Fitch Affirms WFRBS 2013-C18
OREANDA-NEWS. Fitch Ratings has affirmed 14 classes in WFRBS Commercial Mortgage Trust series 2013-C18 commercial mortgage pass-through certificates. 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. As of the October 2015 distribution date, the pool has experienced 1.3% collateral reduction since issuance.
There have been no delinquent or specially serviced loans since the deal closed. There are four loans on the servicer's watchlist, representing 1.6% of the pool combined. The largest watchlist loan is 0.9% of the pool and is secured by a limited-service hotel in Royersford, Pennsylvania. The net operating income (NOI) debt service coverage ratio (DSCR) at the second quarter of 2015 (2Q15) was 1.33x, with a corresponding occupancy rate of 69%.
The largest loan in the pool is Garden State Plaza (14.6% of the pool). The subject is a 2.2 million square foot (sf) super regional mall in Paramus, New Jersey that is anchored by Macy's, Nordstrom, Neiman Marcus, Lord & Taylor and J.C.Penney. The mall was originally built in 1957 and most recently renovated in 2013 at a cost of $159 million. Other major tenants include a 16-screen AMC Loews, Forever 21, Best Buy and H&M. The loan is interest-only for the full term, and is pari-passu with a $150 million note securitized in another CMBS transaction. Historical sales have been strong and the property was 95% occupied as of June 2015.
The second largest loan is secured by a 1.3 million sf outlet mall located 15 miles southwest of New York City. Anchors include Burlington Coat Factory, Forever 21, Cohoes Fashions and a 22-screen Loews Theatres. The loan is interest-only for the full term, and is one of three pari-passu notes with a whole loan balance of $350 million. Glimcher was the original property owner before the company was acquired in 2014. The subject is now exclusively owned and operated by Simon and has been rebranded as The Mills at Jersey Gardens. Sales for year-end (YE) 2014 were reported to be $598 psf, and the property was 95.4% occupied as of June 2015.
The third largest loan, AmericasMart, is secured by a 7.1 million sf wholesale trade market with approximately 4.6 million sf of rentable area in four attached buildings. The property is located in the Atlanta CBD and was originally constructed in 1961. There are over 1,500 permanent tenants occupying 3.5 million sf, and 1.1 million sf of temporary exhibition space can be leased during trade shows. The trust note, which is one of four notes with a whole loan balance of $541 million, amortizes on a 25-year schedule. The property was 89.7% occupied as of July 2015.
The 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 USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following classes as indicated:
--$35.5 million class A-1 at 'AAAsf', Outlook Stable;
--$103.3 million class A-2 at 'AAAsf', Outlook Stable;
--$140 million class A-3 at 'AAAsf', Outlook Stable;
--$170 million class A-4 at 'AAAsf', Outlook Stable;
--$201 million class A-5 at 'AAAsf', Outlook Stable;
--$63.7 million class A-SB at 'AAAsf', Outlook Stable;
--$70.1 million class A-S at 'AAAsf', Outlook Stable;
--$782.9 million class X-A at 'AAAsf', Outlook Stable;
--$72.7 million class B at 'AA-sf', Outlook Stable;
--$36.3 million class C at 'A-sf', Outlook Stable;
--$0 class PEX at 'A-sf', Outlook Stable;
--$66.2 million class D at 'BBB-sf', Outlook Stable;
--$19.5 million class E at 'BBsf', Outlook Stable;
--$7.8 million class F at 'Bsf', Outlook Stable.
Fitch does not rate the class G certificate.