Fitch: CMBS Backed by $1.1 Billion-Plus Pool Entering Pipeline

Fitch has released a presale report on GS Securities Trust 2013-GCJ12, a commercial mortgage-backed securities deal secured by interests in a loan pool almost $1.2 billion in size.

The sequentially paying deal is backed by beneficial interests in a pool of 78 commercial mortgages secured by 106 properties.

The transaction received expected ratings ranging from a top investment-grade AAAsf to a speculative grade Bsf.

Seven classes received AAAsf expected ratings, one class received a AA-sf expected rating, two classes received A- expected ratings, one class received a BBB-sf expected rating, one class received a BBsf expected rating, and one class received a Bsf rating.

Two classes were not rated.

The sponsors are Jefferies LoanCore, Citigroup Global Markets Realty, Goldman Sachs, MC-Five Mile Commercial Mortgage Finance and Archtype Mortgage Funding I. Wells Fargo Bank is the master servicer and Rialto Capital Advisors is the special servicer.

Partial interest-only loans represent almost 35% of the pool, which Fitch said is a higher than the average percentage for the first quarter, almost 31%.

The top 10 loans represent a little over 44% of the pool, which is considered better than 1Q 2013 and 2012 averages of 55.4% and 54.2%, respectively.

Average leverage is relatively higher with debt service coverage and loan-to-value ratios at 1.2x and 102.3%, respectively. This compares to 1.34x and 99.6% in 1Q 2013 and 1.24x and 97.1% in 2012.

Five loans representing 19.5% of the pool have existing mezzanine debt. Fitch considers the asset quality average. The larger property concentrations are retail (34.9%), multifamily (20.8%) and hotel (14.6%).

The multifamily percentage is higher than in recent transactions, but the office concentration at 4.1% is lower than in recent transactions.

Fitch reviewed 87.3% of the pool.