Press Release|CMBS
KBRA Affirms All Outstanding Ratings for WFRBS 2013-C16
6 Nov 2025 | New York
KBRA affirms all of its outstanding ratings for WFRBS 2013-C16, a $67.0 million CMBS conduit transaction. The affirmations follow a surveillance review and are based on the performance and expected recovery of the transaction's two remaining loans. Both remaining loans are currently with the special servicer and are designated as K-LOCs with estimated losses. The largest remaining loan, Augusta Mall (84.8% of the pool balance), has exercised its final extension option through August 2026, while the second largest, West Mall Office Park (15.2%) is REO. The details of the assets are outlined below.
Augusta Mall (largest, 84.8%, Specially Serviced, Modification)
- The loan is collateralized by a 500,222 sf, super-regional mall located in Augusta, Georgia. Mall anchors include Dick's Sporting Goods, Dillard’s, JCPenney, and Macy’s, all of which own their respective improvements and land with the exception of Dick's Sporting Goods (3.5% of total base rent), which occupies its space subject to a lease expiring in January 2028. Sears previously served as a non-collateral anchor but closed in April 2020. The former Sears space remains vacant as of the current review. However, in March 2025, Primark announced its intention to backfill a portion of the space at the mall. The loan is sponsored by Brookfield Property Partners L.P. and was originally scheduled to mature in August 2023.
- KBRA maintains the loan’s K-LOC designation due to its status with the special servicer and elevated refinance risk. The loan was most recently transferred to special servicing in August 2025 due to maturity default, in addition to issues related to the ground lease. The borrower and special servicer executed a modification in July 2022 that included a maturity extension through August 2025, with an option to extend the loan through August 2026. As of August 1, 2025, the borrower exercised this final extension option. As of the October 2025 remittance period, the whole loan has received a total of $9.2 million in principal curtailments.
- The borrower holds a leasehold interest in a 39.6-acre portion of the related property and a fee simple interest in the remaining portion of the mortgaged property. The leasehold estate reflects the borrower’s position as ground lessor under two ground leases with a third party, both originally set to expire in December 2043, with an option to extend through 2068. Since the last review, a ground lease amendment was executed in September 2025, establishing a fixed monthly payment of $130,430, subject to 2.0% annual escalations each January, and extending the lease term through December 2124. According to the special servicer, the loan is expected to be transferred back to the master servicer, as all outstanding issues have been resolved.
- For the TTM period ended January 2025, comparable in-line tenants with less than 10,000 sf (excluding Apple) generated sales of $434 per sf, representing a 6.9% increase from issuance ($406 per sf). The servicer-reported occupancies and DSCs are: 91.0% / 3.19x (YTD June 2025), 88.5% / 3.20x (FY 2024), 91.2% / 3.20x (FY 2023); at closing these were 98.0% / 2.25x. As of October 2025, the loan is current on payments. KBRA's analysis resulted in an estimated loss of $63.7 million (39.6% estimated loss severity) on the whole loan balance of $160.8 million. The loss is based on a KBRA liquidation value of $99.4 million ($199 per sf). The value is derived from a direct capitalization approach using a KNCF of $11.9 million and a capitalization rate of 12.00%.
West Mall Office Park (2nd largest, 15.2%, Specially Serviced, REO)
- The asset is a three-building office park totaling 198,946 sf located in Albany, New York. The complex was built in 1966 and last renovated in 2008. The loan matured in September 2023.
- KBRA maintains the asset's K-LOC designation due to its REO status. The loan was transferred to the special servicer in April 2022 for imminent monetary default. Per the special servicer, the borrower requested the transfer due to COVID-19 disruptions, and the borrower had indicated plans to work with the lender to transition the property to the lender, and a receivership order was entered in August 2022. The property became REO in January 2024. Per servicer commentary, the special servicer is positioning the asset for an expected sale in Q2 2026.
- According to the June 2025 rent roll, the property is 73.0% leased, up from 70.0% at last review. The two largest tenants at the property, accounting for 51.7% of total base rent and 42.0% of the collateral’s sf, have leases scheduled to expire in March 2026 (29.9% of base rent) and September 2026 (21.8%). According to the servicer, the leasing team is actively working to renew these leases ahead of the anticipated property sale.
- The servicer-reported occupancies and DSCs are: 72.1% / 0.49x (FY 2024), 66.5% / 0.09x (FY 2023), 70.8% / -0.63x (FY 2022); at closing, these were 87.4% / 1.48x. An appraisal dated August 2025 valued the property at $8.9 million ($44 per sf), which is 49.1% below the $17.5 million ($88 per sf) value at issuance. As a result, the asset carries an ARA of $3.3 million, resulting in a cumulative ASER of $248,431. As of the October 2025 remittance, cumulative P&I advances totaled 791,140. KBRA’s analysis resulted in an estimated loss of $6.1 million (60.4% estimated loss severity) on the loan balance of $10.2 million based on a value of $5.9 million ($30 per sf). The value is derived from a direct capitalization approach using a KNCF of $587,739 and a capitalization rate of 10.00%.
Details concerning the ratings affirmations are as follows:
- Class D at BBB- (sf)
- Class E at B- (sf)
- Class F at CCC (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.