JPMorgan Securities and Deutsche Bank are working on a $285 million commercial mortgage-backed securities deal collateralized by the Hotel del Coronado in San Diego and the intellectual property rights associated with its brand name, according to Morningstar.
Del Coronado Trust 2013-DEL will offer investors $127.6 million of AAA-rated notes, $48.8 million of AA-minus notes, $36.4 million of A-minus notes, $48 million of BBB-minus notes and $24.2 million of BB notes, according to one of
JPMorgan Chase and German American Capital are sponsors of the loan backing the property.
Morningstar said in the presale report that the hotel benefits from its favorable beachfront location and offers an appropriate complement of amenities to sustain high level of competitiveness. The ratings agency said it believes that the Hotel del Coronado is still in its recovery phase and has the potential for improved performance over the near term.
