KBRA Affirms All Ratings for COMM 2013-CCRE12
2 Oct 2026 | New York
KBRA affirms all outstanding ratings for COMM 2013-CCRE12, a CMBS conduit transaction. The transaction has been reduced to three assets with an aggregate balance of $79.0 million, from 63 loans totaling $1.2 billion at securitization. The rating actions are based on our identification of all remaining assets as K-LOCs; our estimated losses of $39.6 million and corresponding recoveries; realized losses totaling $224.1 million, which were allocated to classes B and below; and cumulative interest shortfalls of $29.8 million affecting the class B certificates and below. If realized, estimated losses would reduce the principal balance of the class B certificates by 67.5%. The $86.1 million certificate balance of the transaction differs from the securitized loan balance due to a $7.0 million WODRA associated with The Crossings ($10.9 million, 13.9% of the pool balance).
As of the September 2026 remittance period, two of the three remaining assets are specially serviced. Of the specially serviced assets, The MAve Hotel (23.4%) is in foreclosure. The remaining two loans (76.6%) are current on payments.
Oglethorpe Mall ($49.6 million, 62.7%, Specially Serviced, Matured Performing)
- The loan is secured by a 626,966 sf portion of a 953,760 sf regional mall located in Savannah, Georgia. The mall is anchored by JCPenney and Macy’s, which are part of the collateral, and Belk, which owns its improvements and the underlying land. The loan’s sponsor is Brookfield Property Partners (BPY).
- The loan was modified in May 2025 following its failure to pay off at maturity in July 2023 and loan maturity was extended until July 2025. The terms of the modification included one 12-month extension option, which was exercised by the borrower and loan maturity was extended until July 2026. The loan was returned to the master servicer following the extension, but transferred back to the special servicer in June 2026 for imminent monetary default as the borrower was unable to pay off the loan at its extended maturity. The borrower has since requested a 3-year loan extension and the loan is being dual tracked for foreclosure and potential workout strategies with the borrower.
- The servicer reported an occupancy of 95.0% and a 1.22x DSC for FY 2025. An appraisal dated July 2026 valued the property at $131.0 million ($209 per sf), which is 44.6% below the $236.5 million ($377 per sf) value at issuance. KBRA's analysis resulted in an estimated loss of $54.0 million (43.5% estimated loss severity) on the whole loan balance of $124.0 million. The loss is based on a KBRA liquidation value of $70.0 million ($112 per sf) and projected total exposure of $124.0 million. The liquidation value is derived from a direct capitalization approach using a KNCF of $8.4 million and a capitalization rate of 12.00%.
The MAve Hotel ($18.5 million, 23.4%, Specially Serviced, Foreclosure)
- The loan is secured by a 12-story, 72-key, limited-service, boutique hotel located on the northwest corner of Madison Avenue and East 27th Street within the Flatiron District of New York City’s borough of Manhattan.
- The loan transferred to the special servicer in April 2021 and the lender's counsel filed a foreclosure action in April 2022. The loan was deemed non-recoverable in August 2023 and maturity was scheduled for November 2023. A summary judgment was granted and a referee was appointed in December 2023. Final judgement is pending. The borrower has submitted a request for a maturity extension.
- Prior to the loan's transfer to the special servicer, the borrower had an agreement with the City of New York to provide housing for homeless families at rates significantly lower than the hotel's ADR underwritten at issuance. The month-to-month contract with the NYC Department of Homeless Services ended at the end of 2020 and the property has since remained closed to the public.
- The servicer has not reported financials for this property since 2020. An appraisal dated July 2023 valued the property at $19.0 million ($264,000 per key), which is 40.6% below the $32.0 million ($444,444 per key) value at issuance. As a result, the asset carries an ARA of $8.1 million, resulting in a cumulative ASER of $311,295. KBRA’s analysis resulted in an estimated loss of $12.8 million (69.4% estimated loss severity) on the outstanding loan balance of $18.5 million. The loss is based on a KBRA liquidation value of $10.9 million ($151,389 per key) and projected total exposure of $23.7 million. The liquidation value considers a distressed non-stabilized disposition of the asset.
The Crossings ($10.9 million, 13.9%, Current)
- The loan is collateralized by a 216,330 sf anchored retail center in Elkview, West Virginia. The closest large town is Charleston, West Virginia, located 14 miles away.
- The loan was modified in September 2022 and maturity was extended maturity to September 2030. It was also converted to interest-only debt service payments at a modified rate of 6.24%, down from 6.34% at securitization. The former largest tenant, TransFormCo (23.0% of total base rent, 41.3% of collateral sf), vacated prior to its December 2029 lease expiration. As a result, occupancy fell to 54.0% as of June 2026 from 94.5% at issuance. The current largest tenant, Kroger (19.1% of total base rent, 15.9% of collateral sf), is relocating within the property. Upon completion of Kroger's space, the tenant will contribute 28.1% of total base rent and account for 41.3% of the collateral sf and the subject will be about 81.0% leased. The new store is expected to open in January 2027.
- The servicer reported an occupancy of 54.0% and a DSC of 0.76 for the YTD ended June 2026. A February 2023 appraisal valued the subject at $10.1 million ($47 per sf), a 46% decline from $18.2 million ($84 per sf) at issuance. The loan has a WODRA of $7.0 million. As of September 2026, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA estimates that it could experience a loss given default of $10.3 million (93.8% estimated loss severity) on the outstanding loan balance of $10.9 million. The loss is based on a KBRA liquidation value of $10.4 million ($48 per sf) and projected total exposure of $20.7 million. The liquidation value is derived from a direct capitalization approach using a KNCF of $1.0 million and a capitalization rate of 10.00%.
Details concerning the rating affirmations are as follows:
- Class A-M at CC (sf)
- Class B at D (sf)
- Class PEZ at D (sf)
- Class C at D (sf)
- Class D at D (sf)
- Class E at D (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.
To access ratings and relevant documents, click here.