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KBRA Affirms All Ratings for WFRBS 2013-C11

5 Dec 2025   |   New York

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KBRA affirms all of its outstanding ratings for WFRBS 2013-C11, a $208.5 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's two remaining loans, which has not meaningfully changed since KBRA’s last ratings change in December 2022. The two loans are Republic Plaza (61.1% of pool balance) and 515 Madison Avenue (38.9%), which are with the master servicer and paid current in November. The loans are outlined below.

Republic Plaza (largest, 61.1%, K-LOC)

  • The loan is collateralized by a 1.3 million sf, Class-A office tower located in the Denver, Colorado CBD. The asset has 48,000 sf of retail space, two levels of below-grade parking and a 12-story parking garage with 1,275 stalls. Brookfield Office Properties Inc. is the loan sponsor. The property was built in 1982 and renovated in 2002.
  • KBRA maintains the loan's K-LOC designation based on it failure to pay off at its December 2022 scheduled maturity. The loan was transferred to the special servicer in March 2023 due to maturity default but was returned to the master servicer in September 2023 following the loan's maturity extension effective July 2023. The terms of the extension agreement include an extension of the loan's maturity date to March 2026, a principal curtailment of $6.0 million, and a cash trap remains in effect with excess cash flow over $400,000 to be applied as principal curtailment. Since the last surveillance review, the whole loan has paid down by $49.9 million (17.8% of the original whole balance of $280.0 million).
  • As of the June 2025 rent roll, the property was 69.2% leased, a decrease from 72.7% at the last review and 94.5% at issuance. The decline in occupancy since issuance is primarily attributed to several former top 10 tenants vacating upon lease expiration, as well as Ovintiv (formerly Encana Oil & Gas), the largest tenant representing 21.0% of total base rent and 15.9% of total sf, reducing its leased space by 239,732 sf to 213,240 sf. According to the servicer, the tenant no longer holds any rights to further reduce its leased premises. The servicer also noted that the borrower is in preliminary discussions with a prospective tenant for approximately 30,000 sf. The borrower continues to pursue lease renewals and new prospects to improve occupancy ahead of the modified loan maturity in March 2026.
  • The servicer-reported occupancies and DSCs are: 69.2% / 1.06x (YTD June 2025), 65.2% / 1.60x (FY 2024), 67.3% / 1.16x (FY 2023); at closing, these were 94.0% / 1.55x. An appraisal dated December 2022 valued the asset at $298.1 million ($229 per sf), which is 44.3% below the $535.4 million ($411 per sf) value at issuance. As of November 2025, the loan is current on payments and is not specially serviced. However, in the event of a default, KBRA estimates that it could experience a loss given default of $128.0 million (55.6% estimated loss severity) on the whole loan balance of $230.1 million. The loss is based on a KBRA liquidation value of $104.8 million ($80 per sf). The value considers a distressed non-stabilized disposition of the asset.

515 Madison Avenue (2nd largest, 38.9%, K-LOC)

  • The loan is collateralized by a 324,265 sf, Class B office tower located at the intersection of East 53rd Street and Madison Avenue in New York City's borough of Manhattan. The property was built in 1931 and renovated in 2003 and from 2008 to 2010.
  • KBRA maintains the loan’s K-LOC designation due to its failure to pay off at the scheduled January 2023 maturity and a decline in financial performance since issuance. The loan was initially transferred to the special servicer in November 2022 for imminent maturity default and was returned to the master servicer in August 2023 following the execution of a modification agreement in April 2023. The modification terms include an initial extension of the loan’s maturity date to January 2025, establishment of a capital expenditure reserve along with an additional $6.4 million borrower deposit, an option to extend the maturity to January 2026 (subject to payment of an extension fee and satisfaction of debt yield requirements), and a $5.0 million principal curtailment with an additional $5.0 million curtailment required in January 2024. A cash trap remains in effect for the remainder of the loan term. The borrower has exercised the extension option through January 2026. Since the last surveillance review, the loan balance has been reduced by $38.9 million, representing 32.4% of the original $120.0 million loan amount.
  • As of the June 2025 rent roll, the property was 89.6% leased, up from 82.6% at the last review and down from 98.7% at closing. Since the prior review, the fifth largest tenant, The Freedom Institute (3.2% of total sf), renewed its lease through January 2030. As part of the renewal, the tenant expanded by approximately 4,600 sf and increased its annual base rent by $400,000. Additionally, roughly 6.0% of previously vacant space has been leased to new tenants with lease terms extending beyond 2030. Lease rollover through YE 2026 accounts for 12.5% of base rent and 22.0% of total sf, with no single tenant representing more than 1.8% of base rent. Recent leasing activity indicates positive momentum year-over-year. According to the servicer, the borrower intends to refinance and repay the loan in full at its modified maturity date in January 2026.
  • The servicer-reported occupancies and DSCs are: 90.8% / 1.04x (YTD June 2025), 82.9% / 0.89x (FY 2024), 77.2% / 0.81x (FY 2023); at closing, these were 99.0% / 1.61x. An appraisal dated February 2023 valued the asset at $155.0 million ($478 per sf), which is 32.6% below the $230.0 million ($709 per sf) value at issuance. At this time, KBRA does not estimate a loss on this asset.

Details concerning the ratings affirmations are as follows:

  • Class B at AA+ (sf)
  • Class C at A (sf)
  • Class D at BBB- (sf)
  • Class E at BB (sf)
  • Class F at CCC (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.

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: 1012463