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Fitch Affirms GSMS 2013-GC10

February 3, 2014

Fitch Ratings has affirmed 14 classes of Goldman Sachs Mortgage Company's GS Mortgage Securities Trust (GSMS) commercial mortgage pass-through certificates, series 2013-GC10. A detailed list of rating actions follows at the end of this press release. KEY RATING DRIVERS The affirmations are the result of stable performance of the underlying pool since issuance. As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 1 percent to $850.3 million from $859.4 million at issuance. There are currently no delinquent or special serviced loans. Sixty (99.6 percent of the pool) out of the 61 loans in the pool reported partial year or trailing 12 month (TTM) 2013 financials. Based on the annualized 2013 net operating income (NOI), the pool's overall NOI has been stable with a 1 percent NOI increase over the portfolio NOI at issuance. The largest loan in the pool, Empire Hotel & Retail (12.9 percent of the pool), is secured by a 423-room hotel located on Manhattan's Upper West Side, adjacent to Lincoln Center and two blocks from Columbus Circle and Central Park . The property includes 61,223 square feet (sf) of retail space leased to five third party tenants including the Rooftop Lounge . As of the TTM ended September 2013 , occupancy reported at 88.4 percent, compared to 87.2 percent at year- end (YE) December 2012 , and 87.5 percent at issuance. The YE 2012 average daily rate (ADR) and revenue per available room (RevPAR) reported at $243 and $214.81 , respectively; updated TTM September 2013 ADR or RevPAR information was unavailable. NOI has been stable to improving, with TTM September 2013 NOI 6.7 percent above YE 2012, and 2.3 percent below NOI at issuance. The NOI debt service coverage ratio (DSCR) reported at 1.67x for TTM September 2013 , compared to 1.56x at YE 2012, and 1.71x at issuance. The second largest loan in the pool, National Harbor (12.7 percent), is secured by a 10-building, 405,720-sf mixed use property in National Harbor , MD. The property is 11-miles south of Washington D.C. and situated on the Maryland side of the Potomac River . The buildings contain a diverse mix of tenants including restaurants, retailers, and office tenants. The September 2013 rent roll reported occupancy at 91.4 percent, compared to 90.8 percent at issuance. NOI has improved since issuance, with annualized YTD September 2013 NOI 6.6 percent above YE 2012, and 1 percent above NOI at issuance. The NOI DSCR reported at 1.72x for YTD September 2013 compared to 1.70x at issuance. The third largest loan in the pool, Nut Tree Center (7.9 percent), is secured by 323,322-sf retail power center in Vacaville, CA , approximately 35 miles south east of the Sacramento CBD. The property consists of 283,992-sf of retail space, 39,330-sf of office space, and the Nut Tree Plaza , a children's play area. Collateral also includes a leasehold interest in 1.32 acres of vacant land located across the street from the main portion of the center. Anchor and major tenants include Sport Chalet (12.9 percent net rentable area [NRA]), Best Buy (9.3 percent NRA), HomeGoods (7.8 percent NRA), PetSmart (6.2 percent NRA), and Old Navy (5.8 percent NRA). The October 2013 rent roll reported occupancy at 94 percent, compared to 91.6 percent at issuance. The NOI DSCR reported at 1.51x for YTD September 2013 compared to 1.61x at issuance. RATING SENSITIVITY 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 'GS Mortgage Securities Trust' ( May 21, 2013 ), available at fitchratings.com . Fitch affirms the following classes as indicated: -- $44.3 million class A-1 at 'AAAsf'; Outlook Stable; -- $35.3 million class A-2 at 'AAAsf'; Outlook Stable; -- $21 million class A-3 at 'AAAsf'; Outlook Stable; -- $110 million class A-4 at 'AAAsf'; Outlook Stable; -- $300.5 million class A-5 at 'AAAsf'; Outlook Stable; -- $81.4 million class A-AB at 'AAAsf'; Outlook Stable; -- $54.8 million class A-S at 'AAAsf'; Outlook Stable; -- $647.3 million * class X-A at 'AAAsf'; Outlook Stable; -- $103.1 million * class X-B at 'Asf'; Outlook Stable; -- $63.4 million class B at 'AAsf'; Outlook Stable; -- $39.7 million class C at 'Asf'; Outlook Stable; -- $34.4 million class D at 'BBB-sf'; Outlook Stable; -- $22.6 million class E at 'BB+sf'; Outlook Stable; -- $16.1 million class F at 'Bsf'; 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: --' GS Mortgage Securities Trust 2013-GC10 -- Appendix ' ( May 21 , 2013). Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'fitchratings.com ' under the following headers: Structured Finance >> CMBS >> Criteria Reports Additional information is available at 'fitchratings.com '. Applicable Criteria and Related Research : --'Global Structured Finance Rating Criteria' ( May 24 , 2013); --'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' ( Dec. 11 , 2013). Applicable Criteria and Related Research : U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria http://fitchratings.com/creditdesk/reports/ report_frame.cfm?rpt_id=724961 Global Structured Finance Rating Criteria http://fitchratings.com/creditdesk/reports/ report_frame.cfm?rpt_id=708661 Additional Disclosure Solicitation Status http://fitchratings.com/gws/en/disclosure/ solicitation?pr_id=818137 ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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