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KBRA Affirms All Outstanding Ratings for COMM 2014-LC15

11 Dec 2025   |   New York

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KBRA affirms all of its outstanding ratings for COMM 2014-LC15, a $54.2 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses since our last ratings change in December 2023. However, the magnitude of the change in losses does not warrant further rating adjustments at this time. The affirmations are also based on the performance and expected recovery of the transaction's three remaining loans.

All the loans are specially serviced. The largest loan, 100 Westminster (68.4% of the pool balance), is paid current. The other two assets (26.2%) are non-performing matured balloon. Both non-performing assets have been deemed non-recoverable.

100 Westminster (largest, 68.4%, K-LOC, Current)

  • The loan is collateralized by a 19-story, 361,462 sf, Class A office property in Downtown Providence, Rhode Island.
  • KBRA maintains the loan’s K-LOC designation due to its status with the special servicer and ongoing maturity concerns. The loan was initially transferred to the special servicer in September 2023 for imminent monetary default related to its February 2024 maturity. A modification and extension agreement was executed in April 2024, extending the maturity to February 2025 and including an additional extension option through February 2026, contingent upon certain conditions. According to the special servicer, the borrower exercised this option and extended the loan to February 2026. The loan will remain cash managed throughout the extended term. The special servicer is finalizing an approved modification that has not yet closed. The proposal includes a potential 24-month extension of the maturity date, with additional extension options subject to certain provisions.
  • Based on the June 2025 rent roll, the property was 86.3% leased, compared to 82.5% at the last review and 91.8% at issuance. Lease rollover through YE 2026 represents 34.5% of total base rent and includes the largest tenant, Providence Equity, which accounts for 21.3% of base rent and 17.7% of total sf, with a lease scheduled to expire in October 2026. According to special servicer updates, the second largest tenant, Hinckley Allen & Snyder, which represents 12.6% of base rent and 9.6% of total sf, recently renewed its lease for 10 years through December 2035.
  • The servicer-reported occupancies and DSCs are: 76.9% / 1.48x (YTD September 2024), 79.9% / 1.36x (FY 2023); at closing, these were 81.0% / 1.26x. An appraisal dated May 2025 valued the property at $38.9 million ($108 per sf), which is roughly equal to the outstanding loan balance and represents a 40.4% decreased from the $65.3 million ($181 per sf) value at issuance. As a result, the asset carries an ARA of $1.7 million. KBRA's analysis resulted in an estimated loss of $1.0 million (2.8% estimated loss severity) on the loan balance of $37.1 million. The loss is based on a KBRA liquidation value of $36.1 million ($100 per sf). The value is derived from a direct capitalization approach using a KNCF of $3.2 million and a capitalization rate of 9.00%.

Moss-Bauer Apartments (2nd largest, 14.9%, K-LOC, Non-Performing Matured, REO)

  • The asset is a 28-unit, mid-rise multifamily apartment building in the New Orleans CBD. The property includes three additional commercial units totaling 2,415 sf. It was built in 1928 and renovated in 2013. The loan matured in February 2024.
  • KBRA maintains the asset's K-LOC designation based on its REO status. The loan was transferred to the special servicer in April 2018 due to imminent non-monetary default. In August 2022, a forbearance agreement was executed and the terms included a partial guaranty of approximately $1.0 million in exchange for the loan to be converted to interest-only. The loan was deemed non-recoverable in July 2024. A receivership order was entered in October 2024. According to the special servicer, the receiver is preparing to list the property for sale.
  • An appraisal dated June 2025 valued the asset at $7.8 million ($278,214 per unit), which is 32.8% below the $11.6 million ($414,300 per unit) value at issuance. As a result, the asset carries an ARA of $2.3 million, resulting in a cumulative ASER of $195,677. KBRA's analysis resulted in an estimated loss of $5.9 million (72.7% estimated loss severity) on the loan balance of $8.1 million. The loss is based on a KBRA liquidation value of $3.9 million ($137,500 per unit). The value considers a distressed non-stabilized disposition of the asset.

Ithaca Hotel Portfolio (3rd largest, 11.4%, K-LOC, Non-Performing Matured)

  • The loan is collateralized by two limited-service hotels located in Ithaca, New York. Country Inn & Suites Ithaca (66.5% of the allocated loan amount) contains 58 keys and is three miles south of the city's CBD and one mile south of Ithaca College. Econo Lodge Ithaca (33.5%) contains 72 keys and is four miles north of the CBD and three miles north of Cornell University.
  • KBRA maintains the loan’s K-LOC designation due to its non-performing status. The loan transferred to the special servicer in March 2020 for imminent monetary default, and the borrower filed for Chapter 11 bankruptcy in May 2022. The debtors consented to the appointment of a trustee, GF Hotels, which is overseeing the liquidation of both assets through the bankruptcy process. A sale plan was scheduled in 2023; however, the prospective buyer defaulted under the purchase and sale agreement. According to the special servicer, the trustee has since signed a new listing agreement with a local commercial brokerage firm, targeting a sale of the two hotels in Q4 2025. As of September 2025, both hotels are under contract for sale for a total of $8.0 million, with a 45-day due diligence period and a 30-day closing timeline. The buyer has requested an extension of the due diligence period, which is currently under evaluation by the special servicer. The asset was deemed non-recoverable in February 2024.
  • According to the most recent STR reports dated March 2025, the properties are underperforming on an individual basis. Econo Lodge Ithaca and Country Inn & Suites Ithaca reported penetration rates of 73.1% and 61.5%, respectively, resulting in a combined portfolio penetration rate of 67.9%.
  • The consolidated servicer-reported occupancies and DSCs are: 45.7% / N/A (YTD March 2025), 56.4% / N/A (FY 2024), 63.8% / 0.41x (FY 2023); at closing, these were 60.0% / 1.70x. An appraisal dated July 2025 valued the portfolio at $8.1 million ($62,308 per key), which is 33.1% below the $12.1 million ($93,077 per key) valued at issuance. As a result, the asset carries an ARA of $1.5 million resulting in a cumulative ASER of $8,345. KBRA's analysis resulted in an estimated loss of $1.8 million (29.8% estimated loss severity) on the loan balance of $6.2 million. The loss is based on a KBRA liquidation value of $5.7 million ($44,190 per key). The value is derived from a direct capitalization approach using a consolidated stabilized KNCF of $801,959 and a capitalization rate of 12.25%.

Details concerning the ratings affirmations are as follows:

  • Class D at BBB- (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

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.

Doc ID: 1012473