Fitch Affirms GECCMC 2001-3

CHICAGO--()--Fitch Ratings has affirmed six classes of GE Capital Commercial Mortgage Corporation (GECCMC) commercial mortgage pass-through certificates series 2001-3 due to stable pool performance. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations of the pool's distressed ratings are due to overall stable loss expectations and continued concerns with the increasing concentrations as well as the four loans (57.7%) in special servicing. Fitch modeled losses of 31.6% of the remaining pool; expected losses of the original pool are at 5.9% including losses already incurred to date (4.9%). Fitch has designated four loans (57.7%) as Fitch Loans of Concern of which all are specially serviced. Of the original 133 loans in the pool, 10 remain. The remaining non-specially serviced loans consist of five fully amortizing loans (45.7%) and one-20 year term loan.

As of the April 2014 distribution date, the pool's aggregate principal balance has been reduced by 96.7% to $32.2 million from $963.8 million at issuance. Per the servicer reporting, one loan (4.0% of the pool) is currently defeased. Interest shortfalls are currently affecting classes I through N.

The largest contributor to expected losses is the real estate owned (REO) 86,763 square foot retail center, Sanbusco Market Center, located in downtown Santa Fe, NM. The center is in the heart of the railyard district and has experienced leasing challenges for the past few years after Borders vacated the property. The special servicer has worked to stabilize the occupancy at the center while instituting a capital improvement plan to modernize the center's infrastructure. The maintenance is scheduled for completion in early spring and disposition options will be evaluated shortly afterward.

The second largest contributor to expected losses, Wintonbury Mall, is a 110,949 sf unanchored retail center located in Bloomfield, CO [check if this is CO or CT]. The mall was transferred to the special servicer in Feb. 2010 for payment default. The mall has struggled in recent years as the occupancy at the property dropped to a low of 57% in 2007. The owner has slowly worked in releasing the vacant space and as of second quarter 2013 the subject's occupancy was 83%. The borrower and special servicer continue to negotiate and work on the resolution that is acceptable to all parties.

The third largest contributor to expected losses is the REO asset, 10000 San Pedro Office Building, a 19,931 sf office building located in San Antonio, TX. The building transferred to the special servicer in April 2011. The special servicer has worked to renew tenants and raise the occupancy at the building over past few years. One outstanding issue at the subject is litigation dealing with an adjacent property manager over parking. The special servicer indicates that issue should be resolved shortly and intends to evaluate disposition options upon resolution.

RATING SENSITIVITIES

Concentration risk for the transaction is a primary concern, with over half the pool in special servicing and the composition of the remaining six loans consisting of 80.7% retail. In addition, given the lengthy loan terms and high percentage of near-term paydown expected from disposition proceeds from the specially serviced loans, future upgrades will be limited.

Fitch affirms the following classes as indicated:

--$20.3 million class H at 'CCCsf', RE 100%;

--$8.4 million class I at 'Csf', RE 30%;

--$3.3 million class J at 'Dsf', RE 0%;

--$0 class K at 'Dsf', RE 0%;

--$0 class L at 'Dsf', RE 0%;

--$0 class M at 'Dsf', RE 0%.

The class A-1, A-2, B, C, D, E, F, and G certificates have paid in full. Fitch does not rate the class N certificates. Fitch previously withdrew the ratings on the interest-only class X-1 and X-2 certificates.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

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

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

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

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=831222

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
Jay Bullie
Associate Director
+1-312-368-2079
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson
Senior Director
+1-212-606-2341
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Jay Bullie
Associate Director
+1-312-368-2079
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson
Senior Director
+1-212-606-2341
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com