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KBRA Downgrades Five Ratings and Affirms All Other Ratings for WFRBS 2013-C14

15 Aug 2025   |   New York

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KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings for WFRBS 2013-C14, a $322.4 million CMBS conduit transaction. Simultaneously, six classes have been removed from Watch Downgrade (DN), where they were first placed on May 27, 2025. The rating actions are driven by an increase in KBRA's estimated losses for four assets (67.1% of the pool balance). We also considered the magnitude, recoverability and ongoing likelihood of continued interest shortfalls across the capital structure as the special servicer works to resolve the non-performing assets. The servicer has already made a non-recoverable determination for two of the loans.

As of the July 2025 remittance period, the transaction has five assets remaining, including three (33.5%) that are specially serviced, of which one (3.9%) is REO, one (5.6%) is in foreclosure and one (24.0%) is matured non-performing. KBRA identified each of the five remaining assets as K-LOCs, of which four have estimated losses. The details of the assets are outlined below.

White Marsh Mall (largest, 33.6%, K-LOC)

  • The loan is collateralized by a 702,317 sf portion of a 1.2 million sf regional mall located 12 miles north of downtown Baltimore. The mall has two non-collateral anchors, JCPenney and Macy's, and two collateral anchors, Macy's Home Store and Boscov's. The mall’s fourth anchor box formerly occupied by Sears (non-collateral), remains vacant since its store closure in 2020. The loan sponsor at closing was Brookfield Property Partners. In November 2024, Spinoso Realty Group (Spinoso) acquired the property via a receiver sale and assumed the loan.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its prior status with the special servicer. In addition, financial performance has deteriorated since securitization, primarily driven by a decrease in base rents. As noted above, Spinoso acquired the property and assumed the loan in November 2024. A loan modification and extension agreement was executed with this loan assumption, which extended the loan's maturity to May 2027 and includes two one-year extension options if NOI thresholds are met. The loan will remain interest-only, and a lender-controlled cash management account will collect excess cash into a newly established all-purpose reserve. A total of $5.0 million was reserved in this account for tenant improvements, leasing commissions, and capital expenditures, with disbursements at the lender’s discretion. Any reserve funds exceeding $5.0 million at each quarter-end will be applied to the loan’s principal balance. Any existing reserves prior to the loan modification were consolidated into the all-purpose reserve. The qualified equity holder requirement was waived for the recourse guarantor, and permitted transfer language in the loan documents was modified to reflect new ownership. As of the July 2025 remittance period the loan is current and with the master servicer.
  • The servicer-reported occupancies and DSCs are: 89.0% / 1.15x (YTD March 2025), 89.0% / 1.32x (FY 2024), 93.0% / 1.60x (FY 2023); at closing these were 96.6% / 2.66x. An appraisal dated April 2024 valued the property at $80.0 million ($114 per sf), which is 73.3% below the $300.0 million ($427 per sf) value at issuance. The asset has a cumulative ASER of $1.9 million as of July 2025. KBRA’s analysis resulted in an estimated loss of $110.1 million (58.9% estimated loss severity) on the whole loan balance of $186.8 million. The loss is based on a KBRA liquidation value of $76.7 million ($109 per sf). The value is derived from a direct capitalization approach using a KNCF of $9.6 million and a capitalization rate of 12.50%.

Midtown I & II (2nd largest, 32.9%, K-LOC, Watchlist)

  • The loan is collateralized by a 794,110 sf, Class-A single-tenant office complex located in the Midtown neighborhood of Atlanta, just north of the city’s CBD. The 7.3-acre development comprises a 16-story, 498,844-sf office building, an 8-story, 282,009-sf office building, and a 9-story parking garage with 2,459 spaces.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to a decline in occupancy. The loan had an ARD in May 2023 and a final maturity date of May 2043. The loan did not pay off at the ARD and now accrues interest at an interest rate of 6.84% per annum through the final maturity date, which is an increase from the initial interest rate of 3.84%. The interest accrued at the initial rate will continue to be payable monthly and the obligation to pay the portion accrued in excess of the initial rate will be deferred and become due and payable once the outstanding principal balance of the loan has been paid in full. Additionally, the ARD automatically triggers a full cash flow sweep whereby all excess cash flow will be used to pay down the principal balance of the loan. The loan remains current, and the principal balance has been paid down by $18.1 million since the loan's ARD. Southern Company Gas executed a lease for 264,300 sf (33.3% of total sf) at the 725 West Peachtree Midtown II property in February 2024, which would increase occupancy to 70.5%. The lease, which commences in August 2026, will have a term of 138 months and the tenant will be paying $40.71 per sf at the commencement date.
  • The loan’s IO period ended in May 2023, as the loan did not pay off at its ARD. The servicer-reported occupancies and DSCs are: 37.0% / 1.52x (YTD March 2025), 37.0% / 0.99x (FY 2024), 100% / 2.28x (FY 2023); at closing these were 100% / 2.92x. At this time, KBRA does not estimate a loss on this asset.

301 South College Street (3rd largest, 24.0%, K-LOC, Specially Serviced, Matured Non-Performing)

  • The loan is collateralized by a 988,646 sf office tower located in Charlotte, North Carolina within the city's CBD. The 2.2-acre development consists of a 42-story building that includes 55,097 sf of ground level retail space.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its matured non-performing status with the special servicer. A court-appointed receiver has been assigned to oversee and stabilize the collateral. The special servicer is planning to market the asset for a potential loan assumption. Wells Fargo, which previously leased 686,834 sf (69.5% of total sf) through December 2021, downsized to 200,535 sf (20.1%). The most recent April 2025 rent roll indicates the property is 46.3% leased, down from 97.6% at securitization. There is a $9.3 million tenant reserve balance as of July 2025.
  • The servicer-reported occupancies and DSCs are: 48.0% / 0.93x (FY 2024), 51.0% / 0.60x (FY 2023); at closing these were 97.6% / 1.80x. An appraisal dated April 2025 valued the property at $202.5 million ($205 per sf), which is 19.0% below the $250.0 million ($253 per sf) value at issuance. KBRA’s analysis resulted in an estimated loss of $14.7 million (9.8% estimated loss severity) on the whole loan balance of $150.8 million. The loss is based on a KBRA liquidation value of $138.6 million ($140 per sf). The value is derived from a direct capitalization approach using a KNCF of $14.0 million and a capitalization rate of 9.75%, as well as a downward value adjustment of $4.4 million to account for lease up costs.

Mobile Festival Centre (4th largest, 5.6%, K-LOC, Specially Serviced, Foreclosure)

  • The loan is collateralized by a 380,619 sf, anchored retail center located in Mobile, Alabama, approximately six miles west of the city’s CBD.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its foreclosure status with the special servicer. A receiver is in place and is working to stabilize the property. The special servicer has stated it will re-evaluate the property at the end of 2025 as to whether they will continue with the receivership or take the title. Academy Sports (largest tenant, 22.2% of total sf) had a lease expiration in August 2025 and per servicer commentary has extended its lease by one year. Additionally, Joann Fabrics (5.6% of total sf), which had a lease expiration in January 2029 filed for bankruptcy and closed all of its stores in May 2025. The loan has been deemed non-recoverable by the servicer.
  • The servicer-reported occupancies and DSCs are: 64.0% / 1.70x (FY 2024, IO), 64.0% / 1.30x (FY 2023, IO); at closing these were 79.8% / 1.66x (amortizing). An appraisal dated April 2025 valued the property at $19.5 million ($51 per sf), which is 37.1% below the $31.0 million ($81 per sf) value at issuance. As a result, the asset carries an ARA of $228,535. KBRA's analysis resulted in an estimated loss of approximately $736,000 (4.1% estimated loss severity). The loss is based on a KBRA liquidation value of $17.6 million ($46 per sf). The value considers a distressed non-stabilized disposition of the asset.

808 Broadway (5th largest, 3.9%, K-LOC, Specially Serviced, REO)

  • The asset consists of a 24,548 sf, single-tenant retail condominium located in the Greenwich Village neighborhood of New York City's Borough of Manhattan.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its REO status. The loan transferred to the special servicer in November 2020 for imminent monetary default following the former single tenant’s bankruptcy filing in April 2020. At issuance, the collateral was entirely leased to World's Most Imaginative Costume Store, a subsidiary of Masquerade, LLC, through January 2024. The property became REO in May 2025 via a foreclosure sale. Colliers, which was the receiver, became the property manager following the foreclosure. The special servicer is evaluating the collateral and assessing a disposition strategy. The asset has been deemed non-recoverable by the servicer.
  • The servicer-reported occupancies and DSCs are: 41.0% / -0.97x (FY 2024), 100% / -0.82x (FY 2023); at closing these were 100% / 1.90x. An appraisal dated May 2025 valued the property at $10.3 million ($420 per sf), which is 56.0% below the $23.4 million ($953 per sf) value at issuance. As a result, the asset carries an ARA of $5.1 million, resulting in a cumulative ASER of $310,275. KBRA's analysis resulted in an estimated loss of $7.9 million (62.8% estimated loss severity). The loss is based on a KBRA liquidation value of $6.2 million ($253 per sf). The value considers a distressed non-stabilized disposition of the asset.

Details concerning the classes with ratings changes are as follows:

  • Class B to BBB (sf) from AA- (sf) DN
  • Class C to BB (sf) from BBB (sf) DN
  • Class PEX to BB (sf) from BBB (sf) DN
  • Class D to CC (sf) from CCC (sf) DN
  • Class E to C (sf) from CC (sf) DN
  • Class F to C (sf) from C (sf) DN

KBRA affirms the following rating:

  • Class A-S at AAA (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.

Related Publication

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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