KBRA Downgrades One Rating for GSMS 2014-GC22 to D (sf) Following Realization of Principal Losses
29 May 2026 | New York
KBRA downgrades the rating of the Class F certificate to D (sf) from C (sf) for GSMS 2014-GC22, a $285.5 million CMBS conduit transaction, following realized losses incurred from the resolution of the Maccabees Center asset ($21.5 million loan balance at issuance) as reflected in the May 2026 remittance report. The asset consists of a 360,280 sf office complex located in Southfield, Michigan. The loan was liquidated for net proceeds totaling $4.5 million. As of the May 2026 distribution date, liquidation expenses totaled $3.8 million, resulting in a loss of $16.5 million (76.9% loss severity of original balance), all of which was applied to the transactions remaining certificate balance. An appraisal dated November 2024 valued the property at $9.7 million ($27 per sf), representing a 68.4% decrease from closing ($30.7 million; $85 per sf). The loss was generally in line with KBRA's expectations as reflected in our March 2026 surveillance report.
According to the May 2026 remittance report, cumulative principal losses on the transaction totaled $44.4 million. Following the liquidation of the Maccabees Center asset, the certificate balance for the Class G was reduced to zero and the principal balance of Class F was reduced to $9.6 million (47.2% of the original certificate balance).
KBRA's other outstanding ratings for the transaction are unchanged at this time.
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.
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