The loan is secured by the borrowers’ fee simple interests in 46 hospitality properties and leasehold interest in one hospitality property. The properties consists of 36 extended-stay properties (74.6%), nine limited-service properties (20.6%) and two full-service properties (4.8%) located in 30 different MSAs in 16 states. The properties are operated under flags including
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our CMBS Property Evaluation Guidelines, and the application of our CMBS Single Borrower & Large Loan Rating Methodology. For the purposes of our analysis, we determined KBRA net cash flow (KNCF) for each asset, and applied KBRA capitalization rates to each property’s KNCF to determine property value. KBRA Adjusted this value to give partial credit for the upfront capital improvement reserves in the amount of
For further details on KBRA’s analysis of the transaction, please see our Pre-Sale Report, entitled JPMCC 2014-INN, which was published today at www.krollbondratings.com.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
Preliminary Ratings Assigned: JPMCC 2014-INN
|Class||Expected Rating||KLTV||Balance (US$)|
*Balance represents notional amount.
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled JPMCC 2014-INN 17g-7 Disclosure Report.
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CMBS Property Evaluation Guidelines, published
CMBS Single Borrower & Large Loan Rating Methodology, published
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