Press Release|CMBS
KBRA Affirms All Ratings for COMM 2014-UBS5
26 Jun 2026 | New York
KBRA affirms all of its outstanding ratings for COMM 2014-UBS5, a CMBS conduit transaction. The transaction has been reduced to 11 assets with an aggregate balance of $295.9 million, from 70 loans totaling $1.4 billion at securitization. The rating actions are based on our identification of all remaining assets as KBRA Loans of Concern (K-LOCs); our estimated losses of $92.1 million (which, if realized, would impact the Class D certificates and below) and corresponding recoveries; realized losses totaling $59.9 million, which were allocated to Classes F and G; and cumulative interest shortfalls of $15.0 million affecting the Class C certificates and below.
As of the June 2026 remittance period, eight (68.4% of the pool balance) of the 11 remaining assets are specially serviced, including four REO assets (30.7%). Five assets (40.3%) have been deemed non-recoverable by the servicer. Eight (68.4%) of the K-LOCs have estimated losses. The details of the remaining assets are outlined below.
Summit Rancho Bernardo ($46.5 million, 15.7%, Current, Watchlist)
- The loan is collateralized by a 203,613 sf, Class-A LEED certified Gold suburban office building located in San Diego, California, approximately 24 miles north of the city’s CBD. The property is primarily occupied by Apple (95.6% of total base rent) pursuant to a lease that is scheduled to expire in August 2033. Apple previously had a termination option in September 2025, to be effective March 2026; however, the tenant opted to extend its lease prior to its original January 2028 expiration.
- The loan failed to pay off at maturity in September 2024 and subsequently transferred to special servicing. The loan returned to the master servicer in February 2025 after a loan modification in November 2024. Modification terms included a maturity extension through September 2025, to align with the expiration of Apple’s termination option notice period, and an extension option through September 2026, which was contingent on the contribution of new cash equity, among other requirements. The borrower contributed $3.0 million in new cash equity, applied as a principal curtailment in January 2025, and paid a $4.0 million principal curtailment in September 2025 concurrent with its election to exercise the maturity extension option. The servicer reported an occupancy and DSC of 100% and 1.91x for FY 2025. According to the servicer, the borrower is working on refinancing the loan ahead of its extended maturity date.
- An appraisal dated September 2024 valued the property at $62.4 million ($317 per sf), which is 33.6% below the $94.0 million ($478 per sf) appraisal value at issuance. At this time, KBRA does not estimate a loss on the $46.5 million loan balance.
Quakerbridge ($39.5 million, 13.4%, Current, Watchlist)
- The loan is collateralized by a 425,859 sf, Class-B office complex located in Hamilton, New Jersey, approximately 40 miles northeast of Philadelphia, Pennsylvania. The development comprises four three-story and eight single-story buildings.
- The loan failed to pay off at maturity in September 2024 and subsequently transferred to special servicing. The loan was modified in March 2025 and returned to the master servicer in May. The modification terms included a two-year maturity extension to September 2026, a principal curtailment of $425,000, and modification of the cash management waterfall to include the application of excess cash flow toward further principal curtailment, among other items. Principal curtailments since the modifications totaled $1.8 million in September 2025 and $1.0 million in March 2026. The servicer reported an occupancy and DSC of 94.0% and 2.04x for FY 2025.
- An appraisal dated October 2024 valued the property at $50.1 million ($118 per sf), which is 25.2% below the $67.0 million ($157 per sf) appraisal value at issuance. At this time, KBRA does not estimate a loss on the $39.5 million loan balance.
State Farm Portfolio ($38.1 million, 12.9%, Specially Serviced, Current)
- The loan is collateralized by a portfolio comprising 12 Class-A and Class-B suburban office buildings located in nine states. The portfolio totals 2.8 million sf, and the individual properties range in size from 105,639 to 402,177 sf. Since issuance, two properties totaling 622,629 sf have been released from the portfolio. The portfolio is 93.1% leased to State Farm, pursuant to leases that expire in November 2028. In an effort to consolidate and relocate its headquarters, State Farm vacated every property in the portfolio. According to the servicer, all of the properties are either dark or partially subleased.
- The loan transferred to the special servicer in December 2025 at the request of the borrower, which is seeking the ability to programmatically release additional properties. The loan was previously transferred to special servicing in September 2023 and subsequently failed to pay off at its ARD in April 2024. Since then, the loan has returned to the master servicer and transferred to special servicing multiple times to effectuate property releases. In addition to principal curtailments associated with property releases, the loan has deleveraged with excess cash flow that has been applied to reduce the outstanding principal balance since the loan passed its ARD. The loan’s final maturity date is April 6, 2029. As of the current review, the whole loan balance was $263.3 million, which is 31.1% lower than the $383.5 million whole loan balance at securitization. The servicer reported a DSC of 2.27x for the nine-month period ending September 2025.
- KBRA’s analysis resulted in an estimated loss of $114.4 million (43.4% estimated loss severity) on the $263.3 million whole loan balance, of which $16.5 million of the estimated loss is allocated to this trust. The estimated loss is based on a KBRA liquidation value of $151.8 million ($55 per sf) and projected total exposure of $266.1 million. The liquidation value is derived from an income capitalization approach using stabilized KNCF of $15.6 million, a capitalization rate of 9.25%, and a downward adjustment to account for TI/LC costs and income lost during the stabilization period.
Town Park Ravine I, II, III ($37.1 million, 12.5%, Specially Serviced, REO)
- The asset is a 367,216 sf office portfolio located in Kennesaw, Georgia, approximately 25 miles north of Atlanta. The property comprises two six-story buildings and one four-story building.
- The asset transferred to the special servicer in September 2024 due to maturity default. The special servicer pursued foreclosure, and the trust acquired title to the asset in June 2025. According to the May 2026 rent roll, the property was 44.4% leased. The servicer’s expected resolution date is in June 2028.
- An updated appraisal dated December 2025 valued the property at $28.3 million ($77 per sf), which is 50.8% below the $57.5 million ($157 per sf) appraisal value at issuance. The asset was deemed non-recoverable by the servicer in April 2025 and cumulative non-recoverable interest totaled $1.9 million as of June 2026. KBRA’s analysis resulted in an estimated loss of $17.2 million (46.4% estimated loss severity) on the $37.1 million outstanding balance. The estimated loss is based on a KBRA value of $24.1 million ($66 per sf) and projected total exposure of $41.3 million. The liquidation value is equal to 85.0% of the most recent appraisal.
Breakwater Hotel ($27.7 million, 9.4%, Specially Serviced, Matured Non-Performing)
- The loan is collateralized by the borrower's fee interest in a 99-key independent boutique hotel located in Miami Beach, Florida. The asset was constructed in 1939 and renovated in 2011.
- The loan was most recently transferred to the special servicer in September 2025 due to its failure to pay off at its extended maturity date. The loan has previously been specially serviced multiple times due to pandemic-related distress in October 2020, non-monetary default in November 2022 related to a judgment lien against the borrower related to the property’s restaurant tenant, and maturity default in September 2024. According to the servicer, the tenant litigation was settled in Q1 2026, and a short-term maturity extension is being negotiated. The hotel reported average occupancy of 62.3% and an ADR of $156 per the TTM ended November 2025.
- An appraisal dated November 2025 valued the property at $37.5 million ($378,788 per key), which is 21.9% below the $48.0 million ($484,848 per key) appraisal value at issuance. The loan still has a cumulative ASER of $43,095 derived from an ARA of $2.9 million that was effectuated in March 2021. As of June 2026, the loan no longer carries an ARA and is paid through May 2026. KBRA’s analysis resulted in an estimated loss of $2.9 million (10.5% estimated loss severity) on the $27.7 million outstanding loan balance. The estimated loss is based on a KBRA liquidation value of $26.5 million ($267,677 per key) and projected total exposure of $29.4 million. The liquidation value considers a distressed non-stabilized disposition of the asset.
Harwood Center ($26.4 million, 8.9%, 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.
- 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. The asset was marketed for sale in September 2025 in anticipation of a Q1 2026 disposition; however, the sale failed to materialize. According to the servicer, a lobby refresh was planned for Q1 2026 as well as continued leasing efforts. The REO holding period for this asset ends in December 2027. According to the September 2025 rent roll, the property was 45.5% leased.
- An appraisal dated November 2025 valued the property at $27.9 million ($39 per sf), which is 77.5% below the $124.0 million ($171 per sf) appraisal value at issuance. The asset was deemed non-recoverable in April 2024, resulting in cumulative non-recoverable interest of $2.4 million for the COMM 2014-UBS5 transaction. KBRA's analysis resulted in an estimated loss of $58.5 million (74.2% estimated loss severity) on the aggregate outstanding balance of $78.8 million, of which $19.6 million of the estimated loss is allocated to this transaction. The estimated loss is based on a KBRA liquidation value of $27.9 million ($39 per sf), which aligns with the most recent appraisal, and projected total exposure of $86.4 million.
The remaining five assets account for 27.2% of the pool balance:
- Seacourt Pavilion ($26.3 million, 8.9%, Specially Serviced, Matured Non-Performing) is collateralized by a 263,402 sf shopping center located in Toms River, New Jersey. The loan transferred to the special servicer in May 2020 for imminent monetary default caused by a decline in occupancy. A receiver was appointed for the property in November 2022, and the property went under contract to sell through a receivership sale in December 2025. The sale contract was terminated in February 2026, and the special servicer is revisiting disposition strategies. An appraisal July 2025 valued the property at $25.6 million ($97 per sf), which is 36.0% below the $40.0 million ($151 per sf) appraisal value at issuance. The loan was deemed non-recoverable by the servicer in September 2024, resulting in cumulative non-recoverable interest of $2.1 million. KBRA’s analysis resulted in an estimated loss of $8.5 million (32.4% estimated loss severity) on the $26.3 million loan balance, which is based on a KBRA liquidation value of $20.1 million ($76 per sf) and projected total exposure of $28.6 million.
- 315 South Beverly Drive ($19.5 million, 6.6%, Specially Serviced, Matured Non-Performing) is collateralized by the borrower’s leasehold interest in a 68,064 sf Class-B office building located in Beverly Hills, California. The property is subject to a ground lease that has an expiration in September 2026 and one 30-year extension option. The loan transferred to special servicing in February 2024 due to payment default and a property condition default issued by the ground lessor, which has not been fully cured as of the current review. Multiple maturity forbearances were granted to the borrower in order to resolve the ground lessor dispute, and the most recent forbearance ended in March 2026. The note was marketed for sale in May 2026. An appraisal dated October 2025 valued the property at $16.6 million ($244 per sf), which is 44.4% below the $29.8 million ($438 per sf) appraisal value at issuance. The loan was deemed non-recoverable by the servicer in November 2025, resulting in cumulative non-recoverable interest of $772,668. KBRA’s analysis resulted in an estimated loss of $13.7 million (70.2% estimated loss severity) on the $19.5 million loan balance. The estimated loss is based on a KBRA value of $8.3 million ($123 per sf) and projected total exposure of $22.0 million. The liquidation value is equal to 50.0% of the most recent appraisal value and considers risk of reversion of the collateral property to the ground lessor.
- Commons at Madera Fair ($17.3 million, 5.8%, Specially Serviced, REO) is an REO asset that comprises the leasehold interest in a 297,846 sf retail property located in Madera, California. The property is subject to a ground lease with the State of California that has an expiration in 2090. The loan transferred to the special servicer in September 2024 due to maturity default and a receiver for the collateral was appointed in November 2024. The trust took title to the leasehold interest in October 2025. An appraisal dated February 2026 valued the property at $19.3 million ($65 per sf), which is 31.2% below the $28.0 million ($94 per sf) appraisal value at issuance. The loan carries an ARA of $325,384, resulting in a cumulative ASER of $75,476. KBRA’s analysis resulted in an estimated loss of $4.6 million (26.6% estimated loss severity) on the $17.3 million outstanding balance. The estimated loss is based on a KBRA liquidation value of $14.0 million ($47 per sf) and projected total exposure of $18.6 million. The liquidation value is derived from a KNCF of $1.3 million, a capitalization rate of 8.75%, and a downward adjustment to account for deferred ground rent.
- Honey Creek III ($10.1 million, 3.4%, Specially Serviced, REO) is an REO asset that consists of a 120,576 sf suburban office building located in Milwaukee, Wisconsin, approximately seven miles west of the CBD. The loan transferred to the special servicer in February 2019 due to the borrower’s initial failure to comply with cash management after major tenants went dark and failed to renew at lease expiration. The special servicer pursued foreclosure, and the trust acquired title to the asset in September 2025. An appraisal dated February 2026 valued the property at $7.3 million ($62 per sf), which is 58.3% below the $17.5 million ($148 per sf) appraisal value at issuance. The loan was deemed non-recoverable by the servicer in May 2025, resulting in cumulative non-recoverable interest of $549,454. KBRA’s analysis resulted in an estimated loss of $9.1 million (89.8% estimated loss severity) on the $10.1 million outstanding balance. The estimated loss is based on a KBRA liquidation value of $2.6 million ($22 per sf) and projected total exposure of $11.7 million.
- West Clinic Portfolio ($7.5 million, 2.5%, Current, Watchlist) is collateralized by a portfolio of three single-tenant medical office buildings located in rural Tennessee and Mississippi totaling 33,001 sf. The loan failed to pay off at its Anticipated Repayment Date in June 2024 and will be cash managed until its final maturity date in June 2031. At this time, KBRA does not estimate a loss on the $7.5 million loan balance, which is being paid down with excess cash flow.
Details concerning the rating affirmations are as follows:
- Class A-M at AAA (sf)
- Class B at A (sf)
- Class PEZ at BB (sf)
- Class C at BB (sf)
- Class D at C (sf)
- Class E at C (sf)
- Class F at D (sf)
- Class X-A at AAA (sf)
- Class X-B-1 at AAA (sf)
- Class X-B-2 at AAA (sf)
- Class X-C 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.