NEW YORK JPMorgan Chase & Co. is planning to sell a $484.6 million commercial mortgage-backed security backed by real estate owned by Centro Properties Group CNP.AX, according to a report on Thursday by Realpoint, a rating company.
The issue is based on a single JPMorgan loan collateralized by 72 retail properties in 20 states, with tenants including The Kroger Co., Kmart, Burlington Coat Factory and Big Lots, Realpoint said. The borrower is Centro NP LLC, a unit of Centro Properties Group, a U.S. and Australian mall owner.
CMBS issuance is accelerating slowly as the market recovers from the financial crisis. The market is an important source of credit for borrowers facing more than $1 trillion in maturing loans in coming years, but tight underwriting standards may keep many properties from qualifying.
Realpoint said the issue has a loan-to-value ratio of 78.7 percent, based on the "loan cut-off balance" and an aggregate property value of $616.3 million. Its debt service coverage ratio would be 1.64 times.
(Reporting by Al Yoon; Editing by Leslie Adler)