DBRS Confirms All Classes of GS Mortgage Securities Trust 2013-GCJ16

DBRS, Inc. (DBRS) has today confirmed the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-GCJ16 (the Certificates), to be issued by GS Mortgage Securities Trust 2013-GCJ16:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-AB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class X-C at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AA (low) (sf)
-- Class PEZ at A (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class F at BB (low) (sf)
-- Class G at B (low) (sf)

All trends are Stable. The Class PEZ Certificate may be exchanged for up to the full certificate balance of the Class A-S, Class B and Class C Certificates. As of the October 2014 remittance, no exchange has been made.

The rating confirmations reflect the overall stable performance of the pool since issuance. The pool consists of 77 fixed-rate loans secured by 134 properties. Since issuance, the transaction has experienced collateral reduction of 0.64% as a result of scheduled loan amortization. According to YE2013 reporting, the pool has a weighted-average (WA) debt service coverage ratio and WA Debt Yield of 1.45 times and 9.33%, respectively.

As of the October 2014 remittance, there was one loan on the servicer’s watchlist, representing 1.2% of the current pool balance. Candlewood Apartments (Prospectus ID#24) is secured by a 288-unit, Class B garden-style apartment complex located in Corpus Christi, Texas. This loan was placed on the watchlist in September 2014 because of major deferred maintenance. According to the July 2014 servicer’s site inspection, several items of deferred maintenance were noted, including a heaved section of concrete found adjacent to one unit that is considered a safety hazard. The borrower has reportedly planned to finance a $1 million renovation project to the exterior of the property to address this and other items of concern. The property was 90% occupied as of the June 2014 rent roll and continues to perform in line with expectations.

At issuance, DBRS assigned an investment-grade shadow rating to one loan in the pool. DBRS has today confirmed that the performance of this loan remains consistent with the investment-grade characteristics.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report with additional information on the DBRS viewpoint for this transaction, including details on the largest loans in the pool and the loans on the servicer’s watchlist. The October 2014 Monthly Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

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 (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.

DBRS will publish a full report shortly that will provide additional analytical detail on this rating action. If you are interested in receiving this report, contact us at info@dbrs.com.