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KBRA Downgrades One Rating, Affirms Five Ratings, and Removes Four Ratings from Watch Downgrade for CGCMT 2014-GC25

13 Feb 2026   |   New York

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KBRA downgrades the rating of Class B and affirms five ratings for CGCMT 2014-GC25, a $164.7 million CMBS conduit transaction. Simultaneously, KBRA removes four classes from Watch Downgrade (DN), where they were placed on November 17, 2025. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in interest shortfalls since our last ratings changes in August 2025. Interest shortfalls are affecting the Class C certificates and below as of the February 2026 remittance date. KBRA also considered the potential for shortfalls to move up the capital structure to Class B while the remaining specially serviced assets are resolved. Interest shortfalls were affecting Class B as recently as January 2026. The actions are also based on the expected recoveries of the transaction’s remaining three assets, all of which are specially serviced and identified as K-LOCs. Of the three assets, two (33.2% of the pool balance) have been deemed non-recoverable, resulting in interest shortfalls.

In February 2026, the Arrowhead Properties loan was resolved, resulting in realized losses of $1.4 million that were allocated to Class G. In connection with the resolution, the return of interest on servicer advances and a special servicing fee adjustment generated additional interest collections that fully reimbursed the prior cumulative interest shortfall on Class B. However, KBRA expects shortfalls could again impact Class B given the non-recoverable status and expected recoveries of the remaining assets.

As of the February 2026 remittance period, two loans (83.1%) are non-performing matured balloon and one (16.9%) is in foreclosure.

The details of the assets are outlined below.

Bank of America Plaza (largest, 66.8% of the pool balance, K-LOC, Specially Serviced, Matured Non-Performing)

  • The loan is collateralized by a 55-story, LEED gold certified Class-A office building located on Bunker Hill in the Los Angeles CBD. The building totals 1.4 million sf and has nine levels of underground parking and over 24,000 sf of retail space.
  • KBRA maintains the loan's K-LOC designation based on its non-performing matured status with the special servicer. The loan failed to pay off at its September 2024 maturity. In April 2025, the special servicer filed a foreclosure complaint and continues to pursue all available rights and remedies; a receiver was appointed on May 20, 2025 and cash management remains in effect. The property and note are being marketed, with initial offers expected to be evaluated starting in January 2026. According to REIS, the Downtown Los Angeles CBD submarket vacancy rate is 19.4% as of Q4 2025. Based on the September 2025 rent roll, the property is 66.5% leased, compared to 66.8% at last review and 89.5% at issuance. Lease rollover at the property through YE 2027, inclusive of MTM leases, represents 8.2% of base rent and 10.3% of collateral sf across 23 leases.
  • The servicer-reported occupancies and DSCs are: 67.0% / 2.06x (YTD September 2025), 79.0% / 2.04x (FY 2024), 86.0% / 2.23x (FY 2023); at closing these were 89.5% / 2.08x. The subject was reappraised for $212.5 million ($148 per sf) in December 2024, which is 64.8% below the $605.0 million ($422 per sf) value at issuance. As a result, an ARA of $223.6 million was assigned to the loan in January 2025, of which $61.5 million was allocated to the CGCMT 2014-GC25 transaction. The ARA resulted in a cumulative ASER of $1.6 million for this transaction. KBRA's analysis resulted in an estimated loss of $246.7 million on a whole loan balance of $400.0 million (61.7% estimated loss severity). The loss is based on a KBRA liquidation value of $167.3 million ($117 per sf). The value is derived from a direct capitalization approach using a KNCF of $16.7 million and a capitalization rate of 10.00%.

The Pinnacle at Bishop's Woods (2nd largest, 16.9%, K-LOC, Specially Serviced, Foreclosure)

  • The loan is collateralized by three- and four-story Class-A office buildings containing a total of 248,175 sf. The property is located in Brookfield, Wisconsin, approximately 10 miles west of the Milwaukee CBD.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its foreclosure status with the special servicer following its failure to pay off by the scheduled maturity date in July 2024. A receiver is in place. The receiver's efforts to lease and stabilize the property were unsuccessful. The lender is pursuing foreclosure of the property. The borrower’s right of redemption ended in September 2025. A foreclosure sale is targeted for early February 2026, and the lender plans to immediately market the property for sale post-foreclosure.
  • The servicer-reported occupancies and DSCs are: 52.0% / 0.67x (YTD September 2025), 57.0% / 0.54x (FY 2024); at issuance these were 94.9% / 1.52x. An appraisal dated December 2024 valued the property at $19.5 million ($79 per sf), which is 57.0% lower than the $45.3 million ($182 per sf) appraised value at issuance. As a result, the asset carries an ARA of $13.2 million, resulting in a cumulative ASER of $590,742. KBRA’s analysis resulted in an estimated loss of $15.6 million (56.1% estimated loss severity). The loss is based on a KBRA liquidation value of $14.0 million ($56 per sf), which was derived from a direct capitalization approach using a stabilized KNCF of $1.7 million and a capitalization rate of 10.00%. KBRA applied a downward adjustment to account for downtime.

Stamford Plaza Portfolio (3rd largest, 16.3%, K-LOC, Specially Serviced, Matured Non-Performing)

  • The loan is collateralized by a 982,483 sf, high-rise office campus located in downtown Stamford, Connecticut, approximately 40 miles northeast of New York City. The subject is comprised of four 15- and 16-story buildings developed between 1979 and 1986 and renovated between 1993 and 1996.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its non-performing matured status with the special servicer. The loan transferred to the special servicer in August 2024 when it failed to pay off at maturity. The loan is currently in cash management and the borrower has engaged a workout advisor while the special servicer evaluates workout options, including foreclosure. The portfolio is located within the Bridgeport-Stamford-Norwalk MSA which benefits from its proximity to New York City; however, the property has seen a downturn in leasing activity since 2017. According to REIS, the Stamford CBD submarket vacancy rate is 33.1% as of Q4 2025. Based on the September 2025 rent roll, the property is 64.4% leased, compared to 62.8% at last review and 88.0% at issuance. Lease rollover at the property through YE 2027, inclusive of MTM leases, represents 25.5% of base rent and 16.7% of collateral sf across 32 leases.
  • The servicer reported occupancies and DSCs are: 66.0% / 0.61x (YTD September 2025), 64.0% / 0.57x (FY 2024), 70.0% / 0.58x (FY 2023); at closing these were 88.0% / 1.38x. An updated appraisal dated October 2024, valued the asset at $150.7 million ($88 per sf), which represents a 64.7% decline from its $427.2 million value ($153 per sf) at issuance. As a result, the asset carries an aggregate ARA of $123.6 million on the whole loan balance, of which $13.7 million is attributable to the CGCMT 2014-GC25 securitization. The ARA for this transaction resulted in a cumulative ASER of $212,973. KBRA’s analysis resulted in an estimated loss of $173.8 million (71.7% estimated loss severity) on the whole loan balance of $242.4 million. The loss is based on a KBRA liquidation value of $85.4 million ($87 per sf), which was derived from a direct capitalization approach using a KNCF of $7.7 million and a capitalization rate of 9.00%.

Details concerning the class with a rating change are as follows:

  • Class B to BB (sf) from BBB- (sf) DN

KBRA affirms the following ratings:

  • Class E at C (sf)
  • Class F at C (sf)

KBRA Removes from Watch Downgrade and affirms the following ratings:

  • Class PEZ at CCC (sf)
  • Class C at CCC (sf)
  • Class D 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 Publications

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: 1013351