Fitch Downgrades Two Classes of GMAC 2001-C1; Removes Three from Rating Watch Negative

CHICAGO--()--Fitch Ratings downgrades two classes of GMAC Commercial Mortgage Securities, Inc. mortgage pass-through certificates, series 2001-C1. In addition, Fitch affirms two classes and removes three from Rating Watch Negative. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The downgrades are due to higher expected losses from the specially serviced loans; three of the four remaining loans are in special servicing.

The affirmation of class E is due to sufficient credit enhancement in light of the concentrated nature of the pool. Full payoff and recovery of interest shortfalls is likely due to the future amortization of the remaining performing loan as well as anticipated proceeds from the ultimate disposition of the specially serviced assets.

As of the February 2013 distribution date, the pool's certificate balance has paid down 95.5% to $47.7 million from $864.1 million at issuance. Realized losses to date are 7.3% of the original pool balance. As of the February 2013 remittance, interest shortfalls are affecting class E through P and total $5.7 million.

Bridgewater Place (73.1% of the pool) is an REO office property located in Grand Rapids, MI. The 315,202 square foot (sf) 17 story office property was built in 1993 within the central business district (CBD). The servicer reported occupancy was 57% as of February 2013. Varnum, the largest tenant, occupying 98,889 sf of net rental area recently extended their lease for another ten year term.

Bel Air Park II (11.4%) is an REO office property located in suburban Mobile, AL. The building's occupancy recently dropped to 65% due to the exit of Virginia College at their lease expiration. The building management continues in efforts to lease the vacant space.

The third largest loan, Insight Air Center #7 (8.1%), is 78,829 sf vacant industrial building located in Las Vegas, NV. The loan transferred to the special servicer in September 2010 due to maturity default. The special servicer continues to monitor the loan and evaluate workout options.

The fourth largest loan, Live Oak Village Shopping Center (7.4%), is 106,283 sf retail center located in Pensacola Beach, FL. The center is anchored by Office Depot and Dollar General. The year end 2012 occupancy provided by the servicer was 85%.

Fitch has downgraded and removed the Rating Watch Negative from the following classes:

--$13 million class F to 'BBsf' from 'BBB-sf'; Outlook Negative;

--$13 million class G to 'Csf' from 'CCCsf'; RE25 from RE100.

Additionally, Fitch has affirmed the following classes:

--$7.4 million class E at 'Asf'; Outlook Stable from Rating Watch Negative;

--$14.4 million class H at 'Dsf'; RE0.

Classes J, K, L, M, and N remain at 'Dsf'; RE0%; due to realized losses.

Classes A-1, A-2, A-3, B, C, D, and the interest only class X-2 have paid in full. Fitch does not rate class P. Class X-1 and O were previously withdrawn.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

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Contacts

Fitch Ratings
Primary Analyst
Jay Bullie, +1-312-368-2079
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Christopher Bushart, +1-212-908-0606
Senior Director
or
Media Relations
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Jay Bullie, +1-312-368-2079
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Christopher Bushart, +1-212-908-0606
Senior Director
or
Media Relations
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com