KBRA Affirms All Ratings for MSBAM 2013-C12
4 Feb 2026 | New York
KBRA affirms all ratings for MSBAM 2013-C12, a $152.2 million CMBS conduit transaction which has four assets remaining in the mortgage pool, each of which has been identified as a K-LOC. The affirmations follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's remaining four loans, which have not meaningfully changed since KBRA's last ratings change in February 2024. As of the January 2026 remittance period, one loan (41.6%) is in foreclosure, one (32.1%) has a non-performing matured balloon status, one (21.1%) has a performing matured balloon status, and one asset (3.6%) is REO. The details of the loans are outlined below.
15 MetroTech Center (largest, 41.6%, K-LOC, Foreclosure)
- The loan is collateralized by a 649,492 sf, Class-A office building located in downtown Brooklyn, New York. The 19-story property was built in 2003 and offers 243 parking spaces in a below-grade parking garage. The borrower ground leases the land from the City of New York pursuant to a 99-year ground lease that expires in December 2100.
- KBRA maintains the loan's K-LOC designation and KPO of Underperform due to its transfer to special servicing in July 2023 and its subsequent maturity default in September 2023. The loan status was updated to matured non-performing as of January 2024, and later changed to foreclosure after the borrower expressed interest in transferring the title to the lender. The special servicer is in the process of appointing a receiver. The property previously suffered from declining occupancy and increased expenses, including a ground lease rental rate increase in 2023.
- The servicer-reported occupancies and DSCs are: 69.0% / 0.97x (YTD June 2025), 70.0% / 0.97x (YTD September 2023); at closing these were 97.8% / 1.42x. The subject was reappraised for $134.5 million ($207 per sf) in August 2025, a 50.7% decline from $273.0 million ($423 per sf) at issuance. KBRA's analysis resulted in an estimated loss of $25.4 million on a whole loan balance of $116.7 million (21.8% estimated loss severity). The loss is based on a KBRA liquidation value of $92.1 million ($142 per sf). The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.
Westfield Countryside (2nd largest, 32.1%, K-LOC, Matured Non-Performing Balloon)
- The loan is collateralized by a 1.3 million sf, regional mall located in Clearwater, Florida, in the North Pinellas submarket, approximately 25 miles west of the Tampa CBD. Dillard's, JC Penney, Macy's and Whole Foods all serve as non-collateral anchors.
- KBRA maintains the loan's K-LOC designation and KPO of Underperform based on its matured non-performing status with the special servicer following its failure to pay off at the June 2023 maturity date. The subject has previously suffered a decline in performance due to fluctuating occupancy and exposure to financially distressed tenants. In addition, inclusive of MTM leases, leases generating 19.2% of base rent are scheduled to expire through YE 2026. According to servicer commentary, after two unsuccessful attempts to trade the asset, it has been removed from the market to focus on leasing in order to better position it for a future sale. Since last review, one new tenant (5.5% of sf) executed a lease beginning in May 2025.
- The servicer-reported occupancies and DSCs are: 80.0% / 0.79x ( YTD September 2025), 93.0% / 1.06x (FY 2024); at closing these were 91.7% / 1.66x. The subject was reappraised for $120.0 million ($258 per sf) in July 2025, a 55.6% decline from $270.0 million ($581 per sf) at issuance. As a result, an ARA of $12.2 million was assigned to the loan in November 2025, resulting in a cumulative ASER of $1.9 million. KBRA's analysis resulted in an estimated loss of $68.9 million on a whole loan balance of $132.9 million (51.8% estimated loss severity). The loss is based on a KBRA liquidation value of $70.2 million ($151 per sf). The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.
385 Fifth Avenue (3rd largest, 21.1%, K-LOC, Matured Performing Balloon)
- The loan is collateralized by a 102,219 sf, 18-story Class-B office building located in the Murray Hill submarket of New York City, less than a mile from Midtown Manhattan. The property, which is known as the “Accessory Center” is operated primarily as a showroom, as majority of the tenants cater to buyers in the women's accessories and jewelry industries.
- KBRA maintains the loan's K-LOC designation and KPO of Underperform based on its status with the special servicer after defaulting at its modified June 2025 maturity date, which was extended from its original June 2023 maturity date. According to special servicer commentary, a new 12-month maturity extension has been agreed upon, however further details of the modification have not been made available.
- The servicer-reported occupancies and DSCs are: 96.0% / 0.86x (FY 2024), 95.0% / 1.31x (FY 2022); at closing these were 99.4% / 1.31x. The subject was reappraised for $33.6 million ($329 per sf) in July 2025, a 38.9% decline from $55.0 million ($538 per sf) at issuance. KBRA's analysis resulted in an estimated loss of $13.5 million on a whole loan balance of $31.1 million (43.4% estimated loss severity). The loss is based on a KBRA liquidation value of $19.0 million ($186 per sf). The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.
Hermitage Crossing (4th largest, 3.6%, K-LOC, REO)
- The asset is a 51,631 sf neighborhood retail center located in Hermitage, Pennsylvania.
- KBRA maintains the asset's K-LOC designation and KPO of Underperform based on its REO status. The asset became REO in September 2024 following a foreclosure sale.
- The subject was reappraised for $4.8 million ($92 per sf) in June 2025, a 47.2% decline from $9.0 million ($174 per sf) at issuance. KBRA's analysis resulted in an estimated loss of $1.6 million on a whole loan balance of $5.2 million (32.4% estimated loss severity). The loss is based on a KBRA liquidation value of $4.1 million ($79 per sf). The value considers a distressed non-stabilized disposition of the asset as well as comparable market values.
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.
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