Press Release|CMBS

KBRA Downgrades One Rating, Affirms Six Ratings, and Removes Four Ratings from Watch Downgrade for JPMBB 2015-C31

6 Feb 2026 | New York

KBRA downgrades one rating and affirms six ratings for JPMBB 2015-C31, a $242.9 million CMBS conduit transaction. Simultaneously, KBRA removes the ratings of four classes of certificates from Watch Downgrade (DN), where they were placed on November 12, 2025. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in interest shortfalls since KBRA's last ratings change in July 2025. Interest shortfalls are affecting classes B and below, primarily due to non-recoverable interest from three specially serviced assets (72.8% of the pool), which are the largest in the pool. In addition, KBRA's estimated losses for four K-LOCs (56.1%) have increased compared to KBRA's last ratings change in July 2025. The ratings also consider the likelihood of interest shortfalls continuing and affecting classes higher in the capital structure while the servicer resolves the transaction’s specially serviced assets.

As of the January 2026 remittance period, there are seven assets remaining in the underlying mortgage pool. Of the seven assets, six (95.1% of the pool balance) are with the special servicer, of which one is REO (25.4%), one (15.0%) is in foreclosure and two (33.8%) are matured non-performing. KBRA identified the six specially serviced assets as K-LOCs (95.1%), which are outlined below.

Civic Opera Building (largest, 32.4%, Matured Non-Performing)

The loan is collateralized by a 915,162 sf, Class-B office building located in the Chicago, Illinois CBD.
KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its status with the special servicer and matured non-performing status following its failure to pay off at maturity in August 2025. The loan transferred to the special servicer in July 2020 for imminent monetary default. According to the special servicer, the lender intends to pursue foreclose. A receiver is managing the property.
The servicer reported occupancies and DSCs are: N/A / 0.10x (YTD June 2025), N/A / 0.15x (FY 2024), 50.0% / 0.22x (FY 2023); at issuance these were 92.4% / 1.28x. An appraisal dated May 2025 valued the property at $100.9 million ($109 per sf), which is 54.1% lower than the $220.0 million ($238 per sf) appraised value at issuance. As a result, the asset carries an aggregate ARA of $76.8 million, resulting in a cumulative ASER of $2.0 million for the transaction. The loan was deemed non-recoverable in March 2024 and cumulative non-recoverable interest totals $13.1 million. KBRA’s analysis resulted in an estimated loss of $123.3 million (85.1% estimated loss severity) on the whole loan balance of $144.8 million. To determine the estimated loss, KBRA performed a stabilized analysis to determine KNCF. A KBRA value of $50.1 million was derived from stabilized KNCF of $5.0 million and a capitalization rate of 10.00%. KBRA adjusted this value downward by $15.4 million to account for income lost during the stabilization period. The KBRA adjusted value is $34.7 million ($38 per sf).

Sunbelt Portfolio (2nd largest, 25.4%, REO)

The assets are three Class-A office properties containing a total of 1.3 million sf. The properties are located in three submarkets in Alabama (two) and South Carolina (one).
KBRA maintains the asset's K-LOC designation and KPO of Underperform based on its REO status. The loan transferred to special servicing in February 2022 due to imminent monetary default. The special servicer received approval to initiate foreclosure proceedings for the collateral properties in January 2025 and the trust took title of the asset in December 2025.
The servicer-reported occupancies and DSCs are: 72.8% / 0.34x (YTD June 2025), 64.1% / 0.96x (FY 2024), at issuance these were 82.6% / 1.70x. The properties were reappraised for $118.6 million ($92 per sf) in September 2025, down 41.7% from $203.3 million ($158 per sf) at issuance. As a result, the loan was assigned an aggregate ARA of $14.6 million in November 2025, resulting in a cumulative ASER of $372,947 for the transaction. The loan was deemed non-recoverable in August 2025 and cumulative non-recoverable interest totals $2.2 million. KBRA's analysis resulted in an estimated loss of $63.2 million (53.7% estimated loss severity) on the whole loan balance of $117.6 million. The loss is based on a KBRA liquidation value of $65.2 million ($51 per sf), which is derived from a direct capitalization approach using a KNCF of $6.3 million and a blended capitalization rate of 9.59%.

Highland Landmark I (3rd largest, 15.0%, Foreclosure)

The loan is collateralized by a seven-story, 273,752 sf, Class-A office building located in Downers Grove, Illinois, approximately 20 miles west of Chicago. Constructed in 1997, the development is comprised of one seven-story building that features a deli/cafe, a fitness center, storage space, and a conference center that can accommodate 60 people. The space includes 257,471 sf of office space and 16,281 sf of concourse-level space. The asset offers 946 parking spaces, including approximately 350 that are in a two-story garage that is included as collateral for the subject loan.
KBRA maintains the loan's K-LOC designation and KPO of Underperform based on its status with the special servicer. The former largest tenant, Advocate Health Care (previously 83.2% of total base rent), terminated its lease effective April 2024. Advocate Health Care had a one-time termination option and a $9.2 million termination fee. The property currently has one remaining tenant, Univar Inc. (13.2% of collateral sf) with a lease expiration in June 2026. The loan transferred to the special servicer in June 2024. Special servicer commentary indicates a receiver has been appointed, which is working towards a receivership sale.
The servicer-reported occupancies and DSCs are: 17.0% / -0.18x (YTD September 2025), 17.0% / 0.51x (FY 2024), at issuance these were 87.0% / 1.43x. An appraisal dated April 2025 valued the property at $12.6 million ($43 per sf), which is 80.5% lower than the $64.6 million ($220 per sf) appraised value at issuance. As a result, the asset carries an ARA of $18.1 million. The loan was deemed non-recoverable in August 2025 and cumulative non-recoverable interest totals $862,000. KBRA’s analysis resulted in an estimated loss of $27.2 million (74.5% estimated loss severity). To determine the estimated loss, KBRA performed a stabilized analysis to determine KNCF. A KBRA value of $22.0 million was derived from stabilized KNCF of $2.2 million and a capitalization rate of 10.00%. KBRA adjusted this value downward by $11.8 million to account for income lost during the stabilization period. The KBRA adjusted value is $10.2 million ($35 per sf).

Airport North Portfolio (4th largest, 14.4%, Matured Performing)

The loan is collateralized by five suburban Class-B office buildings across four properties containing a total of 482,151 sf. The borrower has a fee interest in three of the properties and leasehold interest in one property. The properties are located within three miles of one another in Nashville, Tennessee, within nine miles of the city's CBD and three miles of the Nashville International Airport.
KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its specially serviced status and matured performing status following its default at maturity in August 2025. The loan was transferred to the special servicer in May 2024 after the death of a sponsor in 2023, which triggered a non-monetary default. Upon review of the loan documents following the sponsor's death, the servicer discovered several non-permitted equity transfers, which constituted an event of default. A forbearance agreement was approved in June 2025 and a subsequent amendment was approved in July 2025; however, the borrower failed to remit a principal paydown due in September 2025. As a result, the borrower again failed to comply with the terms of the forbearance agreement and the special servicer is now pursuing foreclosure. In addition, the former largest tenant, Permanent General Companies Inc. (28.3% of total base rent, 23.0% of collateral sf), vacated upon its lease expiration in April 2025. As such, the subject was 55.2% leased as of June 2025, compared to 82.4% at last review and 91.5% at closing.
The servicer-reported occupancies and DSCs are: 55.2% / 0.71x (YTD September 2025), 82.7% / 1.80x (FY 2024), at issuance these were 91.5% / 1.48x. Individual appraisals dated May 2025 valued the portfolio at $41.2 million ($85 per sf), which is 30.0% lower than the $58.9 million ($122 per sf) appraised value at issuance. KBRA’s analysis resulted in an estimated loss of $9.7 million (27.9% estimated loss severity) on the $34.9 million loan balance. To determine the estimated loss, KBRA performed a stabilized analysis to determine KNCF. A KBRA value of $31.4 million was derived from stabilized KNCF of $3.1 million and a capitalization rate of 9.75%. KBRA adjusted this value downward by $6.2 million to account for income lost during the stabilization period. The KBRA adjusted value is $25.2 million ($52 per sf).

The remaining K-LOCs account for 8.0% of the pool balance:

3750 Monroe Avenue (5th largest, 6.6%) is collateralized by a 260,286 sf, industrial flex building located in Pittsford, New York, approximately seven miles southeast of the Rochester CBD. KBRA maintains the loan's K-LOC designation and KPO of Underperform based on the loan's status with the special servicer following maturity default in July 2025. The loan transferred to the special servicer in July 2025 and commentary stated the borrower was working to obtain refinancing and may need a short-term forbearance. A forbearance is being negotiated and the borrower expects to close on a refinance in Q2 2026. At this time, KBRA does not estimate a loss on this $16.0 million loan.
Ramada Houston Airport (7th largest, 1.4%, Matured Non-Performing) is collateralized by a 96-key limited-service hotel in Houston, Texas, which neighbors George Bush International Airport and is located approximately 17 miles north of the Houston CBD. KBRA maintains the loan's K-LOC designation due to its specially serviced status. The loan was transferred to the special servicer in July 2025 due to payment default. Special servicer commentary indicated the borrower planned to pay off the loan prior to maturity and was provided payoff instructions. The loan defaulted at its maturity in August and the borrower is working towards obtaining refinancing. KBRA's analysis resulted in an estimated loss of $1.1 million (34.3% estimated loss severity) on the $3.3 million loan. The loss is based on a KBRA liquidation value of $2.4 million ($24,550 per key). The value is derived from a direct capitalization approach using a KNCF of $271,000 and a capitalization rate of 11.50%.

Details concerning the classes with a ratings change are as follows:

Class B to B- (sf) from BBB (sf) DN
Class C to CCC (sf) from CCC (sf) DN
Class EC to CCC (sf) from CCC (sf) DN
Class D to CC (sf) from CC (sf) DN

KBRA affirms the following ratings:

Class A-S at AAA (sf)
Class E at C (sf)
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.

KBRA Downgrades One Rating, Affirms Six Ratings, and Removes Four Ratings from Watch Downgrade for JPMBB 2015-C31

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