NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed seven classes of J.P. Morgan Chase Commercial Mortgage Securities Corp., commercial mortgage pass-through certificates, series 2011-C4 (JPMCC 2011-C4). A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the stable performance of the underlying collateral pool. There have been no delinquent or specially serviced loans since issuance. As of the April 2014 distribution date, the pool's aggregate principal balance has been reduced by 5% to $1.38 billion from $1.45 billion at issuance. There are currently no loans on the servicer's watchlist.
The largest loan (14% of pool) is secured by 972,484 square feet (sf) of a 1.15 million sf regional mall located in Jersey City, NJ. The mall is anchored by Macy's, JC Penney (non-collateral), Sears, and Kohl's. Major tenants include AMC Lowes Theatre, Pay Half, and Forever XXI. Year-end (YE) 2013 in-line sales improved to approximately $525 per square foot (psf) from $472 psf at issuance. Macy's also reported improved sales of $301 psf compared to $268 psf at issuance.
The fourth largest loan (7.7%) is secured by a 541,026 sf mixed-use complex located along the waterfront in the Financial District of San Francisco, CA. The previous largest tenant, AT&T, which occupied approximately 29% of the NRA, vacated at its August 2013 lease expiration. A new tenant, Salesforce.com, has leased the former AT&T space and additional square footage for a total of 43% of the NRA. The new tenant's rent will commence in phases: starting in August 2014 on 17% of the NRA; February 2015 on an additional 11%; May 2015 on an additional 14%; and May 2017 on the remaining 1%. Salesforce.com's rent would be in the range of $45 to $46 psf, compared to AT&T's average rent of approximately $37 psf prior to vacating.
The sixth largest loan (5.6%) is secured by a 606,233 sf, nine-building office complex located in downtown San Jose, CA. One of the largest tenants, GSA, which occupies 6.4% of the NRA, had recently renewed its lease until October 2022 (on 3.7% of NRA) and January 2027 (2.7%). The GSA lease had a prior lease expiration of May 2014.
The eighth largest loan (4.5%) is secured by a 433,900 sf anchored shopping center located at the base of the San Francisco Bay Bridge in Emeryville, CA. Two of the largest tenants, Pak N' Save and Sports Authority, both renewed their leases for an additional five years to June 2019 and November 2019, respectively.
All classes maintain Stable Rating Outlooks. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's overall portfolio-level metrics. Additional information on rating sensitivity is available in the 'J.P Morgan Chase Commercial Mortgage Securities Trust 2011-C4' (May 17, 2011) report, available at www.fitchratings.com.
Fitch affirms the following classes as indicated:
--$6.1 million class A-1 at 'AAAsf'; Outlook Stable;
--$336.4 million class A-2 at 'AAAsf'; Outlook Stable;
--$378.2 million class A-3 at 'AAAsf'; Outlook Stable;
--$100 million class A-3FL at 'AAAsf'; Outlook Stable;
--$226.8 million class A-4 at 'AAAsf'; Outlook Stable;
--$62 million class A-SB at 'AAAsf'; Outlook Stable;
--$1.38 billion* class X-A at 'AAAsf'; Outlook Stable.
*Notional amount and interest only.
Fitch does not rate classes B, C, D, E, F, G, H, NR, and X-B certificates.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 24, 2013);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
Applicable Criteria and Related Research:
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
Global Structured Finance Rating Criteria