JP Morgan Securities and Deutsche Bank are working on a $285 million CMBS backed by the Hotel del Coronado in San Diego and the intellectual property rights associated with hotel’s brand name, according to a Morningstar presale report.
Del Cornado Trust 2013-DEL will offer investors $127.6 million of ‘AAA’ notes; $48.8 million of ‘AA-’ notes; $36.4 million of ‘A-’ notes; $48 million of ‘BBB-’ notes; and $24.2 million of ‘BB’ notes.
JP Morgan Chase and German American Capital are sponsors of the loan backing the property.
Morningstar said in the presale report that the hotel benefits from its favorable beachfront location and offers an appropriate complement of amenities to sustain high level of competitiveness. The ratings agency said it believes that the Hotel del Coronado is still in its recovery phase and has the potential for improved performance over the near-term.