JPMorgan adds $382.1M to CMBS pipeline

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An office park in Austin, Texas' high-tech corridor is the predominant feature of new $382.1 million commercial mortgage securitization through JPMorgan Chase.

A $100 million loan secured by the eight-building, 689,000-square foot Riata Corporate Park complex is one of six office, multi-family and hotel-property loans JPMorgan has packaged in the deal, dubbed J.P. Morgan Chase Commercial Mortgage Securities Trust 2017-FL10.

The notes being issued by the trust include a Class A tranche totaling $219.26 million, benefiting from 42.6% credit enhancement. The deal will also include five tranches of subordinate and mezzanine notes.

JPMorgan will retain a 5% stake in the deal by keeping $20.11 million of a non-offered notes tranche.

Riata, which makes up 24.9% of the collateral pool balance, is an older complex built in 1998, but has tenants such as IBM, National Instruements, eBay, Qualcomm, Oracle and the University of Texas. (Apple Corp. is a former tenant, and is constructing a $300 million, 290,000-quare foot campus next to Riata’s complex.)

Hotel and multifamily properties are also feature heavily in the collateral pool. The second-largest loan is a $90 million mortgage for a portfolio of seven garden-style apartments in and around Houston; and more than 24% of the collateral includes hotel properties including those for Park Hyatt and Hilton Worldwide.

According to S&P Global, all of the loans have additional debt outside of the trust, but none of it is pari passu, or on equal ranking. The weighted average loan-to-value ratio of the portfolio is 72.7%; LTVs for individual loans range from 58% to 91.2%.

Each of the loans pays only interest, and no principal, for the entire term.

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