Fitch Affirms GSMSC 2014-GC18

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 15 classes of GS Mortgage Securities Trust 2014-GC18 pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are due to overall stable performance of the collateral pool since issuance. Currently there are no delinquent or specially serviced loans. As of the December 2015 distribution date, the pool's aggregate principal balance has been reduced by 1.5% to $1,097 million from $1,113.6 million at issuance. There are 12 servicer watchlist loans (11.3% of the pool), two of which (2.3%) have been identified as Fitch loans of concern (FLOC).

The first FLOC is the Raeford Crossing loan (1.6%), a 10-year partial interest-only (IO) loan (i.e. IO for the initial 36 months). The collateral is a 15-building garden-style multifamily complex located in Fayetteville, NC. Built in 2012, the 291-unit property contains one-, two-, and three-bedroom units. The property is owned by seven tenant-in-common entities primarily led by Brantley White, a principal of Certus Partners. The property occupancy has declined since issuance. As of September 2015, the property was 75% occupied, compared to 91% at year-end 2014 (YE14) and 95.2% at issuance.

The second FLOC is the Lovejoy Station loan (0.8%), a 10-year partial IO loan (i.e. IO for the initial 24 months). It is secured by a 77,133 square foot (sf) retail property located in Hampton, GA. The anchor tenant, Publix Supermarkets, which occupies 62% of the property, has a lease maturity date of January 2016. Fitch is waiting for servicer lease updates. As of September 2015, the property was 93% occupied, compared to 98.2% at issuance. Servicer-reported 3Q15 DSCR was 1.8x, compared to 1.45x at issuance.

The largest loan in the pool, The Shops at Canal Place (10.1%) is a 10-year partial IO loan (i.e. IO for the initial 36 months). It is secured by a high-end retail complex located in downtown New Orleans, LA totalling 216,938 sf of retail space, as well as a seven-story parking garage. The property is anchored by Saks Fifth Avenue (49.2% NRA), The Theaters at Canal Place (10%), and Westin Conference Center (8%). The collateral is part of the 2.15 million-sf mixed-use development Canal Place, which also includes a 438-key Westin Hotel and a 32-story office building. As of the September 2015 rent roll, the property was 96.6% occupied, compared to 97.8% at issuance. The servicer-reported 3Q15 DSCR was 1.71x, compared to 1.26x at issuance.

The second largest loan, CityScape - East Office/Retail (9.1%) is a 10-year partial IO loan (i.e. IO for the initial 36 months). The whole loan consists of two pari passu A notes. Only the A1 note is included in this transaction. The collateral consists of a 28-story office tower with a retail component and a five-story subterranean parking garage. The property is part of a larger development that includes the Hotel Paloma, a 250-room Kimpton hotel; CityScape Residences, a 224-unit apartment building; and additional retail and parking space. The servicer-reported YE14 DSCR was 1.89x, compared to 2.69x at issuance. The decreased in net operating income is primarily due to a spike in expenses, specifically utilities, marketing, and other miscellaneous items. As of the September 2015 rent roll, the property was 94.5% occupied, compared to 95.5% at issuance.

RATING SENSITIVITIESThe Rating Outlook for all classes remains 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 portfolio-level metrics.

DUE DILIGENCE USAGENo third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following classes as indicated:--$40 million class A-1 at 'AAAsf', Outlook Stable;--$116.2 million class A-2 at 'AAAsf', Outlook Stable;--$216.7 million class A-3 at 'AAAsf', Outlook Stable;--$302 million class A-4 at 'AAAsf', Outlook Stable;--$87.8 million class A-AB at 'AAAsf', Outlook Stable;--$68.2 million class A-S at 'AAAsf', Outlook Stable;--$76.6 million class B at 'AA-sf', Outlook Stable;--Class PEZ Exchangeable Certificates at 'A-sf', Outlook Stable;--$44.5 million class C at 'A-sf', Outlook Stable;--$55.7 million class D at 'BBB-sf', Outlook Stable;--$22.3 million class E at 'BBsf', Outlook Stable;--$12.5 million class F at 'Bsf', Outlook Stable;--Interest-Only class X-A at 'AAAsf'; Outlook Stable;--Interest-Only class X-B at 'AA-sf'; Outlook Stable;--Interest-Only class X-C at 'BBsf'; Outlook Stable.

Fitch does not rate the class G or class X-D certificates.

Additional information is available at www.fitchratings.com.Applicable CriteriaGlobal Structured Finance Rating Criteria (pub. 06 Jul 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395Related ResearchGS Mortgage Securities Trust 2014-GC18 -- Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=746029

Additional DisclosuresDodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=997604Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997604Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160107006391/en/

Fitch Ratings
Primary Analyst
Amy Gan
Director
+1-212-612-9143
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sendhil Selvaraj, +44 (0) 207 682 7218
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• GAC Group to Celebrate 30 Million Global Users on July 16
• Next Crypto to Explode in July 2026 as Bitcoin Bounces From $58K Low and Smart Money Rotates
• Bitcoin Price Prediction: $64K BTC Looks Fragile as AlphaPepe Builds the Public-Exchange Pricing Gap