DBRS Confirms Ratings of COMM 2014-UBS2 Mortgage Trust

DBRS, Inc. (DBRS) has today confirmed all classes of COMM Commercial Mortgage Trust 2014-UBS2 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-M at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class PEZ at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (low) (sf)
-- Class F at B (low) (sf)

All trends are Stable.

The pool consists of 59 fixed-rate loans secured by 95 commercial and multifamily properties. As of the November 2014 remittance, the pool had an aggregate balance of $1.2 billion, representing a collateral reduction of approximately 0.3% since issuance due to scheduled loan amortization.
As of the November 2014 remittance report, there are five loans on the servicer’s watchlist, representing 6.9% of the current pool balance. In addition, there is one loan in special servicing (highlighted below).

The Creekside Mixed Use Development, (Prospectus ID#15, 2.0% of the current pool) is secured by a 340,354 sf mixed-use property located in Gahanna, Ohio. The property was constructed in 2007 and consists of three buildings, 39,039 sf (11.5% NRA) of which is considered office space, 58,237 sf (17.1% NRA) is considered retail space and the remaining 243,078 sf (71.4% NRA) comprises 95 residential units, 11 of which are condominium units and are not included as collateral. The loan was transferred to special servicing with the September 2014 remittance and is currently three months delinquent. The borrower previously requested consent to release holdback funds, and in the course of processing the request ultimately stopped making debt service payments. The borrower has since initiated litigation against the lender and special servicer over the release of funds in the holdback reserve. According to the special servicer, discussions are ongoing and timing of a resolution is unknown. Despite the delinquency and litigation, the loan’s performance has remained stable. As of June 2014, the property was 100% occupied with an annualized DSCR of 1.52x.

The DBRS analysis included an in-depth review of the 15 largest loans in the transaction, as well as the loan in special servicing and five loans on the servicer’s watchlist, which collectively represent 65.3% of the current pool balance.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction including details on the largest loans in the pool. The December 2014 Monthly Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.