Fitch Affirms GCCFC 2004-FL2

NEW YORK--()--Fitch Ratings affirms all classes of Greenwich Capital Commercial Funding Corp. commercial mortgage pass-through certificates, series 2004-FL2 (GCCFC 2004-FL2). A detailed list of rating actions follows at the end of this release.

Key Rating Drivers

There are two loans remaining in the pool, both collateralized by Southfield Town Center, a 2.2 million square foot office complex in Southfield, Michigan. According to the special servicer, the property is under contract with closing anticipated in May 2014. The contract amount was not disclosed; however, the servicer reports that the proceeds from the sale are estimated to be sufficient to repay the trust in full.

Tenancy at the property is diverse with no tenant comprising more than 5% of the space. The three largest tenants are Fifth Third Bank, Microsoft and Alix Partners LLP. Rollover averages about 10% per year over the next three years.

Occupancy at the property stabilized in 2013 at approximately 70% after three years of declines. The steady drop in occupancy is largely related to the challenges the Detroit commercial real estate market has faced through the recession, with little recovery. The market continues to be one of the slowest to recover from trough performance. The Southfield submarket of Detroit reported a vacancy of 30.2% as of year-end 2013, with no material change from the 30.1% vacancy reported as of year-end 2012. The property, though down in performance when compared to issuance, is performing in-line with the market.

The loan transferred to special servicing after being unable to refinance at its July 2012 maturity. The loan has remained current on payments and continues to demonstrate positive cash flow. Additionally, in 2013 the loan was delevered with approximately $20 million from excess cash flow and remaining reserve proceeds, reducing the balance of the loan by approximately 15% and repaying the class C in full since last review.

Rating Sensitivities

The rated classes are highly dependent upon the performance of the remaining loan. Fitch modeled the loan to a full recovery based on a stressed value. In addition, the recent valuation of the asset from the special servicer is in excess of the debt.

Fitch affirms the following classes and revises Rating Outlooks as indicated:

--$5.0 million class D at 'AAAsf'; Outlook Stable;

--$12.4 million class E at 'AAAsf'; Outlook Stable;

--$22.8 million class F at 'AAAsf'; Outlook Stable;

--$19.5 million class G at 'AAsf'; Outlook Stable;

--$14.5 million class H at 'Asf'; Outlook Stable;

--$23.1 million class J at 'BBB-sf'; Outlook Stable;

--$10.3 million class K at 'BBsf'; Outlook to Stable from Negative;

--$15.3 million class L at 'Dsf;' RE 90%';

--$7.4 million class N-SO at 'B-sf'; Outlook to Stable from Negative.

Classes A-1, A-2, X-1, B, C, H-ROSW, L-ROSW, N-ROSW, N-LH,N-MV, K-NO, M-NO, and N-WV have been paid in full.

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

Applicable Criteria and Related Research:

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

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept. 12, 2013).

Applicable Criteria and Related Research:

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718468

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=825368

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst:
Valerie Jayson, +1-312-368-3116
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
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

Sharing

Contacts

Fitch Ratings
Primary Analyst:
Valerie Jayson, +1-312-368-3116
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
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