CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 13 classes of JP Morgan Chase Commercial Mortgage Securities Trust (JPMBB 2013-C17) commercial mortgage pass-through certificates series 2013-C17. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations are based on overall stable performance of the underlying collateral pool. As of the November 2015 remittance, the pool's aggregate principal balance has been reduced by 1.3% to $1.068 billion from $1.082 billion at issuance.
There have been no delinquent, specially serviced or defeased loans since issuance. Two loans are considered Fitch Loans of Concern (4% of the pool), one of which is the Chinatown Row loan, which is the seventh largest loan in the pool (2.9%). Occupancy declined to 85% as of June 2015 from 100% at issuance. Three tenants have vacated since issuance including the third largest tenant representing 11% of the net rentable area (NRA). The loan is secured by a 47,562 square foot (sf) mixed-use property located in Washington D.C.'s Chinatown district. Based on the strength of the location Fitch anticipates occupancy to recover, but will continue to monitor the performance of the loan. The other loan of concern (1.1%) is a full-service hotel with declining occupancy located in Rochester, NY.
The largest loan in the pool, Jordan Creek Town Center (10.9% of the pool), is a 10-year amortizing loan. The loan is subject to a $100 million pari passu note which is part of the JPMCC 2014-C18 transaction. The collateral consists of 503,034 sf of a 1.1 million-sf regional mall located in West Des Moines, IA. The property is anchored by Dillard's (non-collateral), Younkers (non-collateral) and Scheels All Sports. Sponsored by GGP, the loan is performing in line with expectations at issuance. As of September 2015, the property was 93% occupied, compared to 95% at issuance. The servicer reported third quarter 2015 (3Q15) debt service coverage ratio (DSCR) was 1.56x, compared to 1.63x at year-end (YE) 2014 and 1.59x at issuance. As of September 2015, sales performance has remained stable since issuance. The Des Moines market is experiencing substantial growth with numerous development projects slated for completion including new retail developments, residential projects and several billion-dollar data centers planned by Google, Microsoft and Facebook.
The second largest loan, EIP National Portfolio (8.8%), is secured by seven industrial buildings encompassing 3.2 million sf. The properties are located in six states, with two in Ohio and one each in Illinois, Florida, Pennsylvania, Texas and Michigan. The portfolio is currently leased to seven tenants: Toys 'R' Us, Staples (rated 'BBB-'), Rite Aid, International Paper Company, Plastipak Packaging, HEB Grocery Company and Commonwealth, Inc. As of June 2015, the portfolio was 100% occupied with reported DSCR of 2.11x. Based on the planned merger between Walgreens and Rite Aid, the industrial property in Pennsylvania is being monitored closely for retail store redundancy and upcoming lease expiration.
The third largest loan, The Aire (8.4%), is secured by a 43-story luxury multifamily building located on the Upper West Side of Manhattan. The property is a 310-unit, 42-story luxury residential building constructed in 2010 that features numerous amenities and high-end finishes. Lincoln Center and The Julliard School are located across the street from The Aire, and Central Park, Riverside Park and The Shops at Columbus Circle are within walking distance. The loan is subject to a $135 million pari passu note which is part of the JPMCC 2013-C16 transaction. As of September 2015, the collateral is performing in line with expectations at issuance with occupancy of 97% (as of September 2015) and a YE 2014 DSCR of 1.25x, compared to the 92% occupancy and 1.16x DSCR at issuance. According to Reis' 3Q15 report, the Upper West Side submarket of Manhattan had an apartment vacancy rate of 3.4% with average asking rents of $5,045. The subject is performing in-line with the submarket.
All classes maintain their Stable Outlooks. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'J.P. Morgan Chase Commercial Mortgage Securities Trust 2013-C17' (Dec. 10, 2013), available at www.fitchratings.com.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following classes as indicated:
--$47.1 million class A-1 at 'AAAsf', Outlook Stable;
--$67.6 million class A-2 at 'AAAsf', Outlook Stable;
--$210 million class A-3 at 'AAAsf', Outlook Stable;
--$319.1 million class A-4 at 'AAAsf', Outlook Stable;
--$98.6 million class A-SB at 'AAAsf', Outlook Stable;
--$83.9 million** class A-S at 'AAAsf', Outlook Stable;
--$827 million* class X-A at 'AAAsf'; Outlook Stable;
--$62.2 million** class B at 'AA-sf', Outlook Stable;
--$47.3 million** class C at 'A-sf', Outlook Stable;
--$193.4 million** class EC at 'A-sf', Outlook Stable;
--$48.7 million class D at 'BBB-sf', Outlook Stable;
--$21.6 million class E at 'BBsf', Outlook Stable;
--$12.2 million class F at 'Bsf', Outlook Stable.
* Notional amount and interest-only.
** Class A-S, B and C certificates may be exchanged for a related amount of class EC certificates, and class EC certificates may be exchanged for class A-S, B and C certificates
Fitch does not rate the class NR and X-C certificates. Fitch previously withdrew the rating on the interest-only class X-B certificates.
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
J.P. Morgan Chase Commercial Mortgage Securities Trust 2013-C17 -- Appendix
Dodd-Frank Rating Information Disclosure Form