KBRA Affirms All Outstanding Ratings for WFCM 2013-LC12
30 Apr 2026 | New York
KBRA affirms all of its outstanding ratings for WFCM 2013-LC12, a CMBS conduit transaction. The transaction has been reduced to three loans with an aggregate balance of $151.3 million from 83 loans totaling $1.4 billion at securitization. The affirmations reflect stability in KBRA’s estimated losses for two of the three remaining assets since the last rating actions in December 2024. In addition, the liquidation of Hotel Vetiver ($5.9 million loan balance at disposition) in January 2026 generated gross proceeds of $13.6 million. After the repayment of $6.2 million of previously non-recoverable advances to the trust, the transaction recognized a reversal of previously realized losses, which were allocated in accordance with the transaction’s priority of payments and resulted in the full restoration of the Class F certificate balance, with no outstanding realized losses for the class.
As of the April 2026 remittance, there are no specially serviced or delinquent loans. However, two loans, representing 96.5% of the current pool balance, have modified maturity dates and are designated as K-LOCs with estimated losses. The remaining loan, Innsbrook Office Portfolio - Liberty Plaza II (3.5% of the pool), originally part of the Innsbrook Office Portfolio (7.3% of the original pool balance), is a performing loan with a final maturity in July 2043.
The details of the K-LOCs are outlined below.
White Marsh Mall ($78.6 million, 51.9%, Modified, Current)
- 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 mall is rated B+ by Green Street.
- The loan transferred to special servicing in August 2020 and failed to pay off at its May 2021 maturity. In November 2024, a loan modification and extension agreement was executed when Spinoso acquired the property and assumed the loan. The agreement extended the loan’s maturity to May 2027 and provides for two one-year extension options subject to NOI thresholds. The loan will remain interest-only. A lender-controlled cash management account is capturing excess cash flow in an all-purpose reserve. The new borrower allocated $5.0 million to this reserve for tenant improvements, leasing commissions, and capital expenditures, with disbursements subject to lender approval. Any reserve balance exceeding $5.0 million at each quarter-end will be applied to reduce the loan’s principal. As of April 2026, the loan has been paid down by $1.4 million and the reserve balance is $2.3 million. The loan was returned to the master servicer in May 2025.
- According to the September 2025 rent roll, lease rollover through YE 2026 represents 30.7% of total base rent across 89 leases, with the largest tenant accounting for 2.3% of total base rent. Additionally, approximately 13.0% of the mall’s in-line tenants are temporary and operate under short-term leases. The servicer reported an occupancy of 93.0% and DSC of 1.42x for FY 2025. An April 2024 appraisal valued the property at $80.0 million ($114 per sf), reflecting a 73.3% decline from the issuance value of $300.0 million ($427 per sf).
- As of April 2026, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA estimates that it could experience a loss given default of $110.5 million (59.2% estimated loss severity) on the whole loan balance of $186.7 million, of which $46.5 million is allocated to this trust. The loss is based on a KBRA liquidation value of $76.2 million ($109 per sf) and projected total exposure of $186.7 million. The value is derived from a direct capitalization approach using a KNCF of $9.5 million and a capitalization rate of 12.50%.
Carolina Place ($67.5 million, 44.6%, Modified, Current)
- The loan is collateralized by a 647,511 sf portion of a 1.2 million sf super-regional mall located in Pineville, North Carolina, approximately 10 miles south of the Charlotte CBD. The mall is anchored by Belk, Dillard's, and JCPenney; however, only JCPenney (3.6% of total base rent) is collateral for the loan. JCPenney's lease expires in May 2028. The former Sears space, which is collateral, has been backfilled by Southern Lion, a home décor market with over 100 tenants. The mall was previously anchored by Macy's, which sold its store to the loan sponsor in 2017; the space has since been leased to Dick's Sporting Goods. The loan sponsor is Brookfield Property Partners L.P. The mall is rated B- by Green Street.
- The loan failed to pay off at its scheduled June 2023 maturity and was subsequently transferred to the special servicer due to a maturity default. In January 2024, the borrower and special servicer executed a forbearance agreement that expired in June 2025. Following the borrower’s failure to pay off at that time, a loan modification was executed in November 2025, extending the maturity to June 2029, with an option to extend to June 2030. In connection with the modification, a $6.8 million principal curtailment was applied to the whole loan in December. The modification also established an all-purpose reserve, with excess cash flow swept for the remaining loan term; 50.0% is applied to principal, with the remaining 50.0% released to the borrower. As of April 2026, the reserve balance was $5.2 million. The loan was returned to the master servicer in January 2026. The whole loan's principal balance has been paid down by 25.0% from $175.0 million to $131.3 million.
- For FY 2024, comparable in-line tenants with less than 10,000 sf generated sales of $461 per sf, representing a 12.3% increase from issuance ($411 per sf). The servicer reported an occupancy and DSC of 91.0% and 1.45x, respectively, for the YTD period ending September 2025. An appraisal dated May 2025 valued the property at $141.2 million ($218 per sf), which represents a 46.3% decline from the $263.0 million ($406 per sf) value at issuance.
- As of April 2026, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA estimates that it could experience a loss given default of $31.3 million (23.9% estimated loss severity) on the whole loan balance of $131.3 million, of which $16.1 million is allocated to this trust. The loss is based on a KBRA liquidation value of $102.2 million ($158 per sf) and projected total exposure of $133.6 million. The value is derived from a direct capitalization approach using a KNCF of $13.3 million and a capitalization rate of 13.00%.
Details concerning the rating affirmations are as follows:
- Class C at B- (sf)
- Class PEX at B- (sf)
- Class D at CC (sf)
- Class E at C (sf)
- Class F at D (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.