KBRA Affirms All Ratings for FREMF 2016-K56
20 Mar 2026 | New York
KBRA affirms all outstanding ratings for FREMF 2016-K56, an $872.6 million CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation’s (Freddie Mac) K-Deal program. The affirmations follow a surveillance review of the transaction, which has exhibited stable pool performance since last review.
As of the February 2026 remittance period, there are 72 remaining loans totaling $904.8 million. The deal was securitized with 82 loans and a balance of $1.18 billion. One loan (3.6% of the loan collateral balance) did not pay off at its December 2025 maturity date. This resulted in a cumulative balloon guarantor payment of $31.3 million. The remaining loans are scheduled to mature between March 2026 and June 2026, including 37 loans that are fully defeased (61.0%). Based on the most recent servicer-reported NCF and a refinance of the current balance with an assumed interest-only loan at a rate of 6.00%, there is one loan (0.3%) that would have a DSC less than 1.20x. The loan has been identified as a K-LOC.
KBRA identified two loans (3.9%) in the pool as K-LOCs, including one Top 10 loan. We are not estimating losses on either K-LOC.
Clark Building ($32.2 million, 3.6%, K-LOC, Matured Non-Performing Balloon)
- The loan is collateralized by a 228-unit, Class-A, high-rise multifamily complex in downtown Pittsburgh, Pennsylvania.
- KBRA identified the loan as a K-LOC and maintains its KPO of Underperform based on its matured non-performing status and ongoing performance concerns. The loan defaulted at its December 2025 maturity date after the borrower was unable to secure refinancing. The servicer-reported annualized NCF for YTD September 2025 NCF was $2.4 million, representing a 27.4% decrease from $3.3 million underwritten by the issuer at closing. Total expenses increased 62.3% over the same period, primarily from higher real estate taxes and repairs and maintenance.
- The servicer-reported occupancies and DSCs are: 91.2% / 1.04x (YTD September 2025), 83.7% / 1.27x (FY 2023); at issuance these were 94.3% / 1.43x. At this time, KBRA does not estimate a loss on this asset.
Details concerning the rating affirmations are as follows:
- Class A-2 at AAA (sf)
- Class A-M at AAA (sf)
- Class B at AA+ (sf)
- Class C at AA- (sf)
- Class X1 at AAA (sf)
- Class XAM at AAA (sf)
- Class X2-A at AAA (sf)
- Class X2-B 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 asset in the transaction, as well as the continuing magnitude and extent of interest shortfalls on the certificates.
To access ratings and relevant documents, click here.