Fitch Affirms GS Mortgage Securities Trust 2013-GCJ12

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 13 classes of GS Mortgage Securities Trust 2013-GCJ12 commercial mortgage pass-through certificates, series 2013-GCJ12. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on stable performance of the underlying collateral pool since issuance. As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 2.3% to $1.169 billion from $1.197 billion at issuance.

Eleven loans (14.4% of the pool) are on the master servicer's watch list; the watch list triggers predominately involve minor deferred maintenance and near-term lease rollover. No loans have been in special servicing since issuance.

The largest watch list loan is the fourth largest loan in the pool (4.8%), the Condyne Portfolio, a portfolio of four industrial properties in Massachusetts. The servicer-reported occupancy as of June 2014 was 68%, compared to 90% at issuance. Fitch requested recent rent rolls for the portfolio but has only received a rent roll for the largest property (by loan balance), which had occupancy of 86.9% as of December 2013 and 87.5% at issuance.

The largest loan in the pool (8.6%) is the Friendly Center loan; a 994,891 square foot (sf) open air retail center located in Greensboro, NC. The property is anchored by Sears (18.3% NRA, ground lease expires January 2028), Macy's (14.6% NRA, ground lease expires November 2016), and Belk (14.1% NRA, expires April 2017). The property was originally constructed in 1957 and renovated in 1996. A subsequent $7.6 million renovation was completed in November 2013 that focused on refreshing the property with new facades, signage and landscaping. Per the December 2014 rent roll occupancy has increased to 99.4%.

The second largest loan in the pool (6.2%) is the Queens Crossing loan; a 424,747 sf mixed-use commercial condominium property built in 2007 by the sponsor and located in Flushing (Queens), NY. The collateral for the loan includes 179,186 rentable sf including a 401-space, two-level below-grade parking garage, the ground floor, first floor and second floor retail spaces totaling 79,875 sf, the 12th floor office space totaling 14,762 sf and the exterior LED signage. Floors three through 11 consist of 89 office condominium units totaling 213,999 sf that do not serve as collateral for the loan. Largest collateral tenants are F&T Mgmt. & Parking Corp. (47.2% NRA, expires December 2017) and Mulan Restaurant LLC (12.6% of NRA, expires September 2020). As of September 2014 occupancy and DSCR was 100% and 1.71x, respectively.

The third largest loan in the pool (5.2%) is the Eagle Ridge Village loan; a 648-unit, 87-acre apartment community. The property is located in Evans Mills, NY, less than 80 miles north of Syracuse, NY and approximately one mile west of Fort Drum, a U.S. Army base, which is one of the largest military bases in the world. Occupancy was 98.6% as of December 2012 and has since declined to 88% with DSCR at 1.26x as of December 2014. The property primarily serves as off-base military housing, and therefore can be impacted by leasing volatility; as per federal law soldiers can terminate any lease with 30-day notice upon receipt of deployment orders. The loan was structured with a full cash trap should occupancy fall below 85%.

RATING SENSITIVITY

The Rating Outlooks for all classes remain Stable. 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 overall portfolio-level metrics. Additional information on rating sensitivity is available in the report 'GS Mortgage Securities Trust 2013-GCJ12' (Aug. 5, 2013), available at 'www.fitchratings.com'.

Fitch affirms the following classes:

--$56.6 million class A-1 at 'AAAsf'; Outlook Stable;

--$134.2 million class A-2 'AAAsf'; Outlook Stable;

--$200 million class A-3 'AAAsf'; Outlook Stable;

--$313.8 million class A-4 'AAAsf'; Outlook Stable;

--$105.5 million class A-AB 'AAAsf'; Outlook Stable;

--$80.8 million class A-S 'AAAsf'; Outlook Stable;

--$86.8 million class B 'AA-sf'; Outlook Stable;

--$55.4 million class C 'A-sf'; Outlook Stable;

--$49.4 million class D 'BBB-sf'; Outlook Stable;

--$32.9 million class E 'BBsf'; Outlook Stable;

--$12 million class F 'Bsf'; Outlook Stable;

--$919.1 million* class X-A 'AAAsf'; Outlook Stable;

--$142.2 million* class X-B 'A-sf'; Outlook Stable.

*Notional amount and interest only.

Fitch does not rate the interest-only class X-C or 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:

--'GS Mortgage Securities Trust 2013-GCJ12 -- Appendix' (Aug. 5, 2013).

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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 31, 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=983986

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
Martin Nunnally
Associate Director
+1-212-908-0871
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga
+1-212-908-0278
New York
[email protected]

Source: Fitch Ratings

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