KBRA Downgrades Two Ratings to D (sf) for Benchmark 2020-B18 Following Realization of Principal Losses

KBRA downgrades the rating of the Class E certificates and related IO Class X-D to D (sf) from CCC (sf) for Benchmark 2020-B18, a $638.3 million CMBS conduit transaction, following realized losses taken against its outstanding principal balance resulting from the resolution of the Brass Professional Center asset ($32.7 million trust balance at securitization) as reflected in the October 2026 remittance report.

The Brass Professional Center was collateralized by a 575,771 sf Class-B office building located in San Antonio, Texas approximately 10 miles northwest of the city’s CBD. The complex consists of 11 suburban office buildings that were developed on a 34.6-acre site in phases between 1968 and 1998. The loan became REO in October 2023. The servicer made a non-recoverable determination in October 2025. The property was auctioned for sale in June 2026. The property was liquidated in October 2026, with gross sale proceeds totaling $10.7 million and fees, advances, and expenses of $9.2 million, resulting in about $86,096 available for distribution and a realized loss of $30.5 million (99.7% loss severity on the outstanding loan balance). The loss was above KBRA's expectations of $26.1 million (85.5% estimated loss severity), as reflected in the prior surveillance analysis. Realized losses were allocated to the Class NR certificates, which were reduced to zero, and the Class E certificates, which were reduced to $14.0 million (83.3% 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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