Press Release|CMBS
KBRA Downgrades Four Ratings and Affirms All Other Ratings for COMM 2014-UBS4
24 Apr 2026 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for COMM 2014-UBS4. The conduit transaction has been reduced to nine loans and a balance of $237.3 million from 91 loans and $1.3 billion at securitization. The rating actions are based on, among other factors, KBRA’s identification of of all remaining loans as KBRA Loans of Concern (K-LOC); its estimated probability of default-adjusted losses of $109.6 million (which, if realized, would impact Class C and below) and related recoveries; historical accumulated losses of $94.9 million; the cumulative interest shortfalls of $7.4 million; and the possibility of shortfalls rising higher in the capital structure in a sustained manner while the servicer resolves the transaction’s specially serviced assets.
KBRA downgrades the ratings of the Class E and Class F certificates to D (sf) from C (sf) following realized losses incurred from the disposition of the 597 Fifth Avenue loan ($76.7 million loss, 73.0% loss severity), as reflected in the April 2026 remittance report. Net of $17.9 million in servicer advances, realized losses reflected this month total $58.8 million.
As of the April 2026 remittance period, six of the nine K-LOCs are specially serviced (87.8% of the pool balance), of which two (16.0%) are REO, one (7.4%) is in foreclosure and one (20.7%) is matured non-performing. Details of the seven largest assets are outlined below.
State Farm Portfolio ($88.9 million, 37.5%, K-LOC, Specially Serviced, Current)
- At issuance, the loan was collateralized by 14 Class-A and Class-B suburban office buildings located in 11 states. The portfolio totaled 3.4 million sf, and the individual properties ranged in size from 105,639 to 402,177 sf, with an average of 242,699 sf. Two properties have since been released and the loan is currently collateralized by 12 buildings totaling 2.8 million sf and located in 10 states.
- The loan transferred to the special servicer in September 2023 for non-monetary default as the sole tenant, State Farm, vacated all buildings in November 2020. However, State Farm's leases do not expire until November 2028 and the tenant has continued to meet its rental obligations. The loan returned to the master servicer in February 2025 after the Tulsa, Oklahoma property was sold and released in December 2024. According to the special servicer, the Columbia, Missouri property was released in August 2025. Principal curtailments on the whole loan total $111.9 million. The loan transferred back to special servicing in December 2025, at the borrower's request because borrower plans to submit a proposal to release additional properties.
- The loan had an Anticipated Repayment Date (ARD) of April 2024 and a stated maturity date of April 2029. The loan required interest-only debt service payments through the ARD with interest accruing at a fixed rate of 4.63%. From April 11, 2024, interest in excess of the Regular Interest Rate has been deferred and excess cash flow applied, pro-rata, to each of the notes evidencing the loan, first to reduce the outstanding principal balance and thereafter to pay the deferred interest. As of April 2026, the whole loan has been paid down by 30.7%.
- The servicer reported a DSC of 2.27x for the nine months ending September 2025. The portfolio is about 93% leased, but almost entirely vacant. State Farm leases 10 of the 12 properties but does not occupy any of them. One of the two remaining properties is also 100% vacant and the other is about 45% occupied by two other tenants.
- KBRA’s analysis resulted in an estimated loss of $115.5 million (43.4% estimated loss severity) on the whole loan balance of $265.8 million, of which $38.6 million of the estimated loss is allocated to this trust. The loss is based on a KBRA liquidation value of $151.8 million ($55 per sf) and projected total exposure of $267.3 million. The value is derived from a direct capitalization approach using a KNCF of $15.6 million and a capitalization rate of 9.25%, which was reduced by $17.1 million to account for downtime and TIs during the stabilization period.
30 Knightsbridge ($49.2 million, 20.7%, K-LOC, Specially Serviced, Nonperforming Matured Balloon)
- The loan is collateralized by a 686,316 sf, Class-B office complex located 38 miles southwest of New York City in Piscataway, New Jersey.
- The loan was transferred to the special servicer in January 2024 due to imminent default caused by declining occupancy and net cash flow. The loan failed to pay off at its July 2024 maturity and was modified in July 2025 with terms including a forbearance period through December 2025 and an additional grace period through January 2026. The servicer reported that a sale of the property is expected to close in Q2 2026. The lender is continuing to dual track foreclosure and potential workout discussions. The servicer reported an occupancy and DSC of 50.0% and 0.28x for the nine months ending September 2025 (annualized).
- The loan was deemed non-recoverable in January 2025. An updated appraisal dated February 2025 valued the property at $53.3 million ($78 per sf), which represents a 35.0% decline from the $82.0 million ($119 per sf) value at issuance. An ARA of $3.6 million was assigned in July 2025. The loan previously carried a cumulative ASER of $318,978. In March 2026, $515,000 has been advanced by the trust to reduce servicer exposure. As a result, no ongoing ASER is currently reflected.
- KBRA's analysis resulted in an estimated loss of $25.6 million on the loan balance of $49.2 million (52.0% estimated loss severity). The loss is based on an as-is distressed liquidation value of $25.0 million ($36 per sf).
North Pointe Business Park ($28.2 million, 11.9%, K-LOC, Specially Serviced, REO)
- The assets are comprised of three three-story and one four-story, Class-A office buildings located in a suburban office park in American Fork, Utah. The buildings contain a total rentable area of 250,506 sf and were developed between 2008 and 2014.
- The loan transferred to special servicing in June 2024 because of payment and maturity default and became REO in July 2025 following a foreclosure auction in favor of the lender. Cushman & Wakefield, the current property manager and leasing agent, has made progress on leasing activity, although not yet reflected in the FY 2025 financials. A recently executed lease is expected to increase occupancy to 68.2%, and proposals currently under review could further increase portfolio occupancy to 78.5%. All buildings are listed for sale, with an existing tenant looking to buy one of the buildings. The servicer reported an occupancy and DSC of 58.0% and 0.06x as of FY 2025.
- The asset was deemed non-recoverable in July 2025. A December 2025 appraisal valued the collateral at $26.8 million ($107 per sf), which is 46.9% below the appraised value at issuance of $50.4 million ($201 per sf). An ARA of $5.4 million was assigned in February 2026 and the cumulative ASER amount is $171,350. KBRA's analysis resulted in an estimated loss of $15.7 million on the loan balance of $28.2 million (55.8% estimated loss severity). As the asset is performing below historical levels, KBRA performed a stabilized analysis to determine KNCF and liquidation value. KBRA applied a capitalization rate of 9.50%, resulting in a value of $16.6 million ($66 per sf). KBRA adjusted this value downward by $1.7 million to account for TI/LC costs and income lost during the stabilization period, resulting in an adjusted value of $14.9 million ($59 per sf).
The Showcase at Indio ($18.4 million, 7.8%, K-LOC, Current)
- The loan is collateralized by a 157,540 sf anchored retail center located in Indio, California, 125 miles east of Los Angeles.
- While the loan is current and not specially serviced, it was modified in November 2019 to resolve foreclosure actions and later received additional COVID-19 related forbearance. The FY 2025 DSC of 1.24x is based on interest only payments that will continue through July 2029 when the loan matures. Servicer commentary indicates that the property is 74.0% occupied as of September 2025 with an average rental rate of $13.64 per sf which is below the market rent of $21.12 per sf, according to REIS.
- As of April 2026, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA estimates that the loan could experience a loss given default of $7.3 million (39.8% estimated loss severity) on the loan balance of $18.4 million.
Fremont Moreno 3rd Street Promenade ($17.5 million, 7.4%, K-LOC, Specially Serviced, Foreclosure)
- The loan is collateralized by a 14,400 sf retail building located within the Third Street Promenade in Santa Monica, California, 15 miles west of the Los Angeles CBD. The property was built in 1948.
- The loan transferred to the special servicer in June 2024 following maturity default. The property is currently 100% vacant, but Foot Locker, the sole tenant, is paying rent under a lease that expires in June 2026. The servicer reports that foreclosure is the primary workout strategy. The borrower proposed a discounted payoff, which remains under review. The servicer reported a DSC of 1.02x for the three months ended March 2024 period (annualized; the most recent available).
- The loan was deemed non-recoverable in March 2025. A December 2025 appraisal valued the collateral at $9.6 million ($667 per sf), which is 72.8% below the appraised value at issuance of $35.3 million. An ARA of $8.3 million was assigned in July 2025 , but there is not a cumulative ASER as of the current review. KBRA's analysis resulted in an estimated loss of $10.7 million on the loan balance of $17.5 million (61.2% estimated loss severity). The loss is based on a distressed liquidation value of $7.8 million ($540 per sf). The value is derived from a direct capitalization approach using a KNCF of $661,000 and a capitalization rate of 8.50%.
The Mercantile Building ($14.6 million, 6.2%, K-LOC, Specially Serviced, Performing Matured Balloon)
- The loan is collateralized by a 152,745 sf office building located 10 miles north of Downtown San Antonio. The property was built in 1981 and renovated in 2011.
- The loan transferred to the special servicer in July 2024 following maturity default. Based on the September 2025 rent roll, the property is 76.9% occupied, however leases that account for 17.0% of base rent expire in 2026 and leases that account for 18.1% of base rent expire in 2027. While the borrower has been successful in re-leasing smaller spaces vacated by Cherokee Nation (6.5% of collateral sf) and Strayer University (3.3%), they have been unable to backfill the space vacated by Wells Fargo (26.4%) at lease expiration in January 2025. As a result, the DSC remains significantly below breakeven. The borrower submitted a proposal that included a new equity contribution. The lender has approved a modification and is documenting the modification, while continuing to dual track foreclosure with workout discussions.
- The servicer reported an occupancy and DSC of 78.0% and 0.55x for the TTM period ending September 2025. A January 2026 appraisal valued the property at $12.8 million ($83 per sf), which is 50.0% below the appraised value at issuance of $25.5 million ($167 per sf). An ARA of $5.3 million was assigned in July 2025 and the cumulative ASER amount is $130,559. KBRA's analysis resulted in an estimated loss of $6.8 million on the loan balance of $14.6 million (46.4% estimated loss severity). The loss is based on a KBRA liquidation value of $8.5 million ($55 per sf). The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.
Columbia Associates Portfolio ($9.9 million, 4.2%, K-LOC, Specially Serviced, REO)
- At issuance the loan was collateralized by four suburban office properties, totaling 198,903 sf, located in Albany, New York (3 properties) and Greece, New York (1), which are within the Rochester MSA. Three assets were successfully auctioned in February 2025. The remaining REO asset is a 68,642 sf office building in Albany.
- The loan transferred to special servicing in November 2020 and the asset became REO in March 2023. In February 2025, three of the four properties were successfully sold in auction. The remaining property, One Columbia Circle, is currently vacant and being marketed for sale through traditional channels. The servicer reported an occupancy and DSC of 32.0% and -0.62x for the six months ending June 2025 (the most recent available).
- The asset was deemed non-recoverable in February 2024. An appraisal dated November 2024 valued the portfolio at $9.0 million ($45 per sf), which is 51.2% below the $18.5 million ($93 per sf) value at issuance. An ARA of $3.1 million was assigned in November 2025 and the cumulative ASER is $407,319. KBRA's analysis resulted in an estimated loss of $8.9 million (90.1% estimated loss severity). The loss is based on a KBRA liquidation value of $1.6 million ($23 per sf). The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.
Details concerning the rating downgrades are as follows:
- Class A-M to A (sf) from AA (sf)
- Class B to B (sf) from BB (sf)
- Class E to D (sf) from C (sf)
- Class F to D (sf) from C (sf)
Details concerning the rating affirmations are as follows:
- Class C at CC (sf)
- Class PEZ at CC (sf)
- Class D at C (sf)
Ratings 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.