Fitch Ratings has affirmed all classes of J.P. Morgan Chase Commercial Mortgage Securities Trust 2014-FBLU commercial mortgage pass-through certificates series 2014-FBLU. A full list of rating actions follows at the end of this release.
The certificates represent the beneficial ownership in the trust, the primary asset of which is one loan having an aggregate principal balance of $535 million. The loan is secured by the Fontainebleau Miami Beach, a 1,594 room luxury resort hotel located along the beach in Miami Beach, FL.
KEY RATING DRIVERS
The affirmations reflect stable collateral performance since issuance. As of September 2014, the property had occupancy, average daily rate (ADR) and revenue per available room (RevPAR) of 80.4%, $327.02 and $262.93 respectively. This represents a 6.6% increase in RevPAR from September 2013.
The Fontainebleau Resort is a class A luxury resort located in Miami Beach, FL with an irreplaceable location directly along the Atlantic Ocean and first-class amenities including over 200,000 sf of meeting and event space, a 40,000-sf spa, 12 swimming pools and multiple dining and entertainment options. The property consistently ranks among the top conference hotels in the region and is a dominant property in its primary competitive set.
The transaction is secured by a single hotel property and therefore more susceptible to single event risk related to the market. Hotel performance is considered to be more volatile due to their operating nature.
Approximately 45.5% of revenue at the property is derived from food and beverage (F&B) revenue, which is considered more volatile than room revenue. Although the overall level of F&B is high, it is spread among multiple venues and sources such as restaurants, banquet functions and lounges. The property's signature restaurants and LIV nightclub serve as draws for non-hotel guests as well.
RATING SENSITIVITIES
All of the classes have Stable Rating Outlooks and no rating changes are expected unless there is a material decline in property performance. Upgrades are unlikely given the concentrated pool and relatively short loan term.
Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report. The presale report is available to all investors on Fitch's web site 'www.fitchratings.com'.
Fitch affirms the following classes as indicated:
--$205 million class A at 'AAAsf'; Outlook Stable;
--$340 million interest-only class X-CP at 'A-sf'; Outlook Stable;
--$340 million interest-only class X-EXT at 'A-sf'; Outlook Stable;
--$77 million class B at 'AA-sf'; Outlook Stable;
--$58 million class C at 'A-sf'; Outlook Stable;
--$76 million class D 'BBB-sf'; Outlook Stable.
Fitch does not rate class E.
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report: J.P. Morgan Chase Commercial Mortgage Securities Trust 2014-FBLU - Appendix dated April 15, 2014.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (September 2014);
--'Global Structured Finance Rating Criteria' (August 2014).
Applicable Criteria and Related Research:
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=772328
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=976675
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