CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed eight classes of Citigroup Commercial Mortgage Trust 2015-101A, commercial mortgage pass-through certificates series 2015-101A. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying collateral. As of the November 2016 distribution date, the pool's aggregate certificate balance remained at $200 million, unchanged from issuance. The loan is interest only (annual interest rate of 4.65%) for the entire 20-year term.
The certificates represent the beneficial ownership in the issuing entity, the primary asset of which is one loan secured by the leasehold interest in the 101 Avenue of the Americas office property in New York, NY. The two largest tenants, NY Genome Center (38.5% of total square footage) and Two Sigma (32.3%) occupy approximately 71% of the property. Other major tenants include Digital Ocean (10.3%) and REGUS (7.3%).
Stable Performance: Performance of the property is stable as exhibited by strong occupancy and limited near-term rollover. Occupancy has improved to 99.7% as of September 2016 from 94.5% at issuance. For the nine months ended Sept. 30, 2016, the net operating income (NOI) debt service coverage ratio (DSCR) was 1.76x, compared with 2.05x at issuance.
High-Quality Manhattan Asset: The 23-story, class A office building is located within the South Broadway/Hudson Square submarket in Manhattan. The property was gut renovated between 2011 and 2013 including upgraded building systems as well as a new lobby, restrooms, and green roof terrace. The building is LEED Silver certified.
Limited Near-Term Rollover: The property has no immediate rollover until 2019 when 3.6% of leases expire. An additional 7.3% expires in 2023. The majority of the building rollover is associated with the two largest tenants which both roll prior to the loan's maturity date in January 2035. The largest tenant (38.5%) has lease expiration in 2033 and the second largest tenant (32.3%) expires in 2029.
Concentrated Tenancy: Tenancy in the building is concentrated with the five largest tenants representing 94% of the gross leasable area (GLA). The majority of the building is comprised of the two largest tenants representing 71% of the GLA, both of which are on long-term leases.
Leasehold Interest: The property is subject to a 99-year ground lease that expires in December 2088. The loan is structured with monthly reserves for all payments associated with the ground lease and is recourse to the borrower and guarantor for termination of the ground lease.
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable. No rating actions are anticipated unless there are material changes in property occupancy or cash flow. The property performance is consistent with issuance.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$96,000,000 class A at 'AAAsf'; Outlook Stable;
--$96,000,000 class X-A* at 'AAAsf'; Outlook Stable;
--$30,000,000 class X-B* at 'A-sf'; Outlook Stable;
--$16,000,000 class B at 'AA-sf'; Outlook Stable;
--$14,000,000 class C at 'A-sf'; Outlook Stable;
--$20,000,000 class D at 'BBB-sf'; Outlook Stable;
--$31,000,000 class E at 'BB-sf'; Outlook Stable;
--$19,000,000 class F at 'B-sf'; Outlook Stable.
* Interest-only class X-A is equal to the notional balance of class A. Interest-only class X-B is equal to the notional balance of class B and class C. Fitch does not rate the class G certificates.
Additional information is available at www.fitchratings.com
Applicable Criteria
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)
https://www.fitchratings.com/site/re/886006
Criteria for Analyzing Large Loans in CMBS (pub. 01 Dec 2016)
https://www.fitchratings.com/site/re/890892
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
https://www.fitchratings.com/site/re/883130
Related Research
CGCMT 2015-101A -- Appendix
https://www.fitchratings.com/site/re/852789
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1016151
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1016151
Endorsement Policy
https://www.fitchratings.com/regulatory
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