KBRA cuts GSMS 2014-GC26 Class G rating after Bank of America Plaza losses

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KBRA cuts GSMS 2014-GC26 rating

Highlights

KBRA downgraded GSMS 2014-GC26 Class G to D (sf) from C (sf) after Bank of America Plaza liquidation generated $175.9 million in realized losses.
The property sold for $210.0 million on June 16, 2026, triggering a 44.0% loss severity on the $400.0 million whole loan and a $10.3 million trust loss.
Cumulative principal losses for the $224.7 million transaction now total $36.9 million, with Class G’s balance cut to $8.6 million and Class H reduced to zero.

Loss allocation after Los Angeles office sale

As reported by Kroll Bond Rating Agency, KBRA downgrades the rating of the Class G certificate in GSMS 2014-GC26 to D (sf) from C (sf) after realized principal losses from the resolution of the Bank of America Plaza loan. The transaction is a $224.7 million CMBS conduit deal, and the rating action is reflected in the July 2026 remittance report.

The collateral included a 55-story, LEED Gold-certified Class A office tower on Bunker Hill in the Los Angeles central business district, with about 1.4 million square feet of office space, more than 24,000 square feet of ground-floor retail, and nine levels of underground parking. The property was liquidated on June 16, 2026, for $210.0 million, producing a $175.9 million realized loss on the $400.0 million whole loan, equal to a 44.0% loss severity.

An appraisal dated December 2024 valued the property at $212.5 million, or $148 per square foot, down 64.9% from its issuance value of $605.0 million, or $422 per square foot. The trust's pari passu interest generated $13.5 million of gross liquidation proceeds, and after $458,015 in liquidation expenses, net proceeds available for distribution totaled $13.1 million, resulting in a $10.3 million realized loss.

Transaction impact on remaining certificates

Under the July 2026 remittance report, $8.0 million of realized losses are allocated to the remaining certificates. KBRA says the realized loss is generally in line with its expectations outlined in its July 2026 press release.

Cumulative principal losses on the transaction, including adjustments, total $36.9 million, according to the remittance report. After the Bank of America Plaza liquidation, the certificate balance for non-KBRA-rated Class H is reduced to zero, while the principal balance of Class G falls to $8.6 million, or 68.6% of its original certificate balance.

KBRA says its other outstanding ratings for the transaction are unchanged at this time.

Our earlier coverage of the SWVP Trust 2026-GRAND refinancing detailed provisional ratings assigned across multiple CMBS certificate classes backed by a $270.0 million floating-rate, interest-only mortgage on the Grand Hyatt Nashville. The article outlined the loan’s SOFR-based structure and extension options, and it summarized operating metrics such as RevPAR and group demand, along with plans for a $20–$30 million soft-goods renovation in 2028.

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