Fitch Affirms CGCMT 2013-GC15
KEY RATING DRIVERS
The affirmations of CGCMT 2013-GC15 are based on the stable performance of the underlying collateral since issuance. As of the August 2015 distribution date, the pool's aggregate principal balance has been reduced by 1.8% to $1.10 billion from $1.12 billion at issuance. The pool has experienced no realized losses to date. There are currently no delinquent or specially serviced loans, and no loans are defeased. Six loans are considered Fitch Loans of Concern (2.6% of the pool). De minimis interest shortfalls are currently affecting the non-rated class G.
The largest loan in the pool (5.9%) is secured by a 236-room full service beachfront hotel located in South Beach, Miami, FL. The hotel recently underwent a $9.8 million renovation, completed in February 2014, which included the replacement of soft and case goods, replacement of carpeted floors with new hardwood flooring and bathroom upgrades to the guest rooms and suites. Additional renovations to the common areas were performed during the second half of 2014. As of year-end (YE) 2014, occupancy, average daily rate (ADR), and revenue per available room (RevPAR) were reported at 77%, $305, and $233, respectively. The servicer-reported YE 2014 debt service coverage ratio (DSCR) increased to 3.06x from 2.01x at YE 2013, primarily due to the completion of room renovations. Occupancy increased to 77% from 61% during the same period.
The second largest loan (5.5%) is secured by a 120,244 square foot (sf) student housing facility for New York University (NYU) with ground floor retail, located within the East Village neighborhood of New York City. The NYU space consists of 91 one, two, and three bedroom apartments. The ground floor retail space is occupied by Duane Reade whose lease expires August 2015. While the store remains open, the servicer has not yet provided an updated status of the lease. The servicer-reported DSCR was 1.54x, as of YE 2014, compared to 1.51x at YE 2013. The property was 100% occupied as of March 2015.
The largest Fitch Loan of Concern (0.6% of the pool) is secured by a 326-unit garden style multifamily property located in Decatur, GA. The property was built in 1987 and there have been no significant renovations since that time. The loan was placed on the watchlist in June 2015 due to deteriorating DSCR. At YE 2014, servicer-reported occupancy and DSCR were 93% and 0.94x, respectively, compared to 94% and 1.54x at securitization. The servicer reported that rental income declined due to an increase in rental discounts, while expenses have remained generally unchanged.
RATING SENSITIVITIES
The Rating Outlooks remain Stable for all classes due to stable performance of the pool since last review and continued paydown. Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.
Additional information on rating sensitivity is available in the report 'Citigroup Commercial Mortgage Trust 2013-GC15' (Jan. 16, 2014), available at www.fitchratings.com.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following ratings:
--$37.5 million class A-1 at 'AAAsf', Outlook Stable;
--$236.9 million class A-2 at 'AAAsf', Outlook Stable;
--$150 million class A-3 at 'AAAsf', Outlook Stable;
--$264.2 million class A-4 at 'AAAsf', Outlook Stable;
--$72.2 million class A-AB at 'AAAsf', Outlook Stable;
--$94.8 million class A-S at 'AAAsf', Outlook Stable;
--$855.6 million *a class X-A at 'AAAsf', Outlook Stable;
--$18.1 million * class X-C at 'BBsf', Outlook Stable;
--$54.4 million class B at 'AA-sf', Outlook Stable;
--$204.9 million b class PEZ at 'A-sf', Outlook Stable;
--$55.8 million class C at 'A-sf', Outlook Stable;
--$50.2 million a class D at 'BBB-sf', Outlook Stable;
--$18.1 million a class E at 'BBsf', Outlook Stable;
--$16.7 million a class F at 'Bsf', Outlook Stable.
*Notional amount and interest-only.
a Privately placed pursuant to Rule 144A
b Class A-S, B, and C certificates may be exchanged for class PEZ certificates, and class PEZ certificates may be exchanged for up to the full certificate principal amount of the class A-S, B and C certificates.
Fitch does not rate the class G certificates.
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