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KBRA Affirms All Ratings for WFCM 2015-C27

9 Jan 2026   |   New York

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KBRA affirms all of its outstanding ratings for WFCM 2015-C27, a $134.7 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and recovery analyses of the remaining loans. The transaction has four remaining assets in the underlying mortgage pool, all of which have been identified as K-LOCs. Of these, two (40.9% of the pool balance) are in foreclosure and one is performing and pending return to the master servicer after modification (12.7%). The remaining K-LOC (46.4%) was recently returned to the master servicer, following a loan modification and extension. The details of the assets are outlined below.

Westfield Palm Desert (largest, 46.4%, Watchlist)

  • The loan is collateralized by a 572,724 sf portion of a 977,888 sf regional mall located in Palm Desert, California, approximately 80 miles northwest of San Diego. The whole loan totals $125.0 million across two CMBS transactions. The property is anchored by Macy's and JCPenney, neither of which are part of the collateral. In November 2023, Pacific Retail Capital Partners acquired the asset and assumed the loan. Per the servicer, loan maturity was extended by two years to March 2027 with two one-year extension options. As a result of the modification, the loan is current in payment and returned to the master servicer, which is reflected in the lead transaction (MSBAM 2015-C21).
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its prior status with the special servicer. The loan transferred to the special servicer in August 2020 for imminent monetary default due to hardships stemming from the COVID-19 pandemic. As noted above, Pacific Retail Capital Partners acquired the property and assumed the existing underlying debt. Additionally, the loan will remain in a cash sweep period through the extended maturity. Pursuant to the June 2025 rent roll, the collateral property was 86.7% occupied, compared to 84.6% at last review and 95.6% at securitization. Lease rollover through YE 2026, inclusive of MTM leases, represents 20.4% of base rent across 103 leases, most notably, Macy's Home Store (fifth largest, 4.2% of base rent, 3.8% of collateral sf).
  • The servicer reported occupancies and DSCs are: 92.0% / 1.14x (YTD September 2025); 79.7% / 1.37x (FY 2024); at closing these were 98.5% / 1.51x. An updated appraisal dated April 2025 valued the property at $68.5 million ($120 per sf), which is 67.7% below the $212.0 million ($370 per sf) value at issuance. As a result, the asset carries an aggregate ARA of $62.8 million, of which $31.4 million is allocated to this transaction. As of December 2025, the loan is current in payment and not specially serviced. However, in the event of a default, KBRA estimates that the loan could experience a loss given default of $84.0 million (67.2% estimated loss severity) on the whole loan balance of $125.0 million. The loss is based on a KBRA liquidation value of $41.8 million ($73 per sf), which was derived from a direct capitalization approach using a KNCF of $6.3 million and a capitalization rate of 15.00%.

312 Elm (2nd largest, 29.3%, Specially Serviced, Foreclosure)

  • The loan is collateralized by a 379,379 sf, Class-A office building located in the Cincinnati, Ohio CBD.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its foreclosure status. A receiver has been appointed and the special servicer is proceeding with foreclosure litigation. As of November 2025, the special servicer’s motion for summary judgment has been granted and is pending court entry. According to the June 2025 rent roll, the property was 46.0% leased, compared to 44.2% at last review and 85.2% at closing. The decline since closing is primarily due to Gannett Satellite (28.9% of collateral sf) vacating upon its lease expiration in December 2022. Lease rollover through YE 2026, inclusive of MTM leases, represents 15.7% of base rent across 10 leases. These include two top 10 tenants, Castellini Management Company (7th largest, 5.2% of base rent, 1.9% of collateral sf) and WSP USA, Inc. (8th largest, 5.0%, 2.0%).
  • The servicer reported occupancies and DSCs are: 46.7% / 0.21x (YTD June 2025), 44.2% / 0.69x (FY 2024); at closing these were 85.2% / 1.80x. An appraisal dated August 2025 valued the property at $31.6 million ($62 per sf), which is 52.8% below the $67.0 million ($177 per sf) value at issuance. As a result, the asset carries an ARA of $12.4 million, resulting in a cumulative ASER of $179,126. KBRA's analysis resulted in an estimated loss of $19.1 million (48.6% estimated loss severity) on the loan balance of $39.4. The loss is based on a KBRA liquidation value of $23.6 million ($62 sf), which was derived from a direct capitalization approach using a stabilized KNCF of $2.6 million, assuming an occupancy of 70.0%, and a capitalization rate of 9.75%. This value includes a $3.3 million downward adjustment, accounting for TI/LC costs and income lost during the stabilization period.

Residence Inn Charlotte Southpark (3rd largest, 12.7%, Specially Serviced)

  • The loan is collateralized by a 152-key, limited-service hotel located in Charlotte, North Carolina, approximately 6.5 miles south of the city’s CBD.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to a decline in financial performance since issuance as well as its status with the special servicer. The loan transferred to the special servicer in August 2024 after the borrower requested a two-year loan extension. In February 2025, a forbearance agreement was executed, which extended loan maturity two years to December 2026.
  • The servicer reported occupancies and DSCs are: 61.0% / 0.76x (YTD June 2025), 54.7% / 0.30x (FY 2024); at closing these were 74.3% / 1.87x. An updated appraisal dated September 2025 valued the property at $24.0 million ($157,895 per key), which is 19.7% below the $29.9 million ($196,711 per key) value at issuance. KBRA's analysis resulted in an estimated loss of $4.8 million (28.3% estimated loss severity) on the loan balance of $17.0 million. The estimated loss is based on KBRA liquidation value of $12.2 million ($80,366 per key), which was derived from a direct capitalization approach using a stabilized KNCF of $1.4 million assuming an occupancy of 70.0% and a capitalization rate of 11.25%. This value includes a $413,709 downward adjustment, accounting for income lost during the stabilization period.

312 Plum (4th largest, 11.7%, Specially Serviced, Foreclosure)

  • The loan is collateralized by a 230,438 sf, Class-A office building located in Cincinnati, Ohio, on the southern edge of the city’s CBD. The sponsor for the subject loan, Rubenstein Properties Fund II, L.P., is affiliated with the sponsor of the 312 Elm loan in this transaction.
  • The loan maintains its K-LOC designation and was assigned a KPO of Underperform due to its foreclosure status with the special servicer. The loan transferred to the special servicer in July 2023. The borrower had previously executed a purchase and sale agreement, but in November 2024 the servicer reported the agreement had been terminated. Subsequently, Colliers has been appointed as receiver and is currently managing the property and attempting to stabilize collateral occupancy. Pursuant to the June 2025 rent roll, the property was 38.0% occupied, compared to 83.6% at closing. Lease rollover through YE 2026, inclusive of MTM leases, represents 26.1% of base rent across six leases. Most notably, Steed Hammond Paul, Inc. (largest, 22.2% of base rent, 8.7% of collateral sf) which currently operates on a MTM basis following the expiration of their prior lease through October 2025.
  • The servicer reported occupancies and DSCs are: 39.3% / 0.24x (YTD June 2025), 38.0% / 0.19x (FY 2024); at closing these were 83.6% / 1.69x. An updated appraisal dated May 2025, valued the asset at $11.4 million ($49 per sf), which is 57.0% below the $26.5 million ($115 per sf) value at issuance. As a result, the asset carries an ARA of $3.6 million. KBRA's analysis resulted in an estimated loss of $6.3 million (39.8% estimated loss severity). The loss is based on a KBRA liquidation value of $11.0 million ($48 per sf), which was derived from a direct capitalization approach using a stabilized KNCF of $1.2 million, assuming an occupancy of 70.0%, and a capitalization rate of 9.75%. This value includes a $1.7 million downward adjustment, accounting for TI/LC costs and income lost during the stabilization period.

Details concerning the ratings affirmations are as follows:

  • Class PEX at BBB- (sf)
  • Class C at BBB- (sf)
  • Class D at CC (sf)
  • Class E at C (sf)
  • Class F at C (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 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.

Doc ID: 1012927