KBRA Affirms All Outstanding Ratings for MSBAM 2013-C13
9 Oct 2026 | New York
KBRA affirms the outstanding ratings for MSBAM 2013-C13. The transaction has been reduced to four assets with an aggregate pool balance of $49.1 million, down from 63 loans totaling $995.3 million at issuance. Three of the remaining assets (86.7% of the pool balance) are REO and specially serviced, and have been identified as K-LOCs with estimated losses. The remaining loan has a KPO of Perform and is scheduled to mature in December 2028.
The rating actions follow a surveillance review of the transaction and reflect the performance and expected recoveries of the remaining assets. KBRA’s estimated losses total $27.9 million, which is less than the $38.1 million outstanding balance of Class H, which is not rated by KBRA. As of the September 2026 remittance period, cumulative interest shortfalls are affecting all of the remaining classes (Classes F, G, H, and X-C), primarily due to non-recoverable interest associated with the three REO assets and ongoing special servicing fees. Class H has also experienced realized losses of less than $500,000.
Details of the remaining assets are provided below.
940 Ridgebrook Road ($22.0 million, 44.8%, K-LOC, REO)
- The asset is a 210,002 sf office building located in Sparks Glencoe, Maryland, approximately 20 miles north of the Baltimore CBD.
- The loan transferred to special servicing in December 2023 following the borrower’s failure to repay the loan at its scheduled maturity. The borrower subsequently declined to contribute additional equity, and a receiver was appointed in December 2024. A foreclosure sale was completed in May 2025, at which time the lender acquired the property as the winning bidder. According to servicer updates, a broker was subsequently engaged to market the REO asset for sale and evaluate redevelopment interest. The marketing process resulted in an accepted offer, and counsel has been engaged to prepare a purchase and sale agreement.
- The property was formerly 100% leased to Element Fleet Management, under a triple-net lease that expired in February 2024. The tenant vacated upon lease expiration, and the property has remained 100% vacant since. A March 2026 appraisal valued the property at $8.0 million ($38 per sf), representing a 79.3% decline from the $38.7 million ($184 per sf) value at securitization. The asset carries an ARA of $14.6 million. As of the September 2026 remittance period, cumulative non-recoverable interest totaled $816,229.
- KBRA’s analysis resulted in an estimated loss of $15.7 million (71.2% estimated loss severity) on the $22.0 million loan balance. The loss estimate is based on a KBRA liquidation value of $7.6 million ($36 per sf) and projected total exposure of $23.3 million. The liquidation value reflects a distressed, non-stabilized disposition of the vacant asset.
1200 Howard Blvd. ($13.2 million, 26.8%, K-LOC, REO)
- The asset is an 87,011 sf suburban office property located in Mount Laurel, New Jersey, approximately 12 miles east of the Philadelphia CBD.
- The loan transferred to special servicing in April 2018 after the borrower executed an unpermitted equity transfer and changed the property management company without lender consent. The borrower subsequently failed to repay the loan at its December 2018 maturity, and the trust acquired title to the property through foreclosure in November 2021.
- As of the June 2026 rent roll, the property was 71.9% leased, up from 61.3% at the prior review, primarily reflecting a new 9,057 sf lease (10.4% of total sf) with CSAA Insurance Exchange through May 2031. In addition, two tenants representing a combined 24.9% of base rent renewed leases that were previously scheduled to expire in 2025, extending their respective terms through December 2030 (6.2% of base rent) and March 2031 (18.7%). The largest tenant, Merrill Lynch, Pierce, Fenner & Smith, Inc., currently has a lease expiration in February 2028; however, according to special servicer updates, a five-year extension through 2033 has been successfully negotiated, with counsel working to finalize the lease amendment. The special servicer continues to pursue additional leasing opportunities, with three prospective tenants that could occupy approximately 16,000 sf (18.4% of total sf), in aggregate. The asset is currently projected for disposition in Q2 2027.
- A November 2025 appraisal valued the property at $8.6 million ($99 per sf), representing a 64.3% decline from the $24.1 million ($277 per sf) value at issuance. The asset carries an ARA of $6.5 million, resulting in a cumulative ASER of $983,923. As of the September 2026 remittance period, cumulative non-recoverable interest totaled $953,668.
- KBRA's analysis resulted in an estimated loss of $6.9 million (52.5% estimated loss severity) on a loan balance of $13.2 million. The loss is based on a KBRA liquidation value of $7.8 million ($90 per sf) and projected total exposure of $14.7 million. The value considers a distressed non-stabilized disposition of the asset.
Burnham Park Professional Center ($7.4 million, 15.2%, K-LOC, REO)
- The asset is a 74,464 sf mixed-use (retail/office) property in Chicago, Illinois.
- The loan transferred to special servicing in April 2023 due to imminent maturity default and subsequently failed to repay at its September 2023 maturity. A receiver was appointed in May 2024, and following a foreclosure auction in January 2025, the trust took title to the property in June 2025. According to special servicer updates, the REO asset was marketed for sale through an August 3–5, 2026 auction, and a letter of intent for the sale of the property was received in September 2026. The property is currently reported as under contract on LoopNet, however, a prospective sale price and buyer have not been publicly disclosed as of the current review.
- According to the May 2026 rent roll, the property was 46.2% leased, generally in line with 44.2% at the prior review but down from 63.9% at the 2024 review. The decline primarily reflects the departure of former largest tenant Landmark Education, which represented 36.2% of base rent and occupied 14,790 sf (19.9% of total sf). Near-term rollover risk remains, with five leases representing 17.7% of base rent scheduled to expire through YE 2027. However, the three largest tenants by base rent (41.8% of base rent, in aggregate) have lease terms extending through 2030.
- The servicer-reported FY 2025 occupancy and DSC were 46.0% and 1.07x, respectively. A June 2026 appraisal valued the property at $4.5 million ($60 per sf), representing a 63.4% decline from the $12.3 million ($165 per sf) value at issuance. The asset carries an ARA of $4.3 million, resulting in a cumulative ASER of $75,849. As of the September 2026 remittance period, cumulative non-recoverable interest totaled $859,509.
- KBRA's analysis resulted in an estimated loss of $5.3 million (71.7% estimated loss severity) on a loan balance of $7.4 million. The loss is based on a KBRA liquidation value of $3.4 million ($45 per sf) which is equal to 75.0% of the appraisal. The liquidation value reflects the potential for a protracted workout and the challenges associated with stabilizing the property given its elevated vacancy.
13017-13045 Ventura Boulevard ($6.5 million, 13.3%, Perform) The loan is collateralized by a 20,620 sf retail property located in Studio City, California. The property consists of buildings constructed between 1936 and 1964, and the loan is scheduled to mature in December 2028. Property performance has remained stable since issuance, supported by generally consistent occupancy. As of the April 2026 rent roll, the property was 86.1% leased, up from 81.0% at the prior review. Lease rollover through YE 2026, including MTM tenants, represents 33.1% of base rent and 30.5% of collateral sf. The servicer-reported occupancy and DSC for YTD March 2026 were 86.1% and 2.34x, respectively.
The details of the affirmed ratings are as follows:
- Class F at BB (sf)
- Class G at B- (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.