DBRS Confirms All Classes of COMM 2013-CCRE11 Mortgage Trust

DBRS Limited (DBRS) confirmed the following classes of the Commercial Mortgage Pass-Through Certificates, Series 2013-CCRE11 (the Certificates) issued by COMM 2013-CCRE11 Mortgage Trust:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class X-A at AAA (sf)
-- Class A-M at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (high) (sf)
-- Class X-B at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class X-C at B (high) (sf)
-- Class F at B (sf)

All trends are Stable.

The rating confirmations reflect the stable overall performance of the transaction since issuance. The collateral consists of 46 fixed-rate loans secured by 82 commercial and multifamily properties. As of the August 2018 remittance, the pool had a balance of $1.23 billion, representing a collateral reduction of 2.9% since issuance. Four loans, representing 6.4% of the pool balance, are fully defeased, including two loans in the top 15 (Prospectus ID#10 - The Vintage Estate and Prospectus ID#13 - Detroit City Apartments). Per the most recent financials, the weighted-average (WA) DBRS debt-service coverage ratio (DSCR) for the pool was 1.86 times (x), compared with the DBRS Term DSCR of 1.48x (which reflects all non-defeased loans), representing a 23.4% net cash flow growth since issuance. The WA debt yield for the pool is 11.5% compared with the issuance WA debt yield of 10.0%.

Five loans are on the servicer’s watchlist, representing approximately 2.0% of the pool balance. Two loans (1.3% of the pool balance) are being monitored for occupancy declines, two loans (0.7% of the pool balance) are being monitored for covenant compliance issues and the remaining loan (0.1% of the pool balance) is being monitored for performance issues. These watchlist loans exhibited a WA DSCR of 1.10x and debt yield of 10.4%, per the most recent year-end financials. There is one loan (Prospectus ID#17 - iPark Hudson Buildings 4 & 5) that is in special servicing, representing 1.8% of the pool balance, due to covenant compliance. The borrower failed to use the clearing account when the second-largest tenant failed to renew its lease 12 months prior to expiration, as required in the loan documents. Renewal terms have been agreed upon and the special servicer stated the loan should be transferred to the master servicer in the near future.

DBRS has assigned investment-grade shadow ratings to three loans: Prospectus ID#3 - One & Only Palmilla (7.3% of the pool), Prospectus ID#6 - One Wilshire (6.5% of the pool) and Prospectus ID#11 - 200-206 East 87th Street (2.8% of the pool). DBRS confirmed that the performance of these three loans remains consistent with investment-grade loan characteristics.

Classes X-A, X-B and X-C are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID#1 - Miracle Mile Shops (11.8% of the pool balance)
-- Prospectus ID#3 - One & Only Palmilla (7.3% of the pool balance)
-- Prospectus ID#5 - Oglethorpe Mall (7.3% of the pool balance)
-- Prospectus ID#6 - One Wilshire (6.5% of the pool balance)
-- Prospectus ID#11 - 200-206 East 87th Street Leased Fee (2.8% of the pool balance)
-- Prospectus ID#17 - iPark Hudson Buildings 4 & 5 (1.8% of the pool balance)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire CMBS universe, as well as deal and loan-level commentary for all DBRS rated transactions.

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

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

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 under Related Documents or by contacting us at info@dbrs.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.