KBRA Affirms All Ratings for JPMBB 2013-C15
4 Mar 2025 | New York
KBRA affirms all ratings for JPMBB 2013-C15, a $105.6 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and recovery analysis of the transaction's remaining two loans, which have not meaningfully changed since KBRA's last review in March 2024.
As of the February 2025 remittance period, there are two loans in the transaction, the largest of which is in foreclosure.
1615 L Street (largest, 95.6%, K-LOC, Underperform, Foreclosure)
- The loan is collateralized by a 417,383 sf, Class-A office building located in Washington, D.C., four blocks north of the White House. According to the March 2024 rent roll, the property was 73.0% leased, compared to 78.9% at last review and 89.4% at closing. The loan sponsor is Carr Properties, which purchased the property for $229.0 million ($548 per sf) and assumed the subject loan in March 2016.
- KBRA identified the loan as a K-LOC and maintains its KPO of Underperform due to the loan’s foreclosure status. The loan was transferred to the special servicer in August 2023 when the borrower indicated that it would be unable pay off the loan at its September 2023 maturity date. An appraisal dated October 2023 valued the property at $71.0 million ($170 per sf), which is 66.7% below the $213.0 million ($510 per sf) appraised value at issuance. The servicer withheld $19.0 million in principal collections in October 2023 from the transaction waterfall to cover estimated future capital needs of the property. In addition, the loan was assigned an ARA of $50.6 million on December 12, 2024 and the cumulative non-recoverable interest amount is $3.1 million.
- There is $1.8 million in leasing reserves as of February 2025. According to the special servicer, the borrower has engaged Cushman & Wakefield to market the property for sale.
- The servicer-reported occupancies and DSCs are: 73.0% / 1.41x (FY 2023), 90.1% / 1.32x (FY 2022); at closing these were 89.0% / 1.54x. KBRA’s analysis resulted in an estimated loss of $58.8 million (43.8% estimated loss severity) on the whole loan balance of $134.3 million based on the liquidation value of $59.9 million ($144 psf). The value is derived from a direct capitalization approach using a KNCF of $8.7 million and a capitalization rate of 8.25%, which was reduced by $45.9 million to account for downtime and TIs during the stabilization period.
IPCC Dollar General/Family Dollar (2nd largest, 4.4%)
- The loan is collateralized by a 11 single tenant retail properties, eight Dollar General and three Family Dollar Stores, located in Texas, Alabama, Georgia, Missouri, and Wisconsin.
- The borrower did not pay off the loan at the October 2023 ARD. The final maturity is December 2027.
- The servicer-reported occupancies and DSCs are 84.0% / 1.51x (YTD June 2024), 84.0% / 1.68x (FY 2023), 100% / 1.76x (FY 2022); at closing these were 100% / 1.57x.
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.