Press Release|CMBS

KBRA Downgrades Three Ratings and Affirms All Other Ratings for GSMS 2014-GC22

1 May 2025 | New York

KBRA downgrades the ratings of three classes and affirms all other outstanding ratings for GSMS 2014-GC22, a $320.1 million conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses for the five remaining assets.

As of the April 2025 remittance period, all five assets did not pay off at maturity dates and are specially serviced; two are in foreclosure (36.1%), two are REO (29.6%), and one loan (34.3%) is matured performing. KBRA identified all five assets (100.0%) as K-LOCs with estimated losses. The details of the five assets are outlined below.

Maine Mall (largest, 34.3% of the pool balance, K-LOC, Matured Performing)

The loan is collateralized by an enclosed super-regional mall located in South Portland, Maine, approximately six miles southwest of the Portland CBD. The mall anchors are JCPenney and Macy's. JCPenney owns its improvements subject to a ground lease with the sponsor, while Macy's owns its store and underlying land. The former non-collateral anchor Sears closed in the fall of 2020. The loan's sponsor is Brookfield Property Partners.
KBRA maintains the loan's K-LOC designation and KPO of Underperform based on its matured performing status following the borrower's failure to pay off the loan at loan maturity in April 2024. The loan subsequently transferred to special servicing for imminent maturity default. The borrower and special servicer are discussing a potential loan modification, according to the servicer. The loan is current and cash flow is sufficient to cover debt service payments.
The servicer-reported occupancies and DSCs are: 94.0% / 1.52x (FY 2024), 91.0% / 1.48x (FY 2023); at issuance these were 97.2% / 1.83x. An appraisal dated August 2024 valued the property at $196.0 million ($268 per sf), representing a 50.3% decrease from closing ($395.0 million; $541 per sf). As a result, the loan carries an ARA of $19.9 million. KBRA’s analysis resulted in an estimated loss of $87.5 million (37.2% estimated loss severity) on the whole loan balance of $235.0 million. The loss is based on KBRA's liquidation value of $149.5 million ($205 per sf). The value is derived from a direct capitalization approach using a KNCF of $17.2 million and a capitalization rate of 11.50%.

Selig Portfolio (2nd largest, 30.7%, K-LOC Foreclosure)

The loan collateral is seven office properties, totaling 1.1 million sf, in downtown Seattle. All of the properties are easily accessible from Interstate 5 as well as State Route 99.
KBRA identifies the loan as a K-LOC and maintains its KPO of Underperform based on its foreclosure status. The loan transferred to the special servicer for imminent monetary default prior to loan maturity in May 2024. The borrower and special servicer reached terms for a loan modification which could not be finalized because the borrower was unable to raise capital to fund reserve accounts. The borrower offered a second modification proposal, which was rejected by the special servicer. A receiver was appointed in March 2025.
The servicer-reported occupancies and DSCs are: 60.0% / 1.33x (FY 2024), 63.0% / 1.62x (FY 2023); at issuance these were 85.0% / 2.06x. Appraisals dated February 2025 valued the properties at $149.8 million ($138 per sf), representing a 55.3% decrease from closing ($395.0 million; $541 per sf). As a result, the asset carries an ARA of $27.9 million. KBRA’s analysis resulted in an estimated loss of $94.7 million (40.4% estimated loss severity) on the whole loan balance of $234.4 million. The loss is based on KBRA's liquidation value of $144.2 million ($133 per sf), which is derived from a direct capitalization approach using a KNCF of $14.4 million and a capitalization rate of 10.00%.

EpiCentre (3rd largest, 26.6%, K-LOC, REO)

The loan is collateralized by a 304,772 sf mixed-use entertainment center located in the Uptown section of Charlotte, North Carolina. Much of the center was dedicated to entertainment and retail uses, which comprises 264,323 sf, or 86.7% of the subject’s total sf. The remaining 40,449 sf is utilized as office space.
KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on low occupancy and its REO status. The loan transferred to special servicing on March 16, 2021 due to imminent monetary default. A receiver was appointed in July 2021 and the property became REO effective August 2022. According to the servicer, an improvement plan to cure deferred maintenance was completed in February 2024. The property was 38.5% occupied as of February 2025. As of April 2025, a $21.9 million ARA and a cumulative $1.0 million ASER are outstanding and there is $3.8 million in cumulative non-recoverable interest.
The servicer-reported occupancies and DSCs are: 35.0% / 0.26x (YTD annualized June 2023), 38.0% / 0.26x (FY 2021); at issuance these were 90.0% / 2.27x. An appraisal dated January 2025 valued the property at $74.7 million ($245 per sf), representing a 42.8% decrease from closing ($130.5 million; $428 per sf). KBRA’s analysis resulted in an estimated loss of $39.3 million (46.2% estimated loss severity) on the loan balance of $85.0 million. The loss is based on KBRA's liquidation value of $50.2 million ($165 per sf), which is derived using a stabilized KNCF of $5.9 million and a capitalization rate of 9.50%, with an $11.9 million value deduction for lease up costs.

Maccabees Center (4th largest, 5.4%, K-LOC, Foreclosure)

The loan is collateralized by a 360,280 sf, Class-A office complex located in Southfield, Michigan, approximately 15 miles northwest of the Detroit CBD.

KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its foreclosure status. The former second-largest tenant, Sullivan Ward (12.0% of square footage), vacated at its February 2020 lease expiration and the former largest tenant W.B. Doner (34.0%) vacated at lease expiration in December 2020, reducing occupancy at the property to 34.0%. The loan transferred to the special servicer in December 2023, and the special servicer started dual tracking foreclosure and other workout strategies. There are currently $1.7 million in principal and interest advances outstanding and $203,153 in cumulative non-recoverable interest.
The servicer-reported and occupancies and DSCs are: 31.0% / -1.00x (YTD March 2024), 27.0% / -0.91x (FY 2022); at issuance these were 80.0% / 1.70x. An appraisal dated November 2024 valued the property at $9.7 million ($27 per sf), representing a 68.4% decrease from closing ($30.7 million; $85 per sf). As a result, the asset carries an ARA of $10.9 million. KBRA’s analysis resulted in an estimated loss of $14.0 million (81.3% estimated loss severity) on the loan balance of $17.2 million. The loss is based on KBRA's liquidation value of $5.8 million ($16 per sf), which is derived using a stabilized KNCF of $1.3 million and a capitalization rate of 9.75%, with a $7.8 million value deduction for lease up costs.

Westwood Plaza (5th largest, 3.0%, K-LOC, REO)

The loan is secured by a 201,712 sf retail center in Johnstown, Pennsylvania, 57 miles east of Pittsburgh.
KBRA maintains the loan's K-LOC designation based on low occupancy and its REO status. Occupancy at the center declined when the grocery anchor, Good Cents, vacated in 2015. The loan transferred to the special servicer in May 2019 for payment default. Foreclosure was initiated in January 2021 and the property became REO in April 2022. The property's occupancy was reported at 24.0% as of October 2024. The special servicer is working on leasing the asset prior to a projected October 2025 disposition.
The servicer-reported occupancies and DSCs are: 25.0% / -0.91x (YTD June 2024), 55.0% / 0.33x (FY 2023); at issuance these were 91.0% and 1.40x. A July 2024 appraisal valued the property at $5.4 million, which represents a 65.6% decline from the $15.7 million appraised value at issuance. The asset has been determined to be non-recoverable and carries an ARA of $7.8 million and an ASER of $456,883. KBRA’s analysis resulted in an estimated loss of $8.0 million (81.9% estimated loss severity) on the loan balance of $9.7 million. The loss is based on KBRA's liquidation value of $2.6 million ($13 per sf). The value considers a distressed non-stabilized disposition of the asset.

Details concerning the classes with rating changes are as follows:

Class B to BB (sf) from A (sf)

Class C to CCC (sf) from B- (sf)

Class PEZ to CCC (sf) from B- (sf)

To access ratings and relevant documents, click here.

Related Publication

CMBS: GSMS 2014-GC22 Pre-Sale Report

KBRA Downgrades Three Ratings and Affirms All Other Ratings for GSMS 2014-GC22

Related Publication

Methodologies