JPMorgan Chase is marketing a $535 million single borrower CMBS transaction that is backed the Fontainebleau Miami Beach, a 1,594 key luxury full-service resort located in Miami Beach, Florida.
The deal, called JPMCC 2014-FBLU, is collateralized by a floating rate loan that is secured by borrower’s leasehold on the luxury resort. The loan was originated by JPMorgan Chase on Dec. 6, 2013.
Kroll Bond Ratings Agency has assigned preliminary ratings of AAA’ to the class A notes. The class B notes are rated AA+’; the class C notes are rated A+’, the class D notes are rated BBB-’; and the class E notes are rated BB-’.
The loan has an initial two-year term, provides for three, one-year extension options and requires monthly interest-only payments based on one month LIBOR plus an initial spread of 2.15%.
Proceeds from the mortgage loan were used to refinance existing mortgage and mezzanine debt, purchase the $352.0 million ownership interest of the sponsor’s previous equity partner, pay yield maintenance, and fund closing costs, according to the presale report. The previously existing debt consisted of a $412.0 million mortgage loan that was securitized in FMBT 2012-FBLU CMBS transaction and $168.0 million of mezzanine debt.