KBRA Downgrades One Rating to D (sf) for JPMCC 2016-JP4 Following Realization of Principal Losses
2 Nov 2026 | New York
KBRA downgrades the rating on the Class F certificates to D (sf) from C (sf) of JPMCC 2016-JP4, a $439.6 million CMBS conduit transaction. The rating action follows the allocation of a realized loss to the Class F certificates in connection with the reimbursement of non-recoverable advances associated primarily with Riverway ($54.2 million, 12.3%).
According to the October 2026 remittance report, the transaction incurred $32.4 million in realized losses resulting from the reimbursement of non-recoverable advances, of which $28.4 million was attributable to the Riverway loan and $4.1 million attributable to Franklin Marketplace ($16.1 million, 3.7%). The realized losses resulted in the complete write-down of the Class NR certificates and a $13,047 principal loss allocated to Class F, reducing its outstanding certificate balance to $17.4 million.
Riverway is collateralized by an 869,120 sf, Class A office complex located in Rosemont, Illinois, approximately three miles east of O’Hare International Airport and 16 miles northwest of the Chicago CBD. The complex is comprised of four office buildings, three of which serve as collateral. The collateral occupancy dropped to 66.5% after the former second largest tenant, Central States Pension Fund (190,077 sf), vacated at their scheduled December 2019 lease expiration. The loan transferred to the special servicer in May 2023, and a receiver was appointed and JLL is marketing the property for sale. The servicer-reported occupancy and DSC are 71.0% and -0.25x as of March 2026. Franklin Marketplace is collateralized by a 223,434 sf retail center located in northeast Philadelphia, Pennsylvania. The former largest tenant, Education Corp of America’s Brightwood Career Institute, vacated the property in late 2018 following its loss of accreditation. The loan was transferred to the special servicer in September 2020 due to imminent default. The foreclosure sale took place on January 10, 2023, and the title was transferred to the lender in March 2023. The asset was marked as REO in July 2023. The servicer-reported occupancy and DSC are 56.0% and -0.64x as of June 2026.
KBRA's other outstanding ratings for the transaction are unchanged at this time.
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.
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