Fitch Affirms Green Loan Services' Commercial Mortgage Servicer Rating

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has affirmed the commercial mortgage loan level special servicer rating of Green Loan Services LLC (GLS) at 'CLLSS2-'.

The rating reflects GLS' extensive experience handling large complex loans, particularly Manhattan office properties, as a borrower, lender and a special servicer. The company maintains experienced and tenured staff; adequate information technology infrastructure given the size of its debt portfolio; limited internal control environment; and potential conflicts of interest as special servicer for SL Green investments.

GLS is a wholly-owned affiliate of SL Green Realty Corp. SLG, a real estate investment trust that predominantly acquires, owns, repositions, and manages New York City (and surrounding locations) office properties. As of Sept. 30, 2016, the company held interests in 125 Manhattan buildings totaling 46.6 million square feet. This included ownership interests in 28.1 million square feet of commercial buildings and debt and preferred equity investments secured by 18.6 million square feet of buildings. The company is also an active developer, and is in the process of constructing a new skyscraper adjacent to Grand Central Station, One Vanderbilt Avenue.

GLS provides asset management and special servicing predominantly for SL Green's debt and equity investments. The company reported staff of 19 involved in asset management and special servicing responsibilities up from 17 at Fitch's last review. While the focus and dominant expertise of GLS is New York City real estate it has also resolved commercial real estate loans secured by all traditional property types in other major metropolitan areas as well as internationally. Over the last few years through its debt platform investments, the company has gained exposure to ground-up constructing lending including both multifamily and retail property collateral, reflecting an ongoing diversification of SLGs' investment portfolio. Many of these investments are in Manhattan although SLG has continued to invest in select submarkets of Brooklyn and Queens.

As of Sept. 30, 2016, GLS was named the special servicer on two CMBS loans totaling $1.5 billion unpaid principal balance (UPB) and 42 non-CMBS loans totaling $1.65 billion, none of which were in default. Of the two CMBS loans for which GLS is currently named special servicer, for one loan (with a UPB of $1.1 billion) it was appointed by a third party. For the other loan (with a UPB of $308 million) it was appointed by an affiliate.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria

Rating Criteria for Structured Finance Servicers (pub. 01 Jul 2016)

https://www.fitchratings.com/site/re/884140

Rating Criteria for U.S. Commercial Mortgage Servicers (pub. 14 Feb 2014)

https://www.fitchratings.com/site/re/735382

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1016576

Endorsement Policy

https://www.fitchratings.com/regulatory

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