NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 13 classes of GS Mortgage Securities Trust 2013-GCJ12 commercial mortgage pass-through certificates, series 2013-GCJ12. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on stable performance of the underlying collateral pool since issuance. As of the May 2014 distribution date, the pool's aggregate principal balance has been reduced by 1% to $1.185 billion from $1.197 billion at issuance.
The largest loan in the pool (8.4%) is the Friendly Center loan; a 994,891 square foot (sf) open air retail center located in Greensboro, NC. The property is anchored by Sears (18.3% net rentable area [NRA], ground lease expires January 2028), Macy's (14.6% NRA, ground lease expires November 2016), and Belk (14.1% NRA, expires April 2017). The property was originally constructed in 1957, renovated in 1996 and a $9.8 million renovation plan commenced in 2013, focused on refreshing the property with new facades, signage and landscaping. In addition, Belk is undergoing a renovation to upgrade their store. Per the March 2014 rent roll occupancy is 98.2%, which is in-line with occupancy at issuance.
The second largest loan in the pool (6.2%) is the Queens Crossing loan; a 424,747 sf mixed-use commercial condominium property built in 2007 by the sponsor and located in Flushing (Queens), NY. The collateral for the loan includes 179,186 rentable sf including a 401-space, two-level below-grade parking garage, the ground floor, first floor and second floor retail spaces totaling 79,875 sf, the 12th floor office space totaling 14,762 sf and the exterior LED signage. Floors three through 11 consist of 89 office condominium units totaling 213,999 sf that do not serve as collateral for the loan. Largest collateral tenants are F&T Mgmt. & Parking Corp. (47.2% NRA, expires December 2017) and Mulan Restaurant LLC (12.6% of NRA, expires September 2020). As of December 2013 occupancy and DSCR was 100% and 1.66x, respectively.
The third largest loan in the pool (5.2%) is the Eagle Ridge Village loan; a 648-unit, 87-acre apartment community. The property is located in Evans Mills, NY, less than 80 miles north of Syracuse, NY and approximately one mile west of Fort Drum, a U.S. Army base, which is one of the largest military bases in the world. Occupancy was 98.6% as of December 2012 and has since declined to 90% with debt service coverage ratio (DSCR) at 1.25x as of December 2013. The property primarily serves as off-base military housing, and therefore can be impacted by leasing volatility; as per federal law soldiers can terminate any lease with 30-day notice upon receipt of deployment orders. The loan was structured with a full cash trap should occupancy fall below 85%.
Rating Outlooks remain Stable. 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 overall portfolio-level metrics. Additional information on rating sensitivity is available in the report 'GS Mortgage Securities Trust 2013-GCJ12' (Aug. 5, 2013), available at www.fitchratings.com.
Fitch affirms the following classes:
--$72.1 million class A-1 at 'AAAsf'; Outlook Stable;
--$134.2 million class A-2 at 'AAAsf'; Outlook Stable;
--$200 million class A-3 at 'AAAsf'; Outlook Stable;
--$313.8 million class A-4 at 'AAAsf'; Outlook Stable;
--$105.5 million class A-AB at 'AAAsf'; Outlook Stable;
--$80.8 million class A-S at 'AAAsf'; Outlook Stable;
--$86.8 million class B at 'AA-sf'; Outlook Stable;
--$55.4 million class C at 'A-sf'; Outlook Stable;
--$49.4 million class D at 'BBB-sf'; Outlook Stable;
--$32.9 million class E at 'BBsf'; Outlook Stable;
--$12 million class F at 'Bsf'; Outlook Stable;
--$919.1 million* class X-A at 'AAAsf'; Outlook Stable;
--$142.2 million* class X-B at 'A-sf'; Outlook Stable.
*Notional amount and interest only.
Fitch does not rate the interest-only class X-C or 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-GCJ12-- Appendix' (Aug. 5, 2013).
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 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:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria