KBRA Downgrades Three Ratings of WFRBS 2013-C15 to D (sf) Following Realization of Principal Losses

KBRA downgrades the rating of the Class D, Class E, and Class F certificates to D (sf) for WFRBS 2013-C15, a CMBS conduit transaction, following realized losses taken against its outstanding principal balance resulting from the resolution of the Kitsap Mall REO asset (originally 5th largest, $77.3 million loan balance at securitization) as reflected in the January 2025 remittance report. The asset incurred a loss of $47.6 million (61.5% loss severity of original balance). The loss was generally in line with KBRA's estimated losses as of the April 2024 surveillance review.

The Kitsap Mall REO asset was sold in October 2024 and according to the remittance report, resulted in $30.3 million in gross sale proceeds. Following expenses and fees of $6.3 million, net proceeds of $22.9 million were recovered. The asset was most recently appraised for $25.7 million ($48 per sf) in November 2024, compared to $111.0 million ($208 per sf) at issuance. The asset consists of a 533,480 sf portion of a 715,225 sf regional mall located in Silverdale, Washington. Mall anchors include JCPenney (ground lease), Macy's, and Kohl's, the latter of which is non-collateral for the loan. The asset was previously sponsored by Starwood Retail Partners.

The transaction has $72.3 million in cumulative principal losses to date, as reported in the January 2025 remittance report. The realized losses has resulted in the principal balance of Classes E, F, and G reduced to zero while the principal balance of Class D was reduced by approximately $307,000 (0.5% of its original balance). Along with the liquidation of the Kitsap Mall REO asset, the transaction has incurred losses from the liquidation sale of four previously specially serviced assets: Holiday Inn Express & Suites - Sidney ($3.9 million loss, July 2019), Cleveland Airport Marriott ($15.2 million loss, July 2020), Gander Mountain Portfolio ($3.4 million loss, April 2022), and Babies R Us Plaza ($1.9 million, January 2024), which resulted in loss severities of 75.2%, 84.6%, 32.8%, and 37.3%, respectively.

KBRA's other outstanding transaction ratings are unchanged at this time. KBRA most recently downgraded three classes of certificates of the transaction in April 2024 based on KBRA's estimated losses.

For additional details, please see the WFRBS 2013-C15 Surveillance Press Release linked below.

Details concerning the classes with ratings changes are as follows:

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the likelihood of ultimate payment of principal and accrued interest on the rated securities. 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.

Related Publications

Methodologies