Fitch Affirms JPMCC 2013-C16

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed 13 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust (JPMCC) commercial mortgage pass-through certificates series 2013-C16. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect the overall stable performance of the pool. The pool has had no delinquent or specially serviced loans. Ten loans appear on the servicer watchlist (13.6% of the pool) for decreases in the debt service coverage ratio (DSCR), lease rollover risk or tenant bankruptcy. There is notable multi-family exposure within the transaction; 23.8% of the pool is secured by multi-family properties, including the largest loan in the pool.

As of the July 2016 distribution date, the pool's aggregate principal balance has been reduced by 10.4% to $1.02 billion from $1.14 billion at issuance. No loans are defeased.

The largest loan in the pool (13.1%) is secured by The Aire located on the upper west side of Manhattan. The property is a 310-unit, 42-story luxury residential building constructed in 2010 that features numerous amenities and high-end finishes. Lincoln Center and The Julliard School are located across the street from The Aire, and Central Park, Riverside Park and The Shops at Columbus Circle are within walking distance. The loan is subject to a $90 million pari passu note which is part of the JPMCC 2013-C17 transaction. The collateral is performing in line with underwritten expectations with occupancy of 91% (as of March 2016) and first quarter 2016 DSCR of 1.73x, compared to the 92% occupancy and 1.16x DSCR at issuance.

The next largest loan (6.3%) is secured by the Energy Centre, a 39-story, 757,275-square foot (sf) office tower located in New Orleans, LA. Developed in 1984 and renovated in 2003 and 2009, the property is located within walking distance of all of downtown New Orleans and has convenient access to the city's federal buildings and courthouses. As of June 2016, occupancy increased to 92% from 88% at year-end (YE) 2015 and net operating income (NOI) DSCR improved to 2.51x from 2.40x in the same period. This compares with occupancy of 89% and NOI DSCR of 1.94x at issuance. According to Reis' second quarter report, the central submarket of New Orleans had a vacancy rate of 11.8% with average asking rents of $18.00 per square foot (psf). The subject has average in-place rents in-line with the submarket.

The third largest loan (5%) is secured by the Oracle & International Centre, which is two adjacent office buildings totaling 622,173 sf and located in the CBD of Minneapolis, MN. The 20-story Oracle building and the 17-story International Center were developed in the mid-1980's and are situated along the north/south Skyway. As of the first quarter 2016, occupancy was reported to be 90% and the DSCR was 2.51x, which is an increase from 1.94x at issuance. According to Reis' second quarter report, the Central Business District submarket of Minneapolis had a vacancy rate of 12.9% with average asking rents of $24.34 psf. Average in-place rents at the subject property are in-line with the submarket.

RATING SENSITIVITIES

Rating Outlooks for all classes remain Stable due to overall stable performance of the pool. Upgrades may occur with improved pool performance and significant paydown or defeasance. Downgrades to the classes are possible should overall pool performance decline.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

Fitch affirms the following classes:

--$175.3 million class A-2 at 'AAAsf'; Outlook Stable;

--$145 million class A-3 at 'AAAsf'; Outlook Stable;

--$276.2 million class A-4 at 'AAAsf'; Outlook Stable;

--$80.5 million class A-SB at 'AAAsf'; Outlook Stable;

--$83.8 million class A-S at 'AAAsf'; Outlook Stable;

--$73.8 million class B at 'AA-sf'; Outlook Stable;

--$41.2 million class C at 'A-sf'; Outlook Stable;

--$56.8 million class D at 'BBB-sf'; Outlook Stable;

--$21.3 million class E at 'BBsf'; Outlook Stable;

--$11.4 million class F at 'Bsf'; Outlook Stable;

--$198.8 million class EC* at 'A-sf'; Outlook Stable;

--$760.8 million class X-A at 'AAAsf'; Outlook Stable;

--$73.8 million class X-B at 'AA-sf'; Outlook Stable.

* Class A-S, class B and class C certificates may be exchanged for a related amount of class EC certificates, and class EC certificates may be exchanged for class A-S, class B and class C certificates.

Class A-1 has paid in full. Fitch does not rate the class NR certificates or the interest only class X-C.

Additional information is available at www.fitchratings.com

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 18 Jul 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884963

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=883130

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Related Research

J.P. Morgan Chase Commercial Mortgage Securities Trust 2013-C16 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=739737

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1010486

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1010486

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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View source version on businesswire.com: http://www.businesswire.com/news/home/20160817006018/en/

Fitch Ratings
Primary Analyst
David Ro
Director
+1-312-368-3132
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
R. Brook Sutherland
Senior Director
+1-312-606-2346
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: [email protected]

Source: Fitch Ratings

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