JP Morgan Chase Bank will issue a $1.2 billion CMBS conduit deal call, J.P. Morgan Chase Commercial Mortgage Securities Trust 2013-C10.
The deal, which has been assigned preliminary rating by both Fitch Ratings and Standard & Poor’s will offer $1 billion of ‘AAA’/ ‘AAA’ rated, class A notes; $84.6 million of ‘AA’/ ‘AA-‘ class B notes; $55.9 of ‘A-‘/ ‘A-‘ class C notes; $47.9 million of ‘BBB-‘/ ‘BBB-‘ class D notes; $30 million of ‘BB’/’BB’ rated class E notes; and $12.7 million of ‘B’/‘BB-’ class F notes.
According to the Fitch presale report, the deal is structured with super-senior ‘AAAsf’ classes at 30% credit enhancement and a subordinate ‘AAAsf’ rated class A-S sized at $107 million, with 21.625% credit enhancement.
JPMorgan Chase Bank N.A., CIBC Inc., and Redwood Commercial Mortgage Corp. are the loan sponsors on the 50 commercial mortgage loans backing the deal. J.P. Morgan Securities LLC, CIBC World Markets Corp. and Morgan Stanley are lead underwriters on the deal.
The loans are secured by the fee and leasehold interests in 101 properties across 28 states. Of these properties (by pooled trust balance), 36.9% are located in three states: New Jersey, Illinois, and Pennsylvania.
Retail properties represent the highest concentration of the pool at 35.2% and office properties represent 34.0%. Fitch noted in the presale report that retail and office properties have an average likelihood of default.