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KBRA Withdraws Four Ratings and Affirms All Other Ratings for JPMBB 2016-C1

29 Jan 2026   |   New York

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KBRA withdraws the ratings of four interest-only classes and affirms all of its outstanding ratings for JPMBB 2016-C1, a $353.4 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's nine remaining assets. The pool has exhibited pool performance generally in line with KBRA's last ratings change in January 2025. The ratings withdrawals are in accordance with KBRA's methodology for rating interest-only certificates as the transaction has less than ten loans outstanding.

As of the January 2026 remittance period, there are nine remaining assets in the pool, including four specially serviced assets (63.7% of the pool balance). KBRA identified seven K-LOCs (71.1%), including the specially serviced assets. Of the K-LOCs, four (67.2%) have estimated losses. The details of the remaining loans are outlined below.

215 Park Avenue South (largest, 26.9%, Watchlist)

  • The loan is collateralized by a 20-story, Class-B office building located in the Gramercy Park neighborhood of Manhattan, New York. The 324,422 sf property is master leased by the borrower to an affiliate of SL Green Realty Corp., which operates and manages the property through 2033.
  • KBRA maintains the loan's KPO of Perform based on strong cash flow performance driven by growth in base rents. The servicer-reported annualized NCF for the YTD September 2025 was $14.1 million, representing a 61.6% increase from $8.7 million underwritten by the issuer at closing. The servicer's September 2025 rent roll indicated the property was 89.3% leased, up from 76.5% at closing. The loan is on the servicer's watchlist due to its impending maturity in February 2026. According to watchlist commentary, the borrower plans to pay off the loan prior to or at maturity.
  • The servicer-reported occupancies and DSCs are: 89.0% / 3.46x (YTD September 2025), 86.0% / 3.32x (FY 2024); at issuance these were: 76.5% / 2.14x.

5 Penn Plaza (2nd largest, 22.1%, K-LOC, Specially Serviced)

  • The loan is collateralized by a 650,329 sf, Class-B office building located in the Penn Station submarket of Manhattan, New York. The 26-story building was constructed in 1917 and includes 17,180 sf of ground-level retail space (2.6% of collateral sf).
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on the loan’s status with the special servicer. The loan transferred to the special servicer in November 2024 due to imminent monetary default. The loan was modified in October 2025, and terms included a two-year maturity extension through January 2028, a one-time 12-month forbearance option at the extended maturity date, an equity contribution of approximately $10.0 million, and the setup of cash management, among other items. According to the June 2025 rent roll and additional leasing updates, the property was 71.1% leased, after accounting for the departure of the property’s second-largest tenant, Thomas Publishing Company (13.9% of collateral sf), which was expected to vacate at lease expiration in December 2025, according to the servicer.
  • The servicer-reported occupancies and DSCs are: 83.0% / 1.68x (YTD June 2025), 85.0% / 1.32x (FY 2024); at closing these were 97.2% / 1.64x. KBRA’s analysis resulted in an estimated loss of $57.4 million on the whole loan balance of $260.0 million (22.1% estimated loss severity). The loss is based on a KBRA liquidation value of $202.7 million ($308 per sf), which is derived from a direct capitalization approach using a KNCF of $16.8 million and a capitalization rate of 8.29%.

32 Avenue of the Americas (3rd largest, 20.5%, K-LOC, Specially Serviced)

  • The loan is collateralized by the borrower's fee simple interest in a 1.2 million sf office building located in the Tribeca neighborhood of Manhattan, New York. The 27-story building was constructed in 1932 as a telecommunications building. The subject includes a mix of data center/telecommunications space (49% of collateral sf) as well as traditional office space (51%). The sponsor is Rudin Management Co., Inc.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on the loan's status with the special servicer and significant declines in financial performance stemming from low collateral occupancy. The loan transferred to the special servicer in September 2025 for imminent maturity default and subsequently defaulted at its November 2025 maturity. The loan was modified in November 2025, and terms included a two-year maturity extension through November 2027, two 12-month extension options available upon the extended maturity, a borrower equity contribution of $30.0 million, and compliance with cash management, among other items. According to the September 2025 rent roll, the property was 54.0% leased, compared to 57.0% at last review and 99.6% at issuance. The decline in occupancy from issuance is primarily the result of former tenants, AMFM (169,331 sf), Aon (36,744 sf) and NYU (32,554 sf), all vacating at their 2022 lease expirations. Most recently, tenant Dentsu Holdings (4.5% of total base rent, 3.1% of collateral sf) vacated upon its August 2025 lease expiration.
  • The servicer-reported occupancies and DSCs are: 54.0% / 1.11x (YTD September 2025), 57.0% / 0.97x (FY 2024); at closing these were 99.6% / 1.88x. KBRA’s analysis resulted in an estimated loss of $175.0 million (41.2% estimated loss severity) on the whole loan balance of $425.0 million. The loss is based on a KBRA liquidation value of $260.1 million ($224 per sf). The value is derived from a direct capitalization approach using a KNCF of $24.1 million, a capitalization rate of 9.50%, a net lease up cost of $12.5 million to account for TI/LC costs and income lost during the stabilization period, and an $18.5 million leasing reserve credit to value.

7700 Parmer (4th largest, 19.8%, K-LOC, Specially Serviced)

  • The loan is collateralized by a 911,579 sf, Class-A office complex located in Austin, Texas, approximately 12 miles northwest of the city’s CBD.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on the loan's status with the special servicer. The loan transferred to the special servicer in July 2025 due to a borrower declared imminent monetary default ahead of the scheduled maturity in December 2025. The loan was modified in December 2025, and terms included a forbearance period through September 2026, a two-year maturity extension through December 2027, a one-time 12-month extension option, an equity contribution of $10.0 million, and compliance with cash management, among other items. According to the September 2025 rent roll, the property was 75.5% leased, compared to 73.8% at last review, and 94.0% at securitization. The Dun & Bradstreet Corporation vacated 61,471 sf (6.7% of collateral sf) upon lease expiration in March 2024. In addition, eBay Inc. downsized in 2022 to 91,120 sf (10.0%) from 224,688 sf (25.0%). The downsizing of the eBay space resulted in a cash sweep event and an excess cash flow trigger event and a hard lockbox has since been active.
  • The servicer-reported occupancies and DSCs are: 74.0% / 1.96x (YTD June 2025), 74.0% / 1.66x (FY 2024); at issuance these were 94.0% / 1.83x. KBRA’s analysis resulted in an estimated loss of $43.4 million (24.5% estimated loss severity) on the whole loan balance of $177.0 million. The loss is based on a KBRA liquidation value of $134.0 million ($147 per sf). The value is derived from a direct capitalization approach using a KNCF of $11.7 million and a capitalization rate of 8.75%.

The remaining five loans account for 10.7% of the pool balance.

  • Hampton Inn & Suites by Hilton - Lynnwood (5th largest, 4.8%, K-LOC, Watchlist) is collateralized by a four-story, 152-key, limited-service hotel located in Lynnwood, Washington. KBRA identified the loan as a K-LOC based on significant declines in NCF leading up to the loan's impending maturity in February 2026. The loan was added to the watchlist in March 2025 due to collateral performance concerns stemming from low occupancy. Watchlist commentary stated the borrower plans to refinance the loan at or prior to maturity. As of January 2026, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA's estimates that the loan could experience a loss given default of $2.2 million (14.5% estimated loss severity) on the remaining loan balance of $17.1 million. The loss is based on a KBRA liquidation value of $15.6 million ($102,632 per key), which considers a distressed non-stabilized disposition of the asset.
  • Stafford Apartments (6th largest, 2.0%, Watchlist) is collateralized by a 96-unit student housing complex located in Baltimore, Maryland. The servicer-reported annualized September 2025 NCF was $841,000, representing a 13.5% increase from $741,200 underwritten by the issuer at closing. The loan was added to the servicer's watchlist in August 2025 due to its impending maturity in February 2026. The watchlist commentary did not provide details about the borrower's refinancing plans.
  • Greenville South Shopping Center (7th largest, 1.8%, K-LOC, Matured Non-Performing) is collateralized by a 125,212 sf retail property located in Greenville, Mississippi. KBRA maintains the loan's K-LOC designation due to its matured non-performing status following its default at maturity in January 2026. The loan is also on the servicer's watchlist due to a declining DSC. At this time, KBRA does not estimate a loss on this $6.3 million loan.
  • The River House (8th largest, 1.3%, K-LOC, Specially Serviced, Matured Non-Performing) is collateralized by a 64,176 sf mixed-use multifamily and office property located in Binghamton, New York. KBRA maintains the loan's K-LOC designation because it transferred to the special servicer in January 2026 for maturity default. At this time, KBRA does not estimate a loss on this $4.8 million loan.
  • Fall Haven Apartments (9th largest, 0.8% K-LOC, Matured Non-Performing) is collateralized by a 51-unit multifamily property located in Ithaca, New York. KBRA maintains the loan's K-LOC designation due to its matured non-performing status following its default at maturity in January 2026. At this time, KBRA does not estimate a loss on this $2.8 million loan.

Details concerning the withdrawn ratings are as follows:

  • Class X-A from AAA (sf) to WR (sf)
  • Class X-B from AAA (sf) to WR (sf)
  • Class X-C from AAA (sf) to WR (sf)
  • Class X-D from BB- (sf) to WR (sf)

Details concerning the ratings affirmations are as follows:

  • Class A-5 at AAA (sf)
  • Class A-S at AAA (sf)
  • Class B at AA- (sf)
  • Class C at A- (sf)
  • Class D-1 at BBB (sf)
  • Class D-2 at BB- (sf)
  • Class D at BB- (sf)
  • Class E at CCC (sf)
  • Class F at CC (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 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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