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KBRA Downgrades Four Ratings and Removes Four Ratings from Watch Downgrade for JPMCC 2013-C10

9 Dec 2025   |   New York

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KBRA downgrades the ratings of four classes of certificates for JPMCC 2013-C10, a $136.2 million CMBS conduit transaction. Simultaneously, KBRA removes the ratings of four classes of certificates from Watch Downgrade (DN) where they were placed on September 9, 2025. The rating actions follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's remaining two assets, both of which are identified as K-LOCs. Gateway Center (67.4% of the pool balance) is in foreclosure and West County Center (32.6%), was modified and is performing. Interest shortfalls are affecting classes C and below, primarily due to non-recoverable interest from the Gateway Center asset. Details of the two loans are outlined below:

Gateway Center (largest, 67.4%, Foreclosure)

  • The loan is collateralized by a 743,945 sf portion of a 1.5 million sf four-building office complex located in the Pittsburgh, Pennsylvania CBD. The loan sponsor is Hertz Investment Group.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform primarily due to the asset's foreclosure status. The loan transferred to the special servicer for imminent maturity default in December 2022 , prior to its original maturity in January 2023. The loan was modified in March 2023 and its maturity date extended to January 2024. In January 2024, the loan was modified again and the maturity was extended to January 2025. The loan's status was foreclosure in December 2024 and it was not paid off at maturity in January 2025. A receiver was appointed in October 2024 and is working on leasing the property and fixing deferred maintenance.
  • The servicer-reported occupancies and DSCs are: 63.0% / -0.22x (YTD March 2025), 57.0% / -0.57x (FY 2024); at closing these were 86.0% / 1.32x. An appraisal dated October 2024 valued the property at $87.9 million ($60 per sf), which is 43.5% below the $155.5 million ($106 per sf) appraised value at issuance. As a result, the asset carries an ARA of $8.9 million, resulting in a cumulative ASER of $135,000. KBRA’s analysis resulted in an estimated loss of $21.4 million (23.3% estimated loss severity) on the $91.8 million loan balance. The loss is based on a liquidation value of $76.4 million ($52 per sf).

West County Center (2nd largest, 32.6%, Watchlist)

  • The loan is collateralized by a 743,945 sf portion of a 1.2 million sf super-regional mall located in Des Peres, Missouri, approximately 20 miles west of the St. Louis CBD. The mall is anchored by JCPenney, Macy’s and Nordstrom. Nordstrom owns its improvements but operates subject to a ground lease with the borrower that expires in 2028, with seven 10-year extension options remaining. JCPenney and Macy’s do not serve as loan collateral. The loan sponsor is a 50/50 joint venture between CBL & Associates Properties, Inc. (CBL) and TIAA-CREF.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform primarily due to the loan's modification. The loan transferred to the special servicer in May 2020 for imminent monetary default. The special servicer and borrower agreed to a modification in April 2023 and the loan returned to the master servicer in July 2023. The borrower paid down the loan by $3.4 million and received a two-year maturity extension through December 2024, with an additional two-year extension option available. The borrower did not pay off the loan at maturity in December 2024 and exercised the two-year extension option, extending maturity to December 2026. As part of the extension, a $3.0 million principal curtailment was made in February 2025.
  • The servicer-reported occupancies and DSCs are: 95.0% / 1.34x (YTD June 2025), 97.0% / 1.27x (FY 2024); at closing these were 98.0% / 2.11x. An appraisal dated December 2022 valued the property at $240.0 million ($323 per sf), which is 29.4% below the $340.0 million ($457 per sf) value at issuance. As of November 2025, the loan is current on payments following the loan's modification and is not specially serviced. However, in the event of another default, KBRA estimates that it could experience a loss given default of $58.6 million (41.7% estimated loss severity) on the $140.4 million whole loan balance. The loss is based on a liquidation value of $81.8 million ($68 per sf), which is derived from a direct capitalization approach using a KNCF of $9.8 million and a capitalization rate of 12.00%.

Details concerning the classes with ratings changes are as follows:

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

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.

Doc ID: 1012509