability in our estimated losses for the remaining three assets since our last rating changes in April 2024. In addition, the current ratings consider the likelihood of interest shortfalls on the rated classes as the servicer works through the resolution of the assets. The three remaining specially serviced assets are K-LOCs with estimated losses. As of the April 2025 remittance period, two assets are REO (91.7% of the current pool balance) and one is in foreclosure (8.3%). The details of the assets are outlined below.
Broward Mall (largest, 74.3%, REO)
- The asset is a 325,701 sf portion of a 1.0 million sf super-regional mall located in Plantation, Florida, approximately seven miles west of the Fort Lauderdale CBD. The non-collateral anchor tenants are Macy’s, JCPenney, Dillard’s, and a former Sears space. Sears, which was originally part of Seritage has been acquired by Midtown Group in December 2024, and the parcel remains undeveloped and vacant.. The loan sponsor was Westfield America, Inc; however, the asset is currently being managed by Pacific Retail Capital Partners.
- KBRA maintains the asset's K-LOC designation and KPO of Underperform because the asset became REO in August 2022. In 2023 the property was under contract to be sold but the deal fell through in Q4 of that year. The special servicer reported that the property is not being widely marketed for sale but continues to review purchase offers. The special servicer continues to assess the disposition strategy.
- The servicer-reported occupancies and DSCs are: 88.0% / 1.59x (YTD September 2023), 78.3% / 2.13x (YTD September 2023); at issuance these were 83.1% / 2.82x. KBRA’s analysis of the December 2024 rent roll indicates the asset is 93.1% occupied.
- An appraisal dated December 2024 indicates an as-is value of $51.1 million ($161 per sf), down from $166.8 million ($525 per sf) at securitization. As a result, the asset carries an ARA of $41.5 million; however, there is no cumulative ASER amount. KBRA’s analysis resulted in an estimated loss of $63.6 million (66.9% estimated loss severity) on the whole loan balance of $95.0 million. The loss is based on a KBRA liquidation value of $33.2 million ($105 per sf). The value is derived from a direct capitalization approach using a KNCF of $5.0 million and a capitalization rate of 15.00%.
The Heights (2nd largest, 17.4%, REO)
- The asset is a 102,177 sf retail center located in Brooklyn Heights, New York, approximately five miles southeast of Midtown Manhattan. The property is subject to a ground lease that expires in January 2048.
- KBRA maintains the asset's K-LOC designation and KPO of Underperform due to its REO status. The assignment of the leasehold interest occurred in October 2023 and the asset subsequently became REO. The asset was previously occupied by Regal Cinemas (80,010 sf) and Barnes and Noble (22,167 sf). Regal went dark in 2022 and ceased paying rent in 2023 prior to its 2026 lease expiration. Barnes and Noble vacated in 2023 at its lease expiration. According to the special servicer, negotiations with a buyer on final purchase and sale agreement remain active, with an expected closing of May 2025.
- The servicer-reported occupancies and DSCs are: 0.0% / -0.72x (YTD September 2024), 78.0% / -1.10x (YTD September 2023); at issuance these were 100% / 1.39x. The property has remained vacant since 2023.
- An appraisal dated August 2024 indicates an as-is value of $12.3 million ($120 per sf), down from $48.7 million ($478 per sf) at securitization. As a result, the asset carries an ARA of $15.4 million resulting in a cumulative ASER of $420,950. KBRA’s analysis resulted in an estimated loss of $24.3 million (109.0% estimated loss severity) on the whole loan balance of $22.2 million. The loss is based on a KBRA liquidation value of $4.4 million ($42 per sf). The value is derived from a direct capitalization approach using a stabilized KNCF of $634,00 and a capitalization rate of 8.50%, as well as a downward value adjustment of $3.2 million to account for income lost during the stabilization period and lease up costs.
240 Park Avenue South (3rd largest, 8.3%, Foreclosure)
- The loan is collateralized by a 5,550 sf ground-floor retail condominium located in the Midtown South area of Manhattan.
- KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its foreclosure status. The loan transferred to the special servicer in October 2022 and the borrower failed to pay off the loan at its March 2023 maturity. Bank of America (4,160 sf) went dark ahead of its November 2023 lease expiration. The receiver is marketing the vacant space for lease. According to the special servicer, the borrower has submitted a discounted pay-off, which has been countered by the special servicer.
- The servicer-reported occupancies and DSCs are: 25.0% / 1.12x (YTD September 2024), 100% / 1.41x (FY 2021); at issuance these were 100% / 1.43x. As of the March 2024 rent roll the property is 25.0% occupied by Starbucks.
- An appraisal dated July 2024 indicates an as-is value of $7.7 million ($1,387 per sf), down from $21.5 million ($3,874per sf) at securitization. As a result, the asset carries an ARA of $3.8 million resulting in a cumulative ASER of $26,980. KBRA’s analysis resulted in an estimated loss of $4.8 million (45.3% estimated loss severity) on the whole loan balance of $10.7 million. The loss is based on a KBRA liquidation value of $7.2 million ($1,314 per sf). The value is derived from a direct capitalization approach using a stabilized KNCF of $774,000 and a capitalization rate of 8.50%, as well as a downward value adjustment of $1.8 million to account for income lost during the stabilization period and lease up costs.
Details concerning the ratings affirmation are as follows:
- Class D at CCC (sf)
- Class E at CC (sf)
- Class F at C (sf)
Rating Sensitivities
Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as the magnitude and extent of interest shortfalls, if any, on the certificates.
To access ratings and relevant documents, click here.