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KBRA Affirms All Outstanding Ratings for MSBAM 2013-C9

12 Sep 2025   |   New York

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KBRA affirms all of its outstanding ratings for MSBAM 2013-C9, a $224.2 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction which has three remaining loans. Of the remaining loans, two are K-LOCs (95.6%) and the other is a performing loan. The details of the loans are outlined below.

Milford Plaza Fee (largest, 73.6%, K-LOC, Underperform)

  • The loan was originally collateralized by a leased fee interest in the land underlying the Row NYC hotel, formerly known as the Milford Plaza. The property is a 28-story, 1,331-key select-service hotel located in the Times Square area of Midtown Manhattan. The ground lease was originally set to expire in 2112. However, an assumption and modification agreement was executed in May 2024, pursuant to which Highgate Hotels acquired fee simple ownership in the hotel and assumed the $275.0 million loan. As a result, the loan is no longer deemed non-recoverable.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform based on its prior status with the special servicer and prior delinquency status. The loan had been with the special servicer since June 2020, but was returned to the master servicer after the modification. The loan was initially transferred after the hotel operator (Rockpoint/Highgate, leasehold owner) defaulted on the ground lease in April 2020. The special servicer began pursuing foreclosure in June 2022. In October 2022, the leasehold tenant executed a sublease with NYC Health and Hospitals without lender or borrower consent. The hotel remains closed to the public.
  • According to the assumption and modification agreement, Highgate will own and operate the property. The loan maturity was extended to June 2028 at the existing 3.48% fixed interest rate. All past due advances are to be repaid from cash flow, and default interest and late charges were waived. The loan is cash managed with no distributions until outstanding advances are repaid, including $12.0 million owed by purchaser. Highgate plans a $70.0 million renovation once the City’s sublease expires in April 2026. The property is expected to reopen and operate as a hotel after the completion of the renovation.
  • An appraisal dated April 2024 valued the land and the hotel, at $350.0 million ($262,960 per key), which is 9.3% lower than the $386.0 million ($290,000 per key) appraised value at issuance. At this time, KBRA does not estimate a loss on this asset, which has a whole loan balance of $275.0 million.

Apthorp Retail Condominium (2nd largest, 22.0%, K-LOC, Underperform)

  • The loan is collateralized by four ground-level retail suites totaling 10,981 sf and one multi-level office suite (1,870 sf) in the 161-unit luxury residential condominium building known as The Apthorp. The building is located along Broadway in the Upper West Side area of Manhattan in New York City. The loan is scheduled to mature in March 2033.
  • KBRA maintains the loan's K-LOC designation and its KPO of Underperform due to a decline in financial performance since issuance. According to the April 2025 rent roll, the property was 100% leased, an improvement from 82.4% at the last review and consistent with occupancy at closing. The increase is attributable to Solidcore New York executing a 10-year lease for 2,263 sf (17.6% of collateral) through June 2035. The largest tenant, JPMorgan Chase Bank occupies 55.7% of the collateral and represents 85.4% of total base rent. JPMorgan pays annual rent of roughly $700 per sf, well above the average in-place rent of about $200 per sf for other tenants in the property. As newer leases have been executed at lower rents, property cash flow has declined compared to issuance cash flow. There is no near-term lease rollover risk, as the earliest scheduled lease expiration is in July 2028.
  • The servicer-reported occupancies and DSCs are: 100% / 0.90x (FY 2024), 82.0% / 0.84x (FY 2023); at closing, these were 81.0% / 1.21x. At this time, KBRA does not estimate a loss on this asset.

Brighton Shopping Center (3rd largest, 4.4%, Perform)

  • The loan is collateralized by a 299,208 sf retail center in Brighton, Michigan, approximately 40 miles northwest of Detroit. The loan is scheduled to mature in March 2032.
  • KBRA maintains a KPO of Perform on this loan based on stable financial performance since issuance. The property has historically demonstrated strong occupancy and financial performance consistent with underwritten expectations. Based on the March 2025 rent roll, inclusive of recent leasing updates, occupancy was 86.9%, generally in line with both the prior review (88.8%) and issuance (85.3%). Since the last review, two tenants vacated: Jo-Ann Stores in May 2025 following a bankruptcy filing in January 2025, and Gardner White of Brighton in September 2024. These two tenants represented 22.5% of collateral sf at the time. Offsetting these departures, Burlington (4th largest, 10.3% of sf) backfilled the former Bed Bath & Beyond space in July 2025, while Ross (5th largest, 10.3%) is expected to occupy the former Gardner White space in the near term. The reported occupancy of 86.9% incorporates these updates. While occupancy remains generally in line since last year, the FY 2024 servicer reported NCF of $1.8 million represents a 14.2% decline from issuance NCF of $2.1 million. The decline is primarily driven by an increase in expenses. Additionally, the servicer-reported financials do not include income from recently executed leases.
  • Additionally, PetSmart, previously the fourth largest tenant with a lease set to expire in January 2025, renewed through January 2030 at higher rents, becoming the largest tenant by base rent (6.7% of sf; 17.4% of base rent). Marshalls (2nd largest, 12.6% of base rent) also renewed its lease, extending it from July 2025 to July 2030, with two five-year extension options remaining.
  • The servicer-reported occupancies and DSCs are: 100% / 0.87x (YTD March 2025), 78.0% / 1.04x (FY 2023); at closing, these were 85.0% / 1.23x.

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 Publications

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.

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