KBRA Downgrades One Rating and Affirms All Other Ratings for JPMBB 2014-C26
9 Oct 2026 | New York
KBRA downgrades the rating of one class of certificates and affirms all other outstanding ratings for JPMBB 2014-C26, a CMBS conduit transaction. The transaction has been reduced to five loans with an aggregate balance of $238.2 million, from 69 loans totaling $1.4 billion at securitization. The rating actions are based on our identification of all remaining loans as KBRA Loans of Concern (K-LOCs), our estimated losses of $55.1 million (which, if realized, would impact class D certificates and below) and corresponding recoveries; realized losses totaling $65.2 million, which were allocated to classes F and NR; and cumulative interest shortfalls of $6.6 million affecting class D certificates and below. If realized, estimated losses would reduce the principal balances of classes E and F to zero and reduce the principal balance of the class D certificates by 2.4%.
As of the September 2026 remittance period, one (11.2% of the pool balance) of the five loans is specially serviced and in foreclosure. The remaining four loans (88.8%) have been modified with maturity extensions, including 1515 Market (24.0%), which was bifurcated into an A/B structure. Additional details of the remaining loans are outlined below.
500 Fifth Avenue ($93.7 million, 39.3%)
- The loan is collateralized by a 712,791 sf Class-B office property located in Midtown Manhattan, New York City. The 59-story building, which overlooks Bryant Park and the New York Public Library, was developed on a 0.5-acre site in 1931.
- The loan previously transferred to the special servicer in June 2024 prior to maturity default in October 2024. The trust and borrower subsequently entered into a six-month forbearance agreement through April 2025. Following the forbearance period, the loan returned to the master servicer in May 2025, and the borrower elected to exercise a two-year maturity extension option through April 2027. The two-year extension option required principal curtailments, which totaled $12.6 million on the whole loan balance through September 2026. According to the June 2026 rent roll and additional leasing updates, the property was 82.7% leased. The servicer reported a DSC of 2.06x for YTD June 2026.
- The most recent appraisal dated August 2024 valued the asset at $273.8 million ($384 per sf), which is 54.4% below the $600.0 million ($842 per sf) appraisal value at issuance. At this time, KBRA does not estimate a loss on this asset, which has a whole loan balance of $187.4 million.
1515 Market ($57.2 million, 24.0%)
- The loan is collateralized by a 502,213 sf Class-A office building located in the CBD of Philadelphia, Pennsylvania. The 20-story building is located directly above Suburban Station, a major public transportation hub, and directly across from Philadelphia City Hall.
- The loan previously transferred to the special servicer in December 2023 and was initially modified in October 2024, providing a short-term maturity extension from January 2025 to July 2025. The loan defaulted before the extended maturity date and was modified a second time in September 2025. The second modification extended loan maturity to July 2027, with an option to extend an additional year, and bifurcated the debt into a $27.0 million A-note and a $30.2 million B-note. Additionally, the borrower contributed $7.0 million of new equity, mostly deposited into reserves, and will be subject to a capital event waterfall upon a sale or refinance of the property. According to the March 2026 rent roll and additional leasing updates, the property is 41.6% occupied, accounting for the departure of the property’s largest tenant, Temple University (25.9% of GLA), which vacated ahead of lease expiration in June 2027.
- An appraisal dated April 2025 valued the property at $28.0 million ($56 per sf), which is 67.8% below the $87.0 million ($173 per sf) value at issuance. KBRA’s analysis resulted in an estimated loss of $37.3 million (65.2% estimated loss severity) on the aggregate A/B whole loan balance of $57.2 million. The estimated loss is based on a liquidation value of $21.6 million ($43 per sf) and projected total exposure of $58.9 million. The liquidation value is derived from an income capitalization approach using a stabilized KNCF of $2.6 million, a capitalization rate of 11.00%, and a downward adjustment to account for TI/LC costs and income lost during the stabilization period.
St. Louis Premium Outlets ($39.4 million, 16.6%)
- The loan is collateralized by a 351,462 sf open-air outlet center located in Chesterfield, Missouri, approximately 24 miles west of the St. Louis CBD. The property was developed in 2013 by the sponsor, Simon Property Group, and has a Green Street Mall Quality Grade of A-.
- The loan transferred to the special servicer in July 2024 due to imminent maturity default ahead of its October maturity date. The loan was modified in December 2024, resulting in a 12-month forbearance through October 2025 with additional maturity extension options. Following the forbearance period, the loan’s maturity was extended to October 2027 concurrent with a principal curtailment. The loan returned to the master servicer in January 2026. According to the March 2026 rent roll, the property was 86.4% leased. The servicer reported a DSC of 1.76x for FY 2025.
- An appraisal dated July 2025 valued the collateral at $102.6 million ($292 per sf), which is 22.6% below the $132.6 million ($377 per sf) value at issuance. At this time, KBRA does not estimate a loss on this asset, which has a whole loan balance of $78.9 million.
The two remaining assets account for 20.1% of the pool balance:
- International Corporate Center ($26.6 million, 11.2%, Specially Serviced, Foreclosure) is collateralized by a three-story 168,585 sf Class-A office complex located in Rye, New York, approximately 25 miles northeast of Manhattan. The loan transferred to the special servicer in May 2024 due to imminent monetary default. Foreclosure was filed in September 2025, and a foreclosure sale judgment was entered by the court in July 2026. According to the July 2026 rent roll, the property was 71.0% leased. An updated appraisal dated July 2026 valued the asset at $15.4 million ($91 per sf), which represents a 62.4% decline from issuance. KBRA's analysis resulted in an estimated loss of $16.8 million (62.9% estimated loss severity). The estimated loss is based on a liquidation value of $11.3 million ($67 per sf) and projected total exposure of $28.1 million. The liquidation value was based on a non-stabilized distressed disposition of the asset.
- Marriott Fort Lauderdale ($21.2 million, 8.9%) is collateralized by a 315-key full-service hotel in Fort Lauderdale, Florida, located seven miles north of the CBD and adjacent to I-95. The loan transferred to the special servicer in June 2024 due to imminent maturity default ahead of its December maturity date. The loan was modified in June 2025, which extended loan maturity to December 2026 with a one-year extension option. The loan returned to the master servicer in September 2025. The servicer reported an average occupancy and DSC of 77.0% and 0.76x for FY 2025. An appraisal dated July 2024 valued the asset at $28.0 million ($88,889 per key), which represents a 32.0% decline from issuance. The loan is current on payments and not specially serviced. However, in the event of another default, KBRA estimates that the loan could experience a loss given default of $1.4 million (6.7% estimated loss severity). The estimated loss is based on a liquidation value of $20.3 million ($64,444 per key) and projected total exposure of $21.7 million. The liquidation value was based on a non-stabilized distressed disposition of the asset.
Details concerning the class with a rating change are as follows:
- Class D to CCC (sf) from B- (sf)
Details concerning the ratings affirmations are as follows:
- Class B at AA (sf)
- Class C at A (sf)
- Class EC at A (sf)
- Class E at C (sf)
- Class F at D (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.
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