Press Release|CMBS
KBRA Affirms All Outstanding Ratings for MSBAM 2013-C13
10 Oct 2025 | New York
KBRA affirms the outstanding rating for MSBAM 2013-C13, a $49.3 million CMBS conduit transaction, which currently has four assets remaining in the underlying mortgage pool. Three of these assets (86.4% of the pool balance) are REO and have been identified as K-LOCs. The remaining loan has a KPO of Perform and is scheduled to mature in December 2028. The rating action follows a surveillance review of the transaction and reflects the performance and expected recovery of the remaining assets, which have not materially changed since KBRA’s last rating action in October 2024.
As of the September 2025 remittance period, three assets (86.4% of the pool balance) are in special servicing, all of which are REO. Each of these specially serviced assets has been designated as a K-LOC with estimated losses. Details of the remaining assets are provided below.
940 Ridgebrook Road (largest, 44.6%, K-LOC, REO)
- The asset is a 210,002 sf office building located in Sparks Glencoe, Maryland, approximately 20 miles north of the Baltimore CBD.
- KBRA maintains the asset's K-LOC designation based on its REO status. The loan was transferred to special servicing in December 2023 following a maturity default after the borrower failed to make the balloon payment at the December 2023 maturity date. The property was formerly leased in its entirety to Element Fleet Management, a wholly owned subsidiary of Ocwen Financial Corporation, under a triple-net lease that expired in February 2024. The tenant vacated at lease expiration, and the property has remained 100% vacant since.
- The special servicer reported that the borrower declined to contribute additional equity, leading to the appointment of a receiver in December 2024. A foreclosure sale was completed in May 2025, with the lender acquiring the property as the winning bidder. According to servicer updates, disposition strategies are currently under evaluation, and a business plan is being developed.
- An appraisal dated July 2025 valued the property at $7.8 million ($37 per sf), representing a 79.8% decrease from the $38.7 million ($184 per sf) value at securitization. As a result, the asset carries an ARA of $11.8 million. As of the September 2025 remittance, outstanding P&I advances totaled $733,603 and cumulative servicer advances of $26,832. KBRA's analysis resulted in an estimated loss of $16.7 million (76.0% estimated loss severity) on a loan balance of $22.0 million. The loss is based on a KBRA liquidation value of $7.8 million ($37 per sf) which is equal to 100% of the appraisal.
1200 Howard Blvd. (2nd largest, 26.7%, K-LOC, REO)
- The asset is an 87,011 sf suburban office property located in Mount Laurel, New Jersey, approximately 12 miles east of the Philadelphia CBD.
- KBRA maintains the asset's K-LOC designation based on its REO status. The loan was transferred to special servicing in April 2018 after the borrower executed an unpermitted equity transfer and changed the property management company without lender consent. The borrower subsequently failed to repay the loan at its December 2018 maturity, and the trust acquired title to the property in November 2021 through foreclosure.
- As of the April 2025 rent roll, the property was 61.3% leased, down from 89.3% at the prior review, primarily reflecting the departure of Virtua Health, the former second largest tenant, at lease expiration in December 2024. Virtua occupied 23,493 sf (28.0% of collateral space) and accounted for 32.8% of base rent. Mitigating the occupancy decline, a new tenant executed a 65-month lease for 9,057 sf, which would improve occupancy to 72.0%. Additionally, special servicer updates indicate the second and third largest tenants (a combined 30.5% of base rent) have renewed their respective leases through December 2030 (7.0%) and March 2031 (23.5%), respectively. These leases were originally scheduled to expire in 2025. The special servicer continues to focus on leasing efforts, with no additional updates provided for the current review.
- The servicer-reported occupancies and DSCs are: 89.0% / 1.58x (FY 2024), 86.0% / 1.03x (FY 2023), 93.0% / 1.41x (FY 2022); at closing, these were 82.0% / 1.28x. An appraisal dated March 2025 valued the property at $8.1 million ($93 per sf), a 66.4% decrease from $24.1 million ($277 per sf) value at issuance. As a result, the asset carries an ARA of $6.7 million, resulting in a cumulative ASER of $983,923. KBRA's analysis resulted in an estimated loss of $8.1 million (61.9% estimated loss severity) on a loan balance of $13.2 million. The loss is based on a KBRA liquidation value of $5.9 million ($68 per sf). The value considers a distressed non-stabilized disposition of the asset.
Burnham Park Professional Center (3rd largest, 15.1%, K-LOC, REO)
- The asset is a 74,464 sf mixed-use (retail/office) property in Chicago, Illinois.
- KBRA maintains the asset's K-LOC designation based on its REO status. The loan was transferred to special servicing in April 2023 for imminent maturity default, as the loan matured in September 2023. A receiver was appointed in May 2024, and following a foreclosure auction in January 2025, the trust took title to the property in June 2025.
- According to the December 2024 rent roll, occupancy declined to 44.2% from 63.9% at the prior review after the departure of the largest tenant, Landmark Education. At last review, Landmark represented 36.2% of base rent and occupied 14,790 sf (19.4% of collateral space). In addition, near-term rollover risk remains, with 17.8% of base rent scheduled to expire across four leases through 2026.
- The servicer-reported occupancies and DSCs are: 44.0% / -0.47x (FY 2024), 64.0% / 1.30x (FY 2023), 90.0% / 1.89x (FY 2022); at closing, these were 100% / 1.42x. An appraisal dated February 2025 valued the property at $4.5 million ($60 per sf), representing a 63.4% decrease from the $12.3 million ($165 per sf) value at issuance. As a result, the asset carries an ARA of $4.1 million, resulting in a cumulative ASER of $75,849. KBRA's analysis resulted in an estimated loss of $5.4 million (72.1% estimated loss severity) on a loan balance of $7.4 million. The loss is based on a KBRA liquidation value of $3.4 million ($45 per sf) which is equal to 75.0% of the appraisal. The value considers a potentially protracted workout process in stabilizing the property.
13017-13045 Ventura Boulevard (4th largest, 13.6%, Perform)
- The loan is collateralized by a 20,620 sf retail property in Studio City, California. The properties were built between 1936 and 1964. The loan matures in December 2028.
- KBRA maintains the loan’s KPO of Perform, reflecting continued stable financial performance and occupancy. As of the April 2025 rent roll, the property was 81.0% leased, up from 75.6% at the prior review. The increase in occupancy was primarily driven by Hydration Holding Co., which executed a lease in May 2024 for 5.5% of collateral space. The tenant accounts for 4.9% of base rent; however, because the rent roll does not confirm the lease terms, KBRA has treated it as MTM in its analysis. As a result, lease rollover through 2026, inclusive of MTM tenants, represents 44.2% of base rent and 40.1% of collateral square footage, including the new tenant.
- The servicer-reported occupancies and DSCs are: N/A / 2.13x (YTD March 2025), 81.0% / 2.38x (FY 2024), 76.0% / 1.68x (FY 2023); at closing, these were 85.0% / 1.39x.
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.