Press Release|CMBS

KBRA Affirms All Outstanding Ratings for CGCMT 2014-GC23

18 Jul 2025 | New York

KBRA affirms all of its outstanding ratings for CGCMT 2014-GC23, a $115.8 million CMBS conduit transaction, which has three specially serviced assets remaining in the underlying mortgage pool. The rating actions follow a surveillance review of the transaction and reflect a recovery analysis of the remaining assets, which has not meaningfully changed since KBRA’s last ratings changes in July 2024. In addition, the current ratings consider the likelihood of interest shortfalls on the rated classes as the servicer works through the workouts of the assets.

As of the July 2025 remittance period, the pool comprises one asset in foreclosure (81.8% of the pool balance), one matured non-performing loan (9.2%), and one REO asset (9.0%). All three assets are K-LOCs and two of the assets (90.8%) have estimated losses. The details of the pool’s assets are outlined below.

Selig Portfolio (largest, 81.8%, Foreclosure)

The loan is collateralized by seven office properties totaling 1.1 million sf, located in downtown Seattle, Washington. The properties were developed by an affiliate of the sponsor, Martin Selig Real Estate (MSRE), from 1970 to 2009. MSRE is headquartered in Seattle and owns more than 4.0 million sf of office space in the Seattle MSA.
KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on the impending foreclosure of the collateral properties. The loan transferred to the special servicer in March 2024 due to imminent maturity default ahead of the loan’s May 2024 scheduled maturity date. Shortly after the maturity default, a modification agreement was negotiated, but the borrower failed to close due, in part, to its inability to raise capital. A second proposed modification was negotiated in October 2024; however, the borrower failed to close again after paying $2.7 million for a 60-day forbearance period. A principal curtailment of $5.8 million was applied to the loan’s outstanding balance in January 2025 using the forbearance fee and the loan’s reserve accounts. According to the servicer, a foreclosure sale is scheduled for late July 2025.
The servicer-reported occupancies and DSCs are: 59.6% / 1.33x (FY 2024), 63.2% / 1.62x (FY 2023); at closing, these were 85.4% / 2.06x. An appraisal dated February 2025 valued the portfolio at $149.8 million ($138 per sf), which was 55.3% below the $335.3 million ($310 per sf) appraisal value at issuance. The loan carries an aggregate ARA of $66.6 million, of which $27.0 million is allocated to the CGCMT 2014-GC23 transaction, resulting in a cumulative ASER of $107,067. KBRA’s analysis resulted in an estimated loss of $101.2 million (43.4% estimated loss severity) on the whole loan balance of $233.1 million, of which a $94.6 million pari-passu note is securitized in this transaction. The estimated loss is based on a KBRA value of $135.7 million ($125 per sf), which was derived from a KNCF of $13.6 million and a capitalization rate of 10.00%.

Lake Shore Plaza (2nd largest, 9.2%, Matured Non-Performing)

The loan is collateralized by a 96,260 sf retail center located on Long Island in Lake Ronkonkoma, New York.
KBRA maintains the loan’s K-LOC designation based on the loan’s transfer to the special servicer in February 2024 for imminent maturity default ahead of the loan’s June 2024 maturity date. Following the maturity default, the borrower was granted forbearance through June 2025. The forbearance agreement had an optional extension option through June 2026, which the borrower elected to exercise.
The servicer-reported occupancies and DSCs are: 87.1% / 1.78x (FY 2024), 91.0% / 1.51x (FY 2023); at closing these were 100% / 1.67x. An appraisal dated August 2024 valued the asset at $21.8 million ($226 per sf), which was 16.6% above the $18.7 million ($194 per sf) appraisal value at issuance. At this time, KBRA does not estimate a loss on this asset, which has an outstanding balance of $10.6 million.

5185 MacArthur Boulevard (3rd largest, 9.0%, REO)

The asset comprises a 43,617 sf mixed-use retail and office building located in Washington, DC, approximately five miles northwest of the city’s CBD.
KBRA maintains the loan’s K-LOC designation based on the asset’s REO status. The asset transferred to the special servicer in July 2024 after the former borrower failed to pay off the loan at maturity. The special servicer pursued foreclosure and took title to the asset in January 2025. No updates were available regarding the timing of an REO sale; however, the servicer listed an expected resolution date in January 2026.
The servicer-reported occupancies and DSCs are: 81.0% / 1.05x (FY 2023), 82.0% / 1.21x (FY 2022); at closing these were 97.6% / 1.29x. An appraisal dated September 2024 valued the asset at $12.1 million ($276 per sf), which was 24.7% below the $16.0 million ($367 per sf) appraisal value at issuance. KBRA’s analysis resulted in an estimated loss of $6.1 million (58.4% estimated loss severity) on the outstanding balance of $10.4 million. The estimated loss is based on a KBRA liquidation value of $5.3 million ($122 per sf).

Details concerning the ratings affirmations are as follows:

Class D at B- (sf)
Class E at CCC (sf)
Class F at CC (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

CMBS: CGCMT 2014-GC23 Pre-Sale Report

KBRA Affirms All Outstanding Ratings for CGCMT 2014-GC23

Rating Sensitivities

Related Publication

Methodologies