J.P. Morgan Chase priced its $1.13 billion CMBS conduit deal on Friday at levels tighter than the Goldman Sachs CMBS conduit, which also priced last week.
The 10-year, AAA-rated A4 bonds in J.P. Morgan Chase Mortgage Securities Trust 2013-C16 2013-C16 and Goldman Sach’s GSMS 2013-GCJ16, priced at 96 basis points and 108 basis points over swaps respectively.
Classes A-S through C sold at spreads from 15-25bp wider in the Goldman Sachs deal in comparison to the JP Morgan deal. JP Morgan priced its 10-year, triple-A rated, A-S notes at 130 basis points. The class B, 9.98-years double-A minus, notes priced at 180 basis points; and the single-A minus, 9.98-years, class C notes priced at 230 basis points. Goldman Sachs priced its A-S tranche at 145 basis points; the B notes at 195 basis points and the C notes at 255 basis points.
Analysts at Standard & Poor’s said in a report today that “perceived collateral differences were the likely cause of the range of spreads in [the] 2 conduit transactions.”
J.P. Morgan CMBS conduit is backed by the beneficial interest in a pool of 60 commercial mortgage loans secured by 113 properties. An unusually large concentration 29.6%, are multi-family properties, according to a presale published by Fitch Ratings.
The two largest loans in the pool, The Aire (11.9%) and Veritas Multifamily Portfolio (8.1%), are collateralized by multifamily properties located in central business districts of primary markets.
Office properties represented the second highest concentration, at 28.9%.
Fitch said the relative diversity of the pool by property type was a positive factor.
By contrast the Goldman Sachs’ conduit has a relatively high concentration in hotel properties. The largest loan that represents 6.4% of the securitized pool is secured by Windsor Court New Orleans, a 316-key, full-service luxury hotel located in New Orleans, Louisiana.
The five largest loans, which also include Miracle Mile Shops, Matrix MHC Portfolio, The Gates at Manhasset and Perkins Retail Portfolio, represent 28.2% of the initial pool balance.
Fitch said in its presale on the J.P. Morgan deal that multi-family properties are less likely to default than some other property types.
The issuer priced the 4.91-years, triple-A, A-2 notes priced at 90 basis points; the 9.76-years, triple-A, A-3 notes priced at 94 basis points; the 9.90-years, class A-4 notes priced at 96 basis points; and the 7.33-years, class A-SB, triple-A notes priced at 90 basis points.