Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to a $1.34 billion CMBS conduit sponsored by JP Morgan and Barclays.
The deal, JPMBB 2013-C12, is collateralized by 77 commercial mortgage loans that are secured by 107 properties. The capital structure will offer six classes of ‘AAA’-rated, class A notes; ‘AA-’-rated class B notes; ‘A-’ rated C notes; ‘BBB-’-rated D notes; ‘BB’-rated E notes and ‘B’-rated F notes.
The loans have principal balances ranging from $1.6 million to $125.0 million for the largest loan in the pool, Legacy Place (9.3%). Legacy Place is a 575,248 sf (483,569 collateral sf) lifestyle anchored retail center located in Dedham, Massachusetts, approximately 12 miles southwest of Boston, Massachusetts.
The top five loans, which also include the Americold Cold Storage Portfolio (8.2%), IDS Center (6.7%), Southridge Mall (4.1%) and Colony Hills Portfolio (3.5%), represent 31.4% of the initial pool balance, while the top 10 loans represent 45.0%.
Over half of the pool’s balance (55 loans, or 51.1%) is comprised of amortizing balloon loans with no interest-only periods. There are 19 loans (45.6%) that have partial interest-only periods, and two full-term, interest-only loans (3.2%).
The collateral properties are located in 33 states. The five largest state exposures represent 43.6% of the pool balance and include: Massachusetts (11.9%), Texas (10.0%), California (7.7%), Minnesota (7.6%) and New York (6.4%). By property type, the pool's biggest concentration is retail (40.4%), multifamily (14.1%), office (12.9%), and hotel (12.5%).