KBRA Downgrades Two Ratings and Affirms Two Ratings for JPMBB 2013-C12
9 Apr 2026 | New York
KBRA downgrades the ratings of two classes and affirms all other outstanding ratings for JPMBB 2013-C12. The CMBS transaction has been reduced to five loans, with a balance of $157.7 million from 76 loans and $1.3 billion at securitization. The rating actions are based on KBRA’s identification of four KBRA Loans of Concern (K-LOCs, 94.2% of the outstanding balance) and our estimate of total principal losses of $59.1 million.
As of the March 2026 remittance period, two of the four K-LOCs are specially serviced (31.7% of the pool balance), of which one (25.6%) is matured non-performing and one (6.1%) is REO. The remaining loan (5.8%) was structured with an anticipated repayment date (ARD) with a final maturity in June 2028. The details of the K-LOCs are outlined below.
IDS Center ($69.6 million, 44.1%, K-LOC, Current)
- The loan is collateralized by a 57-story, 1.4 million sf office tower, an eight-story annex office building, a two-story retail center and a subterranean parking structure with 655 spaces located in downtown Minneapolis, Minnesota.
- The loan transferred to special servicing in February 2023 ahead of its May 2023 maturity, was modified to extend to June 2025, and returned to the master servicer in March 2024. It was subsequently modified again in June 2025 to extend maturity to June 2026. Per the servicer, the borrower has requested a transfer back to special servicing ahead of the upcoming June 2026 maturity. As of the December 2025 rent roll, the property was 64.0% leased, down from 65.3% at last review and 89.0% at closing.
- The servicer reported an occupancy and DSC of 64.0% and 0.98x for FY 2025. An appraisal dated May 2023 valued the property at $180.0 million ($128 per sf), which represents a 29.7% decrease from its $256.0 million ($182 per sf) value at securitization.
- As of March 2026, the loan is current. However, in the event of default, KBRA’s analysis resulted in an estimated loss of $38.5 million (27.3% estimated loss severity) on the whole loan balance of $141.1 million, of which $19.0 million of the loss is allocated to this trust. The loss is based on KBRA's liquidation value of $102.6 million ($72 per sf). The value considers a distressed non-stabilized disposition of the asset.
Southridge Mall ($40.3 million, 25.6%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)
- The loan is collateralized by a 553,801 sf portion of a 1.2 million sf, two-level regional mall located 12 miles southwest of the Milwaukee, Wisconsin CBD.
- The loan transferred to special servicing in July 2020 for imminent monetary default. At closing, the sponsor was Simon, however, Spinoso was appointed as receiver in December 2020 and continues to operate the property. The receiver was expected to list the asset for sale in March 2026, while the lender pursues foreclosure absent a sale. In addition, the Village of Greendale’s planned redevelopment of a neighboring former Bon-Ton site into a Class A multifamily property is expected to begin demolition in second-quarter 2026, which may provide longer-term support for the area. The loan was deemed non-recoverable in 2024.
- The servicer reported an occupancy and DSC of 78.2% and 0.43x for FY 2025. An appraisal dated July 2025 valued the property at $45.0 million ($81 per sf), which is 75.1% below the $181.0 million ($327 per sf) value at issuance. As of the March 2026 remittance period, the loan has $2.2 million in cumulative non-recoverable interest in this trust and a $668,579 ASER remains outstanding.
- KBRA’s analysis resulted in an estimated loss of $90.4 million (89.6% estimated loss severity) on the whole loan balance of $100.9 million, of which $36.2 million of the loss is allocated to this trust. The loss is based on KBRA's liquidation value of $18.5 million ($28 per sf) and projected total exposure of $108.8 million. The value considers an income capitalization approach, using a KNCF of $2.8 million and a capitalization rate of 15.00%.
408-416 Fulton Street ($29.0 million, 18.4%, K-LOC, Current)
- The loan is collateralized by a 55,287 sf retail building located in downtown Brooklyn, New York, which borders the neighborhood of Brooklyn Heights. The loan had an ARD in May 2023 with a final maturity date in November 2028.
- According to the September 2025 rent roll, the subject property was 37.4% leased, unchanged from last review and down from 100% at securitization. At issuance, Apogee, a vintage thrift store chain, accounted for 87.2% of sf and 40.0% of base rent. The tenant vacated in 2020 prior to its 2025 lease expiration. A portion of the space (24.6% of sf) was re-leased to Five Below at a higher rent.
- The servicer reported an occupancy and DSC of 37.4% and 1.40x for the YTD September 2025 period. At this time, KBRA does not estimate a loss on this asset.
Pipeline Village East & West ($9.6 million, 6.1%, K-LOC, Specially Serviced, REO)
- The collateral consists of a 132,181 sf retail center located in Hurst, Texas, approximately nine miles northeast of the Fort Worth CBD.
- The loan transferred to special servicing in August 2020 for imminent monetary default and became REO in February 2022 following foreclosure. Despite prior anchor closings, occupancy was 75.0% as of September 2025. In addition, a new lease with Mardel Christian Bookstore is expected to increase occupancy to 99.0%. Per special servicer commentary, the property is not currently being marketed for sale.
- The servicer reported an occupancy and DSC of 75.0% and 0.56x for FY 2025. An appraisal dated April 2025 valued the property at $11.5 million ($87 per sf), which is 32.0% below the $16.9 million ($128 per sf) value at issuance. As of the March 2026 remittance period, the loan has $764,937 in cumulative non-recoverable interest and a $51,662 ASER remains outstanding.
- KBRA’s analysis resulted in an estimated loss of $3.9 million (41.1% estimated loss severity). The loss is based on KBRA's liquidation value of $8.9 million ($67 per sf) and projected total exposure of $12.8 million. The value considers a distressed non-stabilized disposition of the asset.
Details regarding the classes with ratings changes are as follows:
- Class C to BBB (sf) from A (sf)
- Class D to BB (sf) from BBB- (sf)
Details regarding the classes with affirmations are below:
- 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.