Press Release|CMBS
View PDF

KBRA Downgrades Five Ratings, Affirms One Rating, and Removes Five Ratings from Watch Downgrade for COMM 2014-CCRE15

9 Dec 2025   |   New York

Contacts

KBRA downgrades the ratings of five classes of certificates and affirms the remaining outstanding rating for COMM 2014-CCRE15, a $192.0 million CMBS conduit transaction. Simultaneously, KBRA removes the ratings of five classes of certificates from Watch Downgrade (DN), where they were placed on September 29, 2025. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in interest shortfalls and estimated losses since KBRA’s last ratings change in January 2025. Interest shortfalls are affecting classes D and below, primarily due to non-recoverable interest from two (37.8% of the pool) specially serviced assets.

As of the November 2025 remittance period, five loans remain in the pool, all of which have been identified as K-LOCs. There are three specially serviced assets (45.6%), comprising one REO asset (5.2%), one in foreclosure (32.6%) and one loan that remains current (7.7%). The details of the remaining assets are outlined below.

625 Madison Avenue (largest, 38.4%, K-LOC, Underperform)

  • At closing, the loan was collateralized by a 0.80 acre of land underlying a 525,031 sf, Class-A office building located in the Plaza District of Manhattan in New York City. The sole source of payment for the loan at securitization was derived from ground rent payments received from the owner of the improvements. The loan was structured with an ARD of December 2018 with a final maturity date in December 2026.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its history with the special servicer. The loan transferred to the special servicer in July 2023 due to non-monetary default. The mezzanine loan failed to pay off at its June 2023 maturity date. In August 2023, the mezzanine lender, SL Green, completed a UCC foreclosure sale and as a result owned both the fee and leasehold interests. The special servicer executed a modification in December 2023 which pre-approved an equity transfer to Related Companies, required a $25.0 million paydown and consented to the termination of the ground lease. In addition, Related provided an interest carry guaranty and completion guaranty. According to news publications, SL Green sold the fee interest for $632.5 million. As part of the sale, SL Green originated $209.8 million of preferred equity to be used towards the demolition and redevelopment of the property. The loan was returned to the master servicer in November 2024. KBRA received a request for a no-downgrade confirmation related to the borrower's request to self-fund and complete the foundation prior to getting the construction loan for the new project. Per local news publications, the demolition was nearing completion as of September 2025.
  • An appraisal dated November 2023 valued the vacant land at $536.8 million. At this time, KBRA does not estimate a loss on the whole loan of $168.9 million.

25 West 45th Street (2nd largest, 32.6%, K-LOC, Underperform, Foreclosure)

  • The loan is collateralized by a 185,233 sf, Class-B office tower located in New York City’s Midtown Manhattan.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its status with the special servicer. The loan transferred to the special servicer in November 2023 for imminent maturity default and failed to pay off at its January 2024 maturity date. According to servicer commentary, the lender plans to foreclose and a foreclosure judgment is pending entry with the court. Occupancy was 61.4% as of June 2025, compared to 75.3% at last review and 95.1% at closing. The loan has been deemed non-recoverable by the servicer.
  • An appraisal dated August 2025 valued the property at $55.0 million ($297 per sf), which is 48.6% below the $107.0 million ($578 per sf) value at issuance. KBRA's analysis resulted in an estimated loss of $23.3 million (37.2% estimated loss severity) on the $62.5 million loan balance. The loss is based on a KBRA liquidation value of $45.6 million ($242 per sf). The value is derived from a direct capitalization approach using a stabilized KNCF of $4.4 million, a capitalization rate of 9.00%, and a downward adjustment to account for TI/LC costs and income lost during the stabilization period.

600 Commonwealth (3rd largest, 16.1%, K-LOC, Underperform)

  • The loan is collateralized by a 315,949 sf, Class-A office building located in Los Angeles, California, less than two miles west of the city's CBD.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its history with the special servicer and upcoming maturity date. The loan initially transferred to the special servicer in December 2023 for imminent maturity default and failed to pay off at its January 2024 maturity date. The loan was extended to January 2025 and then to January 2026. The loan is with the master servicer as of the November 2025 remittance period. KBRA requested an update on the upcoming maturity; however, according to the servicer, the borrower has been non-responsive. Occupancy was 40.4% as of February 2025, unchanged from last review and down from 91.5% at closing. The sole remaining tenant, Los Angeles County Department Public Health, had a lease scheduled to expire in February 2025 but appears to still be at the property. According to news publications, the sponsor has plans to redevelop the property to live/work apartments.
  • An appraisal dated February 2024 valued the property at $31.4 million ($99 per sf), which is 37.2% below the $50.0 million ($158 per sf) value at issuance. As of November 2025, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA estimates that the loan could experience a loss given default of $7.8 million (25.4% estimated loss severity) on the $30.9 million loan balance. The loss is based on a KBRA liquidation value of $24.6 million ($74 per sf). The value is derived from a direct capitalization approach using a stabilized KNCF of $2.9 million, a capitalization rate of 9.50%, and a downward adjustment to account for TI/LC costs and income lost during the stabilization period.

River Falls Shopping Center (4th largest, 7.7%, K-LOC, Underperform, Specially Serviced)

  • The loan is collateralized by a 287,821 sf power center located in Clarksville, Indiana, approximately six miles north of the Louisville, Kentucky CBD.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its status with the special servicer and upcoming maturity. The loan transferred to special servicing in May 2020 for imminent default and a forbearance agreement was executed in September 2021. The borrower complied with the forbearance terms and all deferred amounts were repaid. The loan was scheduled to mature in January 2024 and was subsequently modified with extension and forbearance agreements, with a maturity of December 10, 2025. Occupancy was 88.4% as of May 2025, compared to 83.3% at last review and 100% at closing. Per the special servicer, the loan was expected to pay off prior to the next remittance period.
  • An appraisal dated June 2025 valued the property at $21.8 million ($76 per sf), which is 9.2% below the $24.0 million ($81 per sf) value at issuance. At this time, KBRA does not estimate a loss on the $14.9 million loan balance.

840 Westchester (5th largest, 5.2%, K-LOC, Underperform, REO)

  • The collateral is a 47,963 sf mixed use (retail/office) building located in the Bronx, New York.
  • KBRA maintains the loan’s K-LOC designation and its KPO of Underperform based on its REO status. The loan transferred to the special servicer in September 2018 due to payment default. A foreclosure sale was completed in September 2025 and the title transferred to the lender in November. Per commentary, the special servicer is developing a business plan for the asset. The asset has been deemed non-recoverable by the servicer.
  • An appraisal dated February 2025 valued the property at $12.4 million ($259 per sf), which is 42.6% below the $21.6 million ($450 per sf) value at issuance. KBRA's analysis resulted in an estimated loss of $5.6 million (55.2% estimated loss severity) on the $10.1 million outstanding balance. The loss is based on a KBRA liquidation value of $8.2 million ($171 per sf). The value is derived from a direct capitalization approach using a stabilized KNCF of $827,266, a capitalization rate of 8.99%, and a downward adjustment to account for TI/LC costs and income lost during the stabilization period.

Details concerning the ratings changes are as follows:

  • Class PEZ to BBB (sf) from A- (sf) DN
  • Class C to BBB (sf) from A- (sf) DN
  • Class D to BB (sf) from BBB (sf) DN
  • Class E to CCC (sf) from BB+ (sf) DN
  • Class F to C (sf) from CCC (sf) DN

KBRA affirms the following rating:

  • Class B at AA (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 Publications

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: 1012505