KBRA Affirms All Ratings for WFCM 2014-LC18
15 Oct 2026 | New York
KBRA affirms all of its outstanding ratings for WFCM 2014-LC18, a CMBS conduit transaction. The transaction has been reduced to six assets with an aggregate balance of $127.0 million, from 99 loans totaling $1.1 billion at securitization. All of the remaining assets have been identified as K-LOCs. The rating actions are based on estimated losses of $14.2 million associated with two assets (25.2% of the pool balance) and corresponding recoveries; realized losses totaling $17.7 million, which are allocated to Class G; and cumulative interest shortfalls of $4.4 million affecting the Class E certificates and below. If realized, the estimated losses would reduce the principal balance of the Class G certificates by 86.1%.
As of the September 2026 remittance period, five assets ($103.4 million, 81.4%) are specially serviced, including one REO asset (12.2%), one loan in foreclosure (13.0%), and three performing matured balloon loans (56.2%). Details of the remaining assets are outlined below.
Hilton Garden Inn Cupertino ($32.0 million, 25.2%, K-LOC, Specially Serviced, Performing Matured Balloon)
- The loan is collateralized by a 164-key, select-service hotel in Cupertino, California, nine miles west of San Jose.
- The loan transferred to the special servicer in March 2024, and a forbearance agreement was executed that extended the loan through December 2025, and subsequently through December 2026. The loan continues to perform in accordance with the terms of the forbearance agreement, and the borrower has requested a payoff statement. A May 2026 appraisal indicates an as-is value of $41.5 million ($253,049 per key), down from $60.1 million ($366,464 per key) at securitization. The servicer reported occupancy and DSC of 72.0% and 2.72x, respectively, as of YTD March 2026. At this time, KBRA does not estimate a loss on this asset.
One Towne Square ($28.3 million, 22.3%, K-LOC, Specially Serviced, Performing Matured Balloon)
- The loan is collateralized by a 426,870 sf suburban office building located in Southfield, Michigan, 17 miles northwest of Detroit.
- The loan transferred to the special servicer in October 2024, and a forbearance agreement was executed that extended the loan through December 2026. The loan continues to perform in accordance with the terms of the forbearance agreement, and the borrower intends to exercise the remaining 12-month extension option, which would extend the loan through December 2027. A June 2026 appraisal indicates an as-is value of $41.5 million ($97 per sf), down from $48.0 million ($112 per sf) at securitization. The servicer reported occupancy and DSC of 83.0% and 1.33x, respectively, as of YTD March 2026. At this time, KBRA does not estimate a loss on this asset.
Colorado Mills ($23.6 million, 18.6%, K-LOC, Current)
- The loan is collateralized by a 918,448 sf portion of a 1.1 million sf regional mall in Lakewood, Colorado, 10 miles west of Denver.
- The loan previously transferred to the special servicer and subsequently modified, bringing the loan current. The terms of the modification included a maturity extension to November 2026, a $7.5 million principal curtailment, and the funding of a $3.0 million general reserve. The loan was added to the master servicer’s watchlist in May 2026 due to its upcoming maturity. According to servicer commentary, the borrower has requested a payoff statement and anticipates paying off the loan in October 2026. An October 2024 appraisal indicates an as-is value of $135.0 million ($147 per sf), down from $215.0 million ($234 per sf) at securitization. The servicer reported occupancy and DSC of 88.0% and 2.00x, respectively, as of YTD June 2026. At this time, KBRA does not estimate a loss on this asset.
YRC Headquarters ($16.5 million, 13.0%, K-LOC, Specially Serviced, Foreclosure)
- The loan is collateralized by a 332,937 sf suburban office complex in Overland Park, Kansas, 18 miles south of Kansas City.
- The loan transferred to the special servicer in June 2023 and is currently in foreclosure. A receiver is operating the property and working to address deferred maintenance and necessary environmental remediation. The lender is expected to take title to the property and subsequently dispose of the asset as REO. The property has remained vacant since the departure of YRC Worldwide Inc. in August 2023. The servicer reported occupancy and DSC of 0% and -1.26x, respectively, as of YTD March 2026. A January 2026 appraisal indicates an as-is value of $9.3 million ($28 per sf), down from $45.3 million ($136 per sf) at securitization. The loan carries a $5.9 million ARA. The asset was deemed non-recoverable in September 2025, resulting in cumulative non-recoverable interest of $1.2 million. KBRA’s analysis resulted in an estimated loss of $9.0 million (54.3% estimated loss severity) on the whole loan balance of $16.5 million. The estimated loss is based on a KBRA liquidation value of $9.0 million ($27 per sf), which was derived using comparable sales, and projected total exposure of $18.0 million.
Hilton Garden Inn Austin Northwest ($15.5 million, 12.2%, K-LOC, Specially Serviced, REO)
- The asset is a 138-key, select-service hotel located in Austin, Texas, 12 miles north of the CBD.
- The loan transferred to the special servicer in May 2020, and title to the property was taken in May 2025. The asset is currently listed for sale with CBRE, with a disposition anticipated in November 2026. The servicer reported occupancy and DSC of 39.0% and -0.12x, respectively, as of FY 2025. A March 2026 appraisal indicates an as-is value of $13.5 million ($97,826 per key), down from $29.3 million ($212,319 per key) at securitization. The loan carries a $4.4 million ARA and a $158,386 ASER. KBRA’s analysis resulted in an estimated loss of $5.2 million (33.7% estimated loss severity) on the whole loan balance of $15.5 million. The estimated loss is based on a KBRA liquidation value of $12.4 million ($90,000 per key), which was derived using comparable sales, and projected total exposure of $17.6 million.
Oneida & Holmgren Way ($11.1 million, 8.7%, K-LOC, Specially Serviced, Performing Matured Balloon)
- The loan is collateralized by a 130,500 sf retail property located in Ashwaubenon, Wisconsin, four miles south of Green Bay.
- The loan transferred to the special servicer in October 2024, and a forbearance agreement was executed that extended the loan through January 2026, and subsequently through December 2026. The loan continues to perform in accordance with the terms of the forbearance agreement. As of September 2026, the loan had $1.1 million in reserves, and the borrower had requested a disbursement of funds, which remains under review by the special servicer. A May 2026 appraisal indicates an as-is value of $14.4 million ($110 per sf), down from $19.5 million ($149 per sf) at securitization. The servicer reported occupancy and DSC of 99.0% and 1.22x, respectively, as of YTD September 2025. At this time, KBRA does not estimate a loss on this asset.
Details concerning the rating affirmations are as follows:
- Class D at B (sf)
- Class E at CCC (sf)
- Class F at CC (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.