Fitch Ratings affirms GE Commercial Mortgage Corporation (GECMC) commercial mortgage pass-through certificates, series 2005-C1, as follows:
--$34.5 million class A-1 at 'AAA';
--$419.3 million class A-2 at 'AAA';
--$155 million class A-3 at 'AAA';
--$36.8 million class A-4 at 'AAA';
--$48.2 million class A-AB at 'AAA'; LCM VII
--$457.9 million class A-5 at 'AAA';
--$145.3 million class A-1A at 'AAA';
--$110.9 million class A-J at 'AAA';
--Interest-only class X-P at 'AAA';
--Interest-only class X-C at 'AAA';
--$41.9 million class B at 'AA';
--$16.7 million class C at 'AA-';
--$27.2 million class D at 'A';
--$14.6 million class E at 'A-';
--$23 million class F at 'BBB+';
--$14.6 million class G at 'BBB';
--$25.1 million class H at 'BBB-';
--$4.2 million class J at 'BB+';
--$8.4 million class K at 'BB';
--$10.5 million class L at 'BB-';
--$2.1 million class M at 'B+';
--$6.3 million class N at 'B'; and
--$4.2 million class O at 'B-'.
Fitch does not rate the $25.1 million class P certificates.
The affirmations reflect stable performance and minimal paydown since issuance. As of the July 2007 distribution date, the transaction has paid down 2.6% to $1.63 billion from $1.67 billion at issuance.
There is currently one loan (1.1%) in special servicing. The loan is secured by a retail property in Chicago, IL. The loan was transferred to the special servicing in October 2005 due to delinquency but has since become current. The special servicer is now monitoring litigation between the partners over control of the borrower.
Fitch reviewed the four credit assessed loans in the pool, Lakeside Mall (5.7%), Ward Centers (3.7%), Buckhead Station Shopping Center (1.7%) and the Strategic Hotel Portfolio (1.5%). All four loans maintain an investment grade credit assessment.
The Lakeside Mall is secured by a 1,478,375 square foot (sf) regional mall located in Sterling Heights, MI and anchored by Sears, Marshall Fields, JCPenney, Lord & Taylor and Marshall Field's Men and Home. The whole loan is comprised of two pari-passu A-notes, of which only the A-1 note is included in this transaction. Occupancy declined to 93.6% as of April 2007 from 97% at issuance.
The Ward Centers is a 270,961 sf retail center in Honolulu, HI, which is part of the Victoria Ward development. Year-end (YE) 2006 occupancy improved slightly to 98% from 97% at issuance.
The Buckhead Station Shopping Center is collateralized by a 234,757 sf, two-story, power center in Atlanta, GA and is anchored by Toys 'R Us, Bed, Bath & Beyond, TJ Maxx, DSW Shoes and Old Navy. YE 2006 occupancy decreased to 89.7% from 97% at issuance.
The Strategic Hotel Portfolio is secured by a portfolio of three Hyatt Regency hotels in New Orleans, LA, La Jolla, CA and Phoenix, AZ, respectively. The whole loan comprises four pari-passu A-notes and a B note, of which only the A-4 note is included in this transaction. The 27-story, Hyatt Regency New Orleans experienced severe damage due to Hurricane Katrina. The hotel is currently closed for repair. The hotel is not expected to reopen until summer 2008. The borrower continues to maintain a blanket insurance policy on all three hotels. The insurance advances, and excess revenues from the other two hotels are being used to fund debt service on the loan. Fitch will continue to monitor the repair status of this hotel to assess future performance.
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