**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

(Mark One)

**x****  ANNUAL REPORT PURSUANT TO SECTION13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2018or**

**o**** ****TRANSITIONREPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from _____ to _____Commission file number of the issuing entity: 333-206677-02**

**Central Index Key Number of the issuing entity:0001663240**

**Wells Fargo Commercial MortgageTrust 2016-C32**

**(exact name of the issuing entity as specified in itscharter)**

** **

**Central Index Key Number of the depositor: 0000850779**

**Wells Fargo Commercial MortgageSecurities, Inc.**

**(exact name of the depositor as specified in its charter)**

** **

**Central Index Key Number of the sponsor: 0000740906**

**Wells Fargo Bank, NationalAssociation**

**(exact name of the sponsor as specified in its charter)**

** **

**Central Index Key Number of the sponsor: 0001592182**

**Rialto Mortgage Finance, LLC**

**(exact name of the sponsor as specified in its charter)**

** **

**Central Index Key Number of the sponsor: 0001577313**

**National Cooperative Bank, N.A.**

**(exact name of the sponsor as specified in its charter)**

** **

**Central Index Key Number of the sponsor: 0001541214**

**C-III Commercial Mortgage LLC**

**(exact name of the sponsor as specified in its charter)**

** **

**Central Index Key Number of the sponsor: 0001542105**

**Basis Real Estate Capital II, LLC**

**(exact name of the sponsor as specified in its charter)**

** **

| **New York****(State or other jurisdiction of  incorporation or organization of**

**the issuing entity)** | **38-3984682**

**38-3984683**

**38-7145069**

**(I.R.S. Employer**

**Identification Numbers)** |
|------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|

**c/o Wells Fargo Bank, National Association**

**as Certificate Administrator**

**9062 Old Annapolis Road**

**Columbia, MD**

**(Address of principalexecutive offices of the issuing entity)**

**21045**

**(Zip Code)**

**Registrant’s telephone number,including area code:**

**(704) 374-6161**

Securities registered pursuant to Section 12(b) of theAct:  None.

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-knownseasoned issuer, as defined in Rule 405 of the Securities Act.  o Yes ⌧No

Indicate by check mark if the registrant is not required tofile reports pursuant to Section 13 or Section 15(d) of the Act.  o Yes ⌧No

Indicate by check mark whether the registrant (1) has filedall reports required to be filed by Section 13 or 15(d) of the SecuritiesExchange Act of 1934 during the preceding 12 months (or for such shorter periodthat the registrant was required to file such reports), and (2) has beensubject to such filing requirements for the past 90 days.  ⌧ Yes oNo

Indicate by check mark whether the registrant has submittedelectronically and posted on its corporate Web site, if any, every InteractiveData File required to be submitted and posted pursuant to Rule 405 ofRegulation S-T (Section 232.405 of this chapter) during the preceding 12 months(or for such shorter period that the registrant was required to submit and postsuch files).

Not applicable.

Indicate by check mark if disclosure of delinquent filerspursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is notcontained herein, and will not be contained, to the best of registrant’sknowledge, in definitive proxy or information statements incorporated byreference in Part III of this Form 10-K or any amendment to this Form10-K.   

Not applicable.

Indicate by check mark whether the registrant is a largeaccelerated filer, an accelerated filer, a non-accelerated filer, a smallerreporting company, or an emerging growth company. See the definitions of “largeaccelerated filer,” “accelerated filer,” “smaller reporting company,” and“emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer       o                                                                                                       Acceleratedfiler                                     o

Non-acceleratedfiler          ⌧  (Do not check ifa smaller reporting company)                          Smaller reportingcompany                    o

                                                                                                                                                       Emerging growthcompany                    o

If an emerging growth company, indicate by check mark if theregistrant has elected not to use the extended transition period for complyingwith any new or revised financial accounting standards provided pursuant toSection 13(a) of the ExchangeAct.                                            o

Indicate by check mark whether the registrant is a shellcompany (as defined in Rule 12b-2 of the Act).  o Yes ⌧ No

State the aggregate market value of the voting and non-votingcommon equity held by non-affiliates computed by reference to the price atwhich the common equity was last sold, or the average bid and asked price ofsuch common equity, as of the last business day of the registrant’s mostrecently completed second fiscal quarter.

Not applicable.

Indicate by check mark whether the registrant has filed alldocuments and reports required to be filed by Section 12, 13 or 15(d) of theSecurities Exchange Act of 1934 subsequent to the distribution of securitiesunder a plan confirmed by a court.  oYes oNo

Not applicable.

Indicate the number of shares outstanding of each of theregistrant’s classes of common stock, as of the latest practicable date.

Not applicable.

**DOCUMENTS INCORPORATED BY REFERENCE**

** **

List hereunder the following documents if incorporated byreference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) intowhich the document is incorporated: (1) Any annual report to security holders;(2) Any proxy or information statement; and (3) Any prospectus filed pursuantto Rule 424(b) or (c) under the Securities Act of 1933. The listed documentsshould be clearly described for identification purposes (e.g., annual report tosecurity holders for fiscal year ended December 24, 1980).

Not applicable.

 

 

The 10 South LaSalle Street Mortgage Loan, which constitutedapproximately 3.1% of the asset pool of the issuing entity as of its cut-offdate, is an asset of the issuing entity and is part of a loan combination thatincludes the 10 South LaSalle Street Mortgage Loan which is an asset of theissuing entity and one other *pari passu* loan, which is not an asset ofthe issuing entity. This loan combination, including the 10 South LaSalleStreet Mortgage Loan, is being serviced and administered pursuant to the Poolingand Servicing Agreement, which is incorporated by reference as Exhibit 4.1 tothis Annual Report on Form 10-K. Wells Fargo Bank, National Association is themaster servicer under the Pooling and Servicing Agreement.  Theresponsibilities of Wells Fargo Bank, National Association, as primary servicerof the loan combination with respect to the issuing entity, are subsumed withinits responsibilities as master servicer under the Pooling and ServicingAgreement.  Thus, the servicer compliance statement provided by WellsFargo Bank, National Association, as master servicer under the Pooling andServicing Agreement, encompasses its roles as both master servicer and primaryservicer with respect to the loan combination.

Wilmington Trust, NationalAssociation acts as trustee of the mortgage loans serviced under the Poolingand Servicing Agreement.  Pursuant to the Pooling and Servicing Agreement,the trustee is required to provide an assessment of compliance with applicableservicing criteria solely with respect to Item 1122(d)(2)(iii) of Regulation AB(regarding advances of funds or guarantees regarding collections, cash flows ordistributions, and any interest or other fees charged for such advances, aremade, reviewed and approved as specified in the transaction agreements).However, during the reporting period, the trustee did not perform any servicingfunction with respect to the servicing criteria specified in Item1122(d)(2)(iii) of Regulation AB.  The master servicer or the specialservicer, to the extent required, performed the servicing function identifiedwith respect to Item 1122(d)(2)(iii) of Regulation AB, and each such partyincluded Item 1122(d)(2)(iii) of Regulation AB in the assessment of compliancewith applicable servicing criteria and accountant’s attestation report for thesubject transaction.  As a result, this Annual Report on Form 10-K doesnot include an assessment of compliance with applicable servicing criteria ofthe trustee. One or more other servicers of the mortgage loans serviced underthe Pooling and Servicing Agreement have delivered one or more assessments ofcompliance with respect to Item 1122(d)(2)(iii) of Regulation AB.

This Annual Report on Form 10-Kincludes assessments of compliance with applicable servicing criteria and accountants’attestation reports from CoreLogic Commercial Real Estate Services, Inc. andNational Tax Search, LLC.  These entities were engaged by the masterservicer under the Pooling and Servicing Agreement (except with respect tothose mortgage loans for which National Cooperative Bank, N.A. is the masterservicer) to remit tax payments received from the escrow accounts of borrowersto local taxing authorities, to report tax amounts due, to verify tax parcelinformation, and to verify non-escrow tax payments. These servicing functionsare included within the servicing criteria set forth in Items 1122(d)(4)(xi)and 1122(d)(4)(xii) of Regulation AB.  Therefore, under theprinciples-based definition of “servicer” set forth in Item 1101(j) of RegulationAB that looks to the functions that an entity performs, these vendors are“servicers” for the purposes of Item 1122 of Regulation AB.  *See*Compliance and Disclosure Interpretations, Section 301.01 (Item 1101(j)).

**PART I**

**Item 1.  Business.**

Omitted.

**Item 1A.  Risk Factors.**

Omitted.

**Item 1B.  Unresolved Staff Comments.**

None.

**Item 2.  Properties.**

Omitted.

**Item 3.  Legal Proceedings.**

Omitted.

**Item 4.  Mine Safety Disclosures.**

Not applicable.

**PART II**

**Item 5.  Market for Registrant’s Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities.**

Omitted.

**Item 6.  Selected Financial Data.**

Omitted.

**Item 7.  Management’s Discussion and Analysis ofFinancial Condition and Results of Operations.**

Omitted.

**Item 7A.  Quantitative and Qualitative DisclosuresAbout Market Risk.**

Omitted.

**Item 8.  Financial Statements and Supplementary Data.**

Omitted.

**Item 9.  Changes in and Disagreements WithAccountants on Accounting and Financial Disclosure.**

Omitted.

**Item 9A.  Controls and Procedures.**

Omitted.

**Item 9B.  Other Information.**

None.

**PART III**

**Item 10.  Directors, Executive Officers and CorporateGovernance.**

Omitted.

**Item 11.  Executive Compensation.**

Omitted.

**Item 12.  Security Ownership of Certain BeneficialOwners and Management and Related Stockholder Matters.**

Omitted.

**Item 13.  Certain Relationships and RelatedTransactions, and Director Independence.**

Omitted.

**Item 14.  Principal Accounting Fees and Services.**

Omitted.

**ADDITIONAL DISCLOSURE ITEMS FOR REGULATION AB**

**Item 1112(b) of Regulation AB, Significant ObligorFinancial Information.**

No single obligor represents 10% or more of the pool assetsheld by the issuing entity.

**Item 1114(b)(2) of Regulation AB, Significant EnhancementProvider Financial Information.**

No entity or group of affiliated entities provides any externalcreditenhancement or other support for the certificates within this transaction asdescribed under Item 1114(a) of Regulation AB.

**Item 1115(b) of Regulation AB, Certain DerivativesInstruments (Financial Information).**

No entity or group of affiliated entities provides anyderivative instruments or other support for the certificates within thistransaction as described under Item 1115 of Regulation AB.

**Item 1117 of Regulation AB, Legal Proceedings.**

The registrant knows of no material pending legal proceedinginvolving the trust or any party related to the trust, other than routinelitigation incidental to the duties of those respective parties, and thefollowing, with respect to Wells Fargo Bank, National Association, ascertificate administrator and as custodian:

Since June 18, 2014, a group of institutional investors havefiled civil complaints in the Supreme Court of the State of New York, New YorkCounty, and later the U.S. District Court for the Southern District of New Yorkagainst Wells Fargo Bank, N.A., (“Wells Fargo Bank”) in its capacity as trusteefor certain residential mortgage backed securities (“RMBS”) trusts.  Thecomplaints against Wells Fargo Bank alleged that the trustee caused losses toinvestors and asserted causes of action based upon, among other things, thetrustee's alleged failure to: (i) notify and enforce repurchase obligations ofmortgage loan sellers for purported breaches of representations and warranties,(ii) notify investors of alleged events of default, and (iii) abide byappropriate standards of care following alleged events of default. Reliefsought included money damages in an unspecified amount, reimbursement ofexpenses, and equitable relief. Wells Fargo Bank has reached an agreement, inwhich it denies any wrongdoing, to resolve these claims on a classwide basisfor the 271 RMBS trusts currently at issue.  The settlement agreement issubject to court approval.  Separate lawsuits against Wells Fargo Bankmaking similar allegations filed by certain other institutional investorsconcerning 57 RMBS trusts in New York federal and state court are not coveredby the agreement.  With respect to the foregoing litigations, Wells FargoBank believes plaintiffs' claims are without merit and intends to contest theclaims vigorously, but there can be no assurances as to the outcome of thelitigations or the possible impact of the litigations on Wells Fargo Bank orthe RMBS trusts.

**Item 1119 of Regulation AB, Affiliations and CertainRelationships and Related Transactions.**

The information regarding this Item has been previouslyprovided in the prospectus of the Registrant relating to the issuing entityfiled on February 18, 2016 pursuant to Rule 424(b)(2).

**Item 1122 of Regulation AB, Compliance with ApplicableServicing Criteria.**

The reports on assessments of compliance with the servicingcriteria for asset-backed securities and related attestation reports on suchassessments of compliance with respect to the mortgage loans are attachedhereto under Item 15 to this Annual Report on Form 10-K. Attached as Exhibit AAto the Pooling and Servicing Agreement incorporated by reference as Exhibit 4.1to this Annual Report on Form 10-K is a chart identifying the entitiesparticipating in a servicing function for the transaction responsible for eachapplicable servicing criteria set forth in Item 1122(d).

**Item 1123 of Regulation AB, Servicer Compliance Statement.**

The servicer compliance statements are attached as Exhibitsto this Annual Report on Form 10-K.

**PART IV**

**Item 15. Exhibits, Financial Statement Schedules**

(a) The following is a list of documents filed as part ofthis Annual Report on Form 10-K:

(1) Not applicable

(2) Not applicable

(3) See below

 

4.1          Poolingand Servicing Agreement, dated as of February 1, 2016, by and among Wells FargoCommercial Mortgage Securities, Inc., as Depositor, Wells Fargo Bank, NationalAssociation, as General Master Servicer, Rialto Capital Advisors, LLC, asGeneral Special Servicer, National Cooperative Bank, N.A. as NCB MasterServicer and NCB Special Servicer, Wells Fargo Bank, National Association, asCertificate Administrator, Wilmington Trust, National Association, as Trustee,and Pentalpha Surveillance LLC, as Operating Advisor and Asset RepresentationsReviewer (filed as Exhibit 4.1 to the registrant’s Current Report on Form 8-Kfiled on February 18, 2016 under Commission File No. 333-206677-02  and incorporatedby reference herein).

4.2          Co-LenderAgreement, dated as of December 31, 2015, by and among Wells Fargo Bank, NationalAssociation, as Initial Note A-1 Holder and Initial Note A-2 Holder (filed asExhibit 4.2 to the registrant’s Current Report on Form 8-K filed on February18, 2016  under Commission File No. 333-206677-02 and incorporated byreference herein.

31           Rule 13a-14(d)/15d-14(d) Certifications.

33           Reports on assessment of compliance with servicing criteria for asset-backedsecurities.

 

33.1        Wells Fargo Bank, NationalAssociation, as Master Servicer

33.2        National CooperativeBank, N.A., as NCB Master Servicer

33.3        Rialto CapitalAdvisors, LLC, as Special Servicer

33.4        National CooperativeBank, N.A., as NCB Special Servicer (see Exhibit 33.2) 

33.5        Wilmington Trust, National Association, as Trustee(Omitted. See Explanatory Notes.)

33.6        Wells Fargo Bank,National Association, as Certificate Administrator

33.7        Wells Fargo Bank,National Association, as Custodian

33.8        Pentalpha Surveillance LLC,as Operating Advisor

33.9        CoreLogic CommercialReal Estate Services, Inc., as Servicing Function Participant

33.10       National Tax Search, LLC, asServicing Function Participant

33.11       Wells Fargo Bank, NationalAssociation, as Primary Servicer of the 10 South LaSalle Street Mortgage Loan(see Exhibit 33.1) 

33.12       Rialto Capital Advisors, LLC,as Special Servicer of the 10 South LaSalle Street Mortgage Loan (see Exhibit33.3) 

33.13       Wilmington Trust, National Association, as Trustee of the10 South LaSalle Street Mortgage Loan (Omitted. See Explanatory Notes.)

33.14       Wells Fargo Bank, NationalAssociation, as Certificate Administrator of the 10 South LaSalle StreetMortgage Loan (see Exhibit 33.6) 

33.15       Wells Fargo Bank, NationalAssociation, as Custodian of the 10 South LaSalle Street Mortgage Loan (seeExhibit 33.7) 

33.16       Pentalpha Surveillance LLC,as Operating Advisor of the 10 South LaSalle Street Mortgage Loan (see Exhibit33.8) 

33.17       CoreLogic Commercial RealEstate Services, Inc., as Servicing Function Participant of the 10 SouthLaSalle Street Mortgage Loan (see Exhibit 33.9) 

33.18       National Tax Search, LLC, asServicing Function Participant of the 10 South LaSalle Street Mortgage Loan(see Exhibit 33.10) 

34           Attestationreports on assessment of compliance with servicing criteria for asset-backedsecurities.

 

34.1        Wells Fargo Bank,National Association, as Master Servicer

34.2        National CooperativeBank, N.A., as NCB Master Servicer

34.3        Rialto CapitalAdvisors, LLC, as Special Servicer

34.4        National CooperativeBank, N.A., as NCB Special Servicer (see Exhibit 34.2) 

34.5        Wilmington Trust, National Association, as Trustee(Omitted. See Explanatory Notes.)

34.6        Wells Fargo Bank,National Association, as Certificate Administrator

34.7        Wells Fargo Bank,National Association, as Custodian

34.8        Pentalpha SurveillanceLLC, as Operating Advisor

34.9        CoreLogic CommercialReal Estate Services, Inc., as Servicing Function Participant

34.10       National Tax Search, LLC, asServicing Function Participant

34.11       Wells Fargo Bank, NationalAssociation, as Primary Servicer of the 10 South LaSalle Street Mortgage Loan(see Exhibit 34.1) 

34.12       Rialto Capital Advisors, LLC,as Special Servicer of the 10 South LaSalle Street Mortgage Loan (see Exhibit34.3) 

34.13       Wilmington Trust, National Association, as Trustee of the10 South LaSalle Street Mortgage Loan (Omitted. See Explanatory Notes.)

34.14       Wells Fargo Bank, NationalAssociation, as Certificate Administrator of the 10 South LaSalle StreetMortgage Loan (see Exhibit 34.6) 

34.15       Wells Fargo Bank, National Association,as Custodian of the 10 South LaSalle Street Mortgage Loan (see Exhibit 34.7) 

34.16       Pentalpha Surveillance LLC,as Operating Advisor of the 10 South LaSalle Street Mortgage Loan (see Exhibit34.8) 

34.17       CoreLogic Commercial RealEstate Services, Inc., as Servicing Function Participant of the 10 SouthLaSalle Street Mortgage Loan (see Exhibit 34.9) 

34.18       National Tax Search, LLC, asServicing Function Participant of the 10 South LaSalle Street Mortgage Loan(see Exhibit 34.10) 

35           Servicer compliance statements.

 

35.1        Wells Fargo Bank,National Association, as Master Servicer

35.2        National CooperativeBank, N.A., as NCB Master Servicer

35.3        Rialto CapitalAdvisors, LLC, as Special Servicer

35.4        National CooperativeBank, N.A., as NCB Special Servicer

35.5        Wells Fargo Bank,National Association, as Certificate Administrator

35.6        Wells Fargo Bank,National Association, as Primary Servicer of the 10 South LaSalle StreetMortgage Loan (see Exhibit 35.1) 

35.7        Rialto CapitalAdvisors, LLC, as Special Servicer of the 10 South LaSalle Street Mortgage Loan(see Exhibit 35.3) 

35.8        Wells Fargo Bank,National Association, as Certificate Administrator of the 10 South LaSalleStreet Mortgage Loan (see Exhibit 35.5) 

99.1        MortgageLoan Purchase Agreement, dated as of February 3, 2016, between Wells FargoCommercial Mortgage Securities, Inc. and Wells Fargo Bank, National Association(filed as Exhibit 99.1 to the registrant’s Current Report on Form 8-K filed onFebruary 18, 2016  under Commission File No. 333-206677-02 andincorporated by reference herein)

99.2        MortgageLoan Purchase Agreement, dated as of February 3, 2016, between Wells FargoCommercial Mortgage Securities, Inc. and Rialto Mortgage Finance, LLC (filed asExhibit 99.2 to the registrant’s Current Report on Form 8-K filed on February18, 2016  under Commission File No. 333-206677-02 and incorporated byreference herein)

99.3        MortgageLoan Purchase Agreement, dated as of February 3, 2016, between Wells FargoCommercial Mortgage Securities, Inc. and National Cooperative Bank, N.A. (filedas Exhibit 99.3 to the registrant’s Current Report on Form 8-K filed onFebruary 18, 2016  under Commission File No. 333-206677-02 andincorporated by reference herein)

99.4        MortgageLoan Purchase Agreement, dated as of February 3, 2016, between Wells FargoCommercial Mortgage Securities, Inc. and C-III Commercial Mortgage LLC (filedas Exhibit 99.4 to the registrant’s Current Report on Form 8-K filed onFebruary 18, 2016  under Commission File No. 333-206677-02 andincorporated by reference herein)

99.5        MortgageLoan Purchase Agreement, dated as of February 3, 2016, among Wells FargoCommercial Mortgage Securities, Inc., Basis Real Estate Capital II, LLC andBasis Investment Group LLC (filed as Exhibit 99.5 to the registrant’s CurrentReport on Form 8-K filed on February 18, 2016  under Commission File No.333-206677-02 and incorporated by reference herein)

(b)   The exhibits required to be filed by theRegistrant pursuant to Item 601 of Regulation S-K are listed above.

(c)    Not Applicable.

 

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of theSecurities Exchange Act of 1934, the registrant has duly caused this report tobe signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Commercial MortgageSecurities, Inc.(Depositor)

/s/ AnthonySfarra

AnthonySfarra, President

(senior officer in charge ofsecuritization of the depositor)

Date: March 22, 2019