Press Release|CMBS
KBRA Affirms All Ratings for MSBAM 2013-C10
16 Dec 2025 | New York
KBRA affirms all of its outstanding ratings for MSBAM 2013-C10, a $275.7 million CMBS conduit transaction. The affirmations follow a surveillance review and are based on the performance and expected recovery of the transaction's four remaining loans. As of the November 2025 remittance, all of the loans are current and with the master servicer. KBRA identified three of the loans as K-LOCs (87.5%), including two (47.6%) with estimated losses. The details of the K-LOCs are outlined below.
Westfield Citrus Park (largest, 44.0%)
- The loan is collateralized by a 506,922 sf portion of a 1.1 million sf regional mall located in Tampa, Florida, approximately 15 miles northwest of the city’s CBD. The mall anchors are Dillard’s, JC Penney, and Macy’s, all of which own their respective land and improvements and are not collateral for the loan. Sears, which was also not collateral for the loan, closed in September 2018. Elev8, a family entertainment center, opened in the vacant anchor space in May 2023.
- KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its history with the special servicer and modification. The loan transferred to special servicing in July 2020 due to imminent default. In April 2022, there was a receiver sale and the loan was assumed and modified. The modification included the new borrower bringing the loan current and a five-year extension through June 2028. The new borrower, Hull Property Group, assumed the whole loan and will pay interest-only debt service based on the entire debt, however, at disposition repayment will be subject to a modified waterfall. At disposition, the first $6.0 million will be distributed to the borrower, the subsequent $45.0 million will be distributed to the lender, and any remaining proceeds will be split 50/50 between the borrower and the trust. The loan was returned to the master servicer in June 2022.
- The servicer-reported occupancies and DSCs are: 86.7% / 1.70x (YTD September 2025), 85.4% / 1.77x (FY 2024); at issuance these were: 93.5% / 1.58x. An appraisal dated August 2021 valued the property at $89.0 million ($176 per sf), which is 61.1% below the $229.0 million ($452 per sf) value at issuance. KBRA's analysis resulted in an estimated loss of $72.4 million (59.7% estimated loss severity) on the $121.4 million loan balance. The loss is based on a KBRA liquidation value of $59.0 million ($112 per sf) and the application of the repayment waterfall per the modification. The value is derived from a direct capitalization approach using a KNCF of $8.3 million and a capitalization rate of 14.00%.
Milford Plaza Fee (2nd largest, 39.9%)
- The loan was originally collateralized by a leased fee interest in the land underlying the Row NYC hotel, formerly known as the Milford Plaza Hotel. The property is a 28-story, 1,331-key select-service hotel located in the Times Square area of Midtown Manhattan. The ground lease was originally set to expire in 2112. However, an assumption and modification agreement was executed in May 2024, pursuant to which Highgate Hotels acquired fee simple ownership in the hotel and assumed the $275.0 million loan. As a result, the servicer’s non-recoverable determination for the loan was rescinded.
- KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its history with the special servicer and prior delinquency status. The loan was initially transferred in June 2020 after the hotel operator (Rockpoint/Highgate, leasehold owner) defaulted on the ground lease in April 2020. The special servicer began pursuing foreclosure in June 2022. In October 2022, the leasehold tenant executed a sublease with NYC Health and Hospitals without lender or borrower consent. The hotel remains closed to the public.
- According to the assumption and modification agreement, Highgate will own and operate the property. The loan maturity was extended to June 2028 at the existing 3.48% fixed interest rate. All past due advances are to be repaid from cash flow, and default interest and late charges were waived. The loan is cash managed with no distributions until outstanding advances are repaid, including $12.0 million owed by purchaser. The loan returned to the master servicer in October 2024. Highgate plans a $70.0 million renovation once the City’s sublease expires in April 2026. The property is expected to reopen and operate as a hotel after the completion of the renovation.
- An appraisal dated April 2024 valued the land and the hotel, at $350.0 million ($262,960 per key), which is 9.3% lower than the $386.0 million ($290,000 per key) appraised value at issuance. At this time, KBRA does not estimate a loss on this asset, which has a whole loan balance of $275.0 million.
262-270 East Fordham Road (4th largest, 3.6%)
- The loan is collateralized by a 20,300 sf unanchored retail property located in the Bronx, New York.
- KBRA maintains the loan's K-LOC designation based on its history with the special servicer and low occupancy. The loan transferred to the special servicer in May 2023 for maturity default. The loan was modified, extending maturity to May 2026, and the loan returned to the master servicer in March 2024. At closing, the property was 100% occupied by two tenants: Modell's (64.5% of collateral sf) and Finish Line (35.5%). Modell's vacated following its 2020 bankruptcy and Finish Line vacated at its December 2021 lease expiration. The property is currently leased to two tenants on MTM leases at much lower rents.
- The servicer-reported occupancies and DSCs are: 100% / 0.21x (YTD September 2025), 35.5% / 0.17x (FY 2024); at issuance these were: 100% / 1.48x. An appraisal dated October 2023 valued the property at $12.1 million ($596 per sf), which is 39.5% below the $20.0 million ($985 per sf) value at issuance. As of November 2025, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA's analysis resulted in an estimated loss given default of $4.9 million (49.5% estimated loss severity) on the $9.9 million loan balance. The loss is based on a KBRA liquidation value of $6.2 million ($304 per sf). The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.
KBRA affirms the following ratings:
- Class B at BBB (sf)
- Class PST at BB (sf)
- Class C at BB (sf)
- Class D at CCC (sf)
- Class E at CC (sf)
- Classes F, G and H at C (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.