Benchmark 2023-B40 Mortgage Trust is offering certificates secured by mortgage loans on commercial properties spread across the United States.
Twenty loans on 34 properties, located in 14 metropolitan statistical areas, serve as collateral for Benchmark 2023-B40, a $484.4 million commercial mortgage-backed securities conduit transaction. Five of those loans account for 44.6% of the pool, according to the Kroll Bond Rating Agency. Large retail, office, mixed-use and self-storage loans dominate the property pool.
J.P. Morgan Chase Commercial Mortgage Securities is the depositor, while JPMorgan Chase Bank, Citi Real Estate Funding, Goldman Sachs Mortgage Co., and Bank of America are mortgage loan sellers and sponsors, according to S&P Global Ratings. The offered certificates amount to $406.687 million, S&P said.
The underwriters are J.P. Morgan Securities, Citigroup Global Markets, Goldman Sachs, BofA Securities, Academy Securities, and Drexel Hamilton. The master servicer is expected to be Midland Loan Services, a division of PNC Bank, and the special servicer is expected to be LNR Partners, KBRA said.
The loan closed on December 21, 2023, according to Asset Securitization Report's deal database.
Transaction strengths, according to S&P, include low leverage, with a weighted average loan-to-value ratio of 77.6%; geographic diversity across the United States; a high concentration of properties in primary markets; and a relatively diverse mix of property types.
Risk considerations include a moderately low debt service coverage ratio; a somewhat low level of diversity by loan balances, with the 10 largest loans representing 72.6% of the pooled trust balance; and a high proportion of interest-only loans at 76.7%.
The notes benefit from senior/subordination enhancement, according to the ASR database.
There have been no meaningful changes from previous Benchmark securitizations, Fitch said.
"This transaction is the third securitization this year from this shelf," said Fitch, which rated the previous two transactions earlier this year. "Fitch's projected asset loss on the transaction's credit enhancement is consistent with prior transactions."
S&P has assigned an AAA rating to pass-through certificate classes A-1, A-2, A-5, A-SB and X-A. Class A-S is rated AA-. The remaining certificates are unrated.
Fitch has assigned an AAA rating to certificate classes A-1, A-2, A-5, A-SB, X-A and A-S. Class B is rated AA-, classes C and X-B are rated A-, class D is rated BBB, and classes E and X-D are rated BBB-. Classes F and X-F are rated BB-, and classes G and X-G are rated B-.
