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KBRA Affirms All Outstanding Ratings for MSBAM 2014-C19

26 Nov 2025   |   New York

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KBRA affirms all of its outstanding ratings for MSBAM 2014-C19, a $126.6 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has experienced significant pay downs as 60 loans with initial loan balances totaling $1.3 billion have paid off in full at or prior to maturity, and 11 loans have been liquidated resulting in cumulative losses of $20.9 million to date.

As of the November 2025 remittance period, six assets remain in the trust including two performing loans (29.1% of the pool balance) that have received modifications resulting in maturity date extensions, and four specially serviced assets (70.9%). The specially serviced assets are three REO assets (37.8%) and one non-performing matured loan (33.1%). KBRA identified four K-LOCs (70.9%), including the specially serviced assets, all of which have estimated losses. The details of the K-LOCs are outlined below.

PacStar Retail Portfolio (largest, 33.1% of the pool balance, Specially Serviced, Nonperforming)

  • The loan is collateralized by two anchored retail properties, Yards Plaza, a 260,481-sf retail center located in Chicago and Willowbrook Court Shopping Center, a 137,650-sf retail center located in Houston.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform due to weak collateral performance and its non-performing status with the special servicer. The loan transferred to the special servicer in September 2021 for imminent non-monetary default. Upon transfer, the borrower indicated its willingness to transition the properties to the lender. A receiver was appointed in February 2022. A motion for summary judgment was filed for the property in Illinois in April 2022. Soil settling on the Yards Plaza property has caused structural damage to the improvements and the borrower incurred unpermitted debt, both of which triggered recourse to the guarantors. Additionally, the lender has filed a lawsuit against the insurance company, which did not respond in a timely manner to the mortgagee’s insurance claims regarding ground settlement. The special servicer has approved a guarantor settlement and is working to document the agreement. Additionally, the special servicer received approval to settle the outstanding insurance litigation. Receiver sales for both assets are expected to close in November.
  • The servicer-reported occupancies and DSCs are: 44.0% / Not Reported (YTD June 2025); 71.0% / 0.09x (FY 2023); 69.0% / 0.38x (FY 2022); at issuance these were 90.2% / 1.35x. An appraisal dated December 2024 valued the properties at $22.9 million, which is 67.1% below the $69.6 million value at issuance. As a result, the asset carries an ARA of $25.5 million, resulting in a cumulative ASER of $1.7 million. KBRA's analysis resulted in an estimated loss of $30.4 million (72.4% estimated loss severity) and is based on a value of $17.1 million ($43 per sf), which accounts for the distressed nature of the assets.

Park at Caldera (2nd largest, 24.9%, Specially Serviced, REO)

  • The asset is collateralized by a 358-unit, Class-B, garden-style multifamily complex located in Midland, Texas,approximately 300 miles west of Fort Worth.
  • KBRA maintains the asset's K-LOC designation and KPO of Underperform due to its REO status with the special servicer. Collateral performance declined in 2020, corresponding with a drop in occupancy. While occupancy rates have improved, rental rates have declined. The loan transferred to the special servicer in January 2022 after it was reported as 30-days delinquent in November 2021. The property became REO via judicial foreclosure on April 4, 2023, with the special servicer planning to increase occupancy and rents to market. As of November 2025, the special servicer continues to address leasing efforts prior to disposition and is analyzing exit scenarios.
  • The servicer-reported occupancies and DSCs are: 89.0% / 0.75x (YTD June 2025); 92.0% / 0.29x (FY 2024); 79.0%/ 0.56x (FY 2023); at issuance these were 92.5% / 1.54x. An appraisal dated March 2025 valued the property at $35.0 million ($97,765 per unit), which is 24.7% below the $46.5 million ($129,888 per unit) value at issuance. As a result, the asset carries an ARA of $4.5 million, resulting in a cumulative ASER of $1.1 million. KBRA's analysis resulted in an estimated loss of $17.3million (54.9% estimated loss severity) and is based on a KBRA liquidation value of $17.8 million ($49,721 per unit). The value is derived from a direct capitalization approach using a KNCF of $1.6 million and a capitalization rate of 9.00%.

University Gardens (4th largest, 8.9, Specially Serviced, REO)

  • The asset is collateralized by a 160-unit, garden-style, multifamily complex in Odessa, Texas.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its REO status with the special servicer. The loan transferred to the special in February 2022 due to imminent default and by April 2023, the collateral became an asset of the trust. The decline in collateral performance is related to declining rental rates paired with increased operating expenses. The special servicer is currently working to increase rents and expects to sell the property by mid-2026.
  • The servicer-reported occupancies and DSCs are: 87.0% / 1.22x (YTD June 2025); 88.0% / 1.17x (FY 2024); at closing these were 94.3% / 1.73x. An appraisal dated September 2025 valued the property at $14.4 million ($90,063 per unit), which is 10.0% below the $16.0 million ($100,000 per unit) value at issuance. KBRA's analysis resulted in an estimated loss of $721,968 (6.4% estimated loss severity) and is based on a KBRA liquidation value of $11.5 million ($71,875 per unit). The value considers a distressed non-stabilized disposition of the asset.

Fairfield Inn - Hartsville (6th largest, 4.0%, Specially Serviced, REO)

  • The asset is collateralized by a 79 key limited-service hotel located in downtown Hartsville, South Carolina. The asset is easily accessible to the Hartsville Museum and Lawton Park.
  • KBRA maintains the asset's K-LOC designation and assigns a KPO of Underperform due to its REO status with the special servicer. The loan transferred to the special servicer in October 2024 for maturity default. Receivership was granted in April 2025 and a receiver sale is expected to occur in late 2025.
  • The servicer reported occupancies and DSCs are: Not Reported / 1.50x (YTD June 2025); 53.0% / 0.68x (FY 2024); 51.0% / 0.69x (FY 2023); at closing, these were 72.0% / 1.70x. An appraisal dated July 2025 valued the property at $5.4 million ($68,354 per key), which is 49.1% below the $10.6 million ($134,177 per key) value at issuance. KBRA's analysis resulted in an estimated loss of $310,760 (6.2% estimated loss severity). The loss is based on a KBRA liquidation value of $4.8 million ($60,716 per key). The value is derived from a direct capitalization approach using a KNCF of $467,664 and a capitalization rate of 9.75%.

Details concerning the ratings affirmations are as follows:

  • Class D at BB- (sf)
  • Class E at CCC (sf)
  • Class D 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.

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.

Doc ID: 1012436