JPMorgan, Barclays Prepare $836M CMBS

Mortgage & Real Estate









JPMorgan and Barclays plan to securitize 44 commercial mortgage loans that total $836.5 million. The loans are secured by 91 properties.

The collateral pool will include loans originated by JPMorgan, Barclays, Starwood Mortgage Funding II, Redwood Commercial Mortgage Corp. and RAIT Funding. The majority of the loans were used to refinance existing debt (29 loans, 59.4%). The proceeds from the remaining loans were used for property acquisitions (15 loans, 40.6%).

Kroll Bond Ratings Agency said in a presale report that the share of loans with loan-to-value ratios higher than 100% is 66.4%, higher than the average of 64.5% for CMBS conduits rated by KBRA over the past six months (10 loans have LTVs that exceed 105%). However, the weighted average LTV for the pool is 101%, in line with deals that the agency recently rated. Morningstar is also rating the deal.

New York properties feature heavily, representing more than 15% of the pool. The loan secured by New York-based office/retail property The Club Row Building is the largest in the pool. The building is located on West 44th Street in the Grand Central submarket of New York.

The loan secured by Branson on Fifth is the third largest in the pool. The property is a 31-unit (44,250 square feet), 10-story midrise multifamily and 14,881 square foot retail complex. It is situated on West 55th Street at Fifth Avenue in the Midtown West neighborhood of New York.

Most of the loans have 10-year terms; five loans have five-year terms and one loan has a 15-year term. More than half of the loans pay only interest for a portion of their term or for their entire term; 22 loans, make principal payments throughout their respective terms.

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