JPMorgan has put together a commercial mortgage-backed securitization called JPMCC 2013-INN that represents the beneficial interest in a trust holding a $575 million mortgage secured by
The two-year, floating rate, interest-only loan is collateralized by 51 hotels in 16 states. The properties have an average age of 25 years, according to a Fitch presale report.
Fitch calls the deal’s structural features “strong,” and notes that it has capped recourse carve-outs.
“The recourse carve-out guarantors will be Cerberus Institutional Real Estate Series Two Holdings LLC, Cerberus Series Four Holdings LLC and Chatham Lodging LP; all are subject to a cap on liability equal to 15% of the mortgage loan balance,” Fitch said.
“The guarantors, collectively, are required to maintain a minimum aggregate net worth of $225 million.”
In addition, Fitch noted, “The total debt package includes mezzanine financing in the amount of $375 million, which is not included in the trust.”
Fitch assigned its top expected rating of AAAsf to one tranche and lower investment grade ratings of AA-sf, A-sf and BBB-sf to three tranches on an expected basis, respectively.
It also assigned the speculative grade rating of BBsf to three tranches on an expected basis.
