News Column

Fitch Affirms Deutsche Bank Securities COMM 2010-C1

July 23, 2014

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed 13 classes of Deutsche Bank Securities COMM 2010-C1 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations of the Deutsche Bank Securities COMM 2010-C1 are based on the overall stable performance of the underlying collateral pool.

As of the July 2013 remittance, the pool's aggregate principal balance has been paid down by 6.5% to $801 million from $857 million at issuance. The top 15 loans reported full year 2013 financials. Based on full year financial statements, the pool's overall net operating income (NOI) improved 5.0% since issuance. Almost half of the pool (48.6%) is comprised of five year loans that mature in 2015.

There are no delinquent or specially serviced loans. Four loans (8.1%) are on the master servicer's watchlist of which two (5.7%) are considered Fitch Loans of Concern and are in the transaction's largest 15 loans.

The largest Fitch Loan of Concern is Central Plaza (3.6% of the pool) secured by a 405,693 square foot, 20 story office tower, three two story office buildings, and a nine-level parking garage. The property is located in commercial zone that is approximately one mile north of downtown Phoenix, AZ. Occupancy at the subject has modestly improved during the last year to 61% as of March 2014 from a low of 56% during the 2012 calendar year. The sponsor continues to market the vacant space in an effort to further backfill the campus vacancy. Per Reis, the Uptown submarket of Phoenix has a class A vacancy rate of 29.5% and rental rate of $21.50 per square foot (psf) as of first quarter 2014. The submarket vacancy rate is expected to continue to fall over the next three years as the region's economic activity continues to expand and the new development is limited in the area. The loan matures in Oct. 2015.

The second Fitch loan of concern, is a loan secured by a 195,326 sf office complex, 400 Skokie Boulevard (2.1%), located in Northbrook, IL, approximately 20 miles north of Chicago. The subject was built in 1984 and renovated in 2006. The property's occupancy was 81% as of Dec. 2013 which is a slight improvement from 79% at year-end 2012. The sponsor continues to work in a challenging submarket environment to increase occupancy while renewing a number of tenant leases schedule to expire in 2015. Per Reis, Chicago's north suburban office market vacancy rate is currently 25%. The loan matures in Sep. 2015.

RATINGS SENSITIVITY

All classes maintain a Stable Outlook. Due to the recent issuance of the transaction and stable performance, Fitch does foresee negative ratings migration until a material economic or asset level event changes the transaction's overall portfolio-level metrics. If the Fitch Loans of Concern default and/or transfer to the special servicer, negative rating outlooks or negative rating actions on the junior classes are possible. However, given the significant expected paydown due to the high percentage of maturing loans in 2015, the expected increase in credit enhancement may mitigate an increase in expected losses.

Fitch has affirmed the following classes:

--$362.8 million class A-1 at 'AAAsf'; Outlook Stable;

--$35.1 million class A-1D at 'AAAsf'; Outlook Stable;

--$75.1 million class A-2 at 'AAAsf'; Outlook Stable;

--$179.5 million class A-3 at 'AAAsf'; Outlook Stable;

--$262.5 million class XP-A at 'AAAsf'; Outlook Stable;

--$326.2 million class XS-A at 'AAAsf'; Outlook Stable;

--$326.2 million class XW-A at 'AAAsf'; Outlook Stable;

--$24.6 million class B at 'AAsf'; Outlook Stable;

--$28.9 million class C at 'Asf'; Outlook Stable;

--$45 million class D at 'BBB-sf'; Outlook Stable;

--$7.5 million class E at 'BBB-sf'; Outlook Stable;

--$12.8 million class F at 'BBsf'; Outlook Stable;

--$12.9 million class G at 'B-sf'; Outlook Stable.

Fitch does not rate the interest-only class XW-B or the $17.1 million class H.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=841175

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

Jay Bullie, +1-312-368-2079

Associate Director

Fitch Ratings, Inc.

70 W. Madison Street

Chicago, IL 60602

or

Committee Chairperson

Britt Johnson, +1-312-606-2341

Senior Director

or

Media Relations

Sandro Scenga, New York, +1-212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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