Fitch Affirms CGCMT 2013-GCJ11

NEW YORK--()--Fitch Ratings has affirmed 13 classes of Citigroup Commercial Mortgage Trust, commercial mortgage pass-through certificates series 2013-GCJ11. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. There have been no delinquent or specially serviced loans since issuance. As of the November 2015 distribution date, the pool's aggregate principal balance has been reduced by 3.07% to $1.17 billion from $1.21 billion at issuance. Fitch has designated three Fitch loans of concern (4%).

The largest loan in the pool (7.3%), 39 Broadway, is secured by a 448,349 square foot (sf) office building located in the Financial District of New York City. The largest tenants are The Waterfront Commission (4.68%) and Beth Israel Medical Center (6%) with lease expirations in 2016 and 2018; respectively. The property was 100% occupied as of October 2015 with average rent of approximately $41 per square foot (psf). There is approximately 10% upcoming rollover in 2016 and 12% in 2017. Per REIS, as of the third quarter 2015, the downtown NYC office market vacancy rate is 11% with average asking rent of $52 psf.

The second largest loan, Empire Hotel & Retail (6%), is collateralized by a 423 key hotel located on Manhattan's Upper West Side. The property features a lobby bar and lounge, a pool deck and bar, three meeting places, an indoor/outdoor pool, a fitness center and a business center. The retail portion of the property is leased to five third-party tenants including the rooftop lounge. As of year-end (YE) 2014, the hotel was 89% occupied with an average daily rate (ADR) of $250 and (RevPAR) at $220.

The third largest loan, Christown Spectrum (5.5%), is secured by a 1,038,765 sf (850,638 sf of which is collateral) retail center located in Phoenix, AZ. The mall is anchored by Walmart (24%), Costco (15%), and JC Penney (9.43%) with lease expirations in 2023, 2020, and 2037; respectively. There is also a Target at the subject, which is not part of the collateral. The property, which is the oldest continuously operated shopping mall in Phoenix, was built in phases from 1961 to 1984 and underwent a $10 million renovation completed in 2007. The loan was recently assumed by Kimco Realty Corp (Kimco). Kimco is a real estate investment trust with extensive experience in the retail sector. Kimco, which primarily owns and operates open air shopping centers, manages a portfolio of approximately 727 shopping centers. As of September 2015, the property was 98% occupied with minimal expected rollover in 2016 and 2017.

RATING SENSITIVITIES

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.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch affirms the following classes as indicated:

--$38.2 million class A-1 at 'AAAsf'; Outlook Stable;

--$290.4 million class A-2 at 'AAAsf'; Outlook Stable;

--$150 million class A-3 at 'AAAsf'; Outlook Stable;

--$236.2 million class A-4 at 'AAAsf'; Outlook Stable;

--$92.9 million class A-AB at 'AAAsf'; Outlook Stable;

--$104.1 million class A-S at 'AAAsf'; Outlook Stable;

--$75.4 million class B at 'AA-sf'; Outlook Stable;

--$42.2 million class C at 'A-sf'; Outlook Stable;

--$58.8 million class D at 'BBB-sf'; Outlook Stable;

--$21.1 million class E at 'BBsf'; Outlook Stable;

--$18.1 million class F at 'Bsf'; Outlook Stable;

--$910.4 million* class X-A at 'AAAsf'; Outlook Stable;

--$117.7 million* class X-B at 'A-sf'; Outlook Stable.

*Notional amount and interest-only.

Fitch does not rate the class G certificate.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Related Research

Citigroup Commercial Mortgage Trust 2013-GCJ11 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=705195

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=995928

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=995928

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Catherine Barbieri
Associate Director
+1-212-908-0638
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Catherine Barbieri
Associate Director
+1-212-908-0638
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com