Press Release|CMBS
KBRA Affirms All Ratings for BACM 2015-UBS7
11 Jun 2026 | New York
KBRA affirms all outstanding ratings for BACM 2015-UBS7. The transaction has been reduced to four loans and a balance of $127.7 million from 42 loans and $757.3 million at securitization. Each of the remaining assets have been identified as a KBRA Loans of Concern (K-LOC). The affirmations are based on KBRA's expected resolutions of the remaining loans and our estimated losses totaling $22.1 million (which, if realized, would impact class E and below).
As of the May 2026 remittance period, two assets are specially serviced, of which one (54.8%) is non-performing matured balloon and one (1.9%) is REO.
261 Fifth Avenue ($70.0 million, 54.8%, Specially Serviced, Non-Performing Matured Balloon)
- The loan is collateralized by a 441,992 sf, Class-B office building located in the Midtown South area of New York City’s borough of Manhattan.
- The loan transferred to the special servicer in September 2025 after failing to pay off at its scheduled maturity date. The annualized YTD September 2025 servicer NCF was $14.3 million, which represents a 17.1% increase from the issuer's underwritten expectations at securitization. Pursuant to the June 2025 rent roll, the asset was 83.8% leased, which compares to 84.8% at last review and 99.7% at closing. Lease rollover through YE 2026, inclusive of MTM leases, represents 10.9% of base rent across 16 leases. The lender and borrower entered into a forbearance agreement in September 2025. Additional special servicer commentary indicated that the lender and borrower were in discussions regarding a potential loan extension, which would extend the loan's maturity date to September 2026, with an additional one-year extension through September 2027, subject to a variety of performance thresholds. The loan is currently performing under the forbearance agreement. The loan has a reserve account totaling $14.7 million as of May 2026. The servicer reported an occupancy and DSC of 81.0% and 1.77x for the annualized YTD September 2025 period. An updated appraisal dated October 2025, valued the asset at $209.0 million ($473 per sf), which is 30.3% below the $300.0 million ($679 per sf) appraised value at issuance.
- At this time, KBRA does not estimate a loss on this asset, which has a whole loan balance of $180.0 million.
The Mall of New Hampshire ($50.0 million, 39.2%, Current, Watchlist)
- The loan is collateralized by a 405,723 sf portion of an 811,573 sf regional mall located in Manchester, New Hampshire, approximately 58 miles northwest of the Boston CBD. The Simon-owned mall is currently anchored by JCPenney and Macy’s, each of which owns its improvements and underlying land. In addition, the former 139,462 sf Sears non collateral box was redeveloped by Seritage Growth Properties in 2019 and 2020 and is currently leased to Dave & Busters (45,267 sf) and Dick’s Sporting Goods (35,137 sf). According to Green Street, the property has a quality grade of 'A-'; nearby competitors are Merrimack Premium Outlets (A) and Burlington Mall (A+), both located within 35 miles of the subject.
- The loan transferred to the special servicer in August 2025 after failing to pay off at its scheduled July 2025 maturity date. The annualized YTD September 2025 servicer NCF was $9.7 million, which represents a 38.3% decrease from issuer's underwritten expectations at securitization. Pursuant to the February 2026 rent roll, the asset was 85.3% leased, compared to 86.5% at last review and 97.8% at closing. Lease rollover through YE 2026, inclusive of MTM leases, represents 13.2% of base rent across 24 leases. After the loan's failure to pay off at maturity, the loan was modified to extend maturity through July 2027 with one additional extension option through July 2028, which included a modification fee of $1.5 million. The loan was subsequently returned to the master servicer in January 2026 and continues to perform under its modification. The servicer reported an occupancy and DSC of 100% and 1.56x for the annualized YTD September 2025 period. An updated appraisal dated June 2025, valued the asset at $154.0 million ($386 per sf), which is 39.8% below the $256.0 million ($642 per sf) appraised value at issuance.
- As of the May 2026 remittance period, the loan is current in payment and not with the special servicer. However, in the event of another default, KBRA estimates that the loan could experience a loss given default of $63.1 million (42.1% estimated loss severity) on the whole loan balance of $150.0 million, of which $22.7 million of the estimated loss would be allocated to the trust. The loss is based on a KBRA liquidation value of $86.9 million ($218 per sf) and projected total exposure equal to the whole loan balance. The liquidation value was derived from a direct capitalization approach using a KNCF of $9.6 million and a capitalization rate of 11.00%.
Avaire Place Apartments ($5.2 million, 4.1%, Current)
- The loan is collateralized by a 266-unit, garden-style multifamily property in Midland, Texas, approximately 302 miles west of Fort Worth.
- The borrower entered into a forbearance agreement in June 2022, which converted the loan's debt service payments to interest-only and granted the borrower three one-year extension options subject to certain debt yield requirements. The borrower opted to exercise its second extension option, pushing maturity to November 2026. The servicer reported an occupancy and DSC of 92.1% and 1.80x for the annualized YTD September 2025 period. An appraisal dated February 2022, valued the asset at $19.1 million ($71,617 per unit), which is 44.0% below the $34.0 million ($127,820 per unit) appraised value at issuance.
- At this time, KBRA does not estimate a loss on this asset, which has a whole loan balance of $25.2 million.
Rite Aid - Carlisle ($2.5 million, 1.9%, Specially Serviced, REO)
- The asset is a 13,813 sf retail store located in Carlisle, Pennsylvania, approximately 22 miles west of Harrisburg. The property was built in 2005 and was previously leased to Rite Aid through October 2025.
- The loan transferred to the special servicer in September 2024 for payment default, following the Chapter 11 bankruptcy filing and subsequent departure of Rite Aid in December 2023. After a receiver was appointed in January 2025, the asset was deemed non-recoverable and became REO in July 2025. The asset has been dark since December 2023; however, a lease was recently signed with Dollar Tree on a 10-year term. At this time, KBRA is unaware of the terms of the lease as well as when the tenant will begin operations at the property. An updated appraisal dated August 2025, valued the asset at $1.3 million ($94 per sf), which is 61.7% below the $3.4 million ($245 per sf) appraised value at issuance.
- KBRA's analysis resulted in an estimated loss of $743,507 (30.2% estimated loss severity). The estimated loss is based on a KBRA liquidation value of $2.1 million ($150 per sf) and projected total exposure of $2.8 million. The liquidation value was derived from a direct capitalization approach using a stabilized KNCF of $202,066, a capitalization rate of 8.00%, and a downward value adjustment of $457,741 million to account for TI/LC costs and income lost during the stabilization period.
Details concerning the rating affirmations are as follows:
- Class B at AA- (sf)
- Class C at A- (sf)
- Class D at B (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.