JPMorgan Chase has packaged a highly concentrated portfolio of five office, hotel and retail property mortgages totaling $337 million.

The J.P. Morgan Chase Commercial Mortgage Securities Trust 2016-FL8 is split among four tranches rated by Standard & Poor’s, including a $271.4 million Class A structure supported by 19.47% credit enhancement. 

The Class A notes, along with a notional value of Class X interest-only notes, are rated provisionally at the ‘BBB-’ level as the pool of loans carried a larger average loan-to-value ratio (83.8%) compared to previous JPMorgan CMBS, including the June 2015 2015-FL7 trust issuance of $506 million in commercial bonds that had a weighted average LTV of 65%.

The 2016-FL8 portfolio includes $54.2 million in Class B bonds with a preliminary ‘BB-’ rating, while $11.4 million in Class C notes are rated ‘B’.

The trust contains five floating-rate loans secured by the first liens on the fee and/or leasehold interests in 15 properties.  Two of the loans are single property loans, encompassing $168.5 million: the 26-year-old Riverfront Plaza two-tower office complex in Richmond, Va., and the DoubleTree Suites Santa Monica (Calif.) hotel.

The other loans are secured by portfolios of multiple properties: the Devonshire Retail Portfolio loan is for five retail properties in multiple states; a series of suburban office and industrial complex properties through the Normandy Portfolio; and a commercial office and industrial-flex complex in Jacksonville, Fla.

All of the loans were originated between November 2014 and December 2015, and have 24-month original terms.  They have an average remaining terms of 16 months, and each have available extensions that could extent maturity out to weighted average of 52 months.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.