KBRA Affirms All Ratings for FREMF 2015-K47
9 May 2025 | New York
KBRA affirms all outstanding ratings for FREMF 2015-K47, a $353.9 million CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation’s (Freddie Mac) K-Deal program. The affirmations follow a surveillance review of the transaction, which has exhibited stable pool performance since last review.
As of the April 2025 remittance period, there are 26 loans remaining totaling $403.4 million. One loan (4.1% of the loan collateral balance) did not payoff at its January 2025 maturity date and two additional loans (8.0%) failed to payoff at their respective April 2025 maturity dates. This resulted in cumulative guarantor payments of $49.5 million. One of the loans past maturity is in foreclosure with the special servicer (4.1%). The remaining loans are scheduled to mature in May 2025 and include eleven loans that are fully defeased (37.9%). Based on the most recent servicer-reported NCF and a refinance of the current balance with an assumed IO loan at a rate of 6.00%, there are two loans (21.5%) that would have a DSC of less than 1.20x.
KBRA identified all three past due loans (12.1%) as K-LOCs. The details of the loans are outlined below:
Auberry at Twin Creeks (5th largest loan, 4.5%, K-LOC, Underperform)
- The loan is collateralized by a 218-unit, garden-style, multifamily property located in Kent, Washington.
- KBRA identified the loan as a KLOC and adjusted the KPO to Underperform given the loan’s failure to payoff at its scheduled April 2025 maturity. According to servicer commentary, a 60-day maturity deferral was recently granted to June 2025.
- The servicer-reported occupancies and DSCs are 97.0%/2.23x (FY 2024); 95.0%/2.28x (FY 2023); 94.0%/2.06x (FY 2022); at issuance these were 95.8%/1.32x. At this time, KBRA does not estimate a loss on this asset.
Aegis at Shadowridge (7th largest, 4.1%, K-LOC, Underperform, Foreclosure)
- The loan is collateralized by an 88-unit, assisted living property located in Oceanside, California.
- KBRA identified the loan as a K-LOC and adjusted the KPO to Underperform based on the loan defaulting at its January 2025 maturity, low DSCR, and declining collateral financial performance since issuance. The loan was transferred to special servicing in January 2025 due to the borrower's inability to obtain refinancing. According to servicer commentary, occupancy has fallen to 57% as of March 2025 and $281,000 of interest has been advanced by the servicer. The servicer is pursuing foreclosure as the primary workout strategy as of March 2025 and a receiver was appointed in February 2025.
- The servicer-reported occupancies and DSCs are: 70.0% / 0.13x (YTD September 2024); 69.0%/-0.25x (FY 2023); 68.0%/-0.17x (FY 2022); at issuance these were 94.3% /1.66x. KBRA's analysis resulted in an estimated loss of $11.6 million loss (69.8% estimated loss severity). The loss is based on a KBRA liquidation value of $7.1 million ($80,682/unit), which considers a distressed non-stabilized liquidation of the asset as well as comparable market values.
The Lofts at Chimney Hills (8th largest loan, 3.5%, K-LOC, Underperform)
- The loan is collateralized by an 82-unit, mid-rise style multifamily property located in Philadelphia, Pennsylvania.
- KBRA identified the loan as a KLOC and adjusted the KPO to Underperform from Perform given the loan’s failure to payoff at its scheduled April 2025 maturity. Servicer commentary states a maturity deferral was approved for 60 days.
- The servicer-reported occupancies and DSCs are 99.0%/1.35x (FY 2024); 96.0%/1.39x (FY 2023); 100.0%/1.34x (FY 2022); at issuance these were 94.4%/1.26x. At this time, KBRA does not estimate a loss on this 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 asset in the transaction, as well as the continuing magnitude and extent of interest shortfalls on the certificates.
To access ratings and relevant documents, click here.
Related Publication
Methodologies
- Structured Finance: Global Structured Finance Counterparty Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- ESG Global Rating Methodology