Press Release|CMBS
KBRA Downgrades Two Ratings and Affirms All Other Ratings for COMM 2014-CCRE16
8 May 2026 | New York
KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for COMM 2014-CCRE16, a CMBS conduit transaction. The transaction has been reduced to four assets with an aggregate balance of $150.4 million from 56 loans totaling $1.1 billion at securitization. The rating actions are based on our identification of each of the assets as KBRA Loans of Concern (K-LOCs); our estimated losses of $50.7 million (which, if realized, would impact Class D) and corresponding recoveries; current interest shortfalls affecting classes E and below; and the likelihood that interest shortfalls could reach higher in the capital structure during the resolution of the assets.
As of the April 2026 remittance, all of the remaining assets are specially serviced and are K-LOCs with estimated losses, of which three (23.7% of the current pool balance) are REO. The remaining loan is under a forbearance agreement (76.3%) that runs through January 2027. The details of the remaining assets in the pool are outlined below.
25 Broadway ($114.7 million, 76.3%, Specially Serviced, Forbearance)
- The loan is collateralized by a 22-story office building located in the downtown area of New York city's borough of Manhattan.
- The lender denied the borrower's request for an extension in January 2024 and the loan subsequently transferred to special servicing in March. A 24-month forbearance was executed and commenced in July 2024, with an option to further extend another six months subject to additional terms. Recent special servicer commentary indicates the borrower has exercised their extension option and the loan is expected to be resolved by January 2027. In addition to forbearance fees, the borrower was required to make a $7.0 million principal curtailment and an additional $4.0 million is expected at the beginning of the second year of the forbearance term. According to the April 2026 remittance, the loan balance was paid down by $11.0 million to a whole loan balance of $239.0 million, of which $114.7 million is in this transaction. The loan has approximately $13.1 million in reserves.
- As of the September 2025 rent roll, the property was 89.0% leased, consistent with the prior review but down from 95.8% at issuance. The two largest tenants, Teach for America (21.2% of base rent) and Léman Manhattan Preparatory School ("Léman", 15.7%), together represent 36.9% of total base rent. Léman had been in payment default since June 2023; its lease expires in September 2030. A news report noted the school received an equity infusion from an education-focused investment firm to retire all existing debt. Additionally, Léman executed the ninth lease amendment in October 2024 and is now current on its past-due rent obligations. The amendment provides for a 27.5% reduction in contractual rent from November 2024 through November 2026, followed by 2.5% step-ups beginning in November 2026 and an additional 5.0% increase in November 2029 through the expiration of the lease in September 2030.
- The servicer reported an occupancy and DSC of 89.0% and 1.16x for the nine months ending September 2025. An appraisal dated July 2025 valued the property at $284.0 million ($299 per sf), which represents a 23.0% decline from the $369.0 million ($388 per sf) value at issuance. According to the special servicer, a more recent appraisal is expected soon.
- KBRA's analysis resulted in an estimated loss of $64.0 million (26.8% estimated loss severity) on the whole loan balance of $239.0 million, of which $30.7 million of the estimated loss is allocated to this trust. The estimated loss is based on a KBRA liquidation value of $180.0 million ($189 per sf) and projected total exposure of $244.1 million. The liquidation value considers a distressed non-stabilized disposition of the asset.
555 West 59th Street ($17.4 million, 11.6%, Specially Serviced, REO)
- The asset consists of three commercial condominiums totaling 40,568 sf at the Element, a residential condominium building located on West 59th Street, between Tenth and Eleventh Avenues in New York City's borough of Manhattan.
- Judicial foreclosure was filed in August 2022 and the asset became REO in April 2024. KBRA initially identified the asset as a K-LOC based on the collateral's significant exposure to Hertz (formerly 75.2% of total sf) when the car rental company filed for bankruptcy. Hertz rejected the lease in court and paid 100% of the claim amount, which was applied to the loan. Based on the December 2025 rent roll, inclusive of leasing updates, there are only two remaining tenants, Book Nook WEA LLC, which occupies 4.6% of total sf, and Centerpark Management LLC which operates the parking garage. Per special servicer, the resolution of the asset is expected YE 2026.
- The servicer reported an occupancy and DSC of 80.0% and -0.38x for the nine months ending September 2025. An appraisal dated December 2025 valued the property at $6.9 million ($170 per sf), which represents a 74.7% decline from the $27.3 million ($673 per sf) value at issuance. The asset carries an ARA of $15.7 million, resulting in a cumulative ASER of $707,738. The asset was deemed non-recoverable during the December 2023 remittance period. Cumulative non-recoverable interest as of April 2026 remittance was reported at $2.0 million.
- KBRA's analysis resulted in an estimated loss of $17.0 million (97.6% estimated loss severity). The estimated loss is based on a KBRA liquidation value of $6.9 million ($170 per sf) and projected total exposure of $23.9 million. The liquidation value is derived from the most recent appraisal value.
CVS Las Vegas Strip ($13.0 million, 8.7%, Specially Serviced, REO)
- The asset is a 14,378 sf retail property on the Las Vegas Strip near the Hilton Grand Vacation, Sahara Hotel and Casino and Circus Circus.
- A foreclosure sale was held in April 2025 and the asset became REO. The loan initially transferred to the special servicer after the borrower failed to pay off the loan at maturity in April 2024. The property's single tenant, CVS, vacated in November 2019 prior to its April 2029 lease expiration, which triggered a cash sweep. However, CVS continues to honor its lease obligations and the space remains dark. According to special servicer commentary, the asset is under a contract for sale that was executed in February 2026. Closing is expected towards the end of the second quarter of 2026.
- An appraisal dated September 2025 valued the property at $12.8 million ($891 per sf), which represents a 57.6% decline from the $30.2 million ($2,100 per sf) value at issuance. The asset carries an ARA of $1.3 million, resulting in a cumulative ASER of $22,173.
- KBRA's analysis resulted in an estimated loss of $1.8 million (13.6% estimated loss severity). The estimated loss is based on a KBRA liquidation value of $11.5 million ($800 per sf) and projected total exposure of $13.3 million. The liquidation value considers a distressed non-stabilized disposition of the asset.
The Piers ($5.3 million, 3.5%, Specially Serviced, REO)
- The asset consists of a 91,000 sf dual-tenant retail property located in Port Richey, Florida.
- The special servicer initiated foreclosure proceedings in February 2025, and the asset became REO in February 2026. The loan was originally transferred to the special servicer after the borrower failed to repay the loan at maturity in April 2024. According to the January 2026 rent roll, the property was 71.4% leased to Burlington, representing 100% of total base rent. The remaining space, previously occupied by Ashley Furniture, became vacant prior to its lease expiration in December 2025 after the tenant vacated due to storm damage caused by Hurricane Milton in October 2024. Special servicer commentary indicates that the premises require repairs related to the storm damage, and there have been no leasing updates as of the current review.
- The servicer reported an occupancy and DSC of 71.4% and -0.68x for the three months ending March 2025. An appraisal dated January 2026 valued the property at $5.3 million ($58 per sf), which represents a 47.7% decline from the $10.1 million ($111 per sf) value at issuance. The asset carries an ARA of $1.4 million, resulting in a cumulative ASER of $112,333.
- KBRA's analysis resulted in an estimated loss of $1.2 million (23.0% estimated loss severity). The estimated loss is based on a KBRA liquidation value of $4.6 million ($51 per sf) and projected total exposure of $5.8 million. The liquidation value considers a distressed non-stabilized disposition of the asset.
Details concerning the rating downgrades are as follows:
- Class D to CC (sf) from CCC (sf)
- Class E to C (sf) from CC (sf)
Details concerning the rating affirmations are as follows:
- Class B at A (sf)
- Class C at BB (sf)
- Class PEZ at BB (sf)
- Class F 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.