KBRA Downgrades Five Ratings for DBUBS 2011-LC3; Withdraws All Ratings
22 Sep 2026 | New York
KBRA downgrades the ratings of five classes of PM certificates to D (sf) for DBUBS 2011-LC3, a CMBS conduit/fusion transaction, following realized losses taken against their respective principal balances. The losses were caused by the liquidation of the Providence Place Mall loan as reflected in the September 2026 remittance report. The PM classes were rake certificates that derived 100% of their cash flow from the non-pooled components of the Providence Place Mall loan. No other classes issued by DBUBS 2011-LC3 were rated by KBRA. Immediately following the downgrades, KBRA withdraws the ratings on Classes PM-1 through PM-5 following the reduction of their certificate balances to zero. KBRA also withdraws the C (sf) rating on Class PM-X, an interest-only certificate, following the reduction of its notional balance to zero. Class PM-X did not incur a realized loss, and all interest due to the class, including previously outstanding interest shortfalls, was paid with the September 2026 distribution.
Providence Place Mall, previously a non-performing matured asset, was liquidated for $124.3 million in August 2026. KBRA's May 2026 surveillance value was $120.2 million ($123 per sf). An appraisal dated June 2024 valued the property at $191.0 million ($195 per sf), which represented a 65.8% decrease from its $558.0 million ($569 per sf) value at securitization.
The asset was collateralized by leasehold interest in a 1.0 million sf portion of Providence Place Mall, a 1.2 million sf super-regional mall located in Providence, Rhode Island. The land underlying the property is leased from the Rhode Island Economic Development Corporation under a 99-year ground lease expiring in 2096. The whole loan, which totaled $249.9 million prior to disposition, incurred a loss of $130.5 million (42.9% loss severity).
Rating actions prior to their withdrawal:
- Class PM-1 to D (sf) from C (sf)
- Class PM-2 to D (sf) from C (sf)
- Class PM-3 to D (sf) from C (sf)
- Class PM-4 to D (sf) from C (sf)
- Class PM-5 to D (sf) from C (sf)
Ratings withdrawn:
- Class PM-1 to WR from D (sf)
- Class PM-2 to WR from D (sf)
- Class PM-3 to WR from D (sf)
- Class PM-4 to WR (sf) from D (sf)
- Class PM-5 to WR (sf) from D (sf)
- Class PM-X to WR (sf) from C (sf)
To access ratings and relevant documents, click here.