Press Release|CMBS

KBRA Affirms All Ratings for COMM 2013-CCRE9

18 Jul 2025 | New York

KBRA affirms all of its outstanding ratings for COMM 2013-CCRE9, a $56.9 million CMBS conduit transaction. The affirmations reflect stability in our estimated losses for the remaining three assets since our last rating changes in July 2023. Two (87.9% of the pool balance) of the three remaining assets maintain K-LOC designations and have estimated losses. One loan has been modified and extended (78.1%) and the specially serviced asset (9.8%) is REO. The details of the assets are outlined below.

Valley Hills Mall (largest loan, 78.1%, K-LOC, Underperform)

The loan is collateralized by a 936,682 sf regional mall of which 325,166 sf serves as loan collateral. The property is located in Hickory, North Carolina approximately 55 miles west of Charlotte. The mall is now owned and operated by Namdar Realty Group and was formerly owned by Brookfield Properties. The mall anchors are Belk, Dillard’s, and JCPenney, each of which own their respective stores and underlying land.
KBRA maintains the loan’s K-LOC designation and KPO of Underperform due to the loan's prior status with the special servicer and modification. In April 2023, the special servicer indicated that the property was sold, and the loan was modified and assumed by the new owner. The loan subsequently returned to the master servicer in July 2023. The loan's maturity date is currently scheduled for July 2025, but has a one-year extension option available, subject to certain conditions. As part of the loan's modification, it converted to interest-only debt service payments and had a $5.0 million principal curtailment applied. Additionally, the modification required all excess cash flow generated from the property to be used to pay back the loan until $22.5 million in principal is paid down, after which, excess cash flow would be used as additional collateral some of which could be used to pay down the loan further.
The loan converted to interest-only payments in April 2023. The servicer-reported occupancies and DSCs are: 92.0% / 2.44x (FY March 2025, IO), 75.0% / 1.86x (FY 2023, partial IO), 75.1% / 1.00x (FY 2022, amortizing); at closing these were 85.5% / 1.56x (amortizing). An appraisal dated February 2023 valued the collateral property at $27.5 million ($85 per sf), which is 71.9% below the $97.9 million ($301 per sf) value at issuance. As a result, the asset carries an ARA of $31.3 million. KBRA’s analysis resulted in an estimated loss given default of $14.7 million based on a value of $20.7 million ($64 per sf) which considers a distressed non-stabilized liquidation of the asset.

Lunds at Cobalt (2nd largest, 12.1%)

The loan is collateralized by a 44,422 sf, single-tenant grocery store property in Minneapolis, Minnesota.
The loan was previously on the master servicer's watchlist due to its July 2023 ARD. The borrower gave notice that they did not intend to pay off the loan at its ARD and as a result excess funds will be applied to principal curtailment. The loan's final maturity date is May 2026. The property is fully leased to Lunds & Byerlys, a local grocery chain, pursuant to a lease that expires in June 2026.
The servicer-reported occupancies and DSCs are: 100% / 1.55x (FY 2024), 100% / 1.64x (FY 2023), 100% / 1.36x (FY 2022); at closing these were 100% / 1.52x.

Winn Dixie – New Orleans (3rd largest, 9.8%, K-LOC, REO, Underperform)

The loan is collateralized by a 59,000-sf single-tenant property in New Orleans, Louisiana.
KBRA maintains the asset's K-LOC designation and KPO of Underperform due to its REO status. The property is now fully leased to Autozone (64.3% of total sf) and Harbor Freight Tools USA, Inc. (35.7%) with leases scheduled to expire in April 2038 and June 2034, respectively. June 2025 special servicer commentary indicated the property is currently listed for sale.
The servicer-reported occupancies and DSCs are: 64.0% / -0.93x (FY 2023), 64.0% / -0.45x (FY 2022); at closing these were 100% / 1.39x. An appraisal dated June 2025 valued the collateral property at $5.5 million ($93 per sf), which is 50.5% below the $11.1 million ($188 per sf) value at issuance. As a result, the asset carries an ARA of $930,361. KBRA’s analysis resulted in an estimated loss of $3.3 million based on a $4.95 million ($84 per sf) valuation of the asset, which is 90% of the June 2025 appraised value.

Details concerning the ratings affirmation are as follows:

Class E at CCC (sf)
Class F at C (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 asset in the transaction, as well as the continuing magnitude and extent of interest shortfalls on the certificates.

To access ratings and relevant documents, click here.

Related Publication

CMBS: COMM 2013-CCRE9 Pre-Sale Report