Fitch Affirms CGCMT 2013-GCJ11

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 11 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 March 2015 distribution date, the pool's aggregate principal balance has been reduced by 2.27% to $1.18 billion from $1.21 billion at issuance. Fitch has designated four Fitch loans of concern (5%).

The largest loan in the pool (7.2%), 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 (18%) with lease expirations in 2016 and 2018; respectively. The property was 94% occupied as of December 2014 with average rent of approximately $38 per square foot (psf). There is approximately 6% upcoming rollover in 2015 and 14% in 2016. Per REIS as of the fourth quarter 2014, the downtown NYC office market vacancy rate is 9.5% with average asking rent of $64.27 psf.

The second largest loan Empire Hotel & Retail (5.9%), 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 $248 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 property was 98% occupied as of December 2014 with minimal expected rollover in 2015 and 2016.

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. Additional information on rating sensitivity is available in the report 'CGCMT 2013-GCJ11' (April 10, 2013), available at www.fitchratings.com.

Fitch affirms the following classes as indicated:

--$47.7 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 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;

--$921.4 million* class X-A at 'AAAsf'; Outlook Stable;

--$117.6 million* class X-B at 'A-sf'; Outlook Stable.

*Notional amount and interest-only.

Fitch does not rate the class G certificates.

A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:

--'CGCMT Commercial Mortgage Trust 2013-GCJ11 -- Appendix' (April 10, 2013).

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (March 2015);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=982368

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Primary Analyst:
Lisa Cook, +1-212-908-0665
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
[email protected]

Source: Fitch Ratings

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