DBRS Confirms Ratings on WFRBS Commercial Mortgage Trust 2014-C21

DBRS Limited (DBRS) has today confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2014-C21 (the Certificates), issued by WFRBS Commercial Mortgage Trust 2014-C21 (the Trust) as follows:

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

All trends are Stable. DBRS does not rate the first loss piece, Class G. The Class PEX certificates are exchangeable with the Class A-M, Class B and Class C certificates (and vice versa), whereas the Class A-SBFL certificates are exchangeable with the Class A-SBFX certificates (and vice versa).

The rating confirmations reflect that the transaction’s current performance has remained in line with expectations since issuance in August 2014. The pool consists of 121 fixed-rate loans secured by 145 commercial and multifamily properties. As of the July 2015 remittance, the pool has an aggregate outstanding balance of approximately $1.41 billion, representing a collateral reduction of 0.7% since issuance as a result of scheduled loan amortization. The transaction benefits from loans secured by properties located within urban and suburban markets, representing 26.3% and 62.3% of the current pool balance, respectively. The pool also has a relatively low concentration of loans secured by retail properties, as only nineteen loans, representing 20.1% of the current pool balance are secured by the property type. As of the July 2015 remittance, there are no loans in special servicing and seven loans on the servicer’s watchlist, representing 4.0% of the current pool balance.

RiverPlace Athletic Club (Prospectus ID#49, 0.5% of the current pool balance) is secured by a three-story, freestanding athletic club, which was original constructed in 1986 and renovated in 2007. The 55,462 square foot (sf) property is located within the RiverPlace District in Portland, Oregon, which is a development that was initiated in the mid 1980’s. The loan was added to the watchlist in March 2015 due to a low debt service coverage ratio of 1.10 times as of Q3 2014. The servicer also reports that the single tenant, RiverPlace Athletic Club, was evicted from its space as of March 2015 and the courts have since assigned a receiver, which is selling the tenant’s assets in order to satisfy creditors’ claims. According to the servicer, the tenant's assets in the gym are currently being sold to pay creditors and the borrower will be pursuing a $9 million guaranty under the lease. The borrower has noted that there have been interested leasing prospects; however, a significant amount of tenant improvements and/or possible rental concessions would most likely be needed. As of July 2015, the loan is current and the borrower reports that they intend to continue making their monthly debt service payments while searching for prospective tenants.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction. The July 2015 Monthly CMBS Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

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 July 2015 Monthly CMBS 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.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are CMBS North American Surveillance (January 2015) and North American CMBS Rating Methodology (June 2015), which can be found on our website under Methodologies.