JP Morgan will issue $505 million of notes backed by the beneficial interests in a pool of four commercial mortgage loans backed by 82 properties.
The deal, JPMCC 2013-FL3 has been assigned preliminary ratings by Fitch Ratings. The capital structure includes $280.3 million of ‘AAA’ notes; $86.3 million of ‘AA-’-rated notes; $60.5 million of ‘A-’ notes; $44.9 million of ‘BBB-’-rated notes; and $33 million of ‘BB-’-rated notes, according to the Fitch presale report.
The pool is secured by only four loans, two of which are hotels. The remaining two loans are a portfolio secured by office properties and retail bank branches and an office property. The two largest loans in the pool are the Eagle Hospitality Portfolio; and Bank of America’s BBD1 Portfolio are backed my multiple properties.
The Eagle Hospitality Portfolio is collateralized by 13 properties located across nine states and Puerto Rico. The BBD1 Portfolio loan is backed by 67 properties across 10 states.
Among the properties Fitch noted that the SLS Beverly Hills and Heron Lakes are high-quality, recently constructed/renovated properties that perform very well within their respective markets. The majority of the Eagle Hospitality Portfolio properties are in the top one or two performers.
Fitch also said in the report that the Eagle Hospitality Portfolio and BBD1 Portfolio loans are backed by large institutional sponsors. The SLS Beverly Hills and Heron Lakes loans are backed by sponsors with extensive operating experience in the respective property type and market.