KBRA Places the Ratings of Eight Classes of BBCMS 2023-5C23 on Watch Downgrade
5 Nov 2025 | New York
KBRA places the ratings of eight classes of BBCMS 2023-5C23, a $721.3 million CMBS conduit transaction, on Watch Downgrade.
The Watch placements are based on an increase in interest shortfalls. Currently, interest shortfalls are affecting up to and including the class D certificates. KBRA considered the likelihood of interest shortfalls continuing and reaching higher in the capital structure during the resolution of the specially serviced assets.
As of the October 2025 remittance period, four loans (10.3% of the pool balance) are in special servicing. Three loans (10.0%) are delinquent, and one loan (0.3%) is in foreclosure. KBRA identified five K-LOCs (19.3%), including the specially serviced loans. Most notably, the Rockridge Apartments loan (6th largest, 7.5%) was deemed non-recoverable in October 2025, driving shortfalls further up the capital structure compared to prior months. The asset, an 881-unit garden style multifamily complex in Houston Texas, sustained damage from multiple storms in 2024, and the borrower struggled to complete repairs on down units. The loan has been with the special servicer since October 2024, and was placed with a receiver in August 2025. Cumulative advances on the loan total $3.4 million as of October 2025.
KBRA will continue to monitor the transaction and will seek to resolve or update the Watch Downgrade status within 90 days.
Details concerning the classes with ratings placed on Watch are as follows:
- Class D to A- (sf) DN from A- (sf)
- Class E to BBB (sf) DN from BBB (sf)
- Class F to BBB- (sf) DN from BBB- (sf)
- Class G to BB+ (sf) DN from BB+ (sf)
- Class H to B (sf) DN from B (sf)
- Class X-F to BBB- (sf) DN from BBB- (sf)
- Class X-G to BB+ (sf) DN from BB+ (sf)
- Class X-H to B (sf) DN from B (sf)
To access ratings and relevant documents, click here.