NEW YORK, September 26 (Fitch) Fitch Ratings has downgraded
one class and placed four classes of GMAC Commercial Mortgage
Securities, Inc.'s mortgage pass-through certificates, series
2001-C1 on Rating Watch Negative. In addition Fitch has affirmed
six distressed classes of the transaction. A detailed list of
rating actions follows at the end of this release.
The downgrade of class D to 'A' and placement on Rating
Watch Negative is due to the expectation that the class will not
receive principal or interest payments for approximately six
months. The master servicer will begin withholding principal and
interest payments in order to recover an insurance property
protection advance made for real estate owned (REO) Bridgewater
Place property. Although full recovery of principal and interest
is possible, Fitch does not rate classes that have incurred an
interest shortfall higher than 'A'.
The placement of classes D through G on Rating Watch
Negative is as a result of interest shortfalls, as well as a
concern that seven of the remaining eight loans are in special
servicing. Fitch will resolve the Rating Watch within the next
several months following a detailed review of the transaction
after the receipt of updated valuations on the specially
serviced loans and additional information on the interest
recovery prospects of the classes is received.
Bridgewater Place is an REO office property (19.2% of the
pool balance) located in Grand Rapids, MI. The 315,202 square
foot (sf) 17 story property was built in 1993 within the central
business district (CBD). The servicer-reported occupancy was 61%
as of August 2012. Varnum, the largest tenant, renewed their
lease earlier this year for a term of 10 years but downsized
their footprint by 14,047 sf. The special servicer continues to
market the vacant space and recently listed the property for
sale. The master servicer had previously ceased advancing
principal and interest. The insurance advance is considered a
property protection advance.
Fitch has downgraded and placed the following class on
Rating Watch Negative:
--$0.8 million class D to 'Asf' from 'AAAsf' The following
classes are placed on Rating Watch Negative
--$17.3 million class E 'Asf';
--$13.0 million class F 'BBB-sf';
--$13.0 million class G 'CCCsf'; RE100%. Additionally, Fitch
has affirmed the following classes:
--$25.9 million class H at 'Csf'; RE5%;
--$6.5 million class J at 'Csf'; RE0%.
Classes K, L, M and N remain at 'Dsf'; RE0%; due to realized
Class A-1, A-2, A-3, B, C and the interest-only class X-2
have paid in full. Fitch does not rate class P. Class X-1 and O
was previously withdrawn.