Fitch Affirms Irvine Core Office Trust 2013-IRV
KEY RATING DRIVERS
The affirmations reflect the stable performance and strong overall occupancy of the assets in the pool. Fitch reviewed the most recent available financial performance of the collateral. As of the Jan. 6, 2015 rent rolls, the portfolio was 92.6% occupied compared with 93.7%, as of December 2013. The servicer reported TTM June 2014 NOI debt service coverage ratio (DSCR) was 2.51x compared with 2.49x for YE 2013.
As of the March 2015 distribution date, the pool's aggregate certificate balance declined by 3.7% to \$842.8 million from \$874.9 million at issuance due to scheduled amortization.
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable. No rating actions are anticipated unless there are material changes in property performance or cash flow.
Initial Key Rating Drivers and Rating Sensitivity are further described in the New Issue report titled 'Irvine Core Office Trust 2013-IRV' (May 2013), which is available at www.fitchratings.com.
The certificates represent the beneficial ownership in the trust, the primary assets of which are 10 amortizing, non-crossed commercial mortgage loans backed by office buildings located in Southern California.
The largest loan, Fox Plaza (22% of the total portfolio) had a January 2015 reported occupancy of 95.6%, an increase from 87.3% in December 2013. Further, there is only 2.5% scheduled tenant roll over the next 12 months and 4% total roll though YE 2016. The largest tenant remains 20th Century Fox (55.9% of the NRA through 2026) whose movie studio lot is located adjacent to the subject property.
The sponsor of the properties is Irvine Core Office LLC, an affiliate of Irvine Company (Irvine), which is an experienced real estate operator and the largest owner and manager of commercial real estate in California. Irvine's portfolio, which is primarily located in Southern California, includes approximately 495 office buildings totaling over 38.5 million sf, 120 multifamily properties, 41 retail properties, and three resorts.
Fitch affirms the following classes as indicated:
--\$166.9 million class A-1 at 'AAAsf'; Outlook Stable;
--\$361 million class A-2 at 'AAAsf'; Outlook Stable;
--\$166.9 million* class X-A at 'AAAsf'; Outlook Stable;
--\$88.4 million class B at 'AAAsf'; Outlook Stable;
--\$88.4 million class C at 'Asf'; Outlook Stable.
*Interest only and notional amount
Fitch does not rate classes D through F.
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