Fitch Affirms COMM 2014-LC17 Commercial Mortgage Trust Pass-Through Certificates
KEY RATING DRIVERS
The affirmations reflect the stable performance of the underlying collateral pool since issuance. As of the August 2015 remittance, the pool has experienced 0.7% collateral reduction. The deal closed on Sept. 29, 2014. The weighted-average Fitch LTV for the pool was high at 107.9% in comparison to other 2013 and 2014 deals.
The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction, limited historical servicer reporting 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.
The largest loan in the pool is Loews Miami Beach Hotel. The subject is a 790-key, full-service luxury hotel situated in Miami Beach's Art Deco District. The hotel was most recently renovated between 2008 and 2010 and boasts an oceanfront swimming pool and Jacuzzi, a spa and fitness center, 63,000 sf of indoor and outdoor meeting space and six restaurants. The hotel has historically outperformed its competitive set, which includes other luxury hotels such as the Waldorf Astoria Boca Raton and Marriott Harbor Beach Resort & Spa.
The second largest loan is secured by a portfolio of 27 unanchored and anchored retail, 17 industrial and six office properties comprising nearly 2.0 million square feet (sf) located primarily in and around Richmond, VA and one 94-unit multifamily property located in Elizabeth City, NC. The loan benefits from a diverse, granular rent roll and full recourse to an experienced sponsor.
80 and 90 Maiden Lane is the third largest loan, which is secured by two adjacent landmarked office buildings in Manhattan, situated just a few blocks east of the New York Stock Exchange. The properties comprise 522,918 sf of office space and 29,146 sf of retail space. The property has maintained an average occupancy rate of 97.4% since 2007. The largest tenant, NYC Department of Investigation, executed an early renewal on its space (19.5% of the NRA) in December 2014, extending its lease to July 2025.
Fitch affirms the following classes:
--\\$45.8 million class A-1 'AAAsf'; Outlook Stable;
--\\$227.4 million class A-2 'AAAsf'; Outlook Stable;
--\\$96.7 million class A-SB 'AAAsf'; Outlook Stable;
--\\$34.2 million class A-3 'AAAsf'; Outlook Stable;
--\\$190 million class A-4 'AAAsf'; Outlook Stable;
--\\$262 million class A-5 'AAAsf'; Outlook Stable;
--\\$938 million class X-A 'AAAsf'; Outlook Stable;
--\\$81.9 million class A-M 'AAAsf'; Outlook Stable;
--\\$57.2 million class B 'AAsf'; Outlook Stable;
--\\$0 class PEZ 'Asf'; Outlook Stable;
--\\$44.8 million class C 'Asf'; Outlook Stable;
--\\$102 million class X-B 'Asf'; Outlook Stable;
--\\$91.1 million class X-C 'BBB-sf'; Outlook Stable;
--\\$29.3 million class X-D 'BB-sf'; Outlook Stable;
--\\$12.4 million class X-E 'B-sf'; Outlook Stable;
--\\$91.1 million class D 'BBB-sf'; Outlook Stable;
--\\$29.3 million class E 'BB-sf'; Outlook Stable;
--\\$12.4 million class F 'B-sf'; Outlook Stable.
The class X-A, X-B, X-C, X-D and X-E certificate amounts are notional and interest only. The class A-M, B and C certificates may be exchanged for class PEZ certificates and vice versa. Classes X-B, X-C, X-D, X-E, D, E and F are privately placed and pursuant to Rule 144A.
Fitch does not rate the interest-only class X-F or X-G certificates, nor does it rate the class G or H certificates.
DUE DILIGENCE USAGE
No third-party due diligence was provided or renewed in relation to this rating action.