CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 12 classes of JP Morgan Chase Commercial Mortgage Securities Trust (JPMCC 2013-C17) commercial mortgage pass-through certificates series 2013-C17. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on overall stable performance of the underlying collateral pool. As of the November 2014 remittance, the pool's aggregate principal balance has been reduced by 0.6% to $1.072 billion from $1.076 billion at issuance. The pool has experienced no realized losses to date.
There are no delinquent, specially serviced or defeased loans. One loan (1.1%) is currently on the servicer watchlist due to low debt service coverage ratio (DSCR); however, this results from the timing of lease renewal coupled with rent abatement. The property is fully occupied and DSCR is expected to increase after the expiration of the rent abatement period.
Fitch has designated the Chinatown Row loan as a Fitch Loan of Concern, which was not reported on the servicer Watchlist, due to a projected decline in occupancy to 89% from 100%. The third largest tenant is expected to vacate at the end of the month. The loan is secured by a 47,562 square foot (sf) mixed use property located in Washington D.C.'s Chinatown district. The property collateralizes the seventh largest loan in the transaction, representing 2.9% of the pool. The servicer provided rent roll has a lease expiration of December 2014 as compared to a lease expiration of August 2022 provided at issuance. Based on the strength of the location and potential interest in the space, Fitch expects occupancy to recover, but will continue to monitor the performance of the loan.
The largest loan in the pool, Jordan Creek Town Center (11% of the pool), is a 10-year amortizing loan. The whole loan consists of two pari passu notes. Only A1, the controlling piece, is included in this transaction. The A2 note ($100 million) is securitized in JPMBB 2014-C18. The collateral consists of 503,034 sf of an 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 2014, the property was 96% occupied, compared to 95% at issuance. The servicer reported third quarter 2014 (3Q'14) DSCR was 1.87x, compared to 1.74x at year-end (YE) 2013 and 1.59x at issuance.
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'), Eckerd Corporation (Rite Aid), International Paper Company, Plastipak Packaging, HEB Grocery Company and Commonwealth, Inc. As of June 2014, the portfolio was 100% occupied with reported DSCR of 2.08x.
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 features 310 residential units and 36,800 sf of grade level retail. The property is across the street from the Lincoln Center and within walking distance of Central Park and Columbus Circle. As of the 3Q'14, the building was 97% occupied with DSCR of 1.37x. The loan is pari passu with a $135 million note in JPMCC 2013-C16.
All classes maintain their Stable Outlooks. In light of 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 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.
Fitch affirms the following classes as indicated:
--$55.7 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 milliona class A-S at 'AAAsf', Outlook Stable;
--$834.9 million* class X-A at 'AAAsf'; Outlook Stable;
--$62.2 milliona class B at 'AA-sf', Outlook Stable;
--$47.3 milliona class C at 'A-sf', Outlook Stable;
--$193.4 milliona 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.
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:
--' J.P. Morgan Chase Commercial Mortgage Securities Trust 2013-C17 -- Appendix' (Dec. 10, 2013).
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria