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.