KBRA Affirms All Ratings for JPMBB 2014-C19
11 Apr 2025 | New York
KBRA affirms all of its outstanding ratings for JPMBB 2014-C19, a $29.5 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and expected recovery of the remaining assets, which have not meaningfully changed since KBRA's last review.
As of the March 2025 remittance period, the transaction has three remaining assets, including one REO asset (22.8% of the pool balance). KBRA identified two assets as K-LOCs (54.6%) including the REO asset. The details of the three assets are outlined below.
Centreville Square (largest, 45.4%, Perform)
- The loan is collateralized by a 311,989-sf, grocery-anchored retail center located in Centreville, Virginia, approximately 25 miles southwest of the Washington DC CBD. KBRA maintains a KPO of Perform for this loan based on stable collateral performance. The most recent year-end 2024 financials reported NCF of $8.1 million, 16.3% higher than the issuer's underwritten expectations at closing. The loan matures in April 2034 and fully amortizes over the 20-year term.
450 H Street (2nd largest, 31.8%, K-LOC, Watchlist)
- The loan is secured by a ten-story office building located in central Washington, DC, approximately one mile east of the White House. The loan had an ARD in April 2024 and a final maturity date in June 2025.
- KBRA identified the loan as a K-LOC and maintains a KPO of Underperform based on lease rollover concerns. The property's largest tenant, District of Columbia - Department of Youth Rehabilitation (98.6% of total base rent) has an upcoming lease expiration in June 2025. As a result, the servicer reported that the borrower was unable to obtain refinancing. The servicer also reported that the tenant extended its lease for seven years at market rents.
- The servicer reported occupancies and DSCs are: 100% / 2.62x (FY 2023), 100% / 2.22x (FY 2022); at closing these were 100% / 2.68x. At this time, KBRA does not estimate a loss for the asset.
Columbus Corners (3rd largest, 22.8%, K-LOC, Specially Serviced REO)
- The loan is collateralized by a 93,460 sf shadow-anchored retail complex located in Whiteville, North Carolina. The improvements were constructed in 2003, and a Walmart Supercenter serves as the subject's shadow anchor.
- KBRA maintains the asset's K-LOC designation based on its REO status. The asset became REO in December 2023 and was deemed non-recoverable in April 2024. The receiver executed a lease with Five Below (16.2% of total base rent) in 2024 improving occupancy to 94.0%. The special servicer is gathering Broker Opinions of Value (BOVs) in anticipation of listing the property for sale.
- The servicer-reported occupancies and DSCs are: N/A / 1.14x (FY 2021), 59.0% / 0.92x (TTM March 2020); at closing these were 89.0% / 1.51x. An appraisal dated December 2023 valued the property at $6.7 million ($72 per sf), representing a 39.6% decrease from closing ($11.1 million; $119 per sf). KBRA’s analysis resulted in an estimated loss of $2.6 million (38.3% estimated loss severity) on the loan balance of $6.7 million. The loss is based on KBRA's liquidation value of $6.1 million ($65 per sf). The value is derived from a direct capitalization approach using a KNCF of $605,000 and a capitalization rate of 10.00%.
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.