Fitch Eyes GCCFC Classes

Classes K-NO, M-NO, and N-NO of GCCFC 2004-FL2 have been placed on Rating Watch Negative by Fitch Ratings.Fitch said the three rake classes (those supported entirely by a single asset) associated with the Northlake Office Park loan, and representing 10.9% of the pool, were placed on the watchlist due to the uncertainty surrounding the future of the loan, which matures Sept. 1. "Based upon Fitch's analysis, the collateral cash flow is insufficient to meet the debt service coverage ratio required by the loan documents for an extension," the rating agency said. Furthermore, if the loan is placed in special servicing, interest shortfalls could occur that would affect investors in the rake classes, Fitch said, adding that the original timetable for repositioning the property has been slower than expected. Vacancy in the remaining buildings ranges from 13% to 100%.