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KBRA Downgrades Two Ratings and Affirms All Other Ratings for COMM 2013-CCRE13

7 Aug 2025   |   New York

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KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for COMM 2013-CCRE13, a $130.5 million CMBS conduit transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since KBRA's last ratings change in August 2024, primarily associated with the 175 West Jackson loan (largest, 61.7% of the pool balance). In addition, the ratings consider the likelihood of interest shortfalls continuing and potentially going higher in the capital structure as the special servicer resolves the non-performing assets.

As of the July 2025 remittance period, there are five specially serviced loans (97.4%), four of which (86.9%) are matured non-performing and one of which (10.5%) is in foreclosure. KBRA identified five (97.4%) of the remaining six loans in the pool as K-LOCs, four of which (91.4%) have estimated losses. The details of the K-LOCs with losses are outlined below.

175 West Jackson (Largest, 61.7%, Specially Serviced, K-LOC, Underperform, Matured Non-Performing)

  • The loan is collateralized by a 1.4 million sf, Class-A office building located in the Central Loop submarket of the Chicago, Illinois CBD. The development consists of a 22-story office building with ground floor retail and a 250-space underground garage that is leased to an independent operator.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to the loan’s maturity default in November 2023 and its matured non-performing status. The loan was transferred to the special servicer for imminent monetary default in November 2021. In July 2023, the servicer deemed the loan non-recoverable. According to the special servicer, a receiver has been appointed, and the lender is reviewing offers to sell the property.
  • The servicer-reported occupancies and DSCs are: 53.0% / -0.56x (YTD March 2025), 58.0% / 1.12x (FY 2024); at closing these were 92.0% / 1.44x. An appraisal dated November 2024 valued the property at $84.0 million ($58 per sf), which is 79.5% below the $410.0 million ($282 per sf) value at issuance. An aggregate ARA of $185.9 million was effectuated on the whole loan in July 2025, of which $66.3 million was allocated to the COMM 2013-CCRE13 securitization. The ARA for this trust resulted in a cumulative ASER of $1.5 million. KBRA's analysis resulted in an estimated loss of $223.0 million (89.0% estimated loss severity) on the whole loan balance of $250.5 million. The loss is based on a KBRA liquidation value of $67.4 million ($47 per sf). The value is derived from a direct capitalization approach using a stabilized KNCF of $9.3 million, a capitalization rate of 12.00%, and a net lease up cost of $9.8 million to account for TI/LC costs and income lost during the stabilization period.

Park Plaza (2nd Largest, 12.2%, Specially Serviced, K-LOC, Underperform, Matured Non-Performing)

  • The loan is collateralized by a four-story, 210,774 sf suburban office property located in Naperville, Illinois, approximately 28 miles west of the Chicago CBD.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to low occupancy, the loan’s maturity default in November 2023, and its matured non-performing status. Travelers Indemnity Company, (previously 51.0% of collateral sf) vacated at lease expiration in June 2024, resulting in property occupancy of approximately 17.0%. The loan was structured with a cash flow sweep that began 12 months prior to the Travelers lease expiration and as of the July 2025 remittance period, there is $2.6 million available in reserves. A notice of default was sent to the borrower, and a foreclosure complaint was filed in July 2024. The loan was deemed non-recoverable in September 2024. A receiver has been appointed and is in control of the property and a foreclosure sale was scheduled for July 2025.
  • The servicer-reported occupancies and DSCs are: 69.0% / -0.96x (FY 2023), 69.0% / 1.36x (FY 2022); at closing, these were 94.0% / 1.76x. An appraisal dated January 2024 valued the property at $5.1 million ($24 per sf), which is 78.8% below the $24.0 million ($114 per sf) value at issuance. As a result, the asset carries an ARA of $9.5 million, resulting in a cumulative ASER of $186,828. KBRA’s analysis resulted in an estimated loss of $12.3 million (77.2% estimated loss severity). The loss is based on a KBRA liquidation value of $5.0 million ($24 per sf). The value is derived from a direct capitalization approach using a stabilized KNCF of $858,000, a capitalization rate of 12.00%, and a net lease up cost of $2.2 million to account for TI/LC costs and income lost during the stabilization period.

525 West 22nd Street (3rd Largest, 10.5%, Specially Serviced, K-LOC, Underperform, Foreclosure)

  • The loan is collateralized by a 16,225 sf retail space located in the Chelsea neighborhood of New York's Manhattan Borough.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to weak financial performance, the loan’s maturity default in December 2023, and its foreclosure status. Property occupancy declined to 42.0% in 2020 and although the borrower was able to increase occupancy back to 100%, the new tenants have lower rental rates, which has impacted property cash flow. The property is currently leased to three art galleries; however, special servicer commentary indicates tenant Joanne Artman (8.7% of total base rent, 3.1% of collateral sf) will vacate upon lease expiration in October 2025. According to the special servicer, the borrower declined a proposed forbearance agreement that would have required a principal paydown and foreclosure proceedings were subsequently initiated in March 2025. The loan was deemed non-recoverable in September 2024.
  • The servicer-reported occupancies and DSCs are: 100% / 1.40x (FY 2024), 100% / 1.24x (YTD September 2023); at closing, these were 100% / 1.55x. An appraisal dated September 2024 valued the property at $16.5 million ($1,017 per sf), which is 34.0% below the $25.0 million ($1,541 per sf) value at issuance. KBRA’s analysis resulted in an estimated loss of $2.0 million (14.4% estimated loss severity). The loss is based on a KBRA liquidation value of $12.4 million ($763 per sf), which is equal to 75% of the appraised value. The value considers a potentially protracted workout process.

Hampton Inn Pittsburgh Airport (4th Largest, 7.0%, Specially Serviced, K-LOC, Underperform, Matured Non-Performing)

  • The loan is collateralized by a 127-key limited-service hotel located in Moon Township, Pennsylvania, 15 miles northwest of the Pittsburgh CBD and seven miles from Pittsburgh International Airport.
  • KBRA maintains the loan’s K-LOC designation due to low occupancy, the loan’s maturity default in December 2023, and its matured non-performing status. The servicer reported occupancy was 59.0% as of March 2025, compared to 71.0% as of December 2024 and 80.0% at issuance. The servicer reported NCF of $649,000 for FY 2024 was 61.3% below the issuer's underwritten NCF of $1.7 million, primarily due to declining revenue. The loan transferred to the special servicer in November 2023 and defaulted at maturity in December 2023. A receiver was appointed in April 2024 and the loan was deemed non-recoverable in September 2024. The property has been marketed for sale since January 2025 and a receiver sale is impending.
  • The servicer-reported occupancies and DSCs are: 59.0% / -0.01x (YTD March 2025), 71.0% / 0.95x (FY 2024); at closing these were 80.0% / 2.47x. An appraisal dated August 2024 valued the property at $8.6 million ($67,480 per key), which is 46.4% below the $16.0 million ($125,984 per key) value at issuance. As a result, the asset carries an ARA of $652,566. KBRA’s analysis resulted in an estimated loss of $5.6 million (61.5% estimated loss severity). The loss is based on a KBRA liquidation value of $3.6 million ($28,260 per key).

The remaining two loans account for 8.6% of the pool balance and do not have estimated losses.

  • Plaza Riviera (5th largest, 6.0%, Specially Serviced, K-LOC, Underperform, Matured Non-Performing) is collateralized by a 51,407 sf office property located in Redondo Beach, California, approximately 20 miles southwest of the Los Angeles CBD. The loan failed to pay off at maturity in November 2023 after being granted several forbearances. The loan was transferred to the special servicer in February 2024. Another forbearance agreement was executed in November 2024 that included a $1.5 million principal paydown and a recourse guaranty. Special servicer commentary indicates loan payoff is scheduled for September 2025.
  • Walgreens – Silsbee, TX (6th largest, 2.6%, Perform) is collateralized by a 14,550 sf single-tenant retail property in Silsbee, Texas, approximately 93 miles northeast of Houston. The property is 100% leased to Walgreens through 2085. The loan did not pay off at its ARD in August 2024 and has a final maturity in January 2035.

Details concerning the classes with rating changes are as follows:

  • Class C to B- (sf) from BB (sf)
  • Class PEZ to B- (sf) from BB (sf)

To access ratings and relevant documents, click here.

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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.

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