JP Morgan plans to issue a $510 million, commercial mortgage-backed securitization backed by Marriott hotel properties.
The deal, called JP Morgan Chase Commercial Mortgage Securities Trust 2013-JWRZ, is backed by one two-year, floating-rate commercial mortgage loan totaling $510.0 million. It is secured by a first-lien on the borrower's fee interest in the J.W. Marriott Grande Lakes and the Ritz-Carlton Grande Lakes (Grande Lakes Resort) in Orlando, Fla. and the fee and leasehold interests in the J.W. Marriott Desert Ridge in Phoenix, Ariz, according to Standard & Poor’s. .
The capital structure will offer investors $212.3 million of ‘AAA’-rated notes; $74.5 million of ‘AA-’-rated notes; $60 million of ‘A-’ rated notes; $72.9 million of ‘BBB-‘-rated notes; and $90.3 million ‘BB’-rated notes.
S&P said in the deal’s presale report that all three hotels backing the deal are outperforming the competitive hotels within their respective market. Each property's performance has improved since 2010 because of the economic recovery, which has strengthened meeting and group demand as well as leisure demand.