Press Release|CMBS

KBRA Affirms All Ratings for COMM 2014-CCRE16

16 May 2025 | New York

KBRA affirms all of its outstanding ratings for COMM 2014-CCRE16, a $181.6 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction and are based on the performance and expected recovery of the five remaining assets, all of which have been identified as K-LOCs.

As of the May 2025 remittance period, five assets remain in the pool, all of which were identified as K-LOCs. Four of these assets (84.4% of the pool balance) are specially serviced, including one that is in foreclosure (3.0%) and two (17.2%) that are REO. The details of the five assets are outlined below.

25 Broadway (largest, 64.2%, K-LOC, Specially Serviced)

The loan is collateralized by a 22-story, Class-B, landmark office building located in the downtown area of New York City’s borough of Manhattan.
KBRA maintains the loan's K-LOC designation and KPO of Underperform based on the loan's forbearance and status with the special servicer. The loan transferred to special servicing in March 2024 after the borrower advised the servicer of its inability to pay the loan off at loan maturity. The special servicer and borrower executed a forbearance agreement in July 2024, which extended the loan's maturity through July 2026 with an additional six-month extension option and, and which required the borrower to pay down the loan balance by $7.0 million. The largest tenant at the property, Léman Manhattan Preparatory School (21.3% of total base rent), stopped paying rent at the property in June 2023. The special servicer reported that an amendment to the tenant's lease was executed, which included an equity infusion from the tenant and back rent due. The loan was current in payment as of May 2025.
The servicer reported occupancies and DSCs are: 89.0% / 1.38x (YTD September 2024), 92.0% / 1.64x (FY 2023); at closing these were 95.8% / 1.90x. An appraisal dated July 2024 valued the property at $284.0 million ($299 per sf), which was 23.0% below the $369.0 million ($388 per sf) value at issuance. KBRA’s analysis resulted in an estimated loss of $74.0 million (30.5% estimated loss severity) on the whole loan balance of $243.0 million. The loss is based on a KBRA liquidation value of $170.4 million ($179 per sf). The value is derived from a direct capitalization approach using a KNCF of $15.8 million and a capitalization rate of 9.25%.

252 West 37th Street (2nd largest, 15.6%, K-LOC, Watchlist)

The loan is collateralized by a 161,613 sf, Class-B office property located in the Garment District of New York City’s borough of Manhattan. The 17-story building was developed in 1928 and includes 152,913 sf of office space and 8,700 sf of ground floor retail space.
KBRA maintains the loan's K-LOC designation and KPO of Underperform based on its forbearance. The loan transferred to the special servicer in October 2023 due to imminent monetary default after the borrower was unable to pay off the loan at maturity in January 2024. The special servicer then approved a maturity extension through January 2026, which required the borrower to pay down the loan balance by $5.1 million. The loan returned to the master servicer in November 2024. The borrower planned to renovate the entire property. The property has not generated enough cash flow to cover debt service payments since June 2022 as a result of a decline in occupancy, which was most recently reported at 60.0% in September 2024.
The servicer-reported occupancies and DSCs are: 60.0% / 0.53x (YTD September 2024), 64.0% / 0.76x (FY 2023); at closing these were 100% / 1.21x. An appraisal dated September 2024 valued the property at $47.2 million ($294 per sf), which was 37.1% below the $75.0 million value ($468 per sf) at issuance. At this time, KBRA does not estimate a loss on this loan, which has an outstanding balance of $28.3 million.

555 West 59th Street (3rd largest, 9.6%, K-LOC, REO)

The asset consists of three commercial condominiums totaling 40,568 sf at the Element, a residential condominium building located on West 59th Street, between Tenth and Eleventh Avenues in New York City’s borough of Manhattan.
KBRA maintains the asset’s K-LOC designation and KPO of Underperform based on its REO status. Judicial foreclosure was filed in August 2022 and the asset became REO in April 2024. KBRA initially identified the asset as a K-LOC based on the collateral's significant exposure to Hertz (69% of GLA) when the car rental company filed for bankruptcy. Hertz rejected the lease in court and paid 100% of the claim amount, which was applied to the loan. Based on the December 2024 rent roll, inclusive of leasing updates, there are only two remaining tenants, Book Nook WEA LLC, which occupies 4.6% of total sf, and Centerpark Management LLC which operates the parking garage.
The servicer- reported occupancies and DSCs are: 93.0% / 0.21x (YTD June 2023); 93.0% / 1.03x (FY 2020); at issuance these were 100% / 1.31x. An appraisal dated May 2024 valued the property at $7.8 million ($192 per sf), which was 71.4% below the $27.3 million value ($673 per sf) at issuance. KBRA’s analysis resulted in an estimated loss of $14.6 million (84.0% estimated loss severity) on the outstanding balance of $17.4 million. The loss is based on a KBRA liquidation value of $6.5 million ($161 per sf). The value is derived from a direct capitalization approach using a KNCF of $820,000 and a capitalization rate of 8.50%, and accounts for a $3.1 million deduction for TI/LC costs.

CVS Las Vegas Strip (4th largest, 7.6%, K-LOC, REO)

The asset is a 14,378 sf retail property in Las Vegas, Nevada. The property is located on the Las Vegas Strip near the Hilton Grand Vacation, Sahara Hotel and Casino and Circus Circus.
KBRA maintains the asset's K-LOC designation and a KPO of Underperform based on its REO Status. The loan transferred to the special servicer after the borrower failed to pay off the loan at maturity in April 2024. The property's single tenant, CVS, vacated in November 2019 prior to its April 2029 lease expiration, which triggered a cash sweep. However, CVS continues to honor its lease obligations. A foreclosure sale was held in April 2025 and the asset became REO. The special servicer has not yet established a timeline to sell the asset.
The servicer-reported occupancies and DSCs are: 100% / 1.45x (FY 2023), 100% / 1.44x (FY 2022); at closing these were 100% / 1.35x. An appraisal dated May 2024 valued the property at $16.0 million ($1,110 per sf), 47.0% below the $30.2 million value ($2,100 per sf) at issuance. At this time, KBRA does not estimate a loss on this asset, which has an unpaid balance of $13.8 million.

The Piers (5th largest, 3.0%, K-LOC, Foreclosure)

The loan is collateralized by a 91,000-sf dual-tenant retail property located in Port Richey, Florida.
KBRA maintains the loan's K-LOC designation and assigned a KPO of Underperform based on its foreclosure status. The loan transferred to the special servicer after the borrower failed to pay off the loan at maturity in April 2024. The second-largest tenant, Ashley Furniture (29.0% of collateral sf), vacated prior to lease expiration in December 2025. The special servicer began foreclosure proceedings in February 2025 while dual tracking workout alternatives with the borrower.
The servicer-reported occupancies and DSCs are: 100% / 2.11x (FY 2023), 100% / 2.19x (FY 2022); at closing these were 100% / 1.56x. KBRA’s analysis resulted in an estimated loss of $524,000 (9.6% estimated loss severity). The loss is based on a KBRA liquidation value of $5.2 million ($57 per sf). The value is derived from a direct capitalization approach using a KNCF of $509,000 and a capitalization rate of 9.25%, and accounts for a $275,000 deduction for TI/LC costs.

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: COMM 2014-CCRE16 Pre-Sale Report