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KBRA Downgrades One Rating and Affirms All Other Ratings for WFRBS 2014-C22

8 Aug 2025   |   New York

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KBRA downgrades the rating of one class of certificates and affirms all other outstanding ratings for WFRBS 2014-C22, a $413.6 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's seven remaining assets. As of the July 2025 remittance period, six loans (72.7% of the pool balance) have a non-performing matured balloon status with the special servicer, while one (27.3%) is 30+ days delinquent. The details of the assets are outlined below.

Bank of America Plaza (largest, 36.3%, K-LOC, Specially Serviced, Matured Non-Performing)

  • The loan is collateralized by a 55-story, LEED gold certified Class-A office building located on Bunker Hill in the Los Angeles CBD. The building totals 1.4 million sf and has nine levels of underground parking and over 24,000 sf of retail space.
  • KBRA maintains the loan's K-LOC designation based on its non-performing matured status with the special servicer as of May 2025, and heightened risk surrounding the sponsor Brookfield DLTA Holdings LLC. The loan failed to pay off at its September 2024 maturity. According to commentary, the special servicer is dual tracking modification discussions and other workout remedies. Cash management is currently in effect. In addition, the subject's third largest tenant Sheppard, Mullin, Richter & Hampton LLP (14.7% of total base rent, 12.9% of collateral sf), vacated since last review, dropping physical occupancy to 66.8%, compared to 80.7% at last review and 89.5% at closing.
  • The servicer-reported occupancies and DSCs are: 67.0% / 1.61x (YTD March 2025), 79.0% / 2.04x (FY 2024), 86.0% / 2.23x (FY 2023); at closing these were 89.5% / 2.08x. The subject was reappraised for $212.5 million ($148 per sf) in December 2024, which is 64.8% below the $605.0 million ($422 per sf) value at issuance. As a result, an ARA of $202.7 million was assigned to the loan in January 2025, of which $76.0 million was allocated to the WFRBS 2014-C22 transaction. The ARA resulted in a cumulative ASER of $519,065 for this transaction. KBRA's analysis resulted in an estimated loss of $239.9 million on a whole loan balance of $400.0 million (60.0% estimated loss severity). The loss is based on a KBRA liquidation value of $170.0 million ($119 per sf). The value is derived from a direct capitalization approach using a KNCF of $17.0 million and a capitalization rate of 10.00%.

Columbus Square Portfolio (2nd largest, 27.3%, K-LOC, 30+ Days Delinquent)

  • The loan is collateralized by five condominium buildings that contain retail, community facility and parking garage space located on the Upper West Side of New York City. The collateral contains a total of 494,224 sf within 31 commercial condominium units and consists of 19.9% of ground floor retail space, 36.0% of lower-level retail space, 22.2% of community facility space, and 21.9% of leased parking garage space at three different locations with a total capacity for 392 vehicles.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to the loan's prior status with the special servicer and a recent loan modification. The loan transferred to the special servicer in December 2023 due to imminent maturity default. The loan returned to the master servicer in July 2024 following a modification that closed in March 2024, which extended the loan's term by three years to August 2027. As of the July 2025 remittance, the loan is reported as 30+ days delinquent.
  • According to the March 2025 rent roll, the collateral was 97.9% leased, compared to 99.2% at last review and 95.7% at issuance. Lease rollover through YE 2025, inclusive of MTM leases, represents 2.1% of base rent. In 2026, two top 10 tenants have scheduled lease expirations: Homegoods, Inc. (5th largest, 6.0% of base rent, May 2026) and Sephora USA, Inc. (10th largest, 4.4%, January 2026).
  • The servicer reported occupancies and DSCs are: 97.0% / 1.18x (FY 2024), 99.0% / 1.22x (YTD June 2023), 98.0% / 1.12x (FY 2022); at closing these were 95.7% / 1.15x. At this time, KBRA does not estimate a loss on this asset.

Stamford Plaza Portfolio (3rd largest, 21.7%, K-LOC, Specially Serviced, Matured Non-Performing)

  • The loan is collateralized by a 982,483 sf, high-rise office campus located in downtown Stamford, Connecticut, approximately 40 miles northeast of New York City. The subject is comprised of four 15- and 16-story buildings developed between 1979 and 1986 and renovated between 1993 and 1996.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based its non-performing matured status with the special servicer. The loan transferred to the special servicer in August 2024 when it failed to pay off at maturity. The loan is currently in cash management and the borrower has engaged a workout advisor while the special servicer evaluates workout options, including foreclosure. The portfolio is located within the Bridgeport-Stamford-Norwalk MSA which benefits from its proximity to New York City; however, the subject property has seen a downturn in leasing activity since 2017. According to REIS, the Stamford CBD submarket vacancy rate is 24.8% as of Q1 2025 . Lease rollover at the property through YE 2025, inclusive of MTM leases, represents 8.1% of base rent and 5.4% of collateral sf across 13 leases.
  • The servicer reported occupancies and DSCs are: 62.8% / 1.70x (FY 2024); 69.0% / 0.58x (FY 2023); at closing these were 88.0% / 1.38x. An updated appraisal dated October 2024, valued the asset at $150.7 million ($88 per sf), which represents a 64.7% decline from its $427.2 million value ($153 per sf) at issuance. As a result, the asset carries an aggregate ARA of $116.7 million on the whole loan balance, of which $45.8 million is attributable to the WFRBS 2014-C22 securitization. The ARA for this transaction resulted in a cumulative ASER of $352,206. KBRA’s analysis resulted in an estimated loss of $173.8 million (71.6% estimated loss severity) on the whole loan balance of $242.7 million. The loss is based on a KBRA liquidation value of $85.6 million ($50 per sf), which was derived from a direct capitalization approach using a KNCF of $7.7 million and a capitalization rate of 9.00%.

Offices at Broadway Station (4th largest, 11.5%, K-LOC, Specially Serviced, Matured Non-Performing)

  • The loan is collateralized by the borrower’s fee interest in a 318,053 sf office complex located in Denver, Colorado, approximately three miles south of the city’s CBD. The subject was developed on a 6.5-acre site, with two four-story office buildings built in 1903 and 1984; it was renovated in 2006. A four-level parking structure was developed in 2009 that contains 733 spaces.
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its transfer to the special servicer for imminent maturity default in April 2024 and failure to pay off at its scheduled August 2024 maturity. Mount Street assumed special servicing duties in November 2024 and continues to dual track foreclosure and other resolution strategies. Recent servicer commentary indicates an official modification is pending.
  • As of the June 2024 rent roll, the portfolio is 82.2% leased, compared to 82.2% at last review, 63.1% at the 2023 review and 94.7% at issuance. Additional rollover risk is minimal until 2029 when leases generating 42.3% of base rent will expire.
  • The servicer-reported occupancies and DSCs are: 82.0% / 2.39x (FY 2024), 82.0% / 1.58x (FY 2023); 63.0% / 1.27x (FY 2022); at closing these were 94.7% / 2.10x. The subject was reappraised for $57.1 million ($180 per sf) in May 2024, which is 25.7% below the $76.8 million ($241 per sf) value at issuance. KBRA's analysis resulted in an estimated loss of $4.6 million on the loan balance of $47.6 million (9.6% estimated loss severity). The loss is based on a KBRA liquidation value of $44.5 million ($140 per sf). The value is derived from a direct capitalization approach using a KNCF of $4.1 million and a capitalization rate of 9.25%.

The remaining three loans represent 3.2% of the pool; each has a status of non-performing matured and is with the special servicer; however, KBRA does not estimate losses on the three assets at this time.

Details concerning the class with a rating adjustment is as follows:

  • Class C to BB (sf) from BBB (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

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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