Morningstar DBRS Confirms Credit Ratings on All Classes of GSMS 2013-G1

DBRS Limited (Morningstar DBRS) confirmed its credit ratings on all classes of Commercial Mortgage Pass-Through Certificates, Series 2013-G1 issued by GS Mortgage Securities Trust 2013-G1 as follows:

-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D at BBB (low) (sf)
-- Class DM at BB (sf)

All trends are Stable.

The credit rating confirmations reflect the overall continued stable performance of the transaction, as evidenced by the remaining underlying super-regional mall's occupancy rate, tenants sales, and cash flows, which remain in line with Morningstar DBRS' expectations at the previous credit rating action in June 2024. The subject also benefits from experienced sponsorship provided by Macerich, which made a $10 million principal curtailment as part of the loan modification in April 2023.

The trust collateral originally consisted of three fixed-rate loans individually secured by two outlet malls and one regional mall: Great Lakes Crossing Outlets (Auburn Hills, Michigan), Katy Mills (Katy, Texas), and Deptford Mall (Deptford, New Jersey). The sole remaining property is Deptford Mall, with loan collateral consisting of 343,910 square feet (sf) of in-line space in the 1.0 million-sf super-regional mall. The original loan balance was $205.0 million, bifurcated into a $179.4 million senior pooled amount contributed to the pooled certificates and a $25.1 million subordinate non-pooled loan that backs the Class DM certificate. As of the May 2025 remittance, there is $120.2 million remaining in the senior pooled balance and $16.8 million in the subordinate note, representing a whole-loan collateral reduction of 33.2% since issuance.

Deptford Mall is located just outside of Philadelphia and is anchored by non-collateral tenants Boscov's, Macy's, and JCPenney. The former Sears space has been partially backfilled by Dick's Sporting Goods, Xfinity, and Bonesaw Brewing Co., according to the property's directory. As of the December 2024 rent roll, collateral occupancy was 87.6%, compared with 89.6% at YE2023 and 89.2% at YE2022. Major collateral tenants include H&M (6.5% of the net rentable area (NRA), lease expiry January 2026), Foot Locker (3.7% of the NRA, lease expiry January 2034), and Victoria's Secret (3.2% of the NRA, lease expiry March 2035). One of the former larger collateral tenants, Forever 21 (4.7% of the NRA, lease expired in January 2025), appears to have vacated as part of a countrywide closure of all its stores following the company's second bankruptcy filing. Tenant rollover risk is notable as tenants representing approximately 48.9% of the NRA have leases scheduled to expire within the next 12 months, including H&M and Go! (2.7% of the NRA, lease expiry September 2025). According to Reis, the Gloucester County retail submarket has an average vacancy of 20.5% as of Q1 2025, making it a challenge to backfill vacant space relative to submarkets with stronger fundamentals.

The loan previously transferred to special servicing in March 2023 for imminent default as the borrower provided notice it would be unable to repay the loan at its original maturity date in April 2023. The loan was subsequently modified, and the terms included an initial extension through April 2024, plus two additional one-year extension options subject to minimum debt yield hurdles of 10.25% and 11.00%, respectively. The borrower recently executed the second and final extension option, extending the maturity to April 2026. The loan remains in cash management for the remaining term. According to the May 2025 remittance, the loan had $11.2 million across all reserve accounts.

The YE2024 net cash flow (NCF) was reported at $14.2 million, a decrease from the YE2023 NCF of $15.6 million and slightly below the YE2022 figure of $14.9 million. For those same periods, the subject reported a debt service coverage ratio (DSCR) of 1.25 times (x), 1.37x, and 1.31x, respectively. As of the December 2024 tenant sales report, in-line tenants reported sales of $552.79 per square foot (psf), a marginal decrease from the December 2023 figure of $558.08 psf.

Morningstar DBRS maintained the analysis from its previous credit rating action, which included a Morningstar DBRS Value of $171.6 million based on a Morningstar DBRS NCF of $14.6 million, derived from a 2.0% haircut to the YE2022 NCF, and a Morningstar DBRS cap rate of 8.50%. The $171.6 million value implies a 79.8% all-in loan-to-value ratio (LTV) on the $137.0 million remaining whole-loan balance. The updated Morningstar DBRS Value implies a 49.5% haircut to the issuer's appraised value of $340.0 million. Morningstar DBRS maintained negative qualitative adjustments totaling -1.0% to the LTV sizing benchmarks to account for the weaker market fundamentals.

The Morningstar DBRS credit rating assigned to Class C is lower than the result suggested by the LTV Sizing Benchmark by three notches. The variance is warranted given the loan's upcoming fully extended maturity date in April 2026, the significant tenant rollover risk, and the property's location in a submarket with soft fundamentals.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt credit rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS   
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.
 
A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025): https://dbrs.morningstar.com/research/454196

All credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology (February 28, 2025): https://dbrs.morningstar.com/research/448963

Other methodologies referenced in this transaction are listed at the end of this press release.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info-DBRS@morningstar.com.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

DBRS Limited
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Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577

The credit rating methodologies used in the analysis of this transaction can be found at:
https://dbrs.morningstar.com/about/methodologies.

-- North American Single-Asset/Single-Borrower Ratings Methodology (February 28, 2025):
https://dbrs.morningstar.com/research/448962

-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024):
https://dbrs.morningstar.com/research/439702

-- Legal Criteria for U.S. Structured Finance (December 3, 2024):
https://dbrs.morningstar.com/research/444064

-- North American Commercial Mortgage Servicer Rankings (August 23, 2024):
https://dbrs.morningstar.com/research/438283

A description of how Morningstar DBRS analyzes structured finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/417279. (July 17, 2023)

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.