CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed the ratings of Chase Commercial Mortgage Securities Corporation (CMSC) commercial mortgage pass-through certificates series 1999-2. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations are a result of an in-depth analysis of the collateral performance, which has remained stable since the last review. The pool is highly concentrated, with four loans outstanding. The largest loan in the pool, representing 38.6% of the pool, is fully defeased. Two others are fully amortizing, and no loans are scheduled to mature until September 2018. There is one loan on the servicer's watchlist.
The second largest loan is 750 University Avenue (33.2% of the pool) and is on the servicer's watchlist for below-threshold DSCR. The collateral is a 62,042 square foot (sf) office property situated 10 miles south of San Jose, California. The loan has been on the watchlist since June 2010 and has never been delinquent. The YE2015 debt service coverage ratio (DSCR) was reported to be 0.92x, compared to 0.93x at YE2014 and 0.84x at YE2013. The asset has historically been well occupied but has been operating below market in terms of rental rates. Given the low leverage point ($65 per sf), strong market location and full amortization schedule, Fitch does not believe this loan to be at immediate risk of default but will continue to monitor the asset's performance.
Windtree Phase II Apartments (19.1% of the pool) is secured by a 128-unit multifamily property in Fayetteville, North Carolina. The property is in close proximity to Fort Bragg, the United States' largest military base. A March 2016 rent roll indicated the asset was 88.3% occupied. While occupancy has remained stable over the last few years, cash flow has proved to be more volatile. The reported DSCR has fluctuated from 1.46x to 1.66x and back to 1.46x for YE2013, YE2014 and YE2015, respectively.
The smallest loan in the pool is Ashley Place Apartments (9.1% of the pool). The subject is a 96-unit garden-style multifamily property in North Miami, Florida. The April 2016 occupancy was 95.8% and the YE2015 DSCR indicated strong coverage at 2.67x. This loan is fully amortizing.
The Rating Outlooks on classes K and L are Stable. Future upgrades to class L are not warranted at this time given the concentrated nature of the pool and the quality of the remaining collateral. Downgrades are not considered likely but are possible with a material decline in performance of the remaining loans.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following ratings:
--$1.3 million class K at 'AAAsf', Outlook Stable;
--$5.9 million class L at 'Asf', Outlook Stable.
Fitch does not rate the class M certificate. Classes A-1, A-2, B, C, D, E, F, G, H, I and J have been fully repaid. Fitch previously withdrew the rating on the interest-only class X certificate.
Additional information is available at 'www.fitchratings.com'.
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