Fitch Ratings has affirmed seven classes of COMM 2013-300P Mortgage Trust.

The Rating Outlooks for classes A1, A1P, B, C, and X-A remain Negative.

RATING ACTIONS

Entity / Debt

Rating

Prior

COMM 2013-300P

A1 12625XAA5

LT

BBB-sf

Affirmed

BBB-sf

A1P 12625XAC1

LT

BBB-sf

Affirmed

BBB-sf

B 12625XAG2

LT

BB-sf

Affirmed

BB-sf

C 12625XAJ6

LT

B-sf

Affirmed

B-sf

D 12625XAL1

LT

CCCsf

Affirmed

CCCsf

E 12625XAN7

LT

CCCsf

Affirmed

CCCsf

X-A 12625XAE7

LT

BBB-sf

Affirmed

BBB-sf

Page

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VIEW ADDITIONAL RATING DETAILS

KEY RATING DRIVERS

The affirmations reflect the continued performance stabilization of the property, including improved occupancy and positive leasing momentum since Fitch's last rating action.

The Negative Outlooks reflect the potential for downgrades of up to one category if further progress is not made toward recovering closer to Fitch's expectations for sustainable performance, market conditions deteriorate and/or rents on future new leasing at the property does not improve. Additionally, downgrades could occur in the event the loan transfers to the special servicer at or before the fully extended August 2025 modified maturity date and it results in a workout that is prolonged or incurs fees/expenses that affect the trust.

Loan Modification/Extension: The loan was transferred back to the master servicer in June 2023 after being modified. The terms of the loan modification included an extension of the maturity date from August 2023 to August 2024, with the option for an additional one-year extension until August 2025. The borrower funded a $5 million shortfall reserve and a $20 million capital expense and leasing cost reserve. The loan's interest rate remains fixed at 4.41%.

Fitch Net Cash Flow (NCF): Fitch's updated property NCF of $25.6 million is 13.4% below Fitch's NCF of $29.5 million at the last rating action, largely due to a decline in expense reimbursements and other income, which includes Studio coworking space revenue based on fee collections for desk/workspace rentals. Additionally, a new lease signed in 2023 with Ally Bank (7.1% of NRA) was 24% below Fitch's assumption of rent at the last rating action.

Fitch's updated NCF incorporates leases-in-place as of the YE 2023 rent roll, with credit for near-term contractual rent steps and tenants expected to take occupancy, in addition to straight-lined rent credit for a portion of Colgate-Palmolive's lease through 2033. Fitch's updated NCF assumed an occupancy of 86.1%, in-line with the Costar's Plaza District submarket occupancy of 86%.

Since the last rating action, new leasing activity occurred on approximately 13% of the NRA; these new leases have commencement dates in 2024 and 2025. Tenants taking over vacant spaces include Peapack-Gladstone Bank (2.1% of NRA; lease expiration in June 2033), The Nassau Companies of New York (1.6%; August 2030), Paloma Partners Management (0.9%; October 2029), Bleichmar Fonti & Auld LLP (0.8%; June 2033), Triton USA (0.6%; September 2029) and Naya (0.3%; June 2033). Tenant Maxim Group LLC executed a lease on the former EnTrust Global LLC space for 2.5% of the NRA, commencing in March 2024 and expiring in June 2033. Yieldstreet Inc. leased 4.2% of the NRA previously occupied by Nordstrom from May 2024 through October 2027. Fitch requested lease terms on all of the new leasing, but none was provided.

When factoring in Fitch rent assumptions of $75 psf on lower floors and $85 psf for higher floors given lack of new leasing details, combined with contractual rent bumps and straight-lined rent for the investment-grade rated tenant, the overall average rent for the office space is approximately $88 psf, down from approximately $90 psf at the last rating action.

The servicer-reported YE 2023 NCF DSCR was 1.38x, compared with 1.56x in 2022, 1.22x in 2021 and 1.49x in 2020 for the interest-only loan.

Stable to Improving Occupancy: Reported occupancy as of the December 2023 rent roll was 83%, compared with 84% in December 2022, 81% in August 2022, 78.5% in June 2021 89.7% in June 2020 and 98.9% in June 2019. Fitch estimates current occupancy to be approximately 86% when incorporating known new leasing activity to date. Upcoming lease rollover prior to the extended loan maturity in August 2025 consists of 8.3% of the NRA.

High Fitch Leverage: The $485 million mortgage loan ($629 psf) has a Fitch-stressed DSCR and LTV of 0.59x and 151.8%, respectively, compared to 1.32x and 67.2% at issuance and 0.68x and 131.3% at the last rating action in April 2023. Fitch maintained a cap rate of 8% from the last rating action, compared to 7.75% at issuance.

Sponsorship: The loan sponsor is controlled by Prime Plus Investments, Inc. (PPI), a private Maryland REIT. PPI is a partnership of a Tishman Speyer-affiliated entity, the National Pension Service of Korea and the second Swedish National Pension Fund AP2, which owns 51.0% of PPI and an affiliate of GIC Real Estate Private Ltd., a sovereign wealth fund established and funded by the Singapore government, which owns the remaining 49%.

Limited Structural Features: The loan has no reserves, no structure in place to mitigate the upcoming Colgate-Palmolive lease expiration, springing cash management and there is no carve-out guarantor.

Strong Location; ESG Factors: 300 Park Avenue consists of a 25-story, LEED Gold high-rise office building totaling 771,259 sf. The property's LEED certification was upgraded to Gold in 2017 from Silver at the time of issuance. The property's location is in the Plaza District submarkets and is situated between 49th and 50th Streets on the west side of Park Avenue. The location is four blocks north of Grand Central Terminal and offers excellent accessibility and proximity to public transportation. The building holds a LEED-Gold designation, which has a positive impact on the transaction's ESG score for Waste & Hazardous Materials Management; Ecological Impacts.

The property underwent substantial renovations between 1998 and 2000, including a new lobby, elevator modernization and upgraded building systems. Additionally, a facade renovation around the same time completely transformed the property's exterior with new windows, aluminum spandrel panels and retail storefronts. Fitch assigned 300 Park Avenue a property quality grade of 'B+' at issuance. The building is also a part of Tishman Speyer's global amenity network for tenants called 'ZO', which is a comprehensive suite of services including wellness, backup child care, on-site health screenings and medical services, corporate services, travel planning, community volunteer engagement, and more.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

Downgrades may be possible in the event the loan transfers to the special servicer for not being able to refinance before the fully extended August 2025 modified maturity date and it results in a workout that is prolonged or incurs fees/expenses that affect the trust.

Additionally, should leasing momentum slow or reverse course or if new leasing occurs at rates significantly below the submarket and performance does not recover to Fitch's expectations on sustainable performance downgrades are possible.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

Upgrades are not likely given the challenges facing office and retail properties in the submarket and single-event risk. The current ratings reflect Fitch's view of sustainable performance; however, upgrades are possible with significant and sustained leasing that contributes to improved Fitch sustainable NCF from occupancy well in excess of the current 83%, new leasing above the average in-place rates of $88 psf, and more certain prospects for refinancing/payoff.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

COMM 2013-300P has an ESG Relevance Score of '4' [+] for Waste & Hazardous Materials Management; Ecological Impacts due to {DESCRIPTION OF ISSUE/RATIONALE}, which has a positive impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors.

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

Additional information is available on www.fitchratings.com

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