KBRA Upgrades All Eight Outstanding Ratings for MSBAM 2013-C9
11 Sep 2026 | New York
KBRA upgrades all eight outstanding ratings for MSBAM 2013-C9. The transaction has been reduced to three loans with an aggregate balance of $221.2 million, down from 60 loans totaling $1.3 billion at issuance. The rating actions follow a surveillance review of the transaction and reflect increased credit enhancement from amortization and principal paydowns, positive developments related to the Milford Plaza Fee loan ($165.0 million, 74.6% of the pool balance), and KBRA's estimate of principal recoveries from the remaining loans. Following the loan's assumption and modification, previously allocated realized losses have been fully reversed and interest shortfalls have substantially declined and are no longer affecting any rated classes.
As of the August 2026 remittance period, there are no specially serviced loans; however, one loan is a K-LOC (21.5%) and has an estimated loss. The remaining two (78.5%) loans have a KPO of Underperform. The three remaining loans are outlined in detail below.
Milford Plaza Fee ($165.0 million, 74.6%, Underperform, Current)
- The loan was originally collateralized by a leased fee interest in the land underlying the Row NYC hotel, formerly known as the Milford Plaza. The property is a 28-story, 1,331-key select-service hotel located on Eighth Avenue in the Times Square area of Midtown Manhattan. The ground lease was set to expire in 2112. In May 2024, an assumption and modification agreement was executed, pursuant to which Highgate Hotels acquired fee simple ownership of the property for an implied purchase price of $327.0 million and assumed the $275.0 million whole loan. The implied purchase price included the existing $275.0 million loan and approximately $38.0 million of fresh equity funded by Highgate at closing. Public reports characterized the transaction at around $350.0 million, which is in line with the April 2024 appraisal value of $350.0 million ($262,960 per key). The appraisal value is 9.3% lower than the $386.0 million ($290,000 per key) appraised value at issuance. The transaction consolidated ownership of the underlying land and hotel improvements and terminated the ground lease that had been the loan’s sole source of cash flow to pay debt service. The loan’s non-recoverable determination was rescinded after the assumption and modification.
- The loan transferred to the special servicer in June 2020 after the hotel operator, Rockpoint/Highgate, defaulted on its ground lease obligations in April 2020. The special servicer pursued foreclosure in June 2022. In October 2022, the leasehold tenant entered a sublease with NYC Health and Hospitals without lender or borrower consent. The sublease expired in April 2026, and the property reopened as a hotel in May 2026, reportedly after a major renovation. The most recently reported financials are as of December 2025 and reflect historical operations prior to the hotel’s reopening; KBRA has not received updated financials reflecting the property’s current hotel operations.
- According to the assumption and modification agreement executed in May 2024, Highgate will own and operate the property. The loan maturity was extended to June 2028 at the existing 3.48% fixed interest rate. All past due advances are to be repaid from cash flow, and default interest and late charges were waived. The loan remains cash managed through payoff, with excess cash flow swept until outstanding advances and related amounts are repaid. As of August 2026, the cash trap remains in place, with approximately $1.1 million held in the cash trap account. A separate interest reserve is maintained pursuant to the loan agreement with a balance of $4.8 million.
- The loan's prior non-recoverable determination resulted in realized losses and interest shortfalls to the transaction. Following the assumption and modification, previously allocated realized losses began to reverse. In May 2026, $6.8 million of realized losses were reversed, fully restoring the remaining principal losses previously allocated to the transaction from non-recoverable advances. As of the August 2026 remittance, no new collateral-level interest shortfalls are being incurred.
Apthorp Retail Condominium ($47.5 million, 21.5%, K-LOC, Current)
- The loan is collateralized by four ground-level retail suites totaling 10,981 sf and one multi-level office suite (1,870 sf) in the 161-unit luxury residential condominium building known as The Apthorp. The building is located along Broadway in the Upper West Side area of Manhattan in New York City. The loan is scheduled to mature in March 2033.
- The property’s financial performance continues to decline. For the three months ended March 2026, the servicer reported a DSC of 0.58x, compared with 0.97x for FY 2025 and 1.21x at closing. According to the January 2026 rent roll, the property was 100% leased, in line with the prior review and closing. The largest tenant, JPMorgan Chase Bank, occupies 55.7% of the collateral and represents 84.2% of total base rent, with a lease scheduled to expire in December 2029. JPMorgan pays annual rent of about $700 per sf, well above the average in-place rent of $200 per sf for the property’s other tenants. As newer leases have been executed at lower rents, property cash flow has declined from issuance levels. While there is no near-term scheduled rollover, the significant concentration and above-market rent associated with JPMorgan’s lease present meaningful rollover risk ahead of its 2029 expiration.
- As of August 2026, the loan is current on payments and not specially serviced. However, in the event of default, KBRA estimates that the loan could experience a loss given default of $5.4 million (11.4% estimated loss severity) on the loan balance of $47.5 million. The estimated loss is based on a KBRA liquidation value of $42.1 million ($3,274 per sf) and projected total exposure equal to the outstanding loan balance. The liquidation value is derived from a direct capitalization approach using KNCF of $3.4 million and a capitalization rate of 8.00%.
Brighton Shopping Center ($8.7 million, 3.9%, Underperform, Current)
- The loan is collateralized by a 299,208 sf retail center in Brighton, Michigan, approximately 40 miles northwest of Detroit. It matures in March 2032. Lease rollover through YE 2028 represents 36.1% of total base rent across 15 leases and includes five of the top 10 tenants, representing 22.2% of total base rent and 20.8% of total sf. The property’s largest tenant by base rent, Best Buy, has a lease expiration in 2029. The property has historically demonstrated strong occupancy and financial performance consistent with underwritten expectations. Based on the March 2026 rent roll, occupancy was 84.9%, in line with the prior review (86.9%) and issuance (85.3%). Two new leases were executed in 2025, with Burlington (4th largest, 9.6% of total base rent, 10.3% of collateral sf) backfilling the former Bed Bath & Beyond space in July 2025 and Ross (5th largest, 8.1% of total base rent, 10.3% of collateral sf) backfilling the former Gardner White space in October 2025. Despite relatively stable occupancy, FY 2025 servicer-reported NCF of $1.6 million represents a 27.1% decline from issuance NCF of $2.1 million, primarily due to higher expenses. However, the servicer-reported financials do not reflect income from the recently executed leases.
Details concerning the rating upgrades are as follows:
- Class B to AA- (sf) from A+ (sf)
- Class C to A- (sf) from BB+ (sf)
- Class D to BBB- (sf) from B (sf)
- Class E to BB+ (sf) from B- (sf)
- Class F to BB (sf) from CCC (sf)
- Class G to BB- (sf) from C (sf)
- Class H to B- (sf) from C (sf)
- Class PST to A- (sf) from BB+ (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.