KBRA Affirms All Ratings for MSBAM 2014-C18
16 Apr 2025 | New York
KBRA affirms all ratings for MSBAM 2014-C18, a $50.9 million CMBS conduit transaction which has three assets remaining in the mortgage pool, two of which (46.9% of the pool balance) have been identified as K-LOCs. The affirmations follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's three assets, which have not meaningfully changed since KBRA's last ratings change in April 2021. As of the March 2025 remittance period, one loan (33.2%) is in foreclosure, and one (13.7%) has a non-performing matured balloon status with the special servicer. The remaining loan (53.1%) is current. The details of the assets are outlined below.
Turnpike Shopping Center (largest, 53.1%, Current)
- The loan is collateralized by a 103,292 sf anchored retail center located in Fairfax, Virginia, approximately 17 miles west of Washington D.C.
- The subject has maintained strong occupancy throughout the life of the loan and currently faces minimal rollover risk. The FY 2024 servicer NCF of $2.9 million represents a 14.5% increase from $2.5 million underwritten by the issuer at closing. The loan is scheduled to mature in July 2026.
- The most recent servicer-reported occupancies and DSCs are: 95.0% / 1.46x (FY 2024), 90.0% / 1.40x (FY 2023); at closing these were 95.5% / 1.27x.
25 Taylor (2nd largest, 33.2%, K-LOC, Specially Serviced, Foreclosure)
- The loan is collateralized by a 51,217 sf portion of 25 Taylor, a 151,058 sf Class-B building that is part of a two-unit condominium structure that consists of office space on the upper six floors of the building and 2,420 sf of ground level space. The subject is located in the San Francisco CBD.
- KBRA maintains the loan's K-LOC designation due to its foreclosure status. WeWork (96.7% of collateral sf) vacated the subject in 2021, dropping physical occupancy to 3.3%. The special servicer appointed a receiver in March 2024 and is pursuing a consensual foreclosure. The receiver and special servicer are reviewing a potential offer to purchase the property, according to the servicer commentary.
- The subject was reappraised for $7.4 million ($144 per sf) in June 2024, a 73.7% decline from $28.1 million ($549 per sf) at issuance. The most recent servicer-reported occupancies and DSCs are: 3.0% / NA (YTD September 2024), 3.0% / 0.03x (FY 2021); at closing these were 93.7% / 1.32x. KBRA's analysis resulted in an estimated loss of $12.3 million on a whole loan balance of $16.9 million (72.4% estimated loss severity). The loss is based on a distressed liquidation value of $5.5 million ($103 per sf).
Lafayette Center (3rd largest, 13.7%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)
- The loan is collateralized by a 48,968 sf office property located in Chantilly, Virginia.
- KBRA maintains the loan's K-LOC designation based on its non-performing matured balloon status with the special servicer following its maturity default in September 2024. According to the special servicer, the borrower has requested a maturity extension which is under review and could be finalized in Q2 2025.
- The subject was reappraised for $6.5 million ($133 per sf) in October 2024, a 43.0% decline from $11.4 million ($233 per sf) at issuance. The most recent servicer-reported occupancies and DSCs are: 42.0% / 0.56x (YTD September 2024), 90.0% / 2.24x (FY 2022); at closing these were 92.0% / 1.45x. KBRA's analysis resulted in an estimated loss of $2.0 million on a whole loan balance of $7.0 million (29.4% estimated loss severity). The loss is based on a distressed liquidation value of $5.9 million ($120 per 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.