The large loan CMBS mill continues to churn out deals. The latest deal to join the pipeline is JP Morgan’s $430 million transaction backed by Destiny USA, the sixth largest enclosed mall in the U.S. and the largest shopping center in New York State.
The deal, JPMCC 2014-DSTY, is backed by two non-recourse, fixed-rate, interest-only mortgage loans originated by JPMorgan Chase Bank, National Association. The loans, which are not cross collateralized or cross defaulted, are each secured by a distinct phase of Destiny USA, a super-regional mall located in Syracuse, New York.
Kroll Bond Ratings assigned preliminary ratings to the deal. The capital structure features $215 million of AAA’- rated notes; $47.8 million of AA-’ rated class B notes; $35.8 million of A-’ rated class C notes; $96.6 million of BBB-’ rated class D notes; and $34.8 million of BB-’ rated class E notes. All of the notes are due June 2027.
The first of the two loans has a balance of $300.0 million and is secured by a mortgage on approximately 1.2 million of the 1.5 million square feet that comprises “Phase I” of the project.
The second mortgage loan has a balance of $130.0 million and is secured by an 874,200 square foot expansion parcel that was completed in 2012, which comprises “Phase II” of the property.
Destiny USA has five traditional mall anchor tenants totaling 600,000 square feet. These anchors are Macy’s, JCPenney, Lord & Taylor, Dick’s Sporting Goods, and Bon-Ton. JCPenney, Dick’s Sporting Goods, and Bon-Ton serve as collateral for the loan and the remaining anchors own their improvements and ground lease the underlying land from the City of Syracuse.
