NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 21 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust commercial mortgage pass-through certificates series 2007-LDP12. A full list of rating actions follows at the end of this ratings action commentary.
KEY RATING DRIVERS
Fitch modeled losses of 12.7% of the remaining pool; expected losses on the original pool balance total 13.2%, including $151.8 million (6.1% of the original pool balance) in realized losses to date. Fitch has designated 37 loans (30.8%) as Fitch Loans of Concern, which includes 11 specially serviced assets (10.3%).
As of the November 2015 distribution date, the pool's aggregate principal balance has been reduced by 44% to $1.4 billion from $2.5 billion at issuance. Per the servicer reporting, three loans (2.2% of the pool) are defeased. Interest shortfalls are currently affecting classes F through NR.
The largest contributor to expected losses is Liberty Plaza (3.1% of the pool), a real estate owned (REO) asset (3% of the pool). The property is a 365,556 square foot (sf) community shopping plaza, previously anchored by a 24-hour Wal-Mart, and Pathmark. The property was built in 1989, renovated in 1994, and is situated on a 33 acre pad. The loan transferred to special servicing in January 2013 due to imminent default.
Wal-Mart (34%) and Pathmark (15%) have both vacated the property. Largest tenants are Dick's Sporting Goods, Raymour & Flanigan and Grand China Buffet. The property is currently 45% physically occupied. Per the special servicer, they have entered into two lease renewals comprising (35.2%). The property is not currently on the market.
The next largest contributor to expected losses is the specially-serviced BB&T Tower loan (2.2%), which is secured by an 18 story high rise office building consisting of 282,000 sf built in 1975, renovated in 1994, and located in Jacksonville, FL. The largest tenants are Branch Banking and Trust Co, with 46,831 sf comprising 16.6% of the Property's net rentable sf (nrsf), expiring Feb. 28, 2019, HDR Engineering, with 22,000 sf comprising 7.8% of the Property's nrsf, expiring Dec. 31, 2018, and Patriot Transportation Holdings, with 14,649 sf comprising 5.2% of the property's nrsf, expiring April 30, 2023. The loan was transferred to special servicing in May 2014 and matured in July 2014. The property is 81.1% occupied as of September 2015. Per the special servicer, foreclosure was filed and workout discussions with the Borrower's representative are ongoing. The most recent servicer reported DSCR as of June 2015 is 1.22x.
The third largest contributor to expected losses is the specially-serviced Oheka Castle loan (2.0%), which is secured by resort hotel located in Huntington, NY, comprising of 4 stories, built in 1915 and modernized in 1988. The property, formerly an estate mansion, was converted into an upscale catering facility and 32 room resort hotel. The loan was most recently transferred to special servicing on Nov. 12, 2015. The most recent servicer reported occupancy as of June 2015 was 51.4% with RevPAR of $131. The borrower is requesting a modification to the Cash Management Agreement requirements and discussions with the special servicer are ongoing. The loan was previously modified in July 2013 whereby the loan was split into an A Note in the amount of $22.75 million, and B Note in the amount of $7.04 million. The loan's maturity was extended to Aug. 1, 2017.
Rating Outlooks on classes A-3 through A-1A remain Stable due to sufficient credit and enhancement and continued paydown. The rating outlook on class A-M has been revised to Positive. Upgrades to class A-M are possible with additional paydown and better than expected resolution of the larger specially serviced assets. Downgrades to the distressed classes are likely as losses are incurred.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following ratings and revised Rating Outlook as indicated:
--$8.9 million class A-3 at 'AAAsf'; Outlook Stable;
--$601.7 million class A-4 at 'AAAsf'; Outlook Stable;
--$11.7 million class A-SB at 'AAAsf'; Outlook Stable;
--$181.1 million class A-1A at 'AAAsf'; Outlook Stable;
--$250.5 million class A-M at 'Asf'; Outlook to Positive from Stable;
--$197.2 million class A-J at 'CCCsf'; RE 15%;
--$21.9 million class B at 'CCCsf'; RE 0%;
--$28.2 million class C at 'CCsf'; RE 0%;
--$21.9 million class D at 'CCsf'; RE 0%;
--$12.5 million class E at 'Csf'; RE 0%;
--$25 million class F at 'Csf'; RE 0%;
--$28.2 million class G at 'Csf'; RE 0%;
--$14 million class H at 'Dsf'; RE 0%;
--$0 class J at 'Dsf'; RE 0%;
--$0 class K at 'Dsf'; RE 0%;
--$0 class L at 'Dsf'; RE 0%;
--$0 class M at 'Dsf'; RE 0%;
--$0 class N at 'Dsf'; RE 0%;
--$0 class P at 'Dsf'; RE 0%;
--$0 class Q at 'Dsf'; RE 0%;
--$0 class T at 'Dsf'; RE 0%.
The class A-1 and A-2 certificates have paid in full. Fitch does not rate the class NR certificates. Fitch previously withdrew the rating on the interest-only class X 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)
Dodd-Frank Rating Information Disclosure Form