Press Release|CMBS

KBRA Downgrades Six Ratings, Affirms One Rating, and Removes Six Ratings from Watch Downgrade for COMM 2014-CCRE17

23 Dec 2025 | New York

KBRA downgrades six ratings and affirms one rating for COMM 2014-CCRE17, a $254.0 million CMBS conduit transaction. Simultaneously, KBRA removes six classes from Watch Downgrade (DN), where they were placed on October 3, 2025. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in interest shortfalls since the last ratings change in February 2025 and are based on the performance and expected recovery of the transaction's remaining six assets, all of which are specially serviced and identified as K-LOCs. Of the six assets, five (51.1%) have been deemed non-recoverable, resulting in interest shortfalls affecting all of the outstanding classes.

All remaining assets are past maturity. The largest, 25 Broadway (48.9% of pool balance) executed a 24-month forbearance through April 2026. Of the other remaining assets, three are listed as REO (15.7%), and two (35.4%) are non-performing matured.

Details concerning the classes with ratings changes are as follows:

Class B to BB (sf) from A (sf) DN
Class C to B (sf) from BBB (sf) DN
Class PEZ to B (sf) from BBB (sf) DN
Class D to CCC (sf) from B (sf) DN
Class E to C from CCC (sf) DN
Class F to C (sf) from CC (sf) DN

The details of the assets are outlined below.

25 Broadway (largest, 48.9%, Matured Non-Performing)

The loan is collateralized by a 956,554 sf, 22-story, Class-B, landmark office building located in downtown New York City. The loan matured in April 2024.
KBRA maintains the loan's K-LOC designation based on the execution of a maturity forbearance. The lender denied the borrower's request for an extension in January 2024 and the loan subsequently transferred to special servicing in March. A 24-month forbearance was executed and commenced in July 2024, with an option to further extend another six months subject to additional terms. In addition to forbearance fees, the borrower was required to make a $7.0 million principal curtailment and an additional $4.0 million is expected at the beginning of the second year of the forbearance term. According to the December 2025 remittance, the whole loan balance was paid down by $11.0 million to a whole loan balance of $239.0 million, of which $124.3 million is in this transaction.
The servicer-reported NCF for FY 2024 was $9.0 million, a 60.2% decline from the $22.6 million underwritten by the issuer at closing. As of the June 2025 rent roll, the property was 89.0% leased, consistent with the prior review but down from 95.8% at issuance. The two largest tenants, Teach for America (19.8% of base rent) and Léman Manhattan Preparatory School ("Léman", 15.2%), together represent 35.0% of total base rent. At last review, Léman had been in payment default since June 2023 despite a lease scheduled to expire in September 2030. Per KBRA research, the school received an equity infusion from an education-focused investment firm to retire all existing debt. Additionally, according to the special servicer, Léman executed the ninth lease amendment in October 2024 and is now current on its past-due rent obligations. The amendment provides for a 27.5% reduction in contractual rent from November 2024 through November 2026, followed by 2.5% step-ups beginning in November 2026 and an additional 5.0% increase in November 2029 through the expiration of the lease in September 2030.

The servicer-reported occupancies and DSCs are: 89.0% / 1.16x (YTD September 2025), 89.0% / 0.78x (FY 2024), 92.0% / 1.64x (FY 2023); at closing these were 95.8% / 1.90x. An appraisal dated July 2025 valued the property at $284.0 million ($297 per sf), which is 23.0% below the $369.0 million ($388 per sf) value at issuance. KBRA’s analysis resulted in an estimated loss of $61.8 million (25.9% estimated loss severity), on the whole loan balance of $239.0 million. The loss is based on a KBRA liquidation value of $179.1 million ($188 per sf). The value considers a distressed non-stabilized disposition of the asset.

Cottonwood Mall (2nd largest, 32.5%, Matured Non-Performing)

The loan is collateralized by 410,452 sf of a 1.1 million sf, enclosed super-regional mall (C+ ranking by Green Street) located in Albuquerque, New Mexico. The collateral includes 321,885 sf of in-line retail space, a food court and a 16-screen movie theater. The mall is currently anchored by Dillard’s, JCPenney and Regal Cinema. Each of the anchors, with the exception of Regal Cinema (16.9% of total base rent), own their respective improvements and the underlying land and are not included as collateral for the subject loan. The loan matured in April 2024.
KBRA maintains the loan’s K-LOC designation due to its maturity default and the loan's non-performing matured status. The loan was transferred to the special servicer in July 2021 due to the loan's sponsor, Washington Prime Group (WPG), having filed for bankruptcy. A receiver was appointed in February 2022. Per the special servicer, the receiver has been successful in converting temporary tenants to permanent and is currently addressing leases expiring in the next 12 months. As of the June 2025 rent roll, the property was 93.2% leased, up from 89.2% at last review, and down from 96.0% at issuance. The loan was deemed non-recoverable in September 2025.
For the TTM period ending May 2024, comparable in-line sales, as calculated by KBRA were $343 per sf, down from $370 per sf at last review, and up from securitization ($330 per sf). The largest tenant, Regal Cinemas (16.9% of total base rent), generated sales for the same periods of $343,204 per screen, compared to $378,591 per screen at last review, and down from $405,000 per screen at issuance.
The servicer-reported occupancies and DSCs are: 93.1% / 0.95x (YTD June 2025), 91.8% / 0.85x (FY 2024), 90.0% / 0.92x (FY 2023), 94.0%/ 1.22x (FY 2022); at closing these were 96.0% / 1.89x. An appraisal dated December 2024 valued the property at $90.0 million ($160 per sf), which is 48.6% below the $175.0 million ($426 per sf) value at issuance. KBRA's analysis resulted in an estimated loss of $37.9 million (46.0% estimated loss severity) on $82.5 million loan balance. The loss is based on a KBRA liquidation value of $49.3 million ($88 per sf). The value considers a distressed non-stabilized disposition of the asset.

Crowne Plaza Houston River Oaks (3rd largest, 8.5%, REO)

The asset is a 354-key, full-service hotel in Houston, Texas, approximately five miles southwest of the CBD. The loan matured in May 2024.
KBRA maintains the asset's K-LOC designation due to its REO status. The loan was reported delinquent in June 2020 and transferred to the special servicer the following month. In October 2020, the property was reported closed due to the COVID-19 pandemic, and GF Hotels was appointed as receiver in May 2021. According to the special servicer, the lender took title to the asset as REO on February 4, 2025. The special servicer also noted that the receiver began completing the remaining PIP requirements under the IHG franchise agreement in early 2023, as the borrower had not finished the work. The PIP scope included full guest-room renovations, lobby upgrades, and elevator modernization. All guest rooms have since been renovated, and the elevator work is ongoing, funded by property cash flow. The lender expects to begin marketing the property for sale in Q1 2026. The loan has been deemed non-recoverable.
The servicer-reported occupancies and DSCs are: 60.0% / 0.60x (TTM June 2025), 47.4% / -0.11x (FY 2024), 28.0% / -0.91x (TTM September 2023); at closing these were 80.2% / 1.52x. An appraisal dated July 2025 valued the property at $27.5 million ($77,684 per key), which is 25.7% below the $37.0 million ($104,520 per key) value at issuance. KBRA's analysis resulted in an estimated loss of $11.3 million (52.5% estimated loss severity), on the loan balance of $21.5 million. The loss is based on a KBRA liquidation value of $18.5 million ($52,260 per key). The value considers a distressed non-stabilized disposition of the asset.

Deerpath Plaza (4th largest, 4.2%, REO)

The asset is a 47,192 sf, mixed-use office/retail property in Lake Forest, Illinois, approximately 32 miles north of the Chicago CBD. The loan matured in January 2024.
KBRA maintains the asset's K-LOC designation as it became REO in January 2025. The loan was initially transferred to the special servicer in July 2020 due to payment default. A foreclosure complaint was filed in February 2021 and a receiver for the property was signed in June 2021. The loan has been deemed non-recoverable.
Additionally, occupancy declined to 66.7% as of the June 2025 rent roll, down from 80.0% at the last review. The decrease is primarily attributable to the departure of the former third-largest tenant, Paralle I49 Equity US Management Fund, whose lease expired in October 2024. The tenant previously accounted for 10.4% of total base rent and 9.0% of the total sf. Lease rollover through YE 2025 includes three leases representing 17.6% of total base rent and 9.8% of total sf. An additional 21.7% of base rent and 12.7% of total sf is scheduled to expire through YE 2026, spread across four leases.
The servicer-reported occupancies and DSCs are: 80.0% / 0.78x (YTD September 2024), 79.0% / 0.51x (YTD September 2023), N/A / 0.49x (FY 2022); at closing these were 96.1% / 1.40x. An updated appraisal dated October 2024 valued the property at $8.1 million ($172 per sf) which is a 55.2% decline from $18.1 million ($382 per sf) at issuance. KBRA’s analysis resulted in an estimated loss of $8.2 million (76.6% estimated loss severity), on a loan balance of $10.7 million. The loss is based on a KBRA liquidation value of $5.2 million ($109 per sf). The value considers a distressed non-stabilized disposition of the asset.

Kunkel Portfolio (5th largest, 3.0%, REO)

The portfolio consists of four properties, Kunkel Square, which is a multifamily property, and three office properties, Fendrich Plaza, the Court Building, and the Hulman Building. The loan matured in May 2024.
KBRA maintains the asset's K-LOC designation as it became REO in February 2021. The asset was transferred to the special servicer in July 2017 because of imminent default. Two of the four assets, the Court and Hulman Buildings were sold in the first quarter of 2022. According to the special servicer, a broker has been engaged to market the Kunkel Square property, a buyer has been selected, and final approval is pending. For the remaining asset, Fendrich Plaza, the special servicer is pursuing an early lease renewal to position the property for a potential sale. The loan has been deemed non-recoverable.
The servicer-reported occupancies and DSCs are: 94.0% / 0.32x (YTD June 2025), 98.0% / 0.12x (FY 2024), 84.0% / 0.20x (FY 2023), 84.0%/ 0.33x (FY 2022); at closing these were 95.0% / 0.74x. An updated appraisal dated April 2025 valued the portfolio of the remaining two properties at $6.0 million which compares to the $9.9 million at issuance. KBRA’s analysis resulted in an estimated loss of $7.2 million (94.3% estimated loss severity), on the whole loan balance of $7.6 million. The loss is based on a KBRA liquidation value of $3.2 million. The value considers a distressed non-stabilized disposition of the asset.

Dundalk Village (6th largest, 2.9%, Matured Non-Performing)

The loan is collateralized by a 117,000 sf, mixed-use property consisting of 63,000 sf of retail space, 67 multifamily apartments units, and 9,231 sf of office space located in Dundalk, Maryland, approximately 10 miles east of the Baltimore CBD. The loan matured in April 2024.
KBRA maintains the loan’s K-LOC designation based on its non-performing matured status. The borrower pursued multiple resolution efforts in 2024, including a short-term forbearance to facilitate a sale and a subsequent refinance, both of which failed to close. Following these unsuccessful attempts, the asset was listed for sale via Alex Cooper Auction House in September 2024. The auction listing only received a single bid, which was less than the unpaid principal balance and therefore the sale never executed. Per the special servicer, court-approved evictions for several significantly delinquent multifamily and commercial tenants were obtained in September 2025. The affected units will be inspected and turned to prepare them for lease-up. The special servicer has indicated that its disposition strategy is to pursue a receiver sale of the asset. The loan has been deemed non-recoverable in September 2025.
According to the July 2025 rent rolls, the multifamily portion was 88.1% occupied and the retail/office portion was 76.5% leased, resulting in an average occupancy of 82.3%. Lease rollover through YE 2026, inclusive of MTM leases, represent 40.8% of total base rent and is spread across 18 leases, the largest of which represents 15.3% of base rent with a lease expiring in February 2026.
The servicer-reported occupancies and DSCs are: 76.6% / 0.09x (YTD June 2025), 79.2% / 0.73x (FY 2024), 64.0% / 1.21x (FY 2023), 85.0% / 1.03x (FY 2022); at closing these were 91.0% / 1.38x. An updated appraisal dated May 2025 valued the property at $10.0 million ($86 per sf), which is down by 20.0% from $12.5 million ($107 per sf) at issuance. KBRA’s analysis resulted in an estimated loss of $1.2 million (16.5% estimated loss severity), on the loan balance of $7.4 million. The loss is based on a KBRA liquidation value of $6.7 million ($57 per sf). The value considers a distressed non-stabilized disposition of the asset.

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.

KBRA Downgrades Six Ratings, Affirms One Rating, and Removes Six Ratings from Watch Downgrade for COMM 2014-CCRE17

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