DBRS Downgrades Two Classes of GECMC, Series 2005-C1

DBRS has today downgraded two classes of GE Commercial Mortgage Corporation, Series 2005-C1, as follows:

-- Class N to D (sf) from C (sf)
-- Class O to D (sf) from C (sf)

These rating actions reflect the most recent losses to the trust, resulting from the liquidation of one loan in May 2012. As of the May 2012 remittance report, realized losses for this loan total $6.88 million; to date, 13 loans have liquidated at a cumulative loss of $27.54 million. Additionally, DBRS has removed the Interest in Arrears designation from these classes as well as from Class F and Class G, which recouped previous interest shortfalls with the resolution of this loan.

Heritage on the River (Prospectus ID#42) was secured by a 301-unit multifamily property in Jacksonville, Florida. The loan transferred to the special servicer in February 2009 after payment default, which was caused by a drop in the occupancy rate to 74%, compared to 97% at issuance. As a result, the borrower was unable to pay out the loan at its scheduled maturity date in November 2009. At issuance, the property was valued at $18.81 million and the most recent appraisal, from September 2011, valued the property at $10.5 million. According to the May 2012 remittance report, the property was sold for approximately $9.75 million, resulting in a realized loss to the trust of $6.88 million and a loss severity of 52.8%.

For additional detail on the DBRS viewpoint for this transaction, and for details on the largest loans in the pool, the loans in special servicing and the loans on the servicer’s watchlist, please see the May 2012 Monthly CMBS Surveillance Report for this transaction, which will be published shortly.

Notes:
All figures are in U.S. dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the European Union

The applicable methodologies are CMBS Rating Methodology and CMBS North American Surveillance Methodology, which can be found on our website under Methodologies.