Fitch Upgrades TIAA 2001-C1
KEY RATING DRIVERS
The upgrades are attributed to an increase in credit enhancement as a result of continued principal pay down and the stable collateral performance. Fitch applied stressed cap rates and cash flow variances to the most recent servicer reported net operating income (NOI) to derive the Fitch stressed property values; additional stresses were applied due to a large percentage of the pool having not reported financials for greater than 12 months. In addition, 55% of the pool consists of loans collateralized by single tenant retail properties that are under credit tenant leases.
As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 96.4% to \$52.1 million from \$1.46 billion at issuance. Currently, there are 45 loans remaining in the pool, all of which are fully amortizing. Nine loans (22.9% of the pool) are defeased, four of which (17.3%) are among the top 15 loans. There have been no delinquent or special serviced loans and the transaction has incurred zero losses. The maturity schedule of the collateral pool is as follows: 41.8% of the pool (37 loans) matures in 2018, including seven defeased loans (8.8%); 17.6% (four loans) in 2019; 6.1% (one loan) in 2020; 7.4% (one loan) in 2023 and two loans (27.2%) in 2024.
RATING SENSITIVITIES
The overall pool continues to perform. The Stable Rating Outlooks indicates that no rating actions are expected. Future downgrades are unlikely unless there is a significant performance decline of the pool.
The largest loan in the pool (17.1% of the pool) is secured by a 331,130 square foot (sf) retail property in College Point, NY (17.1% of the pool). As of year-end (YE) 2014, the property was 100% occupied by five tenants. The largest two tenants are Target (42.3% of the property) with lease expiring July 2023 and BJ's (36% of the property) with lease expiring September 2028. The servicer reported 3Q14 DSCR was 1.71x, compared to 2.01x at YE 2013, 1.91x at YE 2012 and 1.91x at YE2012. The drop in DSCR at 3Q14 was due to a decline in occupancy during the quarter. DSCR is expected to increase as the vacated space has been filled since November 2014.
The second largest loan in the pool (10.1%) is secured by a 77,036 sf retail property in Matawan, NJ. The property is anchored by A&P, which occupies 76% of the property with a lease ending on March 31, 2023. 3Q14 DSCR was 1.07x, compared to 1.32x at YE2013. The decline in performance is due to an increase in operating expenses. Per September 2014 rent roll, the proper was 98.4% occupied. Fitch has identified this loan as a Fitch loan of concern and will closely monitor its performance.
Fitch upgrades the following classes as indicated:
--\$14.7 million class L to 'AAAsf' from 'Asf'; Outlook Stable;
--\$7.3 million class M to 'Asf' from 'BBBsf'; Outlook Stable;
--\$7.3 million class N to 'BBBsf' from 'BBsf'; Outlook Stable.
Fitch affirms the following classes as indicated:
--\$5.4 million class K at 'AAAsf'; Outlook Stable.
The class A-1, A-2, A-3, A-4, A-5, B, C, D, E, F, G, H and J certificates have paid in full. Fitch does not rate the class O certificates. Fitch previously withdrew the rating on the interest-only class X certificates.
Комментарии