Press Release|CMBS
KBRA Affirms All Outstanding Ratings for COMM 2014-CCRE19
6 Jun 2025 | New York
KBRA affirms all of its outstanding ratings for COMM 2014-CCRE19, a $110.6 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction and are based on the performance and expected recoveries of the five remaining assets in the pool.
As of the May 2025 remittance period, four (64.3%) of the five remaining assets are specially serviced. All five assets are identified as K-LOCs and have estimated losses. The details of the loans are outlined below.
866 Third Avenue Retail (largest, 35.7%, K-LOC, Modification)
- The loan is collateralized by a 17,624 sf retail condominium situated within a 30-story, mixed-use building located in the Midtown East submarket of New York City’s borough of Manhattan. The retail condominium unit comprises four suites with ground-floor and basement spaces. Within the condominium regime, floors three to 11 are used by the Memorial Sloan Kettering Cancer Center and floors 14 through 30 are operated as a 320-key Courtyard by Marriott.
- KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its prior status with the special servicer. The loan transferred to the special servicer in May 2024 due to imminent maturity default ahead of the loan’s August 2024 maturity date. The loan was modified in December 2024 and returned to the master servicer in April 2025. Modification terms included a two-year maturity extension through August 2026, establishment of a cash trap, and stipulation to a judgment of foreclosure in the event of a future default, among other items.
- The servicer-reported occupancies and DSCs are: 100% / 0.98x (FY 2024), 86.0% / 1.26x (FY 2023); at closing these were 100% / 1.47x. As of May 2025, the loan was current and no longer specially serviced. However, in the event of another default, KBRA estimated that the loan could experience a loss given default of $7.6 million (19.3% estimated loss severity) on the loan balance of $39.5 million. The loss is based on a KBRA value of $32.0 million ($1,772 per sf), which aligns with the high end of a range of BOVs sourced by the servicer.
Clinton Square (2nd largest, 23.1%, K-LOC, Specially Serviced)
- The loan is collateralized by a 14-story, 305,371 sf office property located in the CBD of Rochester, New York. The office building features a three-level, 400-stall subterranean parking garage.
- KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on the loan’s maturity default in August 2024 and the receivership of the collateral property. The loan transferred to the special servicer in February 2024 due to imminent default caused by the collateral’s largest tenant, Nixon Peabody (formerly 47.5% of collateral sf), going dark ahead of its lease expiration in July 2025. According to the January 2025 rent roll, the property was 33.3% leased, accounting for the departure of Nixon Peabody. The special servicer pursued a receivership sale of the property and was evaluating bids as of May 2025.
- The servicer-reported occupancies and DSCs are: 72.0% / 1.11x (FY 2023), 88.0% / 1.28x (FY 2022); at closing these were 88.7% / 1.42x. An updated appraisal dated September 2024 valued the asset at $34.3 million ($112 per sf), which was 22.9% below the $44.5 million appraisal value ($146 per sf) at securitization. KBRA’s analysis resulted in an estimated loss of $15.1 million (59.2% estimated loss severity) on the loan balance of $25.5 million. The estimated loss is based on a KBRA liquidation value of $11.4 million ($37 per sf).
140 Second Street (3rd largest, 17.7%, K-LOC, Specially Serviced)
- The loan is collateralized by a six-story, 33,934 sf, mixed-use, office and retail property located in the San Francisco CBD. The property was built in 1908 and renovated in 2002.
- KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its status with the special servicer. The loan transferred to the special servicer in November 2023 due to payment default and subsequently failed to pay off at maturity in July 2024. A receiver for the collateral was appointed in February 2024. According to the servicer, a note sale is planned for Q2 2025.
- The servicer-reported occupancies and DSCs are: 66.0% / 0.24x (FY 2024), 66.0% / 0.63x (FY 2023); at closing these were 100% / 1.81x. An appraisal dated January 2025 valued the asset at $10.5 million ($309 per sf), which was 63.2% below the $28.5 million appraisal value at issuance. The loan carries an ARA of $10.2 million, resulting in a cumulative ASER of $410,087. KBRA’s analysis resulted in an estimated loss of $15.2 million (77.5% estimated loss severity) on the loan balance of $19.6 million. The estimated loss is based on a KBRA liquidation value of $5.6 million ($167 per sf), which considers a non-stabilized distressed disposition of the asset.
Century Plaza (4th largest, 17.0%, K-LOC, Specially Serviced)
- The loan is collateralized by a 169,267 sf office property located in Columbia, Maryland, approximately 20 miles southwest of Baltimore.
- KBRA maintains the loan’s K-LOC designation and assigned a KPO of Underperform to the loan based on its status with the special servicer after the borrower was unsuccessful in refinancing efforts. The loan transferred to the special servicer in July 2024 due to maturity default. A receiver was appointed to the collateral in February 2025 and as of May, the servicer was exploring workout alternatives including a potential receivership sale or potential assumption of the loan by a third-party investor.
- The servicer-reported occupancies and DSCs are: 84.0% / 1.23x (YTD September 2024), 87.0% / 1.38x (FY 2023); at closing these were 91.6% / 1.35x. The loan was assigned an ARA of $4.8 million in September 2024 absent an updated appraisal, which was equal to 25.0% of the loan’s outstanding balance at the time. Despite the ARA placement, the loan did not have any additional exposure as of May 2025. KBRA’s analysis resulted in an estimated loss of $4.7 million (25.0% estimated loss severity) on the loan balance of $18.8 million. The estimated loss is based on a KBRA value of $14.6 million ($87 per sf), which is derived from a KNCF of $1.4 million and a capitalization rate of 9.50%.
Gateway Oaks Office (5th largest, 6.5%, K-LOC, Specially Serviced)
- The loan is collateralized by an 81,391 sf, suburban office property located in Sacramento, California, approximately three miles northwest of the city’s CBD.
- KBRA maintains the loan’s K-LOC designation and assigned a KPO of Underperform based on the imminent distressed disposition of the asset. The loan transferred to the special servicer in May 2024 due to imminent maturity default ahead of the loan’s August 2024 maturity date and a receiver for the property was appointed in October 2024. According to the servicer, the property was sold via auction in March 2025 and was under contract as of May.
- The servicer-reported occupancies and DSCs are: 48.0% / 0.67x (FY 2024), 48.0% / 0.52x (FY 2023); at closing these were 100% / 1.58x. KBRA’s analysis resulted in an estimated loss of $1.2 million (16.9% estimated loss severity) on the loan balance of $7.2 million. The estimated loss is based on a KBRA liquidation value of $6.2 million ($79 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.
Related Publication
Methodologies
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology