Fitch Affirms Irvine Core Office Trust 2013-IRV

NEW YORK--()--Fitch Ratings has affirmed five classes of Irvine Core Office Trust 2013 - IRV commercial mortgage pass through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect the relatively stable performance and strong occupancy of the assets in the pool. Fitch reviewed the most recent available financial performance of the collateral. As of the Dec. 31, 2013 rent rolls, the portfolio was 93.7% occupied compared with 91.3% as of March 2013. The six months annualized Dec. 31, 2013 servicer-reported weighted average DSCR was 2.16x. A full year's performance data for the properties was not yet readily available.

As of the April 2014 distribution date, the pool's aggregate certificate balance declined by 1.8% to $859.1 million from $874.9 million at issuance due to scheduled amortization.

RATING SENSITIVITY

The Rating Outlook for all classes remains Stable. No rating actions are anticipated unless there are material changes in property performance or cash flow.

Initial Key Rating Drivers and Rating Sensitivity are further described in the New Issue report titled 'Irvine Core Office Trust 2013-IRV' (May 2013)' which is available at www.fitchratings.com.

The certificates represent the beneficial ownership in the trust, the primary assets of which are 10 amortizing, non-crossed commercial mortgage loans backed by office buildings located in Southern California.

The largest loan, Fox Plaza (22% of the total portfolio), had a Dec. 31, 2013 reported occupancy of 87.3% up from 83.8%, as of March 2013. Further, the largest tenant, 20th Century Fox, (53.5% of NRA at Fox Plaza and 8.6% of the pool NRA) recently expanded into an additional 40,000 sf and extended its entire lease through 2026.

The sponsor of the properties is Irvine Core Office LLC, an affiliate of Irvine Company (Irvine), which is an experienced real estate operator and the largest owner and manager of commercial real estate in California. Irvine's portfolio, which is primarily located in Southern California, includes approximately 500 office buildings totaling over 38 million sf, 129 multifamily properties, 41 retail properties, and three resorts.

Fitch affirms the following classes:

--$183.3 million class A-1 at 'AAAsf'; Outlook Stable;

--$361 million class A-2 at 'AAAsf'; Outlook Stable;

--$183.3 million* class X-A at 'AAAsf'; Outlook Stable;

--$88.4 million class B at 'AAAsf'; Outlook Stable;

--$88.4 million class C at 'Asf'; Outlook Stable.

*Interest only and notional amount

Additional information on Fitch's criteria for analyzing large loans in U.S. CMBS transactions is available in the Sept. 20, 2013 report, 'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance then CMBS then Criteria Reports

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

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:

--'Irvine Core Office Trust 2013-IRV -- New Issue Appendix' (May 16, 2013).

Applicable Criteria and Related Research:

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

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transaction' (Sept. 20, 2013);

--'Irvine Core Office Trust 2013-IRV' (May 16, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

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

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

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

Irvine Core Office Trust 2013-IRV

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708721

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=827542

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
Stacey McGovern, +1 212-908-0722
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, +1 212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Stacey McGovern, +1 212-908-0722
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, +1 212-908-0278
sandro.scenga@fitchratings.com