Fitch Affirms JPMBB 2013-C15
KEY RATING DRIVERS
The affirmations reflect the overall stable performance of the underlying collateral. As of the August 2016 distribution date, the pool's aggregate principal balance has been reduced by 12.7% to $1.04 billion from $1.19 billion at issuance. Approximately 46% of the pool is either partial-term or full-term interest only. Two loans (2%) were designated as Fitch Loans of Concern and no loans have been in special servicing since issuance. There is notable retail and office exposure within the transaction; 32% of the pool is secured by retail properties and 31.6% is secured by office properties. Since Fitch's last rating action the largest loan in the pool, Veritas Multifamily Portfolio, paid off with yield maintenance.
The largest loan (10.6% of the pool) is secured by the Miracle Mile Shops, a 448,835 square foot (sf) retail mall located along Las Vegas Boulevard, at the base of the Planet Hollywood Resort & Casino, in Las Vegas, NV. The location is a high foot traffic area along the Las Vegas Strip and includes tenants such as V Theatre, Planet Hollywood and H&M. The loan has an additional five pari passu notes for total debt outstanding on the Miracle Mile Shops of $580 million. The collateral is performing in line with underwritten expectations with occupancy of 98% (as of March 2016) and a year-end (YE) 2015 NOI DSCR of 1.45x. The trailing 12 month in-line sales as of February 2016 are $842 per square foot (psf) compared to $868 psf in June 2013.
The second largest loan (9.6% of the pool) is secured by 1615 L Street, a 417,383-sf office building located in downtown Washington, D. C., four blocks from the White House. The property is 13 stories, was built in 1984 and extensively renovated in 2009. The property features a renovated six-story marble lobby, full-service fitness center, common area event space, roof-top patio and dining area, 24-hour security, a restaurant, and a 287-space below-grade parking garage. Occupancy as of March 31, 2016 was 96%. The servicer-reported NOI DSCR as of YE 2015 was 1.53x compared to 1.24x as of YE 2014. The loan was previously on the servicer watchlist and has been removed as the DSCR stabilized due to rent concessions burning off. The full term interest-only loan has an additional $34.25 million in pari passu debt for total debt outstanding on the property of $134.25 million.
The Marriott Spring Hill Suites Vernal (0.91% of the pool) is a Fitch Loan of Concern. The loan is secured by a 97 room, limited service hotel located in Vernal, UT that was built in 2009. The property is located in the Uintah Basin which is a source of oil and gas production. Due to the price of crude oil declining significantly since 2014 the area is experiencing a reduction in the number of active drilling rigs. The hotel has suffered a large drop in occupancy due to a loss in the corporate segment, which declined over 40% in 2015. The servicer-reported NOI DSCR as of YE 2015 dropped to 0.81x compared to 1.67x as of YE 2014. As of the March 2016 STAR Report the trailing 12 month occupancy, ADR, RevPAR declined by 25.3%, 12.6%, and 34.7% respectively.
The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction and its stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics.
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:
--$216.3 million class A-2 at 'AAAsf'; Outlook Stable;
--$21.4 million class A-3 at 'AAAsf'; Outlook Stable;
--$110 million class A-4 at 'AAAsf'; Outlook Stable;
--$206.9 million class A-5 at 'AAAsf'; Outlook Stable;
--$67.7 million class A-SB at 'AAAsf'; Outlook Stable;
--$60.7 million class A-2FL at 'AAAsf'; Outlook Stable;
--$ class A-2FX at 'AAAsf'; Outlook Stable;
--$93.9 million class A-S at 'AAAsf'; Outlook Stable;
--$76 million class B at 'AA-sf'; Outlook Stable;
--$44.7 million class C at 'A-sf'; Outlook Stable;
--$59.6 million class D at 'BBB-sf'; Outlook Stable;
--$23.9 million class E at 'BBsf'; Outlook Stable;
--$11.9 million class F at 'Bsf'; Outlook Stable;
--$777 million class X-A at 'AAAsf'; Outlook Stable;
--$76 million class X-B at 'AA-sf'; Outlook Stable.
The class A-1 certificates have paid in full. Fitch does not rate the class NR or the interest-only class X-C certificates.