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KBRA Downgrades Two Ratings and Affirms All Other Outstanding Ratings for COMM 2014-CCRE21

31 Oct 2025   |   New York

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KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings of COMM 2014-CCRE21, a $36.3 million CMBS conduit transaction. The rating changes follow a surveillance review of the transaction and are based on the performance and expected recovery of the two remaining assets, both of which have been identified as K-LOCs. In addition, the ratings consider the likelihood of interest shortfalls continuing to impact all outstanding rated certificates while the servicer works through the resolution of the transaction’s specially serviced asset (61.2%), which has been deemed non-recoverable.

As of the October 2025 remittance period, two assets remain in the pool and both are identified as K-LOCs. Of these, one (61.2% of the pool balance) is specially serviced and reported to be in foreclosure. The details of the two assets are outlined below:

Marine Club Apartments (largest, 61.2%, K-LOC, Specially Serviced, Underperform)

  • The loan is collateralized by a 302-condominium unit, mid-rise, Class-B complex located in Philadelphia, Pennsylvania, approximately one mile south of the CBD. The collateral is comprised of 203 apartment units and two commercial units, containing 2,755 sf of space, contained in three, five- to seven-story buildings.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its foreclosure status with the special servicer. The loan transferred to the special servicer in October 2020. The preferred equity holder now serves a manager for the borrower. A motion for summary judgment was issued in favor of the lender in January 2025. The loan status shifted to foreclosure in June 2025, and the borrower has agreed to a cooperative marketing and sale of the asset. The loan has also been designated non-performing; as such, interest shortfalls in the amount of $89,676 per month will impact the trust until resolution has occurred.
  • The servicer-reported occupancies and DSCs are: 84.0% / 0.35x (FY 2024); 88.0% / 1.21x (FY 2019), 91.0% / 1.28x (FY 2018); at issuance these were 90.7% / 1.26x. KBRA’s analysis results in an estimated loss of $4.2 million (18.7% estimated loss severity). The loss is based on a KBRA liquidation value of $21.2 million ($103,917 per key). The value is derived from a direct capitalization approach using a KNCF of $1.7 million and a capitalization rate of 8.00%.

12650 Ingenuity Drive (2nd largest, 38.9%, K-LOC, Underperform)

  • The loan is collateralized by a 124,500 sf, two-story, Class-A office building located in Orlando, Florida, approximately 15 miles east of the city’s CBD. The loan experienced occupancy issues following the loss of the sole tenant Kaplan in December 2021; however, performance has since recovered.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on upcoming maturity risk. The loan was modified in June 2024 to extend final maturity until December 2026 and included a conversion of the loan payments from amortizing to interest-only. The March 2025 rent roll indicates 100% of the tenant base is scheduled to expire in 2027, which may present issues for refinancing at the extended maturity date.
  • The servicer-reported occupancies and DSCs are: 97.0%/ 1.29x (YTD March 2025), 100% / 1.07x (FY 2024), 66.0% / 0.54x (FY 2023); at issuance these were 100% / 1.64x. At this time, KBRA does not estimate a loss on this asset.

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 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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