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KBRA Downgrades Three Ratings and Affirms All Other Ratings for COMM 2014-CCRE20

5 Sep 2025   |   New York

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KBRA downgrades the ratings of three classes and affirms all other outstanding ratings for COMM 2014-CCRE20, a $125.2 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction’s remaining assets. Four assets remain in the underlying mortgage pool, three of which (86.2% of the pool balance) are specially serviced and have been identified as K-LOCs. Of the three specially serviced K-LOCs, Harwood Center (largest, 41.9%) is REO, Beverly Connection (2nd largest, 34.9%) is current in payment following a modification, and CSRA MOB Portfolio II (4th largest, 9.3%) is non-performing matured. In addition, the current ratings consider the likelihood of interest shortfalls, which are currently impacting the Class E and F certificates, on the rated classes as the servicer works through the resolution of the remaining assets. The details of all remaining assets are outlined below.

Harwood Center (41.9%, K-LOC, Specially Serviced, REO)

  • The asset comprises fee and leasehold interests in a 723,963 sf, Class-A office property located in the CBD of Dallas, Texas. The property includes a 36-story office tower and an attached nine-story parking garage, together providing 744 parking spaces.
  • KBRA maintains the asset’s K-LOC designation and KPO of Underperform based on its REO status. The asset transferred to special servicing in May 2020 for imminent monetary default due to occupancy concerns and the trust acquired the title to the property in November 2021. According to servicer commentary as of June 2025, the special servicer will market the asset for sale in 2025 and has an expected disposition date in Q4 2025. According to the September 2024 rent roll, the property was 48.5% leased.
  • The servicer reported occupancies and DSCs are: 69.0% / 0.56x (YTD March 2020), 91.0% / 1.37x (FY 2019); at issuance these were 84.0% / 1.36x. An appraisal dated November 2024 valued the property at $51.2 million ($71 per sf), which is 58.7% below the $124.0 million ($171 per sf) appraisal value at issuance. An aggregate ARA of$26.2 million has been effectuated on the whole loan balance, of which $17.5 million is allocated to the COMM 2014-CCRE20 transaction. The ARA for this transaction has resulted in a cumulative ASER of $1.4 million. The asset was deemed non-recoverable in April 2024, resulting in cumulative non-recoverable interest of $2.7 million for the trust. KBRA's analysis resulted in an estimated loss of $46.7 million (59.3% estimated loss severity) on the whole loan balance of $78.7 million. The estimated loss is based on a KBRA liquidation value of $37.2 million ($51 per sf).

Beverly Connection (34.9%, K-LOC, Specially Serviced)

  • The loan is collateralized by a 334,566 sf, retail power center located in Los Angeles, California, approximately nine miles west of the CBD. The property is anchored by Target (largest, 22.5% of total base rent), an HQCWT, which has been at the subject since 2012 and operates pursuant to a lease that expires in January 2029. The other major tenants at the property include Ross Dress for Less, Nordstrom Rack, CVS, Saks Fifth Avenue, Marshalls, TJ Maxx and Old Navy.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based its status with the special servicer. The loan transferred to the special servicer in August 2020 due to its delinquency. In September 2023, a reinstatement agreement was executed; however, during the process of returning the loan to the master servicer, the borrower requested a modification to extend the loan's maturity, which was granted at the loan's scheduled August 2024 maturity date. The loan modification closed in April 2025 and extended the loan's maturity 23 months to July 2026. As of the August 2025 remittance period, the loan is current in payment and is being prepared to return to the master servicer. Lease rollover through YE 2025, inclusive of MTM leases, represents 12.5% of base rent and 1.7% of collateral sf across 13 leases.
  • The servicer reported occupancies and DSCs are: 92.2% / 1.03x (YTD June 2024); 94.4% / 0.96x (FY 2023); at closing these were 98.5% / 1.51x. An updated appraisal dated December 2024 valued the property at $193.0 million ($577 per sf), which is 25.8% below the $260.0 million ($777 per sf) value at issuance. As a result, the asset carries an aggregate ARA of $7.7 million, of which $1.9 million has been allocated to COMM 2014-CCRE20. KBRA’s analysis resulted in an estimated loss of $15.3 million (8.7% estimated loss severity) on the whole loan balance of $175.0 million. The loss is based on a KBRA liquidation value of $164.1 million ($490 per sf), which is equal to 85% of the most recent appraisal.

U-Haul Pool 3 (13.8%, Outperform)

  • The loan is collateralized by a portfolio of 17 self storage properties totaling 368,944 sf. The properties are located throughout 14 states across the United States.
  • KBRA maintains the loan's KPO of Outperform due to strong cash flow performance driven by steady rental growth. The TTM ended March 2025 servicer-reported NCF was $8.4 million, representing a 160.6% increase from the issuer's underwritten NCF at securitization. The 20-year, fully amortizing loan remains with the master servicer and is scheduled to mature in September 2034.
  • The servicer reported occupancies and DSCs are: 90.0% / 3.67x (TTM March 2025), 90.0% / 3.60x (FY 2024); at issuance these were 89.0% / 1.41x.

CSRA MOB Portfolio II (9.3%, K-LOC, Specially Serviced, Non-Peforming Matured)

  • The loan is collateralized by two suburban office properties located in Virginia and Wisconsin. The API Headquarters was built in 2004 and is situated in Hartford, Wisconsin. The 73,756 sf (78.6% of portfolio sf) property was wholly occupied by API Inc. pursuant to a lease scheduled to expire in November 2025. The Virginia Women's Center was built in 2013 and is situated in Mechanicsville, Virginia. The 20,066 sf (21.4% of portfolio sf) property was wholly occupied by Virginia Women's Center pursuant to a lease scheduled to expire in 2027.
  • KBRA identified the loan as a K-LOC and assigned the loan a KPO of Underperform due to its non-performing matured status with the special servicer. The loan transferred to the special servicer when the loan failed to pay off at its scheduled October 2024 maturity date. As of the August 2025 remittance period, both of the single-tenants have vacated the subject prior to their respective lease expiration dates but continue to pay rent through their lease terms. According to the special servicer, an LOI has been executed for the purchase of the Hartford asset and a PSA is being negotiated. The property was last listed for a sale price of $6.0 million ($81 per sf). Additionally, the borrower is reportedly in negotiations with a replacement tenant to backfill the dark Mechanicsville asset and the borrower is anticipating selling or refinancing this property by the end of Q4 2025.
  • The servicer reported occupancies and DSCs are: 100% / 1.82x (YTD June 2024), 100% / 1.79x (FY 2023); at issuance these were 100% / 1.41x. An updated appraisal dated November 2024 valued the portfolio at $11.1 million ($118 per sf), which is 44.1% below the $19.8 million ($211 per sf) value at issuance. KBRA's analysis resulted in an estimated loss of $2.5 million (21.3% estimated loss severity) on the loan balance of $11.7 million. The loss is based on a KBRA liquidation value of $10.0 million ($106 per sf), which is equal to 90% of the most recent appraisal.

Details concerning the classes with ratings changes are as follows:

  • Class PEZ to BBB- (sf) from A- (sf)
  • Class C to BBB- (sf) from A- (sf)
  • Class D to CC (sf) from CCC (sf)

Details concerning the ratings affirmations are as follows:

  • Class E at D (sf)
  • Class F at D (sf)
  • Class G at D (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: 1011081