DBRS Confirms All Classes of STWD 2013-FV1 Mortgage Trust

DBRS has today confirmed the following Commercial Mortgage Pass-Through Certificates, Series 2013-FV1 (the Certificates) issued by STWD 2013-FV1 Mortgage Trust (the Trust). The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class X at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)

The ratings are consistent with the continued performance of the pool since it originally closed in August 2013. The trust asset represents a senior A-note, which is part of a larger floating rate whole loan with a current balance of $243.0 million. The subordinate B-note has a current balance of $72.6 million and is held outside the Trust by both of the trust asset sellers. At issuance, the loan was secured by the fee and leasehold interests in 123 Red Roof Inn hotels located throughout the United States.

Twenty-four assets have been sold and released as collateral since issuance, bringing the current room count down by approximately 2,500. The preceding fiscal year-end debt service coverage ratio for the remaining properties is reported to be 1.68 times. Based on the most recent room count, the A-note trust asset has a leverage point of $14,158 on a per unit basis. The pool is concentrated in one loan, which exposes the Certificates to increased event risk, and the collateral consists entirely of low-budget economy-style limited-service hotels that are 28 years of age on average. The granularity of the portfolio, with 99 properties represented, provides increased protection against cash flow volatility. The loan benefits from strong sponsorship in Five Mile Capital Partners LLC and Westmont Hospitality Group, which provide a significant amount of combined financial resource availability and expertise in the hospitality industry. The borrower’s original capital plan included $68.2 million in property improvements and modernization projects.

The loan was originally structured with a 24-month interest-only period, with amortization only required if certain debt yield hurdles are not met during extension option periods.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

All classes are privately placed pursuant to Rule 144A.

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