Press Release|CMBS
View PDF

KBRA Downgrades Five Ratings and Affirms All Other Ratings for COMM 2014-UBS3

12 Mar 2026   |   New York

Contacts

KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings for COMM 2014-UBS3. The conduit transaction has been reduced to three assets and a balance of $207.8 million from 49 loans and $1.06 billion at securitization. The rating actions are based on our identification of each of the assets as a KBRA Loan of Concern (K-LOC); our estimated losses of $29.4 million (which, if realized, would impact Class D and below) and corresponding recoveries; current interest shortfalls affecting classes D and below; and the likelihood that interest shortfalls could reach higher in the capital structure during the resolution of the assets. The servicer has deemed one loan non-recoverable.

As of the February 2026 remittance period, two loans (66.2% of the pool) have a matured non-performing balloon status, and one (33.8%) is current. The details of the loans are outlined below.

Equitable Plaza ($76.8 million, 37.0%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)

  • The loan is collateralized by a 32-story, 688,292 sf, Class-A office building located in the Wilshire District of Los Angeles, California, approximately three miles northwest of the city’s CBD.
  • The loan transferred to special servicing for imminent maturity default in April 2024 ahead of its June 2024 maturity date. According to special servicer commentary, the borrower and lender have entered into a forbearance agreement, the details of which have not been made available. In July 2025, the borrower made a $7.0 million principal curtailment towards the loan balance. As of February 2026, outstanding advances on interest total $973,725.
  • The servicer reported the property’s occupancy and DSC were 57.0% and 1.45x as of June 2025. Roughly 46% of the building is leased on a month-to-month basis.
  • KBRA's analysis resulted in an estimated loss of $7.7 million (10.0% estimated loss severity) on a whole loan balance of $76.8 million. The loss is based on a KBRA liquidation value of $71.5 million ($104 per sf) and projected total exposure of $79.2 million. The value is derived from a direct capitalization approach using a KNCF of $6.7 million and a capitalization rate of 9.25%.

State Farm Portfolio ($70.3 million, 33.8%, K-LOC, Current)

  • The loan is collateralized by 12 Class-A and Class-B suburban office buildings located in 10 states at issuance.
  • The loan remains current at this time, however, the note in the MSBAM 2014-C16 transaction was transferred to the special servicer in December 2025. The sole tenant, State Farm, vacated all buildings in September 2023. However, State Farm's leases do not expire until November 2028 and the tenant has continued to meet its rental obligations. According to the special servicer, the Columbia, Missouri property was released in August 2025 which resulted in a $42.6 million principal curtailment.
  • The loan had an Anticipated Repayment Date (ARD) of April 2024 and a stated maturity date of April 2029. The loan required interest-only debt service payments through the ARD with interest accruing at a fixed rate of 4.63%. From April 11, 2024, interest in excess of the Regular Interest Rate has been deferred and excess cash flow applied, pro-rata, to each of the notes evidencing the loan, first to reduce the outstanding principal balance and thereafter to pay the deferred interest. As of February 2026, the loan has been paid down by 42.2%.
  • The servicer reported the portfolio's occupancy and DSC are 100.0% and 2.27x for the nine months ended September 2025.
  • KBRA’s analysis resulted in an estimated loss of $83.2 million (30.8% estimated loss severity) on the whole loan balance of $269.3 million, of which $70.3 million is allocated to this trust. The loss is based on a KBRA liquidation value of $189.3 million ($68 per sf) and projected total exposure of $271.5 million. The value is derived from a direct capitalization approach using a KNCF of $18.8 million and a capitalization rate of 9.00%, which was reduced by $19.4 million to account for downtime and TIs during the stabilization period.

Southfield Town Center ($60.7 million, 29.2%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)

  • The loan is collateralized by a 35-acre office complex comprising five office buildings totaling 2.2 million sf that are located 15 miles northwest of the Detroit CBD in Southfield, Michigan.
  • The loan was transferred to special servicing in February 2024 for imminent maturity default and its status is matured non-performing balloon. The lender granted a forbearance agreement that was recently extended through December 2026. The loan was deemed non-recoverable in October 2024, however, a $3.5 million curtailment payment was made by the borrower in February 2026.
  • The servicer reported an occupancy and DSC of 71.0% and 2.24x for the TTM period ended September 2025.
  • The loan was reappraised for $137.0 million ($62 per sf), which is 24.3% below the $181.0 million value ($82 per sf) at issuance. At this time, KBRA does not estimate a loss on this asset.

KBRA downgrades the following ratings:

  • Class B to BBB- (sf) from AA- (sf)
  • Class C to BB (sf) from BBB- (sf)
  • Class D to CCC (sf) from B- (sf)
  • Class E to CC (sf) from CCC (sf)
  • Class PEZ to BB (sf) from BBB- (sf)

KBRA affirms the following ratings:

  • Class F at D (sf)
  • Class G 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.

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: 1013922