KBRA Downgrades Two Ratings and Affirms One Rating for JPMBB 2013-C15
4 Mar 2026 | New York
KBRA downgrades the ratings of two classes of certificates and affirms one rating for JPMBB 2013-C15, a $96.2 million CMBS conduit transaction. The securitization has one specially serviced asset remaining in the underlying mortgage pool, which has been identified as a K-LOC with estimated losses. The rating actions follow a surveillance review of the transaction and are based on the performance and expected recovery of the remaining asset; KBRA's estimated losses have increased since the last review as the servicer works through the asset’s resolution.
As of the February 2026 remittance period, the remaining asset is specially serviced and in foreclosure. The details of the asset are outlined below.
1615 L Street ($100.0 million, 100%, K-LOC, 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.
- KBRA maintains the loan's K-LOC designation and KPO of Underperform due to the loan’s foreclosure status. The loan was transferred to the special servicer in August 2023 after the borrower indicated it could not repay the loan at its September 2023 maturity. In October 2023, the servicer withheld $19.0 million of principal collections to fund anticipated capital needs and a receiver was appointed in May 2024. As of February 2026, approximately $16.9 million is held by the master servicer and $2.4 million remains in the receivership estate. The property's occupancy declined sharply after multiple tenants vacated at lease expiration in 2025. According to the April 2025 rent roll, inclusive of leasing updates, the property was 32.6% leased, compared to 73.0% at last review and 89.4% at closing. The receiver marketed the asset for sale in late 2024, but after reviewing bids, decided to postpone the sale process until leasing performance improves and the DC office market stabilizes.
- The servicer-reported occupancies and DSCs are: 73.0% / 1.62x (FY 2023), 90.0% / 1.32x (FY 2022); at closing these were 89.4% / 1.54x. An appraisal dated October 2025 valued the property at $51.0 million ($122 per sf), which is 76.0% below the $213.0 million ($510 per sf) appraised value at issuance. An ARA of $67.9 million was assigned to the loan in January 2024, of which $50.6 million was allocated to the JPMBB 2013-C15 transaction. The loan has been deemed non-recoverable since December 2023 and cumulative non-recoverable interest amount as of February 2025 is $7.0 million. KBRA’s analysis resulted in an estimated loss of $75.5 million (75.5% estimated loss severity) on the whole loan balance of $134.3 million, of which $100.0 million is allocated to the trust. The loss is based on a KBRA liquidation value of $43.5 million ($104 psf) and projected total exposure of $144.9 million. The value is derived from a direct capitalization approach using a KNCF of $5.6 million and a capitalization rate of 9.00%, which was reduced by $18.9 million to account for downtime and TIs during the stabilization period.
Details concerning the class with a rating change are as follows:
- Class D to CC (sf) from CCC (sf)
- Class E to C (sf) from CC (sf)
Details concerning the rating affirmation is as follows:
- 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.