KBRA Affirms One Rating for MSBAM 2013-C8
19 Dec 2025 | New York
KBRA affirms one rating for MSBAM 2013-C8, a $17.9 million CMBS conduit transaction, which has one loan remaining in the underlying mortgage pool. The affirmation follows a surveillance review of the transaction and is based on the performance and expected recovery of the loan, which has been identified as a K-LOC. The details of the loan are outlined below.
11451 Katy Freeway
- The $17.9 million loan is collateralized by a 117,261 sf Class-A office building located 15 miles west of the Houston CBD.
- KBRA maintains the loan’s K-LOC designation due to its prior status with the special servicer and modification. The loan transferred to the special servicer in August 2022 for imminent monetary default when the borrower indicated its intention to transfer the property’s title to the trust. The property was marketed for sale and the winning bidder, Mission Companies, negotiated a modification with the special servicer and assumed the loan in December 2023. The modification converted the loan from amortizing debt service payments to interest-only debt service payments, required the new borrower to contribute new equity, and extended the loan's maturity from January 2023 to January 2028, among other terms.
- The servicer-reported occupancies and DSCs are: 85.0% / 1.46x (YTD September 2025; IO debt service payments), 84.0% / 0.83x (FY 2024; IO); at closing these were 95.0% / 1.47x (amortizing). An appraisal dated April 2023 valued the property at $17.1 million ($146 per sf), which is 47.6% lower than $32.6 million ($278 per sf) at issuance. As of December 2025, 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 $7.5 million (41.9% estimated loss severity) on the $17.9 million loan balance. The estimated loss is based on a value of $10.4 million ($89 per sf), which is derived from a direct capitalization approach using a KNCF of $936,000 and a capitalization rate of 9.00%.
KBRA affirms the following rating:
- Class F at CCC (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 certificate. The assessment will consider the expected and actual losses on the remaining asset in the transaction, as well as, the magnitude and extent of interest shortfalls, if any, on the certificate.
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