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KBRA Downgrades One Rating and Affirms Two Ratings for COMM 2013-LC13

19 Feb 2026   |   New York

Contacts

KBRA downgrades one rating and affirms two ratings for COMM 2013-LC13, a $65.8 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's remaining two loans, which have exhibited increased estimated losses since KBRA's last ratings change in February 2025. As of the February 2026 remittance period, one loan (83.1%) is in foreclosure, and one (16.9%) is REO. The details of the loans are outlined below.

15 MetroTech Center (largest, 83.1%, K-LOC, Foreclosure)

  • The loan is collateralized by a 649,492 sf, Class-A office building located in downtown Brooklyn, New York. The 19-story property was built in 2003 and offers 243 parking spaces in a below-grade parking garage. The borrower ground leases the land from the City of New York pursuant to a 99-year ground lease that expires in December 2100.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its transfer to special servicing in July 2023 and its subsequent maturity default in September 2023. The loan status was updated to matured nonperforming as of January 2024, and later changed to foreclosure after the borrower expressed interest in transferring the title to the lender. The special servicer is in the process of appointing a receiver. The property previously suffered from declining occupancy and increased expenses, including a ground lease rental rate increase in 2023.
  • The servicer-reported occupancies and DSCs are: 69.0% / 0.97x (YTD June 2025), 70.0% / 0.97x (YTD September 2023); at closing these were 97.8% / 1.42x. The subject was reappraised for $134.5 million ($207 per sf) in August 2025, a 50.7% decline from $273.0 million ($423 per sf) at issuance. KBRA's analysis resulted in an estimated loss of $25.4 million on a whole loan balance of $116.7 million (21.8% estimated loss severity). The loss is based on a KBRA liquidation value of $92.1 million ($142 per sf). The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.

Doubletree Midland (2nd largest, 16.9%, K-LOC, REO)

  • The loan is collateralized by a 261-key full-service hotel located in downtown Midland, Texas.
  • KBRA maintains the loan's K-LOC designation based on its REO status. The loan was initially transferred to special servicing in July 2020 for imminent monetary default. In addition, the borrower failed to payoff the loan at its maturity in September 2023. A loan modification was implemented, granting the borrower a forbearance through November 2023. However, the borrower failed to repay the loan by that time. A subsequent modification extended the forbearance period from December 2023 through May 2024. The special servicer's foreclosed in August 2024, and Hilton removed the DoubleTree flag in December 2024. According to the special servicer, the hotel now operates as a Wyndham and continues to stabilize within the market.
  • The servicer-reported occupancies and DSCs are: 47.0% / 0.05x (YTD September 2025) , 49.0% / 1.06x (FY 2023); at closing these were 59.9% / 2.55x. The subject was reappraised for $13.8 million ($143,678 per key) in July 2025, a 63.2% decline from $37.5 million ($52,873 per key) at issuance. KBRA's analysis resulted in an estimated loss of $4.4 million on a whole loan balance of $11.1 million (39.4% estimated loss severity). The loss is based on KBRA liquidation value of $9.4 million ($36,015 per key). The value considers a distressed non-stabilized disposition of the asset.

Details concerning the ratings adjustments are as follows:

  • Class D to CCC (sf) from BB- (sf)

Details concerning the ratings affirmations are as follows:

  • Class E at D (sf)
  • Class F at D (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.

Doc ID: 1013546