JP Morgan Chase and Barclays plan to issue $1.12 billion of commercial mortgage backed securities via the JPMBB Commercial Mortgage Securities Trust.
The conduit pool is comprised of 76 fixed-rate loans secured by 120 commercial and multifamily properties, according to Fitch Ratings and DBRS.
Along with JP Morgan Chase and Barclays, Starwood Mortgage Funding and General Electric are listed as loan sponsors.
According to Fitch, the deal’s weighted average LTV at 110.8% is higher than the LTVs for conduits issued in the first-half of 2014 and in 2013, which averaged 105.6% and 101.6%, respectively.
The pool is comprised of a limited amount of amortizing loans. According to Fitch, only 3.4% of the pool is fully amortizing; 31 loans or 24.5% of the pool consists of amortizing balloon loans with loan terms of five to 10 years. The majority of the pool or 59.2% is comprised of partial term interest-only loans and 2.9% of the pool is full-term interest-only.
Office properties comprise 38.0% of the pool, including five of the top 10 loans. The pool’s office composition is greater than the first-half 2014 and 2013 averages of 18.4% and 19.6%, respectively. Other property type concentrations include retail (23.7%), mixed-use (11.5%) and hospitality (9.6%).
The conduit joins a securitization pipeline packed with CMBS deal. This week three deals have already been announced that include Deutsche Bank's $441 million floating rate deal backed by 4 hotels (COMM 2014-FL4), Bank of America Merrill Lynch's $675mn deal backed by 520 Madison Ave. in NYC (BAMLL Commercial Mortgage Securities Trust 2014-M ) and Goldman Sachs' $543 million floating rate transaction (GSMS 2014-GSFL).
