Fitch Affirms GSMS 2013-GC10

NEW YORK--()--Fitch Ratings has affirmed 14 classes of Goldman Sachs Mortgage Company's GS Mortgage Securities Trust (GSMS) commercial mortgage pass-through certificates, series 2013-GC10. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are the result of stable performance of the underlying pool since issuance. As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 1% to $850.3 million from $859.4 million at issuance. There are currently no delinquent or special serviced loans. Sixty (99.6% of the pool) out of the 61 loans in the pool reported partial year or trailing 12 month (TTM) 2013 financials. Based on the annualized 2013 net operating income (NOI), the pool's overall NOI has been stable with a 1% NOI increase over the portfolio NOI at issuance.

The largest loan in the pool, Empire Hotel & Retail (12.9% of the pool), is secured by a 423-room hotel located on Manhattan's Upper West Side, adjacent to Lincoln Center and two blocks from Columbus Circle and Central Park. The property includes 61,223 square feet (sf) of retail space leased to five third party tenants including the Rooftop Lounge. As of the TTM ended September 2013, occupancy reported at 88.4%, compared to 87.2% at year-end (YE) December 2012, and 87.5% at issuance. The YE 2012 average daily rate (ADR) and revenue per available room (RevPAR) reported at $243 and $214.81, respectively; updated TTM September 2013 ADR or RevPAR information was unavailable. NOI has been stable to improving, with TTM September 2013 NOI 6.7% above YE 2012, and 2.3% below NOI at issuance. The NOI debt service coverage ratio (DSCR) reported at 1.67x for TTM September 2013, compared to 1.56x at YE 2012, and 1.71x at issuance.

The second largest loan in the pool, National Harbor (12.7%), is secured by a 10-building, 405,720-sf mixed use property in National Harbor, MD. The property is 11-miles south of Washington D.C. and situated on the Maryland side of the Potomac River. The buildings contain a diverse mix of tenants including restaurants, retailers, and office tenants. The September 2013 rent roll reported occupancy at 91.4%, compared to 90.8% at issuance. NOI has improved since issuance, with annualized YTD September 2013 NOI 6.6% above YE 2012, and 1% above NOI at issuance. The NOI DSCR reported at 1.72x for YTD September 2013 compared to 1.70x at issuance.

The third largest loan in the pool, Nut Tree Center (7.9%), is secured by 323,322-sf retail power center in Vacaville, CA, approximately 35 miles south east of the Sacramento CBD. The property consists of 283,992-sf of retail space, 39,330-sf of office space, and the Nut Tree Plaza, a children's play area. Collateral also includes a leasehold interest in 1.32 acres of vacant land located across the street from the main portion of the center. Anchor and major tenants include Sport Chalet (12.9% net rentable area [NRA]), Best Buy (9.3% NRA), HomeGoods (7.8% NRA), PetSmart (6.2% NRA), and Old Navy (5.8% NRA). The October 2013 rent roll reported occupancy at 94%, compared to 91.6% at issuance. The NOI DSCR reported at 1.51x for YTD September 2013 compared to 1.61x at issuance.

RATING SENSITIVITY

All classes maintain Stable Outlooks. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'GS Mortgage Securities Trust' (May 21, 2013), available at www.fitchratings.com.

Fitch affirms the following classes as indicated:

--$44.3 million class A-1 at 'AAAsf'; Outlook Stable;

--$35.3 million class A-2 at 'AAAsf'; Outlook Stable;

--$21 million class A-3 at 'AAAsf'; Outlook Stable;

--$110 million class A-4 at 'AAAsf'; Outlook Stable;

--$300.5 million class A-5 at 'AAAsf'; Outlook Stable;

--$81.4 million class A-AB at 'AAAsf'; Outlook Stable;

--$54.8 million class A-S at 'AAAsf'; Outlook Stable;

--$647.3 million* class X-A at 'AAAsf'; Outlook Stable;

--$103.1 million* class X-B at 'Asf'; Outlook Stable;

--$63.4 million class B at 'AAsf'; Outlook Stable;

--$39.7 million class C at 'Asf'; Outlook Stable;

--$34.4 million class D at 'BBB-sf'; Outlook Stable;

--$22.6 million class E at 'BB+sf'; Outlook Stable;

--$16.1 million class F at 'Bsf'; Outlook Stable.

*Notional amount and interest-only.

Fitch does not rate the class G certificates.

A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:

--' GS Mortgage Securities Trust 2013-GC10 -- Appendix ' (May 21, 2013).

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=818137

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Contacts

Fitch Ratings
Primary Analyst
Benson Thomas, +1-212-908-0645
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Benson Thomas, +1-212-908-0645
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com