KBRA Downgrades One Rating of COMM 2013-CCRE12 to D (sf) Following Realization of Principal Losses

KBRA downgrades the rating of the Class D certificates from C (sf) to D (sf) for COMM 2013-CCRE12, a $229.8 million conduit CMBS transaction, following realized losses taken against its outstanding principal balance resulting from the resolution Harbourside North REO asset (originally 8th largest, $39.5 million loan balance at securitization) as reflected in the January 2025 remittance report. The asset incurred a loss of $35.5 million (89.9% loss severity of original balance). The loss was in line with KBRA's expectations as reflected in the October 2024 surveillance review.

The Harbourside North REO asset was resolved in December 2024 with net proceeds of $9,990 being distributed to resolve fees, advances, and expenses. An appraisal dated June 2022 valued the subject on an As-Is basis at $0 due to the burden imposed by the subject’s ground lease and changes in market conditions. This is compared to $53.9 million at issuance. The asset consists of the office and parking components of a 121,983 sf mixed-use building located in the Georgetown submarket of Washington, DC.

The transaction has $81.1 million in cumulative principal losses (with adjustments) to date, as reported in the January 2025 remittance report. The realized losses reduced the principal balances of Classes E, F, and G to zero while the principal balance of Class D has been reduced by $13.0 million (20.0% of its original balance). Along with the liquidation of the Harbourside North REO asset, the transaction has incurred adjusted losses from the disposition of seven previously specially serviced assets: Holiday Inn Express - Schaumburg ($3.9 million loss, November 2019), Roosevelt East Apartments ($5.6 million, December 2019), Pheasant Ridge A ($2.0 million, December 2019), Dakota Apartments A (Stanley ND) ($972,869, December 2019), Monarch 544 at Coastal Carolina ($11.7 million, December 2021), Hilton Garden Inn - Morgantown ($8.0 million, July 2022), and 216 West Jackson ($13.5 million, April 2024), which resulted in loss severities of 52.6%, 31.4%, 27.2%, 49.6%, 51.5%, and 81.7%, respectively.

KBRA's other outstanding transaction ratings are unchanged at this time. KBRA most recently downgraded four classes of certificates of the transaction in October 2024 based on KBRA's estimated losses.

Details concerning the classes with ratings changes are as follows:

Class D to D (sf) from C (sf)

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the likelihood of ultimate payment of principal and accrued interest on the rated securities. 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.

For additional details, please see the COMM 2013-CCRE12 Surveillance Press Release linked below.

To access ratings and relevant documents, click here.

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