The primary market for CMBS deals remained relatively quiet on Thursday with only one conduit deal, JP Morgan Chase’s JPMCC 2013- LC11, and one single-borrower deal, the Irvine Core Office Trust 2013-IRV, announced this week.
JP Morgan’s deal is currently being marketed as a $1.32 billion conduit that is backed by 52 commercial mortgage loans with an aggregate principal balance of $1.32 billion, secured by the fee and leasehold interests in 82 properties across 23 states.
Of the total trust balance, 32.0% is backed by offices, 28.7% is backed by retail assets (including anchored, unanchored, and mall properties), 24.3% is backed by residential assets (apartment, manufactured housing, and student housing properties), 8.2% by hotels, 3.5% by mixed-use properties, 2.0% by warehouses, and 1.2% by industrial properties, according to a Standard & Poor’s presale report.
The capital structure will offer $921 million in ‘AAA’ notes. The deal is also marketing $92 million of ‘AA-’ notes; $47 million of ‘A-’ notes; and $52 million of ‘BBB-’ notes. Analysts at Credit Suisse said in a report today that the deal is currently in the market is being talked “roughly in line with where the last deal priced a couple of weeks ago.” Guidance on the 10-year, super senior class is 80 basis points over swaps.
The single borrower deal, Irvine Core Office Trust 2013-IRV is backed by a pool of 10 commercial mortgage loans backed by office buildings located in Southern California. The loans are all sponsored by Irvine Core Office LLC, an affiliate of Irvine Company (Irvine), according to a Fitch Ratings presale report.
S&P said in its presale report that the Irvine Core office properties are located in high-land-cost areas within the Los Angeles, Irvine, and Newport Beach markets in southern California. All of the properties are in desirable office districts within primary markets, as defined by S&P.
Fitch and S&P assigned preliminary ratings of ‘AAA’ to the $560 million of triple-A notes that are being offered under the capital structure. Fitch also assigned the $88.438 million class B notes a ‘AAA’; S&P assiogned the tranche ‘AA’ratings. The capital structure also offers $88.43 million of ‘A’ rated notes assigned by both ratings agencies. S&P has rated the D, E and F tranches ‘BBB+’, ‘BBB-’ and ‘BB+’ respectively.