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KBRA Affirms All Ratings for COMM 2014-UBS6

6 Nov 2025   |   New York

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KBRA affirms all of its outstanding ratings for COMM 2014-UBS6, a $159.4 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's ten remaining assets, nine of which (88.9% of pool balance) are identified as K-LOCs. These include one asset that is REO (19.3%) and two assets that are in foreclosure (18.0%). The details of all remaining assets are outlined below.

811 Wilshire (largest, 21.8% of pool balance, K-LOC, Underperform, Non-Performing Matured Balloon)

  • The loan is collateralized by a 336,190 sf, Class-A office building located in the Los Angeles CBD. The development is comprised of a 20-story building with a full-service restaurant and lounge on its top floor, ground floor retail space, and 24-hour security. The asset offers 321 parking spaces located in an adjacent parking garage.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its matured non-performing and specially serviced statuses as well as occupancy concerns. The loan transferred to the special servicer in November 2024 for imminent default when the borrower failed to pay off the loan at its scheduled maturity in the same month. The foreclosure process has commenced and modification terms are being negotiated with the borrower. Occupancy was 32.7% as of June 2025, a decline from 47.9% at last review and 70.2% at closing. The asset is located in a weak Downtown Los Angeles submarket with a poor outlook for office demand in the near term.
  • The servicer-reported occupancies and DSCs are: 36.0% / 1.27x (FY 2024), 50.0% / 1.62x (FY 2023); at issuance these were 70.2% / 1.55x. An appraisal dated February 2025 valued the property at $40.5 million ($120 per sf), which is 40.4% below the $68.0 million ($202 per sf) appraisal value at issuance. KBRA’s analysis resulted in an estimated loss of $6.5 million (18.8% estimated loss severity) on the outstanding loan balance of $34.7 million. The loss is based on a KBRA liquidation value of $30.4 million ($90 per sf), which is equal to 75.0% of the updated appraisal. The value considers a potentially protracted workout process and difficulty in stabilizing the property.

Highland Oaks Portfolio (2nd largest, 19.3%, K-LOC, Underperform, REO)

  • The REO asset, Highland Oaks I, is a 101,491 sf, Class-B office building located in Downers Grove, Illinois, approximately 20 miles west of the Chicago CBD. The property was constructed in 1980 and is located in a commercial hub that is easily accessible via Interstates 88 and 355. At issuance, the asset was part of a portfolio of two Class-B office buildings totaling 319,491 sf. The 218,000 sf Highland Oaks II property (77.0% of ALA at issuance) was sold at auction in August 2025 and was released from the trust in October.
  • KBRA maintains the asset's K-LOC designation and its KPO of Underperform based on its REO status. The loan transferred to the special servicer in April 2023 for imminent default after the largest tenant, Health Care Service Corporation (formerly 69.4% of total base rent, 55.6% of total collateral sf), terminated its lease effective February 2023, although the tenant vacated the property in December 2022. Foreclosure was filed in October 2023, a receiver was appointed in September 2024, and the asset became REO in January 2025. The Highland Oaks II property was sold and released from the trust, which resulted in a reduction of servicer advances and a principal curtailment of $845,000. The remaining asset is not listed for sale as of November 2025. Occupancy was 66.1% according to the servicer's June 2025 rent roll and no leases are scheduled to expire through 2026.
  • The servicer has not reported financials for this property since 2018. An appraisal dated August 2025 valued the asset at $5.6 million ($55 per sf), which is 50.4% below the $11.3 million ($111 per sf) appraisal value at issuance. As a result, the asset carries an ARA of $25.5 million. KBRA's analysis resulted in an estimated loss of $29.6 million (96.0% estimated loss severity) on the outstanding loan balance of $30.8 million. The loss is based on a KBRA liquidation value of $4.2 million ($41 per sf), which is equal to 75.0% of the updated appraisal. The value considers a potentially protracted workout process and difficulty in stabilizing the property.

8000 Maryland Avenue (3rd largest, 16.8%, K-LOC, Underperform, Foreclosure)

  • The loan is collateralized by a 15-story, 196,921 sf, Class-A office property located in Clayton, Missouri, approximately eight miles west of the St. Louis CBD. Constructed in 1983, the subject includes amenities such as a fitness center, mail room, food service, and restaurant as well as a five-story, 529-space parking garage adjacent to the office tower.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its foreclosure status with the special servicer as well as lease rollover concerns. The loan was transferred to the special servicer in April 2024 for imminent monetary default after the borrower indicated it would not be capable of paying off the loan at its November 2024 maturity. The loan is paid through February 2024 and has $2.6 million in outstanding principal and interest advances. A receiver has been appointed and the special servicer is exploring available workout strategies. Occupancy was 80.7% according to the servicer's June 2025 rent roll, compared to 91.9% at issuance. Leases representing 33.6% of total base rent and 47.4% of total collateral sf are scheduled to expire through 2026, which includes the April 2026 lease expiration for the largest tenant, Osprey Capital, LLC (16.8% of total base rents, 11.8% of total collateral sf).
  • The servicer-reported occupancies and DSCs are: 92.0% / 1.45x (YTD September 2023), 96.0% / 1.47x (FY 2022); at issuance these were 92.0% / 1.41x. An appraisal dated October 2025 valued the property at $19.8 million ($100 per sf), which is 52.9% below the $42.0 million ($213 per sf) value at issuance. As a result, the loan carries an ARA of $11.1 million, resulting in a cumulative ASER of $159,939. KBRA's analysis resulted in an estimated loss of $14.3 million (53.2% estimated loss severity) on the outstanding loan balance of $26.9 million. The loss is based on a KBRA liquidation value of $16.0 million ($81 per sf). The value is derived from a direct capitalization approach using a KNCF of $1.5 million and a capitalization rate of 9.25%.

U-Haul Pool 2 (4th largest, 11.1%, Outperform)

  • The $30.8 million loan is collateralized by 18 self-storage facilities in nine states that together comprise 377,917 sf (4,751 units).
  • KBRA maintains a KPO of Outperform on the loan based on strong cash flow performance driven by steady rental growth. The servicer-reported annualized NCF for the YTD June 2025 was $7.3 million, representing a 118% increase from $3.4 million underwritten by the issuer at closing. Additionally, occupancy was reported at 92.0% in June 2025, compared to 83.0% at issuance.
  • The servicer-reported occupancies and DSCs are: 92.0% / 3.07x (YTD June 2025), 94.0% / 3.04x (FY 2024); at issuance these were 83.3% / 1.41x.

Wyndham Garden - San Jose (5th largest, 7.9%, K-LOC, Underperform, Non-Performing Matured Balloon)

  • The loan is collateralized by a 195-key, full-service hotel located in San Jose, California. The property was built in 1969 and was renovated in 2012. The borrower is an affiliate of the borrower for the Four Points by Sheraton - San Jose loan in this transaction.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its matured non-performing and specially serviced statuses. The loan has been specially serviced since June 2020. According to the servicer, a forbearance agreement was executed in November 2021 and the loan was expected to be returned to the master servicer after three timely payments were made. The loan has been delinquent several times in the past. The borrower failed to pay off the loan at scheduled maturity in November 2024. It is paid through December 2024 and is currently cash managed.
  • The servicer-reported occupancies and DSCs are: 84.0x / 1.91x (FY 2019); 84.0% / 1.96x (FY 2018); at closing these were 58.0% / 1.87x. An appraisal dated June 2024 valued the property at $16.3 million ($83,590 per key), a 49.2% decline from the $32.1 million ($164,615 per key) appraisal value at issuance. KBRA's analysis resulted in an estimated loss of $1.9 million (14.7% estimated loss severity) on the outstanding loan balance of $12.6 million. The loss is based on a KBRA liquidation value of $12.5 million ($64,283 per key). The value is derived from a direct capitalization approach using a KNCF of $1.5 million and a capitalization rate of 12.00%.

The five remaining assets account for 23.1% of the pool balance:

  • Four Points by Sheraton - San Jose (6th largest, 6.5%, Non-Performing Matured Balloon) is a 209-key, full-service hotel located in San Jose, California. KBRA maintains the loan's K-LOC designation based on its matured non-performing and specially serviced statuses. The loan has been specially serviced since June 2020 and failed to pay off at scheduled maturity in November 2024. It is paid through January 2025 and is currently cash managed. An appraisal dated June 2024 valued the property at $13.5 million ($64,593 per key), reflecting a 71% decline from the $46.5 million ($222,488 per key) appraisal value at issuance. At this time, KBRA does not estimate a loss on this $10.3 million loan.
  • Wyndham Garden Austin (7th largest, 5.9%, Non-Performing Matured Balloon) is a 210-key, full-service hotel located in Austin, TX. The hotel operates under the Wyndham Garden flag and is subject to a 40-year ground lease which expires May 31, 2045. KBRA maintains the loan's K-LOC designation based on its specially serviced and matured non-performing statuses. The loan failed to pay off at the scheduled October 2024 maturity date was transferred to the special servicer in December 2024. Refinance efforts are underway. A third-party pre-negotiation letter has been executed, and cash management is in place. The lender is dual tracking borrower discussions with enforcement of remedies. At this time, KBRA does not estimate a loss on this $9.4 million loan.
  • BECO Tower I (8th largest, 5.5%, Non-Performing Matured Balloon) is a 129,269-sf, Class-B, suburban office property located in Owings Mills, Maryland, approximately 13 miles northwest of Baltimore. KBRA maintains the loan's K-LOC designation based on its specially serviced status. The loan was transferred to the special servicer and failed to pay off in November 2024. Special servicer commentary indicated the borrower is cooperating with foreclosure and a receivership sale is expected to be pursued. An appraisal dated January 2025 valued the property at $13.2 million ($102 per sf), a 12% decline from the $15.0 million ($116 per sf) appraisal value at issuance. KBRA's analysis resulted in an estimated loss of $3.4 million (39.5% estimated loss severity) on the outstanding loan balance of $8.7 million. The loss is based on a KBRA liquidation value of $6.6 million ($51 per sf). The value is derived from a direct capitalization approach using a KNCF of $625,712 and a capitalization rate of 9.50%.
  • Gulf Freeway Office (9th largest, 4.1%, Non-Performing Matured Balloon) is a 178,410-sf Class-B, office complex, comprised of two adjacent five-story buildings approximately nine miles southeast of downtown Houston. KBRA maintains the loan's K-LOC designation based on its specially serviced and matured non-performing statuses. The loan was transferred to the special servicer and failed to pay off in October 2024. Special servicer commentary indicated the borrower is unable to refinance the loan due to poor office market conditions. Special servicer commentary also indicated the largest tenant, GSA (11.8% of total base rents, 9.0% of collateral sf), may vacate prior to its November 2030 lease expiration at any time with a 120-day notice. Leases comprising 37.6% of total base rents and 26.1% of collateral sf are scheduled to expire through 2026. The borrower has signed a pre-negotiation letter and is completing renovations to one of the building's lobbies before pursuing refinancing options. The lender is dual tracking foreclosure with workout discussions. At this time, KBRA does not estimate a loss on this $6.5 million loan.
  • 366 Knickerbocker Avenue (10th largest, 1.2%, Foreclosure) is a three-story, 5,025-sf mixed-use multifamily and retail property in the Bushwick neighborhood of Brooklyn, New York, approximately four miles east of Manhattan. The building was constructed in 1931 and renovated in 2006 and consists of 2,300 sf of ground-floor retail space and second and third-floor multifamily apartments. KBRA maintains the loan's K-LOC designation due to its foreclosure and specially serviced statuses. The loan transferred to the special servicer in August 2016 and has been in foreclosure since October 2016 as the sole retail tenant, Radio Shack, filed for bankruptcy and vacated its space in 2015. A lease for the former Radio Shack space was executed with Modern MD Management Services (MMMS, 54.9% of total base rent) without lender consent, which began in August 2015. The lease with MMMS was scheduled to expire in August 2025, however, the special servicer has indicated the tenant would like to renew its lease. Special servicer commentary also indicates there are several issues of default for non-compliance with cash management provisions. A motion for the appointment of a receiver was filed in October 2017 and a motion for summary judgment was entered in March 2021. The court has granted the lender's motion to fix the indebtedness and the lender is waiting for a motion of judgment of foreclosure and sale, however, the court wants both parties to submit a brief addressing the guarantor's claim that the statute of limitations bars guaranty claims. At this time, KBRA does not estimate a loss on this $1.9 million loan.

Details concerning the ratings affirmations are as follows:

  • Class PEZ at A- (sf)
  • Class C at A- (sf)
  • Class D at B- (sf)
  • Class E at CCC (sf)
  • Class F at CC (sf)
  • Class G at C (sf)

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.

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