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KBRA Downgrades One Rating and Affirms All Other Ratings for WFCM 2015-C28

17 Mar 2026   |   New York

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KBRA downgrades the rating of one class of certificates and affirms all other outstanding ratings for WFCM 2015-C28. The conduit transaction has been reduced to four assets and a balance of $77.0 million from 97 loans and $1.2 billion at securitization. The rating actions are based on our identification of each of the assets as a KBRA Loan of Concern (K-LOC); our estimated losses of $8.3 million (which, if realized, would impact Class F) and corresponding recoveries; current interest shortfalls affecting class F and below; and the likelihood that interest shortfalls could reach higher in the capital structure during the resolution of the assets.

As of the February 2026 remittance period, the four K-LOCs are all specially serviced, of which two are in foreclosure (29.5%), and one is performing matured balloon (19.5%). The details of these assets are outlined below.

Encino Financial Center ($39.2 million, 51.0%, K-LOC, Specially Serviced, Current)

  • The loan is collateralized by a 227,223 sf, Class-A office building located in Encino, California, approximately 18 miles northwest of the Los Angeles CBD. The development is comprised of a 13-story building that features on-site storage, a car wash service, as well as an on-site bank and café. Additionally, the asset offers 755 parking spaces in a five-story garage that is included as collateral for the loan.
  • KBRA identified the loan as a K-LOC following its transfer to the special servicer in April 2025 and subsequent failure to pay off by its scheduled maturity date in May 2025. The loan was subsequently modified in November 2025, which extended the maturity date to November 2026. Additionally, the borrower may exercise an extension option that pushes final maturity to May 2027. As part of the modification, the borrower provided $2.5 million of new capital, as well as a modification fee of 1.0%. The loan is expected to return to the master servicer during the February 2026 remittance period.
  • The servicer reported occupancy and DSCs are: 84.0% / 1.49x (YTD September 2025); 87.0% / 1.67x (FY 2024); 87.0% / 1.84x (FY 2023); at closing, these were 91.9% / 1.46x. An appraisal report dated June 2025 indicates a valuation of $48.8 million ($215 per sf), which is 32.2% below the $72.0 million ($317 per sf) value at issuance. At this time, KBRA does not estimate a loss on this asset.

3800 Embassy Parkway ($16.5 million, 21.5%, K-LOC, Specially Serviced, Foreclosure)

  • The loan is collateralized by a 117,217 sf, Class-A office building located in Fairlawn, Ohio, approximately 10 miles northwest of the Akron CBD and 27 miles south of Cleveland. The subject is located within the greater Embassy Corporate Park, a 124-acre development that includes 22 office buildings totaling 600,000 sf, a Residence Inn hotel, two day-care centers, wooded jogging trails, fitness centers, dining and conference facilities as well as a 36-acre lake.
  • KBRA maintains the loan's K-LOC designation due to its foreclosure status with the special servicer. The loan failed to pay off by its May 2025 maturity date and transferred to the special servicer the same month. A foreclosure complaint was filed in July 2025. The special servicer reports an expected resolution date of March 2026; however, no further updates or details are available at this time. Of additional concern, the second largest tenant, Buckingham, Doolittle, & Burroughs (26.4% of collateral sf) notified it would not renew its lease following a scheduled lease expiration in October 2026. The loss of this tenant will cause occupancy to adjust from 87.9% to 61.5%.
  • The servicer reported occupancy and DSCs are: 78.0% / 1.40x (FY 2024); 83.0% / 1.45x (FY 2023); 79.0% / 1.34x (FY 2022); at closing, these were 100% / 1.77x. An appraisal report dated June 2025 indicates a valuation of $14.8 million ($126 per sf), which is 40.3% below the $24.8 million ($212 per sf) value at issuance. As a result, an ARA of $2.4 million was assigned to the loan in September 2025.
  • KBRA's analysis resulted in an estimated loss of $4.5 million (26.9% estimated loss severity) on a whole loan balance of $16.5 million. The loss is based on a KBRA liquidation value of $12.7 million ($108 per sf) and projected total exposure of $17.2 million. The value considers a distressed non-stabilized disposition of the asset.

3700 Buffalo Speedway ($15.0 million, 19.6%, K-LOC, Specially Serviced, Performing Matured Balloon)

  • The loan is collateralized by a 138,050 sf, Class-A office building located in Houston, Texas, approximately five miles southwest of the city’s CBD. The development is comprised of one 11-story building that features a well-appointed lobby, a fitness center, and a conference room.
  • KBRA maintains the loan's K-LOC designation due to its specially serviced status following its failure to pay off at maturity in May 2025. Following its failure to pay off, the borrower negotiated a loan extension and modification agreement, which shifted the maturity date to September 2026. Despite the maturity extension, the loan's maturity profile remains concerning as leases representing 35.3% of base rent are scheduled to expire through YE 2026, inclusive of leases operating on a MTM basis.
  • The servicer reported occupancy and DSCs are: 88.0% / 1.75x (TTM September 2025); 95.0% / 1.54x (FY 2024); 82.0% / 1.29x (FY 2023); at closing, these were 96.7% / 1.49x. An appraisal report dated July 2025 indicates a valuation of $14.8 million ($103 per sf), which is 38.6% below the $24.1 million ($167 per sf) value at issuance. As a result, an ARA of $699,655 was assigned to the loan in September 2025.
  • KBRA's analysis resulted in an estimated loss of $2.1 million (13.7% estimated loss severity) on a whole loan balance of $15.0 million. The loss is based on a KBRA liquidation value of $13.3 million ($108 per sf) and projected total exposure of $15.4 million. The value considers the most recent appraisal dated July 2025.

Super 8 University & Quality Inn & Suites (Crossed) ($6.1 million, 8.0%, K-LOC, Specially Serviced, Foreclosure)

  • The loan is collateralized by two hotel properties totaling 204 keys in the state of Texas. The larger property, Super 8 University, Austin, was built in 1985, consists of 140 keys, and is located five miles north of Downtown Austin. Developed in 2006, the 64-key Quality Inn & Suites, San Antonio is located approximately 16 miles northwest of Downtown San Antonio.
  • KBRA maintains the loan's K-LOC designation due to the specially serviced status of the crossed group. The loans transferred to the special servicer in April 2025 for imminent maturity default. The loans were under contract to be purchased by a third party via note sale; however, the transaction fell through and will not be completed. The special servicer is exercising rights and remedies and has filed for receivership as well as foreclosure.
  • The servicer reported occupancy and DSCs are: 62.0% / 2.04x (YTD September 2024); 59.0% / 1.47x (FY 2023); 70.0% / 2.95x (FY 2022); at closing, these were 83.6% / 2.02x.
  • KBRA's analysis resulted in an estimated loss of $1.8 million (30.0% estimated loss severity) on a whole loan balance of $6.1 million. The loss is based on a KBRA liquidation value of $5.6 million ($25,799 per key) and projected total exposure of $7.1 million. The value is derived from a direct capitalization approach using KNCF of $618,399 and a capitalization rate of 11.75%.

Details concerning the rating downgrade are as follows:

  • Class D to BB (sf) from BBB- (sf)

Details concerning the rating affirmations are as follows:

  • Class E affirmed at B (sf)
  • Class F affirmed 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 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: 1013882