KBRA Downgrades One Rating for GSMS 2014-GC26 to D (sf) Following Realization of Principal Losses
23 Jul 2026 | New York
KBRA downgrades the rating of the Class G certificate to D (sf) from C (sf) for GSMS 2014-GC26, a $224.7 million CMBS conduit transaction, following realized losses incurred from the resolution of the Bank of America Plaza loan ($23.3 million trust balance at disposition) as reflected in the July 2026 remittance report. The collateral consisted of a 55-story, LEED Gold-certified Class A office tower located on Bunker Hill in the Los Angeles CBD, comprising approximately 1.4 million sf of office space, more than 24,000 sf of ground-floor retail, and nine levels of underground parking. The property was liquidated on June 16, 2026, for $210.0 million, resulting in a $175.9 million realized loss on the $400.0 million whole loan, representing a 44.0% loss severity. An appraisal dated December 2024 valued the property at $212.5 million ($148 per sf), reflecting a 64.9% decline from its issuance value of $605.0 million ($422 per sf). The trust's pari passu interest generated $13.5 million of gross liquidation proceeds. After $458,015 of liquidation expenses, net proceeds available for distribution totaled $13.1 million, resulting in a $10.3 million realized loss. As reflected in the July 2026 remittance report, $8.0 million of realized losses were allocated to the remaining certificates. The realized loss was generally in line with KBRA's expectations as reported in our July 2026 press release.
According to the July 2026 remittance report, cumulative principal losses, inclusive of adjustments, on the transaction totaled $36.9 million. Following the liquidation of the Bank of America Plaza asset, the certificate balance for the non-KBRA-rated Class H was reduced to zero and the principal balance of Class G was reduced to $8.6 million (68.6% of its original certificate balance).
KBRA's other outstanding ratings for the transaction are unchanged at this time.
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.
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