Press Release|CMBS

KBRA Downgrades Six Ratings, Affirms Seven Ratings, and Removes Six Ratings from Watch Downgrade for COMM 2015-DC1

26 Feb 2026 | New York

KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings for COMM 2015-DC1, a $346.6 million CMBS conduit transaction, which has 12 assets remaining in the underlying mortgage pool. Simultaneously, KBRA removes six classes from Watch Downgrade (DN), where they were placed on December 9, 2025. The rating actions follow a surveillance review of the transaction, which has a higher concentration of specially serviced assets and K-LOCs compared to KBRA’s last ratings change in January 2025. The downgrades also reflect the likelihood of interest shortfalls reaching higher in the capital structure as the servicer works through the resolution of distressed assets. Class H incurred realized losses of $15.6 million since our last review due to the liquidation of the Campus at Greenhill asset (1.5% of original pool balance, 72.3% loss severity) in February 2026.

As of the February 2026 remittance period, 11 (88.5% of the current pool balance) of the 12 remaining assets are specially serviced, including two REO assets (14.0%) and five assets (30.7%) in foreclosure. One REO asset (10.7%) has been deemed non-recoverable by the servicer. KBRA identified all remaining assets in the pool as K-LOCs. Seven (72.4%) of the K-LOCs have estimated losses. The details of the assets are outlined below.

SoHo Portfolio ($76.5 million, 22.1%, K-LOC, Specially Serviced, Non-performing Matured Balloon)

The loan is collateralized by two properties located one block apart in the SoHo neighborhood of Manhattan, New York City. The properties have 70,498 sf of mixed-use space. The property at 459 Broadway is a 36,000 sf, mixed-use building comprising 26,000 sf of office space and 10,000 sf of retail space. It is leased to three tenants: Walgreens (largest tenant, HQCWT, 35.7% of total base rent), F. Schumacher & Co. (third largest, 21.0%), and Feather Home (fifth largest, 8.7%). The property at 427 Broadway is a five-story, 34,498 sf, mixed-use building consisting of 26,000 sf of office space and 8,498 sf of retail space. Since the last review, two new tenants, Center for Emerging Culture (second largest, 22.6% of total base rent) and Hello 82 (fourth largest, 12.0%), have leased space at the property, backfilling a portion of the premises formerly occupied by West Side Museum LLC. The tenant ceased paying rent in July 2023 and vacated in December 2024 ahead of its lease expiration in 2032. The two replacement tenants have collectively leased 26,415 sf, with lease expirations in 2036 and 2032, respectively. The loan matured in January 2025.
KBRA maintains the loan’s K-LOC designation based on maturity default. The loan transferred to the special servicer in February 2024 due to imminent monetary default. A forbearance agreement was executed in April 2025 that is effective through July 6, 2026. The borrower has an option to extend through January 2028 under certain conditions. Under the agreement, the borrower must continue to make payments at the original interest rate. The loan is cash managed and the reserve balance was $1.1 million as of February 2026.
According to the May 2025 rent roll, the portfolio was 90.8% leased, down from 100% at last review and at closing. Because the former tenant, West Side Museum, has not paid rent since July 2023, no income was reported for the 427 Broadway property in the FY 2024 servicer financials. As a result, the servicer reported NCF reflects a decline of more than 50% since issuance.
An updated appraisal dated October 2025 valued the portfolio at $66.9 million ($949 per sf) compared to $117.5 million ($1,667 per sf) at issuance. As a result, the asset carries an ARA of $14.5 million, resulting in a cumulative ASER of $1.5 million. As of February 2026, total advances on the loan including principal, interest and servicer advances, were reported at $264,258. KBRA's analysis resulted in an estimated loss of $34.3 million (44.8% estimated loss severity) on a loan balance of $76.5 million. The loss is based on a KBRA liquidation value of $43.8 million ($621 per sf) and total exposure of $78.1 million. The value is derived from a direct capitalization approach using a KNCF of $3.7 million and a capitalization rate of 8.38%.

Keystone Summit Corporate Park ($65.7 million, 19.0%, K-LOC, Specially Serviced, Foreclosure)

The loan is collateralized by a 552,979 sf, suburban office complex located in Marshall Township, Pennsylvania, approximately 20 miles north of the Pittsburgh CBD. The property has three two-story office buildings, one, four-story office building, and one two-story flex/industrial building. The buildings are part of a condominium ownership structure governed by a condominium regime. The borrower controls the condominium board. The loan matured in January 2025.
KBRA maintains the loan’s K-LOC designation due to the maturity default and the loan’s transfer to special servicing. The loan transferred to the special servicer in December 2024 due to imminent monetary default after the borrower indicated it would be unable to repay the loan at maturity. A receiver was installed in December 2025, according to the special servicer. The receiver is evaluating a potential sale in 2026 while advancing lease renewals and pursuing new leasing.
Per the March 2025 rent roll, the property was 82.6% leased, in line with 83.6% at the prior review but down from 100% at closing. The decline in occupancy since issuance is primarily due to Heinz (5th largest, 7.8% of total sf) downsizing. Since the last review, the largest tenant, Federated Investors (26.5% of total base rent), renewed and extended its lease to February 2036. The special servicer also indicated that Coherent (4th largest tenant, 13.0%) is expected to extend its lease beyond its November 2027 expiration. Additionally, Westinghouse Electric Company (3rd largest tenant, 14.8%), whose lease expires in October 2030, is expected to downsize; however, a replacement tenant has been identified to backfill the vacated space. Westinghouse currently occupies 113,142 sf, representing 20.3% of the total collateral sf. The special servicer has not provided any further details at the time of this review.
The servicer-reported occupancies and DSCs are: 85.0% / 1.48x (FY 2024), 84.0% / 1.24x (FY 2023); at closing, these were 100% / 1.31x. An updated appraisal dated November 2025 valued the portfolio at $43.9 million ($79 per sf) compared to $103.3 million ($187 per sf) at issuance. As a result, the asset carries an ARA of $27.0 million, resulting in a cumulative ASER of $564,377. As of the February 2026 remittance, total advances on the loan including principal, interest and servicer advances, were reported at $1.1 million. KBRA's analysis resulted in an estimated loss of $24.7 million (37.6% estimated loss severity) on a loan balance of $65.7 million. The loss is based on a KBRA liquidation value of $43.9 million ($97 per sf), which is equal to 100% of the appraisal, and projected total exposure of $68.6 million.

100 West 57th Street ($40.0 million, 11.5%, K-LOC, Current)

The loan is collateralized by the leased fee interest in 0.6 acre of land underlying Carnegie House, a 21-story, mixed-use building located in Midtown Manhattan. The building consists of 323 co-op apartment units, a 225-space below grade parking garage, and street level retail space (28,337 sf). The collateralized land is subject to a ground lease that expired in March 2025, and which has two 21-year renewal options.
KBRA identified the loan as a K-LOC due to the ground rent increasing significantly following the borrower's decision to exercise a renewal option. The annual ground rent reset in 2024 to $4.3 million. However, according to the master servicer, the ground lessee exercised its renewal option for an additional 21 years through March 15, 2046, with annual ground rent increasing to $24.6 million. The leasehold tenant has appealed the reset amount twice and lost both appeals, with the final judgment from the New York State Supreme Court affirming the new rent. As of this review, the master servicer indicated that the tenant continues to pay the prior annual rent of $4.3 million during the appeal process.
The loan was structured with an ARD in November 2019 and a final loan maturity in April 2035. Following the ARD, the interest rate increased to 5.62%; it increased again in March 2025 to the greater of 6.37% or the current 5-Year SwapRate plus 4.06%. Following the ARD, an excess cash flow sweep was triggered to pay down the principal balance of the loan. As of February 2026, the loan remains current.
The servicer-reported occupancies and DSCs are: 100% / 1.04x (YTD June 2025), 100% / 1.03x (FY 2024); at issuance these were 100% / 1.00x. At this time, KBRA does not estimate a loss for this asset.

115 Mercer ($37.0 million, 10.7%, K-LOC, Specially Serviced, REO)

The asset is secured by two retail condominium units, totaling 7,500 sf, located in the SoHo district of New York City’s borough of Manhattan.
KBRA maintains the K-LOC designation based on the asset’s REO status. The loan was transferred to the special servicer in March 2019 due to payment delinquency. The former largest tenant, The Kooples Bloom, which represented 64.9% of total base rent vacated at lease expiration in September 2024. In May 2020, the former second largest tenant, Derek Lam, which represented 50.0% of total base rent at closing, vacated. Foreclosure proceedings began in March 2020, and the asset became REO in October 2022.
According to the August 2025 rent roll, the property was 100% leased by Boggi Milano (50.1% of total base rent) and Puig Retail US (49.9%), formerly Dr. Barbara Sturm, with lease expirations in October 2029 and March 2028, respectively. Boggi Milano and Dr. Barbara Sturm backfilled the former Kooples Bloom and Derek Lam spaces. Puig Retail US acquired a majority stake in the Dr. Barbara Sturm brand in January 2024, according to a press release published by Puig Retail US.
As of the February 2026 remittance, total advances on the loan, including principal, interest, and servicer advances, were reported at $1.6 million. The special servicer made a non-recoverable determination in March 2025, and cumulative non-recoverable interest totaled $140,189. According to the special servicer, the current strategy is to market the property for a potential sale in 2026.
An appraisal dated December 2025 valued the property at $20.8 million ($2,773 per sf), which is 64.1% below the $58.0 million ($7,733 per sf) value at issuance. As a result, the asset carries an ARA of $23.4 million, resulting in a cumulative ASER of $4.8 million. KBRA's analysis resulted in an estimated loss of $24.9 million (67.4% estimated loss severity) on the loan balance of $37.0 million. The loss is based on a KBRA liquidation value of $15.8 million ($2,107 per sf) and projected total exposure of $40.7 million. The value considers a distressed non-stabilized disposition of the asset.

760 & 800 Westchester Avenue ($29.4 million, 8.5%, K-LOC, Specially Serviced, Non-performing Matured Balloon)

The loan is collateralized by two office buildings totaling 561,513 sf, located in Rye Brook, New York, approximately 30 miles northeast of Midtown Manhattan. The 760 Westchester Avenue property is a three-story office building, constructed in 1982 and renovated in 2000. The 800 Westchester Avenue property is a seven-story building containing an underground passage to the 760 building. The loan matured in November 2024.
KBRA maintains the loan’s K-LOC designation based on the maturity default and the execution of a forbearance agreement. The loan transferred to the special servicer in April 2024 due to imminent monetary default. In December 2024, the borrower executed a forbearance agreement that expires in November 2026 and includes one 12-month extension option through November 2027. There were no changes to the interest rate or principal balance, and the loan remains full-term interest-only through the extended maturity. According to the June 2025 rent roll, the property was 86.1% leased, generally in line with last review (87.3%) and down from issuance (89.0%). Lease rollover through YE 2026, inclusive of MTM leases, represents 16.7% of total base rent. Despite relatively stable occupancy, the servicer reported a YoY decline in NCF. For FY 2024, servicer reported NCF of $6.0 million, a 26.2% decrease from issuance ($8.1 million).
The servicer-reported occupancies and DSCs are: 83.0% / 1.09x (YTD September 2025), 85.0% / 0.96x (FY 2024), 87.0% / 1.06x (FY 2023); at closing these were 89.0% / 1.31x. An appraisal dated June 2025 valued the property at $100.0 million ($178 per sf), which is 33.8% below the $151.0 million ($269 per sf) value at issuance. The whole loan balance as of February 2026 was $91.9 million. At this time, KBRA does not estimate a loss on this asset.

Legacy at Lake Park ($26.7 million, 7.7%, K-LOC, Specially Serviced, Foreclosure)

The asset is secured by a 198,465 sf office complex located in Salt Lake City, Utah, approximately ten miles southwest of the city's CBD. The property is comprised of two four-story buildings known as Legacy I and Legacy II. The loan matured in November 2024.
KBRA maintains the loan’s K-LOC designation based on its foreclosure status. The loan was transferred to the special servicer in August 2024. Per special servicer commentary, a receiver has been appointed and is addressing deferred maintenance items while marketing and leasing vacant space at the property. The lender has initiated the nonjudicial foreclosure process and expects a resolution by the second quarter of 2026.
Since last review, the largest tenant, Sutter Connect, downsized to 48,799 sf from 71,552 sf at last review and from 121,912 sf at closing. As a result, occupancy declined to 33.2% as of the May 2025 rent roll. In addition, per special servicer updates, the leases for Weir Slurry Group (second largest, 11.6% of total base rent and 3.8% of collateral sf) and Cranial Technologies (fourth largest, 8.1% and 2.2%, respectively) were not expected to renew at their scheduled expirations in December 2025 and July 2026, respectively. Accordingly, occupancy is expected to decline to below 30%. However, the special servicer indicated that several prospective tenants have been identified to backfill the vacant space, and discussions are ongoing.
The servicer-reported occupancies and DSCs are: 33.2% / -0.89x (YTD March 2025), 83.0% / 2.30x (FY 2024), 83.0% / 2.23x (FY 2023), 83.0% / 2.07x (FY 2022); at closing, these were 97.0% / 2.36x. An appraisal dated October 2025 valued the property at $15.1 million ($76 per sf), which is 60.3% below the $38.0 million ($191 per sf) value at issuance. As a result, the asset carries an ARA of $12.8 million, resulting in a cumulative ASER of $424,128. As of the February 2026 remittance, total advances on the loan including principal, interest and servicer advances, were reported at $482,776. KBRA's analysis resulted in an estimated loss of $13.4 million (50.4% estimated loss severity) on a loan balance of $26.7 million. The loss is based on a KBRA liquidation value of $14.9 million ($75 per sf) and projected total exposure of $28.3 million. The value considers a distressed non-stabilized disposition of the asset.

The remaining six assets account for 20.6% of the pool balance:

200 West Second Street ($26.0 million, 7.5%, K-LOC, Specially Serviced, Non-performing Matured Balloon) is collateralized by a 53,143 sf parcel of land underlying a 239,854 sf office building formerly occupied by the Branch Banking & Trust (BB&T) Financial Center, located in the CBD of Winston-Salem, North Carolina. The sole source of repayment was ground rent received from the owner of the improvements pursuant to a ground lease. The ground lease was structured on an absolute net basis with a 99-year term commencing in February 2015 and expiring in January 2114. The initial annual ground rent was $2.7 million. According to the special servicer, the ground lease was terminated as of April 2024. The loan was structured with an ARD date of January 2025 and a final maturity date of January 2045. The property is currently 100% vacant, and there were no prospective tenants at the time of this review, according to the special servicer. Per the special servicer, the property is under contract and a sale is expected to close at the end of Q2 2026. An appraisal dated September 2025 valued the property at $8.4 million ($35 per sf), representing a 37.5% decline from the issuance value of $40.0 million ($161 per sf). The loan carries an ARA of $21.0 million, resulting in a cumulative ASER of $1.9 million. As of the February 2026 remittance, total advances on the loan, including principal, interest, and servicer advances, were reported at $2.0 million. KBRA’s analysis resulted in an estimated loss of $23.9 million (91.9% estimated loss severity) on the $26.0 million loan balance, based on a KBRA liquidation value of $5.3 million ($22 per sf) and projected exposure of $29.2 million. Our value reflects a distressed, non-stabilized disposition of the asset.
Tintri Mountain View ($19.8 million, 5.7%, K-LOC, Specially Serviced, Non-performing Matured Balloon) is collateralized by a 67,000 sf Class B office property located in Mountain View, California, within Silicon Valley. The loan matured in August 2024. The loan was initially identified as a K-LOC following the departure of the property’s sole tenant, Tintri, in October 2018 after the company filed for bankruptcy in July 2018. The property was sold in February 2021 and a new borrower assumed the loan. The new borrower subsequently repositioned the vacant property for life science use, funding $18.5 million of capital improvements through ownership equity. According to the December 2024 rent roll, PTC Therapeutics executed a triple net lease for 35,849 sf, representing 52.3% of the total collateral sf, commencing in October 2025 and expiring in March 2038. The lease includes several rent abatements through September 2027, with 50.0% abatement during the first year. In addition, a forbearance agreement was executed in December 2024 providing for a forbearance period through August 2026. An appraisal dated July 2025 valued the property at $55.9 million ($834 per sf), representing a 70.9% increase from the issuance value of $32.7 million ($488 per sf). At this time, KBRA does not estimate a loss on the asset.
1045 Bryant Street ($11.6 million, 3.3%, K-LOC, Specially Serviced, REO) is secured by a 30,348 sf office property located in the Showplace Square submarket of San Francisco, California. The loan transferred to the special servicer in August 2023 after the borrower declared imminent monetary default. The foreclosure sale was finalized in December 2024 and the asset became REO. The special servicer is currently pursuing a lease-up strategy prior to disposition and expects a resolution of the asset in 2027. Per special servicer updates, proposals have been received for all or portions of the vacant space, and LOIs with prospective tenants are under negotiation. According to the December 2025 rent roll, the property was 100% vacant. An appraisal dated September 2025 valued the property at $7.5 million ($247 per sf), representing a 65.0% decline from the issuance value of $21.4 million ($705 per sf). The loan carries an ARA of $5.7 million, resulting in a cumulative ASER of $494,548. As of the February 2026 remittance, total advances on the loan, including principal, interest, and servicer advances, were reported at $739,501. KBRA’s analysis resulted in an estimated loss of $6.8 million (59.0% estimated loss severity) on the $11.6 million loan balance. The loss is based on a KBRA liquidation value of $5.7 million ($188 per sf) and projected total exposure of $12.5 million. Our value reflects a distressed, non-stabilized disposition of the asset.
Walgreens Severna ($7.4 million, 2.1%, K-LOC, Specially Serviced, Foreclosure) is collateralized by a 14,448 sf, single-tenant retail property located in Severna Park, Maryland, approximately 20 miles south of the Baltimore CBD. Walgreens is the sole tenant pursuant to a lease scheduled to expire in July 2029. The loan matured in January 2025. Per special servicer updates, the special servicer is proceeding with foreclosure, with an estimated receiver sale date at the end of February 2026. An appraisal dated September 2025 valued the property at $5.8 million ($401 per sf), representing a 56.7% decline from the issuance value of $13.4 million ($925 per sf). The loan carries an ARA of $1.9 million, resulting in a cumulative ASER of $70,932. As of the February 2026 remittance, total advances on the loan, including principal, interest, and servicer advances, were reported at $517,239. KBRA’s analysis resulted in an estimated loss of $2.7 million (36.3% estimated loss severity) on the $7.4 million loan balance, based on a KBRA liquidation value of $5.8 million ($401 per sf), which is equal to the appraised value.
Walgreens Broomfield ($3.4 million, 1.0%, K-LOC, Specially Serviced, Foreclosure) is collateralized by a 14,490 sf, single-tenant, retail property located in Broomfield, Colorado, approximately 16 miles north of the Denver CBD. Walgreen's is the sole tenant at the property, pursuant to a lease scheduled to expire in August 2027. The loan matured in January 2025. As of January 2026, the special servicer is proceeding with the foreclosure process and the appointment of a receiver, with an estimated receiver sale date at the end of March 2026. An appraisal dated August 2025 valued the property at $4.3 million ($298 per sf), representing a 29.5% decline from the issuance value of $6.1 million ($419 per sf). As of the February 2026 remittance, total advances on the loan, including principal, interest, and servicer advances, were reported at $267,320. At this time, KBRA does not estimate a loss on the asset.
Columbia Marketplace ($3.1 million, 0.9%, K-LOC, Specially Serviced, Foreclosure) is collateralized by a 119,223 sf anchored retail center, located in Columbia, Mississippi. The subject was built in 1987 and most recently renovated in 2013. The loan matured in November 2024. According to special servicer commentary, the special servicer has initiated the foreclosure process. An appraisal dated November 2025 valued the property at $6.4 million ($53 per sf), representing a 17.2% increase from the issuance value of $5.3 million ($44 per sf). As of the February 2026 remittance, total advances on the loan, including principal, interest, and servicer advances, were reported at $301,222. At this time, KBRA does not estimate a loss on the asset.

Details concerning the ratings changes are as follows:

Class C to BB- (sf) from BBB- (sf) DN
Class PEZ to BB- (sf) from BBB- (sf) DN
Class D to CC (sf) from CCC (sf) DN
Class E to C (sf) from CC (sf) DN
Class X-C to CC (sf) from CCC (sf) DN
Class X-D to C (sf) from CC (sf) DN

KBRA affirms the following ratings:

Class A-M at AAA (sf)
Class B at A (sf)
Class F at C (sf)
Class G at C (sf)
Class X-A at AAA (sf)
Class X-B at AAA (sf)
Class X-E 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.

KBRA Downgrades Six Ratings, Affirms Seven Ratings, and Removes Six Ratings from Watch Downgrade for COMM 2015-DC1

Rating Sensitivities

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