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KBRA Downgrades Two Ratings and Affirms All Other Outstanding Ratings for COMM 2013-CCRE12

23 Oct 2025   |   New York

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KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for COMM 2013-CCRE12, a $223.5 million CMBS conduit transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since KBRA's last ratings change in October 2024, primarily associated with the 175 West Jackson loan (largest, 62.0% of the pool balance). In addition, the ratings consider the likelihood of interest shortfalls continuing to impact all outstanding rated certificates while the servicer works through the resolutions of the transaction’s three specially serviced assets (71.2%), each of which have been deemed non-recoverable.

As of the October 2025 remittance period, there are five assets remaining in the pool, including one that is REO (0.6%), one in foreclosure (8.5%), and one loan that is matured non-performing (62.0%). KBRA identified each of the remaining assets in the pool as K-LOCs, all of which have estimated losses. The details of the five remaining assets are outlined below.

175 West Jackson (largest, 62.0%, Non-Performing Matured Balloon)

  • The loan is collateralized by a 1.4 million sf, Class-A office building located in the Central Loop submarket of the Chicago, Illinois CBD. The development consists of a 22-story office building with ground floor retail and a 250- space underground garage that is leased to an independent operator.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to the loan’s maturity default in November 2023 and its matured non-performing status. The loan was transferred to the special servicer for imminent monetary default in November 2021. In July 2023, the servicer deemed the loan non-recoverable. According to the special servicer, a receiver has been appointed, and a sales contract is being negotiated.
  • The servicer-reported occupancies and DSCs are: 53.0% / -0.13x (TTM June 2025), 58.0% / 1.12x (FY 2024); at closing these were 92.0% / 1.44x. An appraisal dated November 2024 valued the property at $84.0 million ($58 per sf), which is 79.5% below the $410.0 million ($282 per sf) value at issuance. An aggregate ARA of $188.8 million was effectuated on the whole loan in October 2025, of which $121.5 million was allocated to the COMM 2013- CCRE12 securitization. The ARA for this trust resulted in a cumulative ASER of $2.8 million. KBRA's analysis resulted in an estimated loss of $255.9 million (102.2% estimated loss severity) on the whole loan balance of $250.5 million. The loss is based on a KBRA liquidation value of $37.8 million ($26 per sf). The value considers a distressed non-stabilized disposition of the asset.

Oglethorpe Mall (2nd largest, 23.8%, Current)

  • The loan is secured by a 626,966 sf portion of a 953,760 sf regional mall located in Savannah, Georgia. The mall is anchored by JCPenney and Macy’s, which are part of the collateral, and Belk, which owns its improvements and the underlying land. The loan’s sponsor is Brookfield Property Partners (BPY).
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its modification following the failure to pay off at maturity in July 2023 and its recent specially serviced status. Although JCPenney (3.0% of total base rent, 13.2% of collateral sf) executed a five-year lease renewal at the property until July 2027, KBRA has concerns regarding the long-term tenancy of JCPenney as well as Macy's (8.5% of total base rent, 20.8% of collateral sf). The property reported in-line tenant sales of $320 per sf as of March 2025, down from $377 per sf as of October 2022. A loan extension agreement was entered into during July 2025, which extended loan maturity until July 2026. The loan is paid through October 2025.
  • The servicer reported occupancies and DSCs are: 95.0% / 1.38x (FY 2022), 94.0% / 1.35x (FY 2021); at issuance these were 95.0% / 1.75x. An appraisal dated May 2025 valued the property at $128.7 million ($205 per sf), which is 45.6% below the $236.5 million ($377 per sf) value at issuance. As of October 2025, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA estimates that it could experience a loss given default of $57.7 million (44.8% estimated loss severity) on the whole loan balance of $128.6 million. The loss is based on a KBRA liquidation value of $70.9 million ($113 per sf). The value is derived from a direct capitalization approach using a KNCF of $8.5 million and a capitalization rate of 12.00%.

The MAve Hotel (3rd Largest, 8.5%, Foreclosure)

  • The loan is secured by a 12-story, 72-key, limited-service, boutique hotel located on the northwest corner of Madison Avenue and East 27th Street within the Flatiron District of New York City’s borough of Manhattan.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform based on its foreclosure status. KBRA initially identified this loan as a K-LOC due to the decline in financial performance from issuance through 2015 and the borrower’s agreement with the City of New York to provide housing for homeless families at rates significantly lower than the issuance ADR. The month-to-month contract with the NYC Department of Homeless Services ended at the end of 2020 and the property remains closed to the public. According to the servicer commentary, lender’s counsel filed a foreclosure action in April 2022. The loan was deemed non-recoverable in August 2023. A summary judgment was granted and a referee was appointed in December 2023. According to special servicer commentary from September 2025, the borrower has not been able to provide a viable workout proposal and the lender filed motion for final judgment, which was pending as of October 2025.
  • The servicer has not reported financials for this property since 2020. An appraisal dated July 2023 valued the property at $19.0 million ($264,000 per key), which is 40.6% below the $32.0 million ($444,444 per key) value at issuance. As a result, the asset carries an ARA of $6.4 million, resulting in a cumulative ASER of $311,295. KBRA’s analysis resulted in an estimated loss of $11.2 million (60.8% estimated loss severity) on the outstanding loan balance of $18.5 million. KBRA applied a capitalization rate of 10.17% to the stabilized KNCF, resulting in a value of $13.8 million. KBRA adjusted this value downward by $3.0 million to account for income lost during the stabilization period. KBRA’s adjusted value is $10.8 million ($150,368 per key).

The Crossings (4th Largest, 5.1%, Current)

  • The loan is collateralized by a 216,330 sf anchored retail center in Elkview, West Virginia. The property's surrounding area is sparsely developed with the closest large town, Charleston, West Virginia, located 14 miles away. The property is near I-79.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform based on performance concerns, prior modification, and prior status with the special servicer. A modification was executed in September 2022, which extended maturity from October 2023 to September 2030 and converted the loan to interest-only debt service payments at a modified rate of 6.24%, down from 6.34% at securitization. The loan was added to the servicer's watchlist in April 2025 and servicer commentary indicated the former largest tenant, TransFormCo (23.0% of total base rent, 41.3% of collateral sf), vacated prior to its December 2029 lease expiration. As a result, occupancy was reported at 55.9% as of December 2024, down from 91.5% as of December 2023. The loan has a WODRA of $7.0 million.
  • The servicer reported occupancies and DSCs are: 56.0% / 1.03x (FY 2024), 92.0% / 1.01x (FY 2023); at issuance these were 95.0% / 1.26x. A February 2023 appraisal valued the subject at $10.1 million ($47 per sf), a 46% decline from $18.2 million ($84 per sf) at issuance. As of October 2025, the loan is current on payments and not specially serviced. However, in the event of a default, KBRA estimates that it could experience a loss given default of $12.1 million (110.4% estimated loss severity) on the outstanding loan balance of $10.9 million. KBRA applied a capitalization rate of 10.00% to the stabilized KNCF, resulting in a value of $10.0 million. KBRA adjusted this value downward by $1.2 million to account for income lost during the stabilization period. KBRA’s adjusted value is $8.8 million ($41 per sf).

Walgreens Marketplace Bel Air (5th Largest, 0.6%, K-LOC, Underperform, REO)

  • The asset is a leasehold interest in a 12,547-sf single-tenant retail building in Bel Air, Maryland that was occupied by Walgreens at issuance. The property is located off Route 24 near multiple shopping centers and the Harford Mall.
  • KBRA maintains the asset's K-LOC designation and KPO of Underperform based on its REO status. According to the special servicer, a foreclosure sale was held in April 2024 with the lender as the successful bidder and the lender is working to receive the recorded warranty deed. In March 2025, the asset was deemed non-recoverable. Walgreens went dark in September 2015 but continues to pay rent under a lease scheduled to expire in 2069. According to special servicer commentary, Walgreens can terminate its lease in 2034. The leasehold interest is being marketed for sale and an auction is scheduled to occur in November 2025.
  • Servicer reported occupancies and DSCs are: 100% / 1.24x (YTD June 2025), 100% / 0.81x (FY 2024); at issuance these were 100% / 1.41x. In July 2025, the special servicer provided an estimated value of $1.2 million ($94 per sf), a 72% decline from the $4.2 million ($335 per sf) appraisal value at issuance. As a result, the asset carries an ARA of $473,743, resulting in a cumulative ASER of $10,675. KBRA's analysis resulted in an estimated loss of $486,980 (34.8% estimated loss severity) on the unpaid balance of $1.4 million. The loss is based on a KBRA liquidation value of $1.2 million ($94 per sf), which is derived from the special servicer's estimated value.

Details concerning the classes with ratings changes are as follows:

  • Class A-M to CC (sf) from BB (sf)
  • Class B to C (sf) from CC (sf)

Details concerning the ratings affirmations are as follows:

  • Class C at C (sf)
  • Class PEZ at C (sf)
  • Class D at D (sf)
  • Class E at D (sf)
  • Class F at D (sf)

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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