KBRA Affirms All Ratings for COMM 2013-CCRE7
20 Feb 2026 | New York
KBRA affirms all of its outstanding ratings for COMM 2013-CCRE7, a $74.3 million CMBS conduit transaction, which has two assets remaining in the underlying mortgage pool, both of which have been identified as K-LOCs. The affirmations follow a surveillance review of the transaction and are based on the performance and recovery analyses of the transaction's remaining two loans, which have not meaningfully changed since KBRA's last review in February 2025.
As of the February 2026 remittance period, both of the remaining loans are outstanding beyond their initial scheduled maturities. Both loans are specially serviced: one loan (68.4%) is matured performing and the other (31.6%) is non-performing matured balloon. The details of the remaining loans are outlined below.
Lakeland Square Mall (68.4%, K-LOC, Matured-Performing)
- The loan is collateralized by 535,937 sf of an 892,634 sf regional mall in Lakeland, Florida, approximately 35 miles east of Tampa and 50 miles southwest of Orlando. The sponsor of the loan is Brookfield Asset Management. The mall is occupied by anchor tenants Dillard’s (non-collateral) & JCPenney (18.9% of collateral sf), and contains an additional three anchor spaces which are now vacant but were occupied by Burlington Coat Factory (14.9% of collateral sf), Sears (non-collateral), and Macy's (non-collateral) at issuance.
- KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its specially serviced status, failure to pay off at its April 2023 maturity date, and continued decline in cash flow and value. The loan transferred to special servicing for maturity default during the May 2023 remittance period. Foreclosure was initiated and a receiver has been appointed for the property. According to the servicer's September 2025 rent roll, the collateral was 80.2% leased, down from 93.6% at issuance. The primary driver of the decline was Burlington Coat Factory, the former largest tenant, vacating its 81,000-sf space at lease expiration in January 2023. In addition, several tenants including H&M and Cinemark are paying percentage rent in lieu of base rent.
- For the TTM period ending August 2025, comparable in-line tenants occupying less than 10,000 sf generated sales of $421 per sf, representing a 1.4% increase from 2024 ($415 per sf) and a 24.2% increase from closing ($339 per sf). Lakeland Square Mall has a Green Street Mall Grade of C, and has competition within the subject’s primary trade area. The nearest retail centers include Eagle Ridge Mall (24 miles way, Grade C-), The Shops at Wiregrass (24 miles away, Grade B+), Brandon Exchange (24 miles away, Grade B+), Tampa Premium Outlets (26 miles away, Grade A), and RITHM at Uptown (28 miles away, Grade B-).
- The servicer reported occupancies and DSCs are: 79.0% / 1.37x (TTM September 2025), 78.0% / 1.30x (FY 2024); these were 94.0% and 1.74x at issuance. An October 2025 appraisal valued the property at $53.6 million ($97 per sf), which represents a decline of 43.6% decline from the origination appraisal of $95.0 million ($172 per sf). KBRA’s analysis resulted in an estimated loss of $21.0 million (41.4% estimated loss severity) on the $50.8 million loan balance based on a liquidation value of $29.7 million ($54 per sf). The value is derived from a direct capitalization approach using a KNCF of $3.9 million and a capitalization rate of 13.00%.
20 Church Street (31.6%, K-LOC, Matured Non-Performing)
- The loan is collateralized by a 23-story, 404,015 sf office tower located in the Hartford, Connecticut CBD. The subject property was constructed over a four-level subterranean parking garage that is owned and operated by the City of Hartford.
- KBRA maintains the loan's K-LOC designation and KPO of Underperform based on its specially serviced status, failure to pay off at its April 2023 maturity date, and continued decline in KNCF and value. The loan was transferred to special servicer in April 2022 due to a payment default. Foreclosure was initiated and a receiver has been appointed for the property. The loan was deemed non-recoverable by the trust in March 2025. Special servicer commentary indicated the lender and borrower have agreed on a DPO price and once documentation is executed, the DPO is expected to close within 60 days. According to the servicer's June 2025 rent roll, the collateral was 57.7% leased, down from 82.0% at issuance. The decline from closing is primarily due to the departure of several top 10 tenants and Care Centrix, Inc. downsizing its 49,294-sf footprint to 11,552 sf at lease expiration in December 2023.
- The servicer reports occupancies and DSCs are: 58.0% / 0.38x (YTD June 2025), 57.0% / 0.39x (FY 2024); these were 82.0% and 1.27x at issuance. A March 2023 appraisal valued the property at $17.4 million ($42 per sf), a decline of 50.3% from $35.0 million ($84 per sf) at issuance. KBRA’s analysis resulted in an estimated loss of $18.6 million (79.0% estimated loss severity) on the $23.5 million loan balance. To determine the estimated loss, KBRA performed a stabilized analysis to determine KNCF. A KBRA value of $11.2 million was derived from a stabilized KNCF of $1.1 million and a capitalization rate of 9.50%. KBRA adjusted this value downward by $3.5 million to account for income lost during the stabilization period. The KBRA adjusted value is $7.7 million ($18 per sf).
KBRA affirms the following ratings:
- Class D at B (sf)
- Class E at B- (sf)
- Class F at CCC (sf)
- Class G 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.