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KBRA Downgrades Three Ratings and Affirms All Other Ratings for GSMS 2014-GC24

25 Jul 2025   |   New York

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KBRA downgrades the ratings of three classes and affirms all other outstanding ratings for GSMS 2014-GC24, a $310.0 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 four remaining assets. As of the July 2025 remittance period, three assets (69.8%) have a non-performing matured balloon status with the special servicer, while one (30.2%) is in foreclosure. The details of the assets are outlined below.

Stamford Plaza Portfolio (largest, 40.6%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)

  • The loan is collateralized by a 982,483 sf, high-rise office campus located in downtown Stamford, Connecticut, approximately 40 miles northeast of New York City. The subject is comprised of four, 15- and 16-story buildings developed between 1979 and 1986 and renovated between 1993 and 1996.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based its non-performing matured status with the special servicer. The loan transferred to the special servicer in August 2024 when the loan failed to pay off at maturity. The loan is currently in cash management and the borrower has engaged a workout advisor as the special servicer evaluates workout options while dual tracking foreclosure. The portfolio is located within the Bridgeport-Stamford-Norwalk MSA which benefits from its proximity to New York City; however, the subject property has seen a downturn in leasing activity since 2017. According to REIS, the Stamford CBD submarket Q1 2025 vacancy rate is 24.8%. Lease rollover at the property through YE 2025, inclusive of MTM leases, represents 8.1% of base rent and 5.4% of collateral sf across 13 leases.
  • The servicer reported occupancies and DSCs are: 62.8% / 1.70x (FY 2024); 69.0% / 0.58x (FY 2023); at closing these were 88.0% / 1.38x. An updated appraisal dated October 2024, valued the asset at $150.7 million ($88 per sf), which represents a 64.7% decline from its $427.2 million value ($153 per sf) at issuance. As a result, the asset carries an aggregate ARA $116.7million on the whole loan balance, of which $64.1 million is attributable to the GSMS 2014-GC24 securitization. The ARA for this transaction resulted in a cumulative ASER of $981,706. KBRA’s analysis resulted in an estimated loss of $173.6 million (71.5% estimated loss severity) on the whole loan balance of $242.9 million. The loss is based on a KBRA liquidation value of $85.6 million ($50 per sf), which was derived from a direct capitalization approach using a KNCF of $7.7 million and a capitalization rate of 9.00%.

Coastal Grand Mall (2nd largest, 30.2%, K-LOC, Specially Serviced, Foreclosure)

  • The loan is collateralized by a 631,153 sf portion of a 1.1 million sf super regional mall located in Myrtle Beach, South Carolina. The asset is situated approximately three miles west of downtown Myrtle Beach and is adjacent to the Myrtle Beach International Airport. The mall is anchored by Dillard’s (non-collateral), Belk (non-collateral), and JCPenney (16.5% of collateral sf). A fourth anchor box formerly occupied by Sears (non-collateral) was vacated following its closure in January 2021.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its foreclosure status with the special servicer. The loan transferred to the special servicer in August 2024 when the loan failed to pay off at maturity. In February 2025, the loans status was updated from non-performing matured to foreclosure after the borrower requested a maturity extension. The special servicer is continuing to dual track foreclosure until a resolution is reached. According to the March 2025 rent roll, the collateral was 98.6% leased, compared to 95.2% at last review and 97.3% at issuance. Lease rollover through YE 2025, inclusive of MTM leases, represents 8.7% of base rent and 8.7% of collateral sf across 22 leases.
  • The servicer reported occupancies and DSCs are: 98.9% / 1.88x (FY 2024), 96.0% / 1.87x (FY 2023), 83.0% / 1.65x (FY 2022); at closing these were 97.3% / 2.11x. An updated appraisal dated November 2024, valued the asset at $90.0 million ($143 per sf), which represents a 58.7% decline from its $218.0 million value ($345 per sf) at issuance. As a result, the asset carries an ARA $13.7 million, resulting in a cumulative ASER of $46,492. KBRA’s analysis resulted in an estimated loss of $14.1 million (15.0% estimated loss severity). The loss is based on a KBRA liquidation value of $80.0 million ($127 per sf), which was derived from a direct capitalization approach using a KNCF of $10.0 million and a capitalization rate of 12.50%.

Beverly Connection (3rd largest, 28.2%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)

  • 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 non-performing matured 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 July 2025 remittance period, the loan 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 $3.9 million was allocated to the GSMS 2014-GC24 securitization. The ARA for this transaction resulted in a cumulative ASER of $14,916. KBRA’s analysis resulted in an estimated loss given default of $15.0 million (8.6% 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.

Rite Aid - Grand Blanc (4th largest, 1.0%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)

  • The loan is collateralized by an 11,105 sf, one-story retail property in Grand Blanc, Michigan, approximately 60 miles northwest of the Detroit CBD. The property was formerly leased to Rite Aid.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based its non-performing matured status with the special servicer. The loan transferred to the special servicer in August 2024 when the loan failed to pay off at maturity. In September 2024 the single tenant, Rite Aid, vacated the subject prior to its March 2028 lease expiration resulting from the tenant's Chapter 11 bankruptcy filing in October 2023. Subsequently in January 2025, Rite Aid filed proof of claim for $502,000 and begun marketing the space for lease. As of the July 2025 remittance period the property remains fully vacant while the special servicer dual tracks workout negotiations and foreclosure. Additionally, a DPO (discounted payoff) proposal is currently being evaluated.
  • The servicer reported occupancies and DSCs are: 100% / 1.34x (YTD June 2024); 100% / 1.37x (YTD October 2023); at closing these were 100% / 1.32x. An updated appraisal dated October 2024 valued the property at $1.1 million ($95 per sf), which is 81.2% below the $5.6 million ($505 per sf) value at issuance. As a result, the asset carries an ARA $2.2 million resulting in a cumulative ASER of $19,631. KBRA’s analysis resulted in an estimated loss of $2.4 million (77.3% estimated loss severity). The loss is based on a KBRA liquidation value of $1.1 million ($95 per sf), which is based on the most recent appraisal.

Details concerning the ratings changes are as follows:

  • Class PEZ to BB (sf) from BBB- (sf)
  • Class C to BB (sf) from BBB- (sf)
  • Class D to C (sf) from CC (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: 1010481