Press Release|CMBS

KBRA Downgrades Three Ratings and Affirms All Other Ratings for JPMDB 2016-C4

2 Oct 2026 | New York

KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings of JPMDB 2016-C4. The transaction has been reduced to 15 assets with a balance of $475.8 million from 36 loans and $1.1 billion at securitization. The rating actions follow a surveillance review of the transaction, which has exhibited a deterioration in pool performance since KBRA’s last rating change in October 2025. The rating actions reflect KBRA’s estimated losses of $71.6 million, which, if realized, would impact the Class D certificates and below, and the resulting loss-adjusted credit enhancement levels. The rating actions also consider $15.1 million in realized losses allocated to the non-rated Class NR certificate, cumulative interest shortfalls of $3.2 million affecting the Class E, F, and NR certificates, and the likelihood that interest shortfalls will persist and extend higher in the capital structure as the remaining assets are resolved.

As of the September 2026 remittance, seven of the 15 remaining loans are specially serviced. Of the specially serviced loans, two are REO (9.0% of the pool balance), two (17.5%) are non-performing matured, and three (28.9%) are current. KBRA identified 11 K-LOCs (75.7%), including the specially serviced assets. Of the K-LOCs, six (39.4%) have estimated losses.

Fresno Fashion Fair Mall ($60.0 million, 12.6%, K-LOC, Specially Serviced, Current)

The collateral consists of an enclosed and open-air, single-story super-regional mall located in Fresno, California. Built in 1970, Fresno Fashion Fair Mall contains 957,944 sf of retail space, of which 536,093 sf serves as collateral. The loan is scheduled to mature in November 2026.
The loan transferred to special servicing in July 2026 due to imminent maturity default. The special servicer has engaged counsel and is finalizing a pre-negotiation letter with the borrower. As of the September 2026 remittance period, the loan has $185,070 in P&I advances outstanding. The loan’s sponsor is The Macerich Partnership, L.P., an affiliate of The Macerich Company (NYSE: MAC).
The servicer reported an occupancy and DSC of 94.0% and 2.16x for the FY 2025. At this time, KBRA does not estimate a loss on this asset.

Windsor Square ($51.7 million, 10.9%, Perform, Current)

The loan is collateralized by a 661,156 sf anchored retail complex located in Matthews, North Carolina, approximately 11 miles southeast of the Charlotte CBD. The property is anchored by Kohl’s, JCPenney, and Sam’s Club, each of which owns its respective improvements subject to a ground lease with the borrower. The loan is scheduled to mature in October 2026.
The property was sold to Waterstone Properties Group for $87.0 million in September 2026. According to the servicer, the payoff is expected to be reflected in the October 2026 remittance.

PNC Center ($46.1 million, 9.7%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)

The collateral is a 636,558 sf office complex located in Indianapolis, Indiana, in the city’s CBD.
The loan transferred to special servicing in September 2026 due to imminent maturity default. Two of the top 10 tenants, Kronos Incorporated (9.3% of total base rent) and the Indiana Utility Regulatory Commission (5.8%), are expected to vacate upon their respective lease expirations in 2027, which would reduce occupancy to 58.3%.
The servicer reported an occupancy and DSC of 70.0% and 1.61x for the YTD period ended June 2026. KBRA’s analysis resulted in an estimated loss of $2.0 million (4.3% estimated loss severity). The loss is based on projected total exposure of $48.7 million and KBRA's liquidation value of $46.7 million ($73 per sf). The liquidation value considers a distressed non-stabilized disposition of the asset.

60 Madison Avenue ($45.0 million, 9.5%, K-LOC, Specially Serviced, Current)

The collateral is a 217,534 sf, Class-B office building located in the Madison Square Park area of New York City’s borough of Manhattan. The loan is scheduled to mature in October 2026.
The loan transferred to special servicing in July 2026 due to imminent maturity default. In June 2026, it was reported that four new office leases totaling approximately 70,000 sf were executed at the property with Foundational Labs, Inc. d/b/a Pace, GovWell Technologies, Inc., The Full Picture, LLC, and Tenex Labs, LLC. With the new leases, occupancy is expected to recover to nearly 90.0%. The special servicer is currently evaluating the borrower’s request for a short-term loan extension to facilitate a refinancing of the loan.
The servicer reported an occupancy and DSC of 58.0% and 1.38x for the FY 2025. At this time, KBRA does not estimate a loss on this asset.

Moffett Gateway ($37.3 million, 7.8%, Perform, Current)

The loan is collateralized by two seven-story office buildings totaling 597,848 sf and a single-story, 14,843 sf amenity building. The office buildings are solely occupied by Google, while the amenity building is vacant. The loan is scheduled to mature in April 2027.
According to the June 2026 rent roll, the sole tenant, Google, extended its lease through March 2034, with a termination option exercisable after July 2029 upon six months’ notice.

1 Kaiser Plaza ($37.1 million, 7.8%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)

The loan is collateralized by a 528,158 sf office building located in the CBD of Oakland, California. The property was developed by an affiliate of Kaiser Foundation Health Plan, Inc. (Kaiser), the largest tenant, in 1971. The property is also known as the Ordway Building and is the tallest building in Oakland.
The loan was transferred to the special servicer in October 2024 due to imminent monetary default. At issuance, Kaiser (HQCWT) occupied 366,777 sf (68.2%), but occupies 236,692 sf (44.0%) based on the March 2026 rent roll. The tenant vacated 130,085 sf of their collateral space in July 2024 and subsequently negotiated a lease amendment and extension to align the lease expiration dates of all suites currently occupied by Kaiser to December 2027. Kaiser contributes 80.1% of total base rent. As part of the contraction, the tenant is required to pay any unamortized TI/LC and rent inducements. There is $2.5 million available in the TI/LC reserve account as of July 2026. According to the March 2026 rent roll, the property is 55.2% leased, in line with last review and down from 96.5% at closing.
The servicer reported an occupancy of 55.3% and a DSC of 1.02x for the YTD ended September 2025. An appraisal dated April 2026 valued the property at $53.5 million ($99 per sf), which is 74.8% lower than the $212.0 million ($394 per sf) appraised value at issuance. KBRA's analysis resulted in an estimated loss of $52.4 million (53.9% estimated loss severity) on the whole loan balance of $97.1 million, of which $20.0 million of the estimated loss is allocated to this trust. The loss is based on a KBRA liquidation value of $46.9 million ($87 per sf) and projected total exposure of $99.3 million. The value is derived from a direct capitalization approach using KNCF of $4.2 million and a capitalization rate of 9.00%.

Westin Memphis ($32.6 million, 6.8%, K-LOC, Specially Serviced, Current)

The loan is collateralized by a nine-story, 203-key, full-service hotel located in downtown Memphis, Tennessee. The loan is scheduled to mature in November 2026.
The loan was transferred to the special servicer in March 2026 due to imminent monetary default. The special servicer and borrower remain actively engaged in discussions; however, no workout strategy has been finalized.
The servicer reported an occupancy and DSC of 73.0% and 0.71x for the FY 2025. KBRA’s analysis resulted in an estimated loss of $7.2 million (22.0% estimated loss severity). The loss is based on projected total exposure of $34.0 million and KBRA's liquidation value of $26.8 million ($132,020 per key). The liquidation value considers a distressed non-stabilized disposition of the asset.

Salesforce Tower ($30.0 million, 6.3%, K-LOC, Performing Matured Balloon)

The loan is collateralized by a 1.1 million sf, Class-A office complex located in the Indianapolis, Indiana CBD. The development is comprised of a 48-story tower totaling 946,695 sf and an adjoining 12-story building totaling 158,422 sf.
The loan matured in September 2026 and the borrower is working with various lenders to secure refinancing. According to the March 2026 rent roll, the property was 80.8% leased, compared to 86.1% at closing. The Central Indianapolis office submarket vacancy was 25.3% as of April 2026 according to MCRE (REIS).
The servicer reported an occupancy of 81.0% and a DSC of 2.64x for the TTM ended March 2026. At this time, KBRA does not estimate a loss on this asset.

Riverside Center ($28.5 million, 6.0%, K-LOC, Current)

The loan is collateralized by a 272,596 sf, three-building office complex in the CBD of La Crosse, Wisconsin. The loan is scheduled to mature in October 2026.
According to the March 2026 rent roll, United Healthcare Services, Inc., the property’s sole tenant, occupies the property under two leases, one of which expired in July 2025 (33.6% of gross leasable area), with the remaining lease expiring in July 2028 (66.4%). As of August 2026, approximately 142,000 sf (52.1%) was listed as available for lease.
The servicer reported an occupancy of 100% and a DSC of 1.56x for the FY 2025. As of September 2026, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA estimates that the loan could experience a loss given default of $4.6 million (16.3% estimated loss severity) on the loan balance of $28.6 million. The estimated loss is based on a KBRA liquidation value of $24.0 million ($88 per sf) and projected total exposure of $28.6 million. The liquidation value considers a distressed non-stabilized disposition of the asset as well as comparable market values.

Westfield San Francisco Centre ($23.5 million, 4.9%, K-LOC, Specially Serviced, REO)

The asset is a 794,521 sf portion of a 1.4 million sf mixed-use, super-regional mall and office complex located in the Union Square neighborhood of downtown San Francisco, California. The collateral portion of the development consists of 553,366 sf of retail space (69.7% of the total collateral square footage) and 241,155 sf of office space (30.3%). The subject also serves as collateral for DBJPM 2016-SFC, a SASB transaction rated by KBRA.
The loan became specially serviced in July 2023 following the borrower’s failure to remit monthly debt service payments. The asset has faced significant performance deterioration driven by declining occupancy, tenant departures and broader weakness in the San Francisco retail and office markets. The asset became REO in November 2025 and is 100% vacant.
As of July 2026, the trust collateral has an ARA of $462.5 million. There were total outstanding advances of $36.2 million, including interest on advances. The loan was deemed non-recoverable in March 2025 and cumulative non-recoverable interest totaled $27.1 million. A July 2025 appraisal valued the property at $195.0 million ($245 per sf). However, according to news reports, the lender was the successful bidder at the foreclosure sale in November 2025 with a credit bid between $133.0 and $134.0 million. News reports also indicate that CBRE is marketing the property for sale, positioning it as a major repositioning or redevelopment opportunity in downtown San Francisco. At least four San Francisco-based developers, including TMG Partners, Prado Group, Presidio Bay Ventures and the San Francisco Recovery Fund, have evaluated the property.
KBRA’s analysis resulted in an estimated loss of $443.2 million (102.3% estimated loss severity) on the $433.1 million senior securitized portion of the $558.0 million whole mortgage, which includes $124.9 million in subordinate B-notes, of which $24.1 million of the estimated loss is allocated to this trust. The estimated loss is based on a KBRA liquidation value of $53.2 million ($67 per sf) and projected total exposure of $496.4 million.

One other asset, Riverwood Corporate Center I & III ($19.7 million, 4.1%) is REO and has an estimated loss of $14.6 million (74.2% estimated loss severity).

Details concerning the classes with ratings changes are as follows:

Class C to BBB- (sf) from A (sf)
Class D to CCC (sf) from B- (sf)
Class X-C to CCC (sf) from B- (sf)

Details concerning the rating affirmations are as follows:

Class A-3 at AAA (sf)
Class A-S at AAA (sf)
Class B at AA- (sf)
Class E at CC (sf)
Class F at C (sf)
Class X-A at AAA (sf)
Class X-B at AAA (sf)

Ratings 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.

KBRA Downgrades Three Ratings and Affirms All Other Ratings for JPMDB 2016-C4

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