Press Release|CMBS
KBRA Affirms All Outstanding Ratings for MSBAM 2014-C16
6 Mar 2026 | New York
KBRA affirms all of its outstanding ratings for MSBAM 2014-C16, a $158.5 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses since our last ratings change in March 2025. However, the magnitude of the change in losses does not warrant further rating adjustments at this time. The affirmations are also based on the performance and expected recovery of the transaction's four remaining loans.
As of the February 2026 remittance period, four assets remain in the pool and all are identified as K-LOCs. Of these, three (60.8% of the pool balance) are specially serviced including one (13.0%) that is REO. The details of the four assets are outlined below:
State Farm Portfolio ($69.9 million, 44.5%, K-LOC, Specially Serviced, Current)
- The loan is collateralized by 12 Class-A and Class-B suburban office buildings located in 10 states at issuance.
- KBRA maintains the loan's K-LOC designation and KPO of Underperform based on collateral occupancy concerns and status with the special servicer. The loan transferred to the special servicer in September 2023 for non-monetary default as the sole tenant, State Farm, vacated all buildings. However, State Farm's leases do not expire until November 2028 and the tenant has continued to meet its rental obligations. The loan returned to the master servicer in February 2025 after the Tulsa, Oklahoma property was sold and released in December 2024. According to the special servicer, the Columbia, Missouri property was released in August 2025 which resulted in a $42.6 million principal curtailment.
- The loan had an Anticipated Repayment Date (ARD) of April 2024 and a stated maturity date of April 2029. The loan required interest-only debt service payments through the ARD with interest accruing at a fixed rate of 4.63%. From April 11, 2024, interest in excess of the Regular Interest Rate has been deferred and excess cash flow applied, pro-rata, to each of the notes evidencing the loan, first to reduce the outstanding principal balance and thereafter to pay the deferred interest. As of February 2026, the loan has been paid down by 30.1%.
- The servicer-reported occupancies and DSCs are 100.0% / 2.27x (YTD Sept 2025), 100.0% / 2.09x (FY 2024), 94.0% / 2.06x (FY 2023); at closing these were 100% / 2.02x. KBRA’s analysis resulted in an estimated loss of $82.2 million (30.5% estimated loss severity) on the whole loan balance of $269.3 million, of which $21.4 million is allocated to this trust. The loss is based on a KBRA liquidation value of $189.3 million ($68 per sf) and projected total exposure of $271.5 million. The value is derived from a direct capitalization approach using a KNCF of $18.8 million and a capitalization rate of 9.00%, which was reduced by $19.4 million to account for downtime and TIs during the stabilization period.
Outlets of Mississippi A/B ($61.7 million, 39.2%, K-LOC, Current)
- The loan is collateralized by a 300,156-sf, open-air retail outlet-center located in Pearl, Mississippi, approximately four miles southeast of the CBD of Jackson. Built in 2013, the property covers approximately 37 acres and offers over 1,390 parking spaces.
- KBRA maintains the loan's K-LOC designation and KPO of Underperform based on the collateral's deteriorating financial performance. The loan transferred to special servicing in November 2018 due to imminent monetary default and became 90+ days delinquent in August 2019.
- A loan modification creating an A/B structure closed on December 31, 2020. According to the terms of the modification agreement, the principal balance of the loan was split into two tranches: an A tranche in the amount of $28.0 million and a B tranche in the amount of $33.7 million. Upon disposition, after the A note is paid in full, the remaining funds will be split 50%/50% between the borrower and the B note holder. In addition, the maturity date of the loan was extended until June 2026. The loan is current as of February 2026.
- The servicer-reported occupancies and DSCs are 77.0% / 0.60x (YTD September 2025), 85.0% / 0.76x (FY 2024), 94.0% / 0.60x (FY 2023); at closing these were 95.0% / 1.56x. An appraisal dated February 2021 valued the property at $17.0 million, which represents an 81.4% decrease from its $91.8 million value at securitization. The loan carries a cumulative ASER amount of $1.1 million. The loan is current and requires amortizing debt service payments. It carries a $1.2 million WODRA resulting in the transaction's collateral balance being lower than the total bond balance. KBRA’s analysis resulted in an estimated loss of $57.1 million (92.6% estimated loss severity) on a loan balance of $61.7 million. The loss is based on a KBRA liquidation value of $10.4 million ($35 per sf) and projected total exposure of $67.5 million. The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.
Cascade Station I & II ($20.4 million, 13.0%, K-LOC, Specially Serviced, REO)
- The loan is collateralized by two Class-A, office properties totaling 127,718 sf located in Portland, Oregon, approximately 10 miles northeast of the city’s CBD.
- KBRA maintains the asset's K-LOC designation and KPO of Underperform due to its REO status. The loan transferred to the special servicer after it failed to payoff at its May 2024 maturity. As of November 2025, the occupancy across the two properties was 56.4%, up from 44.3% at last review but still significantly lower than 93.0% at closing. The improvement in occupancy was driven by United Cerebral Palsy Association of Oregon and SW Washington (21.4% of total base rent) executing a lease with a March 2037 expiration.
- The servicer-reported occupancies and DSCs are 56.0% / -0.81x (YTD September 2025), 32.0% / -1.50x (FY 2024), 61.0% / 2.10x (FY 2023); at closing these were 93.0% / 1.42x. An appraisal dated July 2025 valued the property at $18.2 million ($143 per sf), which represents a 39.2% decrease from its $30.0 million ($235 per sf) value at securitization. An ARA of $2.7 million was applied to the loan in October 2025 and the cumulative ASER amount is $17,452. KBRA’s analysis resulted in an estimated loss of $6.7 million (32.8% estimated loss severity) on a loan balance of $20.4 million. The loss is based on a KBRA liquidation value of $16.6 million ($130 per sf) and projected total exposure of $23.3 million. The value is derived from a direct capitalization approach using a KNCF of $1.7 million and a capitalization rate of 9.25%.
Park Place Plaza ($5.2 million, 3.3%, K-LOC, Specially Serviced, Performing Matured Balloon)
- The loan is collateralized by a 125,515 sf retail property located in Vineland, New Jersey, approximately 30 miles southeast of the Philadelphia CBD.
- KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its specially serviced status. The loan transferred to the special servicer after it failed to payoff at its June 2024 maturity. The servicer-reported annualized NCF for the YTD September 2025 was $474,729, representing an 18.5% decline from $582,515 underwritten by the issuer at closing. The decline is primarily driven by a 65.9% increase in operating expenses. The third largest tenant, Family Dollar (14.3% of total base rent) vacated the property in January 2025 prior to its May 2030 lease expiration. However, the tenant has continued to meet its rental obligations. Servicer commentary indicates the borrower is seeking to backfill the vacant space to facilitate refinancing, while the lender has initiated foreclosure proceeding.
- The servicer-reported occupancies and DSCs are 95.0% / 1.13x (YTD September 2025), 95.0% / 1.66x (FY 2024), 95.0% / 1.45x (FY 2023); at closing these were 92.0% / 1.38x. An appraisal dated July 2025 valued the property at $6.3 million ($50 per sf), which represents a 29.2% decrease from its $8.9 million ($71 per sf) value at securitization. KBRA’s analysis resulted in an estimated loss of $1.1 million (21.4% estimated loss severity) on a loan balance of $5.2 million. The loss is based on a KBRA liquidation value of $4.5 million ($36 per sf) and projected total exposure of $5.6 million. The value is derived from a direct capitalization approach using a KNCF of $1.7 million and a capitalization rate of 9.25%.
Details concerning the ratings affirmations are as follows:
- Class D at CCC (sf)
- Class E at CC (sf)
- Class F at C (sf)
- Class G 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.