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KBRA Downgrades Three Ratings, Affirms Five Ratings and Removes Six Classes from Watch Downgrade for JPMBB 2014-C24

21 Aug 2025   |   New York

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KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings for JPMBB 2014-C24, a $395.3 million CMBS conduit transaction. Simultaneously, KBRA removes six classes from Watch Downgrade (DN), where they were placed on May 27, 2025. The rating actions are driven by an increase in KBRA's estimated losses for seven assets (73.3% of the pool balance). We also considered the magnitude, recoverability and likelihood of continued interest shortfalls across the capital structure as the special servicer works to resolve the non-performing assets. The servicer has already made non-recoverable determinations for four of the loans.

As of the July 2025 remittance period, the transaction has 10 assets, each of which has been identified as a K-LOC, including eight (74.0%) that are specially serviced, of which three (31.5%) are REO, three (19.7%) are in foreclosure and one (3.8%) is matured non-performing. The details of the top five loans (86.6%) are outlined below.

Columbus Square Portfolio (largest, 22.0%, K-LOC, Underperform)

  • The loan is collateralized by five condominium buildings that contain retail, community facility and parking garage space located on the Upper West Side of New York City. The collateral contains a total of 494,224 sf within 31 commercial condominium units and consists of 19.9% of ground floor retail space, 36.0% of lower level retail space, 22.2% of community facility space, and 21.9% of leased parking garage space at three locations with a total capacity for 392 vehicles.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to the loan's 30+ days delinquent status and prior status with the special servicer. The loan transferred to the special servicer in December 2023 due to imminent maturity default. It transferred back to the master servicer in July 2024 following a loan modification that closed in March 2024, which extended the loan's term by three years to August 2027. Based on the March 2025 rent roll, the property is 97.9% leased, compared to 96.1% at last review and 95.7% reported at securitization. Lease rollover through 2026 represents 12.5% of base rent and is spread across four tenants, the largest of which is HomeGoods, which represents 6.0% of base rent.
  • The servicer-reported occupancies and DSCs are: 99.0% / 1.16x (YTD March 2025), 97.0% / 1.18x (FY 2024), 99.0% / 1.22x (YTD June 2023); at closing these were 95.7% / 1.15x. At this time, KBRA does not estimate a loss on this asset.

635 Madison Avenue (2nd largest, 20.9%, K-LOC, Specially Serviced, REO)

  • The asset is a 19-story, 177,262 sf, Class-A, mixed-use, office and retail building located on Madison Avenue and 59th Street in the Plaza District of Manhattan. Built in 1957 and renovated in 2005, the property includes 156,126 sf of office space as well as 21,136 sf of retail space.
  • KBRA maintains the asset's K-LOC designation and KPO of Underperform due to its REO status. The loan transferred to the special servicer when it became 90+ days delinquent in August 2020. The property became REO in June 2024 and was deemed non-recoverable in August 2024. In October and December 2024, there were realized losses of $6.3 million and $100,000, respectively, that were applied to certificates of the transaction in order to reimburse the servicer. According to the April 2025 rent roll, the property is 61.0% leased, which is in line with last review and down from 94.4% at securitization. Per the servicer, the asset is not currently listed for sale.
  • The servicer-reported occupancies and DSCs are: 61.0% / 0.65x (FY 2024), 63.0% / 0.81x (FY 2023); at closing these were 94.4% / 1.44x. An appraisal dated June 2024 valued the property at $78.8 million ($445 per sf), which is 60.0% lower than the $195.0 million ($1,100 per sf) appraised value at issuance. As a result, the asset carries an ARA of $21.2 million, resulting in a cumulative ASER of $197,902. KBRA’s analysis resulted in an estimated loss of $42.4 million (51.2% estimated loss severity). The loss is based on a KBRA liquidation value of $45.6 million ($257 per sf). The value is derived from a direct capitalization approach using a KNCF of $3.5 million and a blended capitalization rate of 7.60%.

17 State Street (3rd largest, 19.0%, K-LOC, Underperform, Specially Serviced)

  • The loan is collateralized by a 42-story, 560,210 sf, Class-A office building located in downtown Manhattan. The property was developed on a 0.5-acre site in 1988 and was acquired by the sponsor in 1999.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its status with the special servicer. The loan transferred to the special servicer in August 2024 because the borrower did not repay the loan at its maturity date. An extension agreement was executed in January 2025, which extended the loan's maturity to January 2027, with an option to extend for an additional year to January 2028, contingent on property performance. Based on the May 2025 rent roll, the property is 68.5% leased, compared to 92.6% at last review and 90.7% at securitization. The decline since last review is due to the prior largest tenant IPsoft executing an amendment in their lease to downsize by 111,300 sf (19.9% of total sf). Lease rollover through 2026 represents 24.9% of base rent and is spread across 20 tenants, the largest of which represents 3.5% of base rent.
  • The servicer-reported occupancies and DSCs are: 93.0% / 2.17x (YTD September 2024), 94.0% / 3.58x (FY 2023); at closing these were 90.7% / 1.79x. An appraisal dated December 2024 valued the property at $215.0 million ($384 per sf), which is 33.8% lower than the $325.0 million ($580 per sf) appraised value at issuance. As of July 2025, the loan is current on payments. However, in the event of a default, KBRA estimates that it could experience a loss given default of $33.1 million (18.4% estimated loss severity) on the whole loan balance of $180.0 million. The loss is based on a KBRA liquidation value of $149.8 million ($267 per sf). The value is derived from a direct capitalization approach using a KNCF of $13.4 million and a capitalization rate of 8.50%, as well as a deduction of $7.7 million to account for lease up costs.

North Riverside Park Mall (4th largest, 16.9%, K-LOC, Specially Serviced, Foreclosure)

  • The loan is collateralized by a 429,038 sf portion of a 1.1 million sf regional mall located in North Riverside, Illinois, approximately nine miles west of the Chicago CBD. The mall is currently anchored by JCPenney, Round 1 Entertainment and Forman Mills, each of which are non-collateral tenants. Round 1 Entertainment and Forman Mills each took over a portion of the former Sears space. The non-collateral space previously occupied by Carson Pirie Scott (266,275 sf) has remained vacant since the tenant left in 2018. The sponsor of the borrower is The Feil Organization.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to the loan's foreclosure status. In May 2021, the loan was modified and extended through October 2024. The loan transferred to the special servicer in October 2024 when the borrower did not repay it at the extended maturity date. The borrower is seeking another maturity extension and possibly a forbearance. The lender is dual-tracking discussions with the borrower while proceeding with foreclosure action. As part of the prior modification, the loan was bifurcated into a $45.0 million A-Note and a $21.9 million B-Note. The interest rate remained unchanged, and the amortization type was changed to interest-only from amortizing balloon. The interest payments for the A-Note are paid monthly, while the interest payments for the B-Note, which compound monthly, accrue on each payment date. A cash flow sweep was in place through the October 2024 maturity date. As part of the modification, the borrower funded an all-purpose reserve account with $2.0 million, and as of July 2025, the account had a balance of $662,544. Based on the July 2025 rent roll, the property is 87.6% leased, compared to 89.0% at last review and 94.1% at securitization. Lease rollover through 2026 represents 27.6% of base rent and is spread across 62 tenant leases, the largest of which represents 2.3% of base rent.
  • The servicer-reported occupancies and DSCs are: N/A / 2.17x (YTD June 2024), 88.0% / 2.15x (FY 2023); at closing these were 94.1% / 1.47x. An appraisal dated November 2024 valued the property at $38.1 million ($89 per sf), which is 70.5% lower than the $129.0 million ($301 per sf) appraised value at issuance. As a result, the asset carries an ARA of $32.5 million, resulting in a cumulative ASER of $224,006. KBRA’s analysis resulted in an estimated loss of $45.0 million (67.2% estimated loss severity). The loss is based on a KBRA liquidation value of $23.9 million ($56 per sf). The value is derived from a direct capitalization approach using a KNCF of $3.4 million and a capitalization rate of 14.00%.

Hilton Houston Post Oak (5th largest, 7.8%, K-LOC, Specially Serviced, REO)

  • The asset is a 14-story, 448-key, full-service hotel located six miles west of the Houston CBD in the center of the Uptown/Galleria business district, one block north of the Houston Galleria Mall.
  • KBRA maintains the asset's K-LOC designation and KPO of Underperform due to its REO status. The trust obtained the title in September 2022 following a deed in lieu of foreclosure arrangement. According to the special servicer, the asset manager is planning to sell the property in 2025. The STR report as of May 2025 indicates the hotel is outperforming its competitive set, as evidenced by its RevPAR penetration rate of 101.0%, compared to 104.7% at last review and 103.6% at issuance. The loan was deemed non-recoverable in October 2024. In October and December 2024, there were realized losses of $965,613 and $100,000, respectively, that were applied to certificates of the transaction in order to reimburse the servicer. However, in March 2025 and July 2025, the trust reduced the total losses by $762,000 and $303,000, respectively.
  • The servicer-reported occupancies and DSCs are: 73.0% / 1.47x (FY 2024), 52.0% / 1.81x (FY 2023); at closing these were 83.5% / 1.97x. An appraisal dated May 2025 valued the property at $65.4 million ($145,982 per key), which is 48.2% lower than the $126.2 million ($281,696 per key) appraised valued at issuance. As a result, the asset carries an ARA of $6.7 million, resulting in a cumulative ASER of $1.7 million. KBRA’s analysis resulted in an estimated loss of $20.3 million (29.1% estimated loss severity) on the whole loan balance of $70.0 million. The loss is based on a KBRA liquidation value of $52.3 million ($116,684 per key). The value is derived from a direct capitalization approach using a KNCF of $5.8 million and a capitalization rate of 11.00%.

Details concerning the classes with ratings changes are as follows:

  • Class B to BB (sf) from BBB- (sf) DN
  • Class C to B (sf) from BB- (sf) DN
  • Class EC to B (sf) from BB- (sf) DN

KBRA affirms the following ratings, including three classes that were removed from Watch Downgrade:

  • Class A-5 at AAA (sf)
  • Class A-S at AA (sf)
  • Class D to CCC (sf) from CCC (sf) DN
  • Class E to C (sf) from C (sf) DN
  • Class F to C (sf) from C (sf) DN

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 Publication

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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