HOME           CONTENT

 

 


Number
of
Leases
Expiring
Net
Rentable
Area
Expiring
% of
NRA
Expiring
Base Rent
Expiring
% of Base
Rent
Expiring
Cumulative
Net Rentable
Area
Expiring
Cumulative
% of NRA
Expiring
Cumulative
Base Rent
Expiring
Cumulative
% of Base
Rent
Expiring
Vacant
NAP
76,557
 
10.8%
 
NAP
 
NAP
 
76,557
 
10.8%
 
NAP
 
NAP
 
2013 & MTM(2)
15
35,200
 
5.0
 
$204,914
 
1.3%
 
111,757
 
15.8%
 
$204,914
 
1.3%
 
2014
7
19,507
 
2.8
 
283,858
 
1.8
 
131,264
 
18.6%
 
$488,772
 
3.1%
 
2015
4
15,010
 
2.1
 
344,631
 
2.2
 
146,274
 
20.7%
 
$833,403
 
5.2%
 
2016
3
4,941
 
0.7
 
110,268
 
0.7
 
151,215
 
21.4%
 
$943,671
 
5.9%
 
2017
32
114,746
 
16.2
 
3,865,451
 
24.3
 
265,961
 
37.6%
 
$4,809,122
 
30.3%
 
2018
31
126,681
 
17.9
 
4,393,567
 
27.7
 
392,642
 
55.5%
 
$9,202,689
 
58.0%
 
2019
7
92,214
 
13.0
 
2,024,992
 
12.8
 
484,856
 
68.5%
 
$11,227,681
 
70.7%
 
2020
1
2,373
 
0.3
 
71,750
 
0.5
 
487,229
 
68.9%
 
$11,299,431
 
71.2%
 
2021
4
7,189
 
1.0
 
236,152
 
1.5
 
494,418
 
69.9%
 
$11,535,582
 
72.6%
 
2022
9
112,412
 
15.9
 
2,260,150
 
14.2
 
606,830
 
85.8%
 
$13,795,733
 
86.9%
 
2023
1
1,487
 
0.2
 
49,071
 
0.3
 
608,317
 
86.0%
 
$13,844,804
 
87.2%
 
2024 & Beyond
4
99,298
 
14.0
 
2,033,723
 
12.8
 
707,615
 
100.0%
 
$15,878,526
 
100.0%
 
Total
118
707,615
 
100.0%
 
$15,878,526
 
100.0%
                 
(1)  
Based on the underwritten rent roll.
(2)  
Includes thirteen tenants accounting for 30,279 square feet that are considered temporary tenants by the sponsor.
 
Operating History and Underwritten Net Cash Flow
 
 
2010
2011
2012
TTM(1)
Underwritten
Per Square Foot
        %(2)
Rents in Place
$15,623,697
$15,832,727
$15,901,138
$15,638,331
$15,878,526
$22.44
57.8%
 
Vacant Income
0
0
0
0
2,721,031
3.85
9.9
 
Gross Potential Rent
$15,623,697
$15,832,727
$15,901,138
$15,638,331
$18,599,557
$26.28
67.8%
 
Total Reimbursements
8,882,432
8,874,874
9,060,348
9,126,241
8,849,716
12.51
32.2
 
Net Rental Income
$24,506,129
$24,707,601
$24,961,486
$24,764,572
$27,449,273
$38.79
100.0%
 
(Vacancy/Credit Loss)
0
0
0
0
(2,721,031)
(3.85)
(9.9)
 
Other Income
17,913
60,646
38,429
36,554
36,554
0.05
0.1
 
Effective Gross Income
$24,524,041
$24,768,248
$24,999,915
$24,801,126
$24,764,796
$35.00
90.2%
 
                 
Total Expenses
$8,588,630
$8,450,798
$8,749,042
$8,790,760
$8,828,998
$12.48
35.7%
 
                 
Net Operating Income
$15,935,412
$16,317,450
$16,250,873
$16,010,366
$15,935,798
$22.52
64.3%
 
                 
Total TI/LC, Capex/RR
0
0
0
0
966,138
1.37
3.9
 
Net Cash Flow
$15,935,412
$16,317,450
$16,250,873
$16,010,366
$14,969,660
$21.16
60.4%
 
(1)  
TTM column represents the trailing twelve-month period ending March 31, 2013.
(2)  
Percentage column represents percent of Net Rental Income for all revenue lines and represents percent of Effective Gross Income for the remainder of fields.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-32
 (j.p morgan)
 
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
SanTan Village
 
Property Management. The property is managed by Macerich Arizona Partners, LLC, an affiliate of the sponsor.
 
Escrows and Reserves. At origination, the borrower deposited into escrow approximately $383,880 for outstanding tenant improvements and leasing commissions.
 
Tax Escrows - The requirement for the borrower to make monthly deposits to the tax escrow is waived so long as no Cash Trap Period  exists and the borrower provides satisfactory evidence that the taxes are paid.
 
Insurance Escrows - The requirement for the borrower to make monthly deposits to the insurance escrow is waived so long as no Cash Trap Period exists and the borrower provides satisfactory evidence that the property is insured under an acceptable blanket policy.
 
Replacement Reserves - The requirement for the borrower to make monthly deposits to the replacement reserve is waived so long as no Cash Trap Period exists. During a Cash Trap Period, the borrower is required to deposit $14,725 per month ($0.25 per square foot annually) for replacement reserves. The reserve is subject to a cap of $176,700 ($0.25 per square foot).
 
TI/LC Reserves - The requirement for the borrower to make monthly deposits to the tenant improvement and leasing commission reserve is waived so long as no Cash Trap Period exists. During a Cash Trap Period, the borrower is required to escrow $44,172 per month (approximately $0.75 per square foot annually) for tenant improvements and leasing commissions. The TI/LC reserve is subject to a cap of $795,096.
 
A “Cash Trap Period” means: (i) the DSCR as calculated in the loan documents based on the most recent calendar quarter falls below 1.10x or (ii) the occurrence of an event of default.
 
Lockbox / Cash Management. The loan is structured with a CMA lockbox. At origination, the borrower was required to send tenant direction letters to the tenants at the property instructing them to deposit all rents and payments into the lockbox account. The funds are then returned to an account controlled by the borrower until the occurrence of a Cash Trap Period. During a Cash Trap Period, all rents will be swept into a segregated cash management account set up at such time and held in trust and for the benefit of the lender as additional security for the loan. The lender will have a first priority security interest in the cash management account.
 
Release of Property. The borrower is permitted to release non-income producing portions of the property to third parties or affiliates in accordance with certain terms and conditions set forth in the loan documents.
 
Future Additional Debt. A mezzanine loan as a part of a corporate financing may be obtained by the sponsor or its affiliates (excluding the borrower), provided that certain terms and conditions are satisfied, including, but not limited to (i) no event of default exists and (ii) the value of the pledged equity will constitute no more than 15% of the total value of the assets securing the loan.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-33
 (j.p morgan)
 
 
 

 
 
[THIS PAGE INTENTIONALLY LEFT BLANK]
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-34
 (j.p morgan)
 
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Southridge Mall

(GRAPHIC)
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-35
(j.p morgan)
 
 

 

 
Annex A-3
 
JPMBB 2013-C12
 
Southridge Mall

(GRAPHIC)
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-36
(j.p morgan)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Southridge Mall

(GRAPHIC)
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-37
(j.p morgan)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Southridge Mall
 
Mortgage Loan Information
 
Property Information
Mortgage Loan Seller:
Barclays
 
Single Asset / Portfolio:
Single Asset
Original Principal Balance(1):
$75,000,000
 
Title:
Fee
Cut-off Date Principal Balance(1):
$75,000,000
 
Property Type - Subtype:
Retail - Regional Mall
% of Pool by IPB:
6.5%
 
Net Rentable Area (SF):
553,801
Loan Purpose:
Refinance
 
Location:
Greendale, WI
Borrower:
Southridge Limited Partnership
 
Year Built / Renovated:
1970 / 2012
Sponsor:
Simon Property Group, L.P.
 
Occupancy(2):
95.0%
Interest Rate:
3.85400%
 
Occupancy Date:
3/19/2013
Note Date:
5/22/2013
 
Number of Tenants(2):
94
Maturity Date:
6/6/2023
 
2010 NOI:
$10,396,929
Interest-only Period:
24 months
 
2011 NOI:
$10,354,219
Original Term:
120 months
 
2012 NOI:
$10,257,110
Original Amortization:
360 months
 
TTM NOI (as of 3/2013):
$10,608,695
Amortization Type:
IO-Balloon
 
UW Economic Occupancy:
95.0%
Call Protection:
L(26),Def(90),O(4)
 
UW Revenues:
$20,828,544
Lockbox:
CMA
 
UW Expenses:
$9,376,389
Additional Debt:
Yes
 
UW NOI(3):
$11,452,155
Additional Debt Balance:
$50,000,000
 
UW NCF:
$10,779,543
Additional Debt Type:
Pari Passu
 
Appraised Value / Per SF:
$181,000,000 / $327
     
Appraisal Date:
5/13/2013
         
 
Escrows and Reserves(4)
 
Financial Information(1)
 
Initial
Monthly
Initial Cap  
 
Cut-off Date Loan / SF:
$226
Taxes:
$0
Springing
N/A  
 
Maturity Date Loan / SF:
$189
Insurance:
$0
Springing
N/A  
 
Cut-off Date LTV:
69.1%
Replacement Reserves:
$0
Springing
N/A  
 
Maturity Date LTV:
57.9%
TI/LC:
$0
Springing
N/A  
 
UW NCF DSCR:
1.53x
Other:
$0
Springing
N/A  
 
UW NOI Debt Yield:
9.2%
             
 
Sources and Uses
Sources
Proceeds
% of Total
 
Uses
Proceeds
  % of Total
Mortgage Loan(1)
$125,000,000
99.6%
 
Payoff Existing Debt
$124,559,068
      99.3%        
Sponsor Equity
446,033
0.4
 
Closing Costs
886,965
0.7        
Total Sources
$125,446,033
100.0%
 
Total Uses
$125,446,033
100.0%       
(1)   
Southridge Mall is part of a loan evidenced by two pari passu notes with an aggregate principal balance of $125.0 million. The Financial Information presented in the chart above reflects the entire $125.0 million Southridge Mall Whole Loan.
(2)   
Includes temporary tenants. Excluding temporary tenants, the property has an occupancy rate of 91.3%.
(3)   
UW NOI is higher than TTM NOI due to new leases and contractual rent bumps for existing tenants. Since January 2013, leases representing approximately $1.8 million of annual revenue have been executed.
(4)   
For a full description of escrows and reserves, please refer to “Escrows and Reserves” below.
 
The Loan. The Southridge Mall loan is secured by a first mortgage lien on 553,801 square feet of an approximately 1.2 million square foot regional mall located in Greendale, Wisconsin. The loan has an outstanding principal balance of $125.0 million (the “Southridge Mall Whole Loan”), which is comprised of two pari passu notes, Note A-1 and Note A-2. Note A-1 has an outstanding principal balance as of the Cut-off Date of $75.0 million and is being contributed to the JPMBB 2013-C14 Trust. Note A-2, with an outstanding principal balance as of the Cut-off Date of $50.0 million, was securitized in the JPMBB 2013-C12 securitization.  The holder of Note A-1 (the “Southridge Mall Controlling Noteholder”) will be the trustee of the JPMBB 2013-C14 Trust (or, prior to the occurrence and continuance of a control event, the directing certificateholder) and will be entitled to exercise all of the rights of the Southridge Mall Controlling Noteholder with respect to the related Southridge Mall Whole Loan; however, the holder of Note A-2 will be entitled, under certain circumstances, to be consulted with respect to certain major decisions. The Southridge Mall Whole Loan has a 10-year term, and subsequent to a 24-month interest-only period, amortizes on a 30-year schedule. The previously existing debt, with an aggregate original principal balance of $124.0 million, was securitized in JPMCC 2005-CB11.
 
The Borrower. The borrowing entity for the loan is Southridge Limited Partnership, a Delaware limited partnership and special purpose entity.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-38
(j.p morgan)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Southridge Mall
 
The Sponsor. The loan’s sponsor and nonrecourse carve-out guarantor is Simon Property Group, L.P. Simon Property Group, L.P. is Simon Property Group, Inc.’s majority-owned partnership subsidiary that owns all of its real estate properties and other assets. Simon Property Group, Inc. (“Simon”) is an S&P 100 company and the largest real estate company in the world. Simon owns or has interests in 326 retail real estate properties in North America and Asia comprising 241 million square feet as of July 2013.

 
The Property.  Southridge Mall is a 1,163,777 square foot regional mall, of which 553,801 square feet serve as collateral for the loan. The property, located in Greendale, Wisconsin, was originally constructed in 1970 and is a two-story enclosed mall located on a 119.9 acre parcel of land.  It is the largest mall in Wisconsin and the only mall in the southern portion of the Milwaukee market. The mall underwent a $44.9 million renovation in 2012, which included the addition of a Macy’s department store which replaced a former Dillard’s space. In addition, major exterior and interior renovations were performed including new entrances, flooring, lighting, skylights and a brand-new food court. Anchor tenant, Boston Store, renovated its store in 2012 for a reported $10.0 million, $2.0 million of which was contributed by the sponsor. The property contains 7,223 parking spaces, resulting in a parking ratio of 6.21 spaces per 1,000 square feet of net rentable area.

 
As of March 19, 2013, the space serving as collateral for the loan was approximately 95.0% occupied and the entire property was 97.6% occupied. Anchors at the property include Boston Store (219,400 square feet), Sears (214,700 square feet), JCPenney (175,876 square feet), Macy’s (149,374 square feet) and Kohl’s (85,247 square feet). Of the five anchors, only Macy’s and Kohl’s are included in the collateral for the loan. The collateral also features major tenants including H&M, Old Navy and Shoe Department Encore. Other national tenants include Express/Express Men, Victoria’s Secret and Charlotte Russe.  In-line sales per square foot for stores less than 10,000 square feet were approximately $359, $400, $426 and $440 in 2010, 2011, 2012 and the trailing twelve-month period ending May 31, 2013, respectively.  Occupancy costs for tenants less than 10,000 square feet for 2010, 2011, 2012 and the trailing twelve-month period ending May 31, 2013 were 16.1%, 15.3%, 14.8% and 14.6%, respectively.

 
Southridge Mall is located in the community of Greendale, Wisconsin, situated in the south central quadrant of Milwaukee County. Interstate 894/43 is less than 1.0 mile to the north of the property and Interstate 94 is located 3.0 miles to the north. Both interstate routes provide good access to the remainder of the Milwaukee core based statistical area and beyond.  According to the appraisal, the property has a primary trade area consisting of a five-mile radius that contains approximately 257,973 people, with an average household income of $58,591 as of 2013. According to the appraisal, the secondary trade area might span up to ten miles from the site given its regional accessibility and location of competitive properties. The property is the dominant retail property in the local area and a major draw.

 
The appraisal concluded that in-line rents in the market average approximately $28.73 per square foot and range from $20.00 to $65.00 per foot. The appraisal concluded that current in-line rents at the property are slightly below the market average. According to REIS, the overall vacancy rate for the region was 12.5%, while the property’s submarket vacancy rate was 10.6% as of the first quarter 2013. Vacancy rates at the property’s submarket for community shopping centers and neighborhood shopping center were 7.7% and 13.7%, respectively. According to the appraisal, the property’s primary competition consists of three properties that are detailed in the table below. Southridge Mall is the only mall in the market with five anchors.

 
Competitive Set Summary(1)
                     
Property
Year Built / Renovated
Total GLA
Est. 2012
Sales PSF
Est. 2012
Occ.
Proximity
 
Anchor Tenants
Mayfair Mall
1958 / 2001
1,113,800
 
$475
 
93.6%
 
8.0 miles
 
Macy’s, Boston Store and AMC Theatres
Brookfield Square
1967 / 1997, 2007
1,049,557
 
$435
 
96.0%
 
12.0 miles
 
Boston Store, JCPenney and Sears
Bayshore Town Center
1954 / 2006
1,258,585
 
$325
 
93.0%
 
15.0 miles
 
Boston Store, Sears and Kohls
Total / Weighted Average
3,421,942
 
$408
 
94.1%
       
 (1) Per the appraisal.
 
Historical and Current Occupancy (1)
                 
 
2010
2011
2012
Current(2)
Non-Anchor(3)
94.7%
 
90.5%
 
88.5%
 
91.3%
 
Total Mall(4)(5)
85.7%
 
84.6%
 
96.8%
 
97.6%
 
(1)
Historical Occupancies are as of December 31 of each respective year.
(2)
Current Occupancy is as of March 19, 2013.
(3)
Occupancy excludes collateral and non-collateral anchor tenants.
(4)
Includes non-collateral anchors. The net rentable area serving as collateral for the mortgage loan is currently 95.0% occupied.
(5)
Increase in Total Mall Occupancy from 2010 to 2012 is due to Macy’s leasing a vacant anchor space in March, 2012, formerly occupied by Dillard’s.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-39
(j.p morgan)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Southridge Mall

 
Historical In-line Sales and Occupancy Costs(1)(2)
           
 
2010
2011
2012
TTM(3)
In-Line Sales PSF
$359
$400
$426
$440
Occupancy Costs
16.1%
15.3%
14.8%
14.6%
(1) Based on the collateral square feet.
(2) In-line Sales PSF and Occupancy Costs are for comparable tenants less than 10,000 square feet.
(3) TTM represents the trailing twelve-month period ending May 31, 2013.
 
Tenant Summary(1)
                         
Tenant
Ratings
Moody’s/S&P/Fitch(2)
Net Rentable
Area (SF)
 
% of
Total NRA
Base Rent
PSF
Sales
PSF
(3)
Occupancy
Costs
(3)
Lease Expiration
Date
Macy’s(4)
Baa3 / BBB / NA
149,374
 
27.0%
 
$4.02
 
N/A
 
N/A
 
1/31/2028
Kohl’s(5)
Baa1 / BBB+ / BBB+
85,247
 
15.4%
 
   $9.64
 
$206
 
5.6%
 
1/31/2020
H&M
NA / NA / NA
16,627
 
3.0%
 
$14.11
 
$205
 
8.0%
 
1/31/2022
Old Navy
Baa3 / BBB- / BBB-
12,860
 
2.3%
 
$24.81
 
N/A
 
N/A
 
6/30/2023
Shoe Dept. Encore
NA / NA / NA
10,623
 
1.9%
 
$13.65
 
N/A
 
N/A
 
6/30/2023
Express/Express Men
NA / BB / NA
8,166
 
1.5%
 
$27.00
 
$305
 
16.7%
 
4/30/2014
Victoria’s Secret
NA / BB / NA
8,001
 
1.4%
 
$27.00
 
$590
 
8.3%
 
1/31/2024
Charlotte Russe
B2 / NA / NA
7,042
 
1.3%
 
$34.08
 
$233
 
12.8%
 
1/31/2017
Tilly’s
NA / NA / NA
7,000
 
1.3%
 
$17.73
 
$175
 
28.5%
 
1/31/2023
Footaction USA
NA / NA / NA
6,825
 
1.2%
 
$30.98
 
$187
 
28.1%
 
1/31/2014
(1)
Based on the underwritten rent roll.
(2)
Ratings provided are for the parent company of the entity listed in the “Tenant” field whether or not the parent company guarantees the lease.
(3)
Sales PSF and Occupancy Costs represent sales for the twelve-month period ending December 31, 2012 for all tenants.
(4)
Macy’s opened its store in March 2012.
(5)
Kohl’s annual gross base rent is $821,895 or $9.64 per square foot. In lieu of the landlord’s contribution toward tenant allowances, Kohl’s gross base rent will be reduced by $396,715 annually through the lease term, resulting in an annual net effective base rent of $425,180 or $4.99 per square foot. Simon, rated ”A” by S&P, has guaranteed the total amount of reduced rent, or $2,644,766.
 
Lease Rollover Schedule(1)
                                   
Year
Number
of
Leases
Expiring
Net
Rentable
Area
Expiring
% of
NRA
Expiring
Base Rent
Expiring
% of Base
Rent
Expiring
Cumulative
Net Rentable
Area
Expiring
Cumulative
% of NRA
Expiring
Cumulative
Base Rent
Expiring
Cumulative
% of Base
Rent
Expiring
Vacant(2)
NAP
48,217
 
8.7%
 
NAP
 
NAP
 
48,217
 
8.7%
 
NAP
 
NAP
 
2013 & MTM
9
15,752
 
2.8
 
$769,962
 
7.1%
 
63,969
 
11.6%
 
$769,962
 
7.1%
 
2014
15
37,746
 
6.8
 
1,377,450
 
12.7
 
101,715
 
18.4%
 
$2,147,412
 
19.8%
 
2015
6
14,513
 
2.6
 
521,270
 
4.8
 
116,228
 
21.0%
 
$2,668,682
 
24.6%
 
2016
11
22,522
 
4.1
 
912,225
 
8.4
 
138,750
 
25.1%
 
$3,580,907
 
33.0%
 
2017
9
19,326
 
3.5
 
1,061,451
 
9.8
 
158,076
 
28.5%
 
$4,642,357
 
42.7%
 
2018
2
5,677
 
1.0
 
139,417
 
1.3
 
163,753
 
29.6%
 
$4,781,774
 
44.0%
 
2019
6
11,640
 
2.1
 
646,137
 
5.9
 
175,393
 
31.7%
 
$5,427,912
 
50.0%
 
2020
5
97,814
 
17.7
 
1,382,796
 
12.7
 
273,207
 
49.3%
 
$6,810,707
 
62.7%
 
2021
4
8,561
 
1.5
 
484,528
 
4.5
 
281,768
 
50.9%
 
$7,295,235
 
67.1%
 
2022
8
38,784
 
7.0
 
922,521
 
8.5
 
320,552
 
57.9%
 
$8,217,756
 
75.6%
 
2023
14
60,682
 
11.0
 
1,466,518
 
13.5
 
381,234
 
68.8%
 
$9,684,274
 
89.1%
 
2024 & Beyond
5
172,567
 
31.2
 
1,182,097
 
10.9
 
553,801
 
100.0%
 
$10,866,371
 
100.0%
 
Total
94
553,801
 
100.0%
 
$10,866,371
 
100.0%
                 
(1)
Based on the underwritten rent roll.
(2)
Includes temporary tenant square footage of 20,524.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-40
(j.p morgan)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Southridge Mall
 
Operating History and Underwritten Net Cash Flow
                             
 
2010
 
2011
 
2012
 
TTM(1)
Underwritten
Per Square
Foot
%(2)
                             
Rents in Place(3)
$9,705,787
 
$9,136,030
 
$9,712,306
 
$9,929,141
 
$10,866,371
 
$19.62
 
57.3%
 
Overage Rent
117,098
 
98,088
 
119,718
 
125,580
 
81,488
 
0.15
 
0.4
 
Gross Potential Rent
$9,822,885
 
$9,234,118
 
$9,832,024
 
$10,054,721
 
$10,947,859
 
$19.77
 
57.8%
 
Total Reimbursements
6,381,953
 
6,204,448
 
7,282,219
 
7,449,484
 
8,003,606
 
14.45
 
42.2
 
Net Rental Income
$16,204,838
 
$15,438,566
 
$17,114,243
 
$17,504,205
 
$18,951,464
 
$34.22
 
100.0%
 
(Vacancy/Credit Loss)(3)
0
 
0
 
0
 
0
 
0
 
0.00
 
0.0
 
Other Income
2,064,629
 
2,203,017
 
2,018,566
 
2,065,165
 
1,877,080
 
3.39
 
  9.9
 
Effective Gross Income
$18,269,467
 
$17,641,583
 
$19,132,809
 
$19,569,370
 
$20,828,544
 
$37.61
 
109.9%
 
                             
Total Expenses
$7,872,538
 
$7,287,364
 
$8,875,699
 
$8,960,675
 
$9,376,389
 
$16.93
 
45.0%
 
                             
Net Operating Income(4)
$10,396,929
 
$10,354,219
 
$10,257,110
 
$10,608,695
 
$11,452,155
 
$20.68
 
55.0%
 
                             
Total TI/LC, Capex/RR
0
 
0
 
0
 
0
 
672,612
 
1.21
 
3.2
 
Net Cash Flow
$10,396,929
 
$10,354,219
 
$10,257,110
 
$10,608,695
 
$10,779,543
 
$19.46
 
51.8%
 
(1)
TTM column represents the trailing twelve months ended March 31, 2013.
(2)
Percentage column represents percent of Net Rental Income for all revenue lines and represents percent of Effective Gross Income for the remainder of fields.
(3)
Rents in Place based on in-place leases as of March 19, 2013, which is reflective of the UW Economic Occupancy of 95.0%.
(4)    Underwritten Rents in Place are higher than TTM due to new leases and contractual rent increases for existing tenants. Since January 2013, leases representing approximately $1.8 million of annual revenue have been executed.
 
Property Management. The property is managed by Simon Management Associates, LLC, an affiliate of the sponsor.

 
Escrows and Reserves. At origination, no reserves were escrowed.  However, in lieu of cash, the sponsor, Simon Property Group, L.P. rated “A” by S&P, delivered a tenant allowance guaranty for the outstanding Buca tenant allowance in the amount of $975,000. At any time the tenant allowance guaranty is in effect, the borrower may elect to deposit funds as required under the loan documents which will automatically terminate the tenant allowance guaranty. In addition, the sponsor delivered a Kohl’s Rent Allowance Guaranty for the outstanding Kohl’s tenant allowance in the amount of $2,644,766 in lieu of cash. At any time the Kohl’s Rent Allowance Guaranty is in effect, the borrower may elect to deposit funds as required under the loan documents which will automatically terminate the Kohl’s Rent Allowance Guaranty. In lieu of tenant improvement allowance, Kohl’s elected to pay for their improvements and receive the allowance in form of an ongoing monthly rent credit of $33,060 per month. The guaranty obligations will be automatically reduced on the date by the amounts set forth in the loan documents.

 
Tax Escrows - Other than during a Southridge Reserve Period, the requirement for the borrower to make monthly deposits to the tax escrow is waived.

 
Insurance Escrows - Other than during a Southridge Reserve Period, the requirement for the borrower to make monthly deposits to the insurance escrow is waived. During the Southridge Reserve Period, the borrower is required to deposit 1/12 of the annual estimated insurance payments monthly, unless the borrower has provided satisfactory evidence that insurance is maintained under a blanket insurance policy acceptable to the lender.

 
Replacement Reserves - Other than during a Southridge Reserve Period, the requirement for the borrower to make monthly deposits to the replacement reserve is waived. Following the occurrence and during the continuance of a Southridge Reserve Period the borrower is required to deposit $11,600 per month (approximately $0.25 per square foot annually) for replacement reserves. The reserve is subject to a cap of $278,400 (approximately $0.50 per square foot).

 
TI/LC Reserves - Other than during a Southridge Reserve Period, the requirement for the borrower to make monthly deposits to the TI/LC reserve is waived. Following the occurrence and during the continuance of a Southridge Reserve Period the borrower is required to deposit $46,350 per month (approximately $1.00 per square foot annually) for TI/LC reserves. The reserve is subject to a cap of $1,112,400 (approximately $2.00 per square foot).

 
A “Southridge Reserve Period” means the period commencing on the date upon which the debt service coverage ratio as calculated in the loan documents for the immediately preceding four calendar quarters is less than 1.25x, and ending on the date the debt service coverage ratio for the immediately preceding four calendar quarters equals or exceeds 1.25x.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-41
(j.p morgan)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Southridge Mall

 
Lockbox / Cash Management. The loan is structured with a CMA lockbox. The borrower was required to send notice to all tenants instructing them to deposit all rents and other payments into the lockbox account. The funds are then returned to an account controlled by the borrower on a monthly basis until the occurrence of a Southridge Cash Sweep Period. During the continuance of a Southridge Cash Sweep Period, all rents will be swept into a segregated cash management account and all excess cash flow after payment of debt service, required reserves and approved operating expenses will be held as additional security for the loan.  The lender will have a first priority security interest in the cash management account.

 
A “Southridge Cash Sweep Period” means the period (i) commencing on the date upon which the debt service coverage ratio as calculated in the loan documents for the immediately preceding four calendar quarters is less than 1.25x, and ending on the date the debt service coverage ratio for the immediately preceding four calendar quarters equals or exceeds 1.25x or (ii) during the continuance of an event of default.

 
Cap on Guaranty. There is a cap on the nonrecourse and loss carve-out liabilities of the guarantor in the amount of $12.5 million.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
 (barclays)
Annex A-3-42
(j.p morgan)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Texas Industrial Portfolio
 
(GRAPHIC)
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-43
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Texas Industrial Portfolio
 
(MAP)
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-44
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Texas Industrial Portfolio
 
(MAP)
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-45
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Texas Industrial Portfolio
 
Mortgage Loan Information
 
Property Information
Mortgage Loan Seller:
JPMCB
 
Single Asset / Portfolio:
Portfolio
Original Principal Balance:
$73,400,000
 
Title:
Fee
Cut-off Date Principal Balance:
$73,400,000
 
Property Type - Subtype:
Industrial - Various
% of Pool by IPB:
6.4%
 
Net Rentable Area (SF):
2,329,423
Loan Purpose:
Acquisition
 
Location:
Various, TX
Borrowers(1):
Various
 
Year Built / Renovated:
Various / N/A
Sponsor:
Greenfield Acquisition Partners
VI, L.P.
 
Occupancy:
89.0%
 
Occupancy Date(2):
Various
Interest Rate:
4.83960%
 
Number of Tenants:
72
Note Date:
7/22/2013
 
2010 NOI:
$6,122,041
Maturity Date:
8/1/2018
 
2011 NOI:
$7,246,011
Interest-only Period:
None
 
2012 NOI:
$7,035,162
Original Term:
60 months
 
UW Economic Occupancy:
85.5%
Original Amortization:
360 months
 
UW Revenues:
$11,363,088
Amortization Type:
Balloon
 
UW Expenses:
$3,713,707
Call Protection(3):
L(25),Grtr1%orYM(10),O(25) /
L(25),Grtr1%orYM(22),O(13)
 
UW NOI(4):
$7,649,381
 
UW NCF:
$6,875,005
Lockbox:
Hard
 
Appraised Value / Per SF:
$106,960,000  / $46
Additional Debt:
Yes
 
Appraisal Date:
June 2013
Additional Debt Balance:
$7,418,500
     
Additional Debt Type:
Mezzanine Loan
     
         
 
Escrows and Reserves(5)
 
Financial Information
 
Initial
Monthly
Initial Cap
 
Cut-off Date Loan / SF:
 
$32
Taxes:
$1,283,316
$171,109
N/A
 
Maturity Date Loan / SF:
 
$29
Insurance:
$0
Springing
N/A
 
Cut-off Date LTV:
 
68.6%
Replacement Reserves:
$19,412
$19,412
N/A
 
Maturity Date LTV:
 
63.1%
TI/LC:
$77,083
$77,083
N/A
 
UW NCF DSCR:
 
1.48x
Other:
$1,071,299
$0
N/A
 
UW NOI Debt Yield:
 
10.4%
               
 
Sources and Uses
Sources
Proceeds
% of Total   
 
Uses
Proceeds
% of Total   
Mortgage Loan
$73,400,000
69.4%   
 
Acquisition Cost
$102,310,000
96.7%   
Mezzanine Loan
7,418,500
7.0   
 
Upfront Reserves
2,451,111
2.3   
Sponsor Equity
25,000,826
23.6   
 
Closing Costs
1,058,215
1.0   
Total Sources
$105,819,326
100.0%   
 
Total Uses
$105,819,326
100.0%   
(1)  
For a full description of the borrowers, please refer to “The Borrowers” below.
(2)  
Occupancy Dates are as of May 31, 2013 and June 1, 2013.
(3)  
Please refer to “Release of Properties” below for a full description of the call protection.
(4)  
UW NOI is higher than the 2012 NOI primarily due to nine new leases, totaling 170,089 square feet, which account for $636,605 in base rent.
(5)  
For a full description of Escrows and Reserves, please refer to “Escrows and Reserves” below.
 
The Loan. The Texas Industrial Portfolio loan has an outstanding principal balance of $73.4 million and is secured by a first mortgage lien on a portfolio of 19 industrial properties totaling approximately 2.3 million square feet that are located in the Dallas and Houston, Texas metropolitan areas. The loan has a five-year term and amortizes on a 30-year schedule. The portfolio was acquired in two separate transactions on the same day. Of the 19 properties, eight were acquired from TIAA for approximately $55.5 million and 11 properties were acquired from Cobalt Industrial REIT for $46.9 million.
 
The Borrowers. The borrowing entities for the loan are 3700 Eagle, L.P., 10990 Petal, L.P., 1255 Champion, L.P., 2115 Valley View, L.P., 5510-5520 South Westmoreland, L.P., 5610 Redbird, L.P., 5556 Redbird, L.P., 5310 Redbird, L.P., 5380 Redbird, L.P., 5440-5450 Redbird, L.P., 5565 Redbird, L.P., Plaza Del Oro Green, L.P., Westchase Business Green, L.P., Perimeter Distribution Green, L.P., Jupiter West Green, L.P., 2727 West Airport Green, L.P., Forest Lane Green, L.P., Riverside Business Green, L.P. and Market Street Green, L.P., each a Delaware limited partnership and special purpose entity.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-46
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Texas Industrial Portfolio
 
The Sponsor. The loan’s sponsor and nonrecourse carve-out guarantor is Greenfield Acquisition Partners VI, L.P. (GAP VI). GAP VI was formed in March 2011 and currently maintains a portfolio consisting of a mix of office, multifamily, hotel, industrial and land properties. GAP VI is a fund controlled by Greenfield Partners. Since its inception in 1997, Greenfield Partners, a real estate private equity firm based in Norwalk, Connecticut, has launched five opportunity funds and three land funds totaling approximately $4.4 billion.
 
The Properties. The Texas Industrial Portfolio loan is backed by a 19-property portfolio consisting of industrial, flex and warehouse/distribution buildings located in the greater Dallas and Houston, Texas areas. 16 of the properties, accounting for approximately 77.4% of the net rentable area, are located in the Dallas/Fort Worth market with the remainder located in the Houston MSA. The portfolio consists of five single tenant properties and 14 multi-tenant properties totaling approximately 2,329,423 square feet of net rentable area. Six of the properties consist of multi-building industrial parks located in Dallas and Houston, seven properties are located within the Red Bird Business Center in Dallas, Texas and the remaining six properties consist of stand-alone buildings. The buildings in the portfolio were constructed between 1974 and 1999 and have a current combined occupancy of 89.0%.
 
Portfolio Summary
 
    Property
Location
Net
Rentable
Area (SF)
Year Built /
Renovated
Allocated Loan
Balance
% of
Allocated
Loan
Amount
Appraised
Value
Underwritten
Net Cash Flow
Riverside Business Center
Grand Prairie
214,600
1999
$10,290,000
14.0%
$15,600,000
$876,216
8000 Market Street
Houston
355,404
1977
$8,225,000
11.2%
$12,000,000
$806,799
2115 Valley View Lane
Farmers Branch
259,100
1978
$7,242,375
9.9%
$10,300,000
$773,265
Plaza Del Oro
Houston
92,338
1982
$5,404,000
7.4%
$7,100,000
$300,501
1255 Champion Circle
Carrollton
153,632
1980
$4,992,375
6.8%
$7,000,000
$460,592
5510 & 5520 South Westmoreland Road
Dallas
85,033
1985
$4,272,375
5.8%
$6,550,000
$562,803
10990 Petal Street
Dallas
144,480
1983
$3,957,375
5.4%
$6,000,000
$360,847
5310 Red Bird Center Drive
Dallas
31,050
1990
$3,956,250
5.4%
$5,275,000
$379,986
Forest Lane Service Center
Garland
139,485
1986
$3,500,000
4.8%
$5,005,000
$241,087
3700 Eagle Place Drive
Dallas
145,593
1986
$3,409,875
4.6%
$5,100,000
$327,686
Jupiter West
Dallas
148,444
1985
$3,311,000
4.5%
$4,930,000
$300,587
Westchase Business Center
Houston
79,011
1979
$3,220,000
4.4%
$5,100,000
$358,041
5610 Red Bird Center Drive
Dallas
50,000
1986
$2,772,375
3.8%
$3,750,000
$207,023
2727 West Airport Freeway
Irving
91,800
1981
$2,327,500
3.2%
$3,600,000
$236,940
Perimeter Distribution Center
Dallas
169,113
1974
$1,977,500
2.7%
$3,200,000
$288,435
5535 & 5565 Red Bird Center Drive
Dallas
64,838
1986, 1989
$1,922,250
2.6%
$2,625,000
$165,125
5556 Red Bird Center Drive
Dallas
51,000
1986
$1,264,875
1.7%
$2,000,000
$154,033
5440 Red Bird Center Drive
Dallas
36,102
1987
$787,500
1.1%
$1,050,000
$14,942
5380 Red Bird Center Drive
Dallas
18,400
1987
$567,375
0.8%
$775,000
$60,097
 Total
 
2,329,423
 
$73,400,000
100.0%
$106,960,000
$6,875,005
 
Red Bird Business Center (5510 & 5520 South Westmoreland Road, 5310 Red Bird Center Drive, 5610 Red Bird Center Drive, 5556 Red Bird Center Drive, 5535 & 5565 Red Bird Center Drive, 5440 Red Bird Center Drive, 5380 Red Bird Center Drive)Located in Dallas, Texas and constituting 21.2% of allocated loan amount, the seven property business park that serves as collateral consists of eight buildings (two buildings constitute one property) that were constructed between 1985 and 1990. The eight buildings total approximately 336,423 square feet and are 85.7% occupied by 16 tenants. The improvements feature, in aggregate, 53 loading docks and approximately 16 to 24 foot clear heights. Of the total property square footage, approximately 44.3% of the net rentable area is office space. The largest tenant at the property, J&G Trybus Corporation, occupies 25.6% of the park and 3.7% of net rentable area of the total portfolio and has a lease expiration of October 2013. J&G Trybus Corporation produces clothing with a focus on tailored clothing. J&G Trybus Corporation, which uses the property as its national distribution center, has occupied the property since 1988 and is currently in negotiations with the borrower to renew its lease. The second largest tenant at the property, American Airlines, Inc., leases 1.5% of the total portfolio net rentable area through January 2019. American Airlines, Inc. uses the property as office space to support their operations at the Dallas Fort Worth International Airport. Red Bird Business Center is located in southwest Dallas less than five miles east of Interstate 35, which provides north/south regional access to downtown Dallas, Waco and Austin, and Interstate 20, providing east/west regional access to Fort Worth, Abilene and Shreveport. According to the appraisal, the properties are located in the Red Bird industrial submarket which reported a vacancy rate of 10.6% with asking rents of $2.64 per square foot as of the first quarter of 2013.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-47
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Texas Industrial Portfolio
 
Riverside Business Center. Located in Grand Prairie, Texas, approximately 17 miles from downtown Dallas, and constituting 14.0% of allocated loan amount, Riverside Business Center consists of two buildings which were constructed in 1999. The two buildings total 214,600 square feet and are 69.0% occupied by two tenants. The buildings are primarily used for a mix of warehouse, distribution and office space. The improvements feature, in aggregate, 39 loading docks and approximately 24 to 30 foot clear heights. Of the total property square footage, approximately 62.8% of the net rentable area is office space. The largest tenant at the property, Neos Therapeutics LP, occupies 45.3% of the center and 4.2% of net rentable area of the total portfolio and has a lease expiration of December 2019. Neos Therapeutics LP is a privately owned drug delivery and manufacturing company serving prescription pharmaceutical and consumer healthcare markets. The second largest tenant at the property, Delta Group occupies 23.3% of the center and 2.1% of the net rentable area of the total portfolio and has a lease expiration of May 2021. Delta Group is an electronic manufacturing services provider that provides assembly of custom wiring harness, cable and turnkey electronic assemblies for its business partners throughout the southern half of the United States. Riverside Business Center is located off of State Highway 360 and is approximately three miles north of Interstate 30, which provides east/west access to downtown Dallas and Fort Worth, respectively. According to the appraisal, the properties are located in the Great SW/Arlington industrial submarket which reported a vacancy rate of 9.0% with asking rents of $4.01 per square foot as of the first quarter of 2013.
 
8000 Market Street. Located in Houston, Texas and constituting 11.2% of allocated loan amount, the property was constructed in 1977 and totals 355,404 square feet. The property is 100.0% occupied by five tenants. The building is primarily used for distribution with improvements that include 60 loading docks and approximately 22 foot clear heights. Of the total property square footage, approximately 11.0% of the net rentable area is office space. The largest tenant at the property, CFC Canadoil, Inc., occupies 31.5% of the property and has a lease expiration of June 2014. CFC Canadoil, Inc. is a manufacturer and supplier of customized pipes, fittings, products, and solutions to the energy and environmental industry. The second largest tenant at the property, W&O Supply Inc., occupies 26.3% of the net rentable area of the property and has a lease expiration of January 2018. W&O Supply, Inc. is a supplier of pipes, valves, fittings engineered products, and automated-valve and data-management systems to the marine, oil and gas industries. 8000 Market Street is located less than one mile from Interstate 10 and is approximately two miles west of Interstate 610. According to the appraisal, the property is located in the Southeast Corridor industrial submarket which reported a vacancy rate of 6.1% with asking rents of $4.71 per square foot as of the first quarter of 2013.
 
Historical and Current Occupancy
 
Property
Net Rentable
Area (SF)
Single Tenant
(Yes / No)
 
2010
 
2011
 
2012
 
Current(1)
Riverside Business Center
214,600
No
 
76.5%
 
73.8%
 
69.1%
 
69.0%
8000 Market Street
355,404
No
 
100.0%
 
90.0%
 
97.0%
 
100.0%
2115 Valley View Lane
259,100
Yes
 
100.0%
 
100.0%
 
100.0%
 
100.0%
Plaza Del Oro
92,338
No
 
99.0%
 
96.0%
 
82.0%
 
57.1%
1255 Champion Circle
153,632
No
 
74.5%
 
83.0%
 
100.0%
 
100.0%
5510 & 5520 South Westmoreland Road
85,033
No
 
91.2%
 
91.2%
 
97.8%
 
100.0%
10990 Petal Street
144,480
No
 
89.8%
 
61.6%
 
75.9%
 
100.0%
5310 Red Bird Center Drive
31,050
Yes
 
100.0%
 
100.0%
 
100.0%
 
100.0%
Forest Lane Service Center
139,485
No
 
68.0%
 
80.5%
 
56.6%
 
60.6%
3700 Eagle Place Drive
145,593
Yes
 
100.0%
 
100.0%
 
100.0%
 
100.0%
Jupiter West
148,444
No
 
88.0%
 
98.0%
 
81.0%
 
81.8%
Westchase Business Center
79,011
No
 
57.0%
 
53.0%
 
72.0%
 
100.0%
5610 Red Bird Center Drive
50,000
No
 
87.5%
 
77.3%
 
76.8%
 
65.0%
2727 West Airport Freeway
91,800
No
 
54.8%
 
72.4%
 
80.1%
 
91.9%
Perimeter Distribution Center
169,113
No
 
100.0%
 
65.0%
 
64.0%
 
93.6%
5535 & 5565 Red Bird Center Drive
64,838
No
 
100.0%
 
100.0%
 
100.0%
 
83.3%
5556 Red Bird Center Drive
51,000
No
 
100.0%
 
100.0%
 
100.0%
 
100.0%
5440 Red Bird Center Drive
36,102
Yes
 
56.9%
 
27.7%
 
63.1%
 
45.2%
5380 Red Bird Center Drive
18,400
Yes
 
100.0%
 
100.0%
 
100.0%
 
100.0%
Total/Weighted Average
2,329,423
   
88.3%
 
84.0%
 
85.2%
 
89.0%
(1)  
Current Occupancy dates are as of May 31, 2013 and June 1, 2013.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-48
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Texas Industrial Portfolio
 
Property Summary
 
Property
Building Type / Subtype
Clear
Heights
% Office
Largest Tenant
Largest
Tenant
Expiration
Largest
Tenant
% of NRA
Riverside Business Center
Industrial - Flex
24’ - 30’
62.8%
Neos Therapeutics LP
12/31/2019
4.2%
8000 Market Street
Industrial - Warehouse/Distribution
22’
11.0%
CFC Canadoil, Inc.
6/30/2014
4.8%
2115 Valley View Lane
Industrial - Warehouse/Distribution
23’
9.0%
Huttig Texas
12/31/2016
11.1%
Plaza Del Oro
Industrial - Flex
15’
93.1%
KS Management Services LLC
11/30/2013
0.7%
1255 Champion Circle
Industrial - Warehouse/Distribution
22’
9.0%
Tegrant Diversified Brands, Inc.
3/31/2016
4.4%
5510 & 5520 South Westmoreland Rd.
Industrial - Flex
16’ - 21’
83.0%
American Airlines, Inc.
1/31/2019
1.5%
10990 Petal Street
Industrial - Warehouse/Distribution
24’
8.0%
The Printer Depot(1)
9/30/2014
1.7%
5310 Red Bird Center Drive
Industrial - Flex
16’
97.0%
Dallas Police
7/31/2022
1.3%
Forest Lane Service Center
Industrial - Flex
14’ - 22’
32.4%
The Body Shop
7/1/2018
1.1%
3700 Eagle Place Drive
Industrial - Warehouse/Distribution
25’
12.0%
Pratt Industries
11/30/2017
6.3%
Jupiter West
Industrial - Warehouse/Distribution
18’
17.1%
Forbo Flooring, Inc.
3/31/2023
1.8%
Westchase Business Center
Industrial - Flex
18’
35.0%
HTI Ltd.
2/28/2016
0.7%
5610 Red Bird Center Drive
Industrial - Flex
21’
29.0%
City of Dallas
7/31/2022
1.2%
2727 West Airport Freeway
Industrial - Warehouse/Distribution
18’
15.0%
Raw Materials Corporation
9/30/2015
0.8%
Perimeter Distribution Center
Industrial - Warehouse/Distribution
22’
4.0%
Clarcor Air Filtration Product
7/31/2015
6.2%
5535 & 5565 Red Bird Center Drive
Industrial - Flex
16’ - 21’
26.7%
J&G Trybus Corporation
10/31/2013
1.7%
5556 Red Bird Center Drive
Industrial - Flex
21’
10.0%
J&G Trybus Corporation
10/31/2013
1.3%
5440 Red Bird Center Drive
Industrial - Flex
24’
22.0%
J&G Trybus Corporation
10/31/2013
0.4%
5380 Red Bird Center Drive
Industrial - Flex
20’
19.0%
The Dallas Morning News
1/31/2018
0.8%
(1)  
The Printer Depot has multiple leases at the property and the lease expiration date listed above reflects the expiration date of the largest space that The Printer Depot occupies. In total, The Printer Depot has 26,880 square feet expiring in September 2014 and 13,440 square feet expiring in February 2018.
 
Tenant Summary(1)
Tenant
Property Name

Ratings
(2)
Moody’s/S&P/Fitch

Net
Rentable
Area (SF)
% of
Total NRA
Base Rent
PSF
Lease
Expiration Date
Huttig Texas
2115 Valley View Lane
NA / NA / NA
259,100
 
11.1%
 
$3.55
12/31/2016
 
Pratt Industries
3700 Eagle Place Drive
NA / NA / NA
145,593
 
6.3%
 
$2.80
11/30/2017
 
Clarcor Air Filtration Product
Perimeter Distribution Center
NA / NA / NA
144,824
 
6.2%
 
$2.10
7/31/2015
 
CFC Canadoil, Inc.
8000 Market Street
NA / NA / NA
112,050
 
4.8%
 
$2.46
6/30/2014
 
Tegrant Diversified Brands, Inc.
1255 Champion Circle
Baa2 / BBB+ / NA
101,382
 
4.4%
 
$3.60
3/31/2016
 
Neos Therapeutics LP
Riverside Business Center
NA / NA / NA
97,282
 
4.2%
 
$9.22
12/31/2019
 
W&O Supply, Inc.
8000 Market Street
NA / NA / NA
93,600
 
4.0%
 
$3.12
1/31/2018
 
J&G Trybus Corporation
Red Bird Business Center
NA / NA / NA
86,314
 
3.7%
 
$3.32
10/31/2013
 
Smart Rags Recyclers, Inc.
8000 Market Street
NA / NA / NA
75,354
 
3.2%
 
$2.76
8/31/2017
 
Murray A. Goldenberg Textiles, Inc.
1255 Champion Circle
NA / NA / NA
52,250
 
2.2%
 
$3.77
6/30/2021
 
(1)  
Based on the underwritten rent roll.
(2)  
Ratings provided are for the parent company of the entity listed in the “Tenant” field whether or not the parent company guarantees the lease.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-49
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Texas Industrial Portfolio

 
Lease Rollover Schedule(1)
Year
Number
of Leases
Expiring
Net
Rentable
Area
Expiring
% of
NRA
Expiring
Base Rent
Expiring
% of Base
Rent
Expiring

Cumulative
Net
Rentable
Area
Expiring
Cumulative
% of NRA
Expiring
Cumulative
Base Rent
Expiring
Cumulative
% of Base
Rent
Expiring
Vacant
NAP
255,352
 
11.0%
 
NAP
 
NAP
 
255,352
 
11.0%
 
NAP
 
NAP
 
2013 & MTM
7
128,762
 
5.5
 
$555,125
 
6.5%
 
384,114
 
16.5%
 
$555,125
 
6.5%
 
2014
8
193,110
 
8.3
 
700,600
 
8.2
 
577,224
 
24.8%
 
$1,255,725
 
14.6%
 
2015
12
269,539
 
11.6
 
826,120
 
9.6
 
846,763
 
36.4%
 
$2,081,845
 
24.2%
 
2016
13
491,473
 
21.1
 
1,894,084
 
22.0
 
1,338,236
 
57.4%
 
$3,975,929
 
46.3%
 
2017
9
310,246
 
13.3
 
1,009,608
 
11.8
 
1,648,482
 
70.8%
 
$4,985,537
 
58.0%
 
2018
12
302,317
 
13.0
 
1,019,648
 
11.9
 
1,950,799
 
83.7%
 
$6,005,185
 
69.9%
 
2019
2
133,028
 
5.7
 
1,207,349
 
14.1
 
2,083,827
 
89.5%
 
$7,212,534
 
84.0%
 
2020
2
23,200
 
1.0
 
167,232
 
1.9
 
2,107,027
 
90.5%
 
$7,379,766
 
85.9%
 
2021
2
102,250
 
4.4
 
369,483
 
4.3
 
2,209,277
 
94.8%
 
$7,749,249
 
90.2%
 
2022
3
69,018
 
3.0
 
661,133
 
7.7
 
2,278,295
 
97.8%
 
$8,410,382
 
97.9%
 
2023
2
51,128
 
2.2
 
180,600
 
2.1
 
2,329,423
 
100.0%
 
$8,590,982
 
100.0%
 
2024 & Beyond
0
0
 
0.0
 
0
 
0.0
 
2,329,423
 
100.0%
 
$8,590,982
 
100.0%
 
Total
72
2,329,423
 
100.0%
 
$8,590,982
 
100.0%
                 
(1)  
Based on the underwritten rent roll.
 
Operating History and Underwritten Net Cash Flow

 
 
2010
 
2011
 
2012
 
Underwritten
Per Square
Foot
%(1)
Rents in Place(2)
$7,491,979
 
$8,053,156
 
$8,099,358
 
$8,590,982
$3.69
 
64.7%
 
Vacant Income
0
 
0
 
0
 
1,205,841
0.52
 
9.1
 
Gross Potential Rent
$7,491,979
 
$8,053,156
 
$8,099,358
 
$9,796,823
$4.21
 
73.8%
 
Total Reimbursements
2,380,919
 
2,468,026
 
2,360,903
 
3,477,522
1.49
 
26.2
 
Net Rental Income
$9,872,898
 
$10,521,182
 
$10,460,261
 
$13,274,346
$5.70
 
100.0%
 
(Vacancy/Credit Loss)
0
 
0
 
0
 
(1,921,457)
(0.82)
 
(14.5)
 
Other Income
21,673
 
46,722
 
31,117
 
10,200
0.00
 
0.1
 
Effective Gross Income
$9,894,571
 
$10,567,904
 
$10,491,378
 
$11,363,088
$4.88
 
85.6%
 
                       
Total Expenses
$3,772,530
 
$3,321,894
 
$3,456,215
 
$3,713,707
$1.59
 
32.7%
 
                       
Net Operating Income
$6,122,041
 
$7,246,010
 
$7,035,162
 
$7,649,381
$3.28
 
67.3%
 
                       
Total TI/LC, Capex/RR
0
 
0
 
0
 
774,376
0.33
 
6.8
 
Net Cash Flow
$6,122,041
 
$7,246,011
 
$7,035,162
 
$6,875,005
$2.95
 
60.5%
 
(1)  
Percentage column represents percent of Net Rental Income for all revenue lines and represents percent of Effective Gross Income for the remainder of fields.
(2)  
Underwritten Rents in Place is higher than 2012 primarily due to nine new leases, totaling 170,089 square feet, and accounting for $636,605 in base rent.
 
Property Management. The portfolio is managed by Stream Realty Partners-DFW, L.P. and Stream Realty Partners-Houston, L.P. Stream Realty Partners, which was founded in 1996, currently manages more than 100 million square feet of industrial, office and retail space.
 
Escrows and Reserves. At origination, the borrower deposited into escrow $1,283,316 for real estate taxes, $625,567 for immediate repairs, $445,732 for outstanding tenant improvements and leasing commissions, $77,083 for ongoing tenant improvement and leasing commissions and $19,412 for ongoing replacement reserves.
 
Tax Escrows - The borrower is required to escrow 1/12 of the annual estimated tax payments monthly, which currently equates to $171,109.
 
Insurance Escrows - The requirement for the borrower to make monthly deposits to the insurance escrow is waived so long as no event of default has occurred and is continuing and the borrower provides satisfactory evidence that the property is insured under a blanket policy as set forth in the loan documents.
 
Replacement Reserves - On a monthly basis, the borrower is required to escrow $19,412 (approximately $0.10 per square foot annually) for replacement reserves.
 
TI/LC Reserves - On a monthly basis, the borrower is required to escrow $77,083 (approximately $0.40 per square foot annually) into a reserve for tenant improvement and leasing commissions.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-50
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Texas Industrial Portfolio
 
Lockbox / Cash Management. The loan is structured with a hard lockbox and in-place cash management. The borrower was required to send tenant direction letters to all tenants instructing them to deposit all rents and payments into the lockbox account controlled by the lender. All funds in the lockbox account are swept daily to a cash management account under the control of the lender and disbursed during each interest period of the loan term in accordance with the loan documents. To the extent (i) the DSCR as calculated in the loan documents based on the immediately preceding trailing three-month period falls below 1.10x, (ii) there is an event of default under the loan documents or (iii) the borrower or property manager (subject to certain qualifications set forth in the loan documents) becomes the subject of a bankruptcy, insolvency or similar action, all excess cash flow will be held as additional collateral for the loan.
 
Release of Properties. The borrower may release one or more individual properties from the collateral for the loan provided that, among other things, (i) no event of default exists; (ii) the borrower pays a release price of 115% of the applicable allocated loan amount and the applicable yield maintenance premium; (iii) the mezzanine borrowers pay a release price of 115% of the applicable allocated mezzanine loan amount and the applicable yield maintenance premium; (iv) the DSCR as calculated in the loan documents (including the mezzanine loans) for the properties then remaining subject to the lien of the mortgage after giving effect to such release is equal to or greater than the greater of (a) 1.25x and (b) the DSCR as calculated in the loan documents of the properties immediately preceding the release of the individual property; and (v) after giving effect to the release for the applicable individual property, the LTV for the properties then remaining is equal to or less than 75.55%.
 
The loan may not be prepaid, in whole or in part, on or prior to September 30, 2015, but may be prepaid, in whole or in part, at any time after September 30, 2015 with the payment of a yield maintenance premium. After July 31, 2016 a portion of the loan equal to $36.7 million may be prepaid without premium, and the remaining portion, equal to $36.7 million, may be prepaid without premium after July 31, 2017.
 
Additional Debt. A mezzanine loan of approximately $7.4 million secured by the equity interests in the borrower was provided by JPMCB and is anticipated to be sold to a third party investor. We cannot assure you that the mezzanine loan will be sold to a third party investor or at all. The mezzanine loan has a coterminous maturity with the mortgage loan. The mezzanine loan is interest-only for the term of the loan and has a 10.2000% coupon. Including the mezzanine loan, the Cut-off Date LTV is 75.6%, the UW NCF DSCR is 1.27x and the UW NOI Debt Yield is 9.5%.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-51
 (barclays)
 
 

 
 
[THIS PAGE INTENTIONALLY LEFT BLANK]
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-52
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Plaza La Cienega
 
(GRAPHIC)
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-53
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Plaza La Cienega
 
(MAP)
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-54
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Plaza La Cienega
 
(MAP)
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-55
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Plaza La Cienega
 
Mortgage Loan Information
 
Property Information
Mortgage Loan Seller:
Barclays
 
Single Asset / Portfolio:
Single Asset
Original Principal Balance:
$61,100,000
 
Title:
Fee
Cut-off Date Principal Balance:
$61,100,000
 
Property Type - Subtype:
Mixed Use - Retail/Office
% of Pool by IPB:
5.3%
 
Net Rentable Area (SF):
308,143
Loan Purpose:
Refinance
 
Location:
Los Angeles, CA
Borrowers(1):
Various
 
Year Built / Renovated:
1970 / 2010
Sponsor:
Rubin Pachulski Properties 36, LLC
 
Occupancy:
98.7%
Interest Rate:
5.19600%
 
Occupancy Date:
6/30/2013
Note Date:
7/16/2013
 
Number of Tenants:
33
Maturity Date:
8/6/2023
 
2010 NOI:
$5,349,744
Interest-only Period:
60 months
 
2011 NOI:
$5,496,748
Original Term:
120 months
 
2012 NOI:
$5,665,948
Original Amortization:
360 months
 
UW Economic Occupancy:
96.5%
Amortization Type:
IO-Balloon
 
UW Revenues:
$7,606,063
Call Protection:
L(24),Def(92),O(4)
 
UW Expenses:
$2,035,769
Lockbox:
CMA
 
UW NOI:
$5,570,293
Additional Debt:
N/A
 
UW NCF:
$5,339,563
Additional Debt Balance:
N/A
 
Appraised Value / Per SF:
$95,000,000 / $308
Additional Debt Type:
N/A
 
Appraisal Date:
5/23/2013
         
 
Escrows and Reserves(2)
     
Financial Information
 
Initial
Monthly
Initial Cap   
 
Cut-off Date Loan / SF:
 
 $198
Taxes:
$135,973
$45,324
N/A   
 
Maturity Date Loan / SF:
 
 $183
Insurance:
$0
Springing
N/A   
 
Cut-off Date LTV:
 
 64.3%
Replacement Reserves:
$0
$3,852
$138,664   
 
Maturity Date LTV:
 
 59.5%
TI/LC:
$0
$12,839
$462,214   
 
UW NCF DSCR:
 
 1.33x
Other:
$0
$0
N/A   
 
UW NOI Debt Yield:
 
 9.1%
               
 
Sources and Uses
Sources
Proceeds
% of Total
 
Uses
Proceeds
% of Total   
Mortgage Loan
$61,100,000
100.0%
 
Payoff Existing Debt
$56,548,542
92.6%   
       
Return of Equity
3,278,245
5.4   
       
Closing Costs
1,137,239
1.9   
       
Upfront Reserves
135,973
0.2   
Total Sources
$61,100,000
100.0%
 
Total Uses
$61,100,000
100.0%   
(1)  
For a full description of the borrowers, please refer to “The Borrowers” below.
(2)  
For a full description of Escrows and Reserves, please refer to “Escrows and Reserves” below.
 
The Loan. The Plaza La Cienega loan has an outstanding principal balance of $61.1 million and is secured by a first mortgage lien on a 308,143 square foot mixed use Class A anchored retail center and office located in Los Angeles, California. The loan has a 10-year term and, subsequent to a 60 month interest-only period, amortizes on a 30-year schedule.
 
The Borrowers. The borrowing entities for the loan are Rains, LLC, a California limited liability company and LaCienega - Sawyer Ltd., a California limited partnership, each a special purpose entity.
 
The Sponsor. The loan’s sponsor and nonrecourse carve-out guarantor is Rubin Pachulski Properties 36, LLC. The parent company for Rubin Pachulski Properties 36, LLC is RP Realty Partners, LLC. RP Realty Partners, LLC is headquartered in California and has owned and operated real estate for over twenty years with a specific focus on retail and mixed-use properties ranging in size from 100,000 to 600,000 square feet and in value from $10 million to $100 million. As of July 2013, RP Realty Partners, LLC owns and operates 16 properties throughout eight states, with a majority of their properties located on the east and west coasts.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-56
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Plaza La Cienega
 
The Property.  Plaza La Cienega is a 308,143 square foot mixed use Class A anchored retail center and office property. The property, located in Los Angeles, California, was originally constructed in 1970 and renovated in 2010. The collateral consists of two anchored multi-tenant retail buildings, a two-tenant pad site, a freestanding restaurant and a three-story office building situated on a 14.8 acre site. The office portion of the property comprises 52,230 square feet (16.9% of net rentable area, 20.0% of underwritten base rent). The retail portion of the property (83.1% of net rentable area, 80.0% of underwritten base rent) is anchored by LA Fitness (65,000 square feet) whose lease expires in 2037 and Toys R Us (61,965 square feet) whose lease expires in 2020. LA Fitness elected to negotiate an early renewal of its lease in May 2011 and extended their lease maturity date to 2037. Additionally, the collateral includes 1,160 surface and garage parking spaces, resulting in a parking ratio of 3.76 spaces per 1,000 square feet of net rentable area.
 
As of June 30, 2013, the collateral was approximately 98.7% occupied by 33 tenants and has averaged 99.5% occupancy since 2010. In addition to the two anchors, there are two junior anchors, Ross Dress for Less (27,003 square feet) and Staples (24,000 square feet). The pad sites and restaurant space are occupied by McDonald’s, Coffee Bean and El Pollo Loco. Six of the 33 tenants, Ross Dress for Less, Staples, CVS, McDonald’s, Verizon Wireless and Wells Fargo Bank are rated investment grade and represent 22.8% of the total net rentable area and 30.5% of the total underwritten base rent. Toys R Us and five in-line tenants reported sales of approximately $22.9 million in 2012. The five in-line tenants reported sales of $374 and $388 per square foot and occupancy costs of 10.4% and 10.1% in 2011 and 2012, respectively. Toys R Us reported sales of approximately $13.6 million or $220 per square foot for the twelve-month period ending in November 2012 with occupancy costs of approximately of 5.8%. No other tenants reported sales. Based on 2012 third-party sales estimates, Ross Dress for Less, Staples, CVS and Smart & Final Store had estimated sales per square foot of $433, $271, $1,282 and $806, respectively. Based on these estimated sales, the occupancy costs for these tenants were 8.3%, 8.4%, 2.1% and 2.8%, respectively.
 
Plaza La Cienega is located at the southwest corner of La Cienega Boulevard and West 18th Street (traffic count of 68,439 cars per day), just north of Interstate 10 (traffic count of 221,079 cars per day) in the western region of Los Angeles, California. The property’s general area is bordered by Culver City to the south, Rancho Park and West Los Angeles to the north and Mar Vista to the west. According to the appraisal, the property’s population and median household income within one, three and five mile radii was 40,170, 331,761 and 927,799 and $84,514, $86,766 and $80,296 respectively. On average, income within the one, three and five mile radii of the property is 58.2% higher than the national average.
 
The appraisal concluded anchor space market rents of $15.00 per square foot, junior anchor space market rent ranging from $21.00 to $27.00 per square foot, in-line space market rent ranging from $24.00 to $42.00 per square foot and office rents of $21.00 per square foot. The property’s weighted average rent per square foot for anchor, junior anchor, in-line and office spaces are $12.53, $25.69, $23.91 and $24.05 per square foot, respectively. According to a third party commercial real estate information company, as of the second quarter of 2013, the property’s retail market and submarket vacancies were 1.8% and 3.0%, respectively. The property’s office market and submarket vacancies were 13.2% and 8.7%, respectively. There was no new construction underway in each respective market. According to the appraisal, the property’s primary competition consists of the five properties detailed in the table below.
 

Competitive Set Summary
(1)
 
Property
Year Built
Total
GLA
 
Est. 2012
Occ.
 
Proximity
 
Anchor Tenants
Venice Crossroads
1975
155,792
 
99.0%
 
1.7 miles
 
Albertson’s Supermarket
Culver Center
1950
218,530
 
94.0%
 
2.8 miles
 
Ralph’s Supermarket, Rite Aid, Bank of America and Ballys
Cheviot Hills Shopping Center
1967
50,306
 
100.0%
 
2.3 miles
 
Vons Supermarket and Rite Aid
Raintree Shopping Center
1980
86,408
 
98.0%
 
3.7 miles
 
Ralph’s Supermarket
Midtown Shopping Center
1999
186,265
 
98.0%
 
2.8 miles
 
Ralph’s Supermarket, CVS and Orchard Supply Hardware
Total / Weighted Average
 
697,301
 
97.1%
       
(1)  
Per the appraisal.
 
Historical and Current Occupancy(1)
 
2010
2011
2012
Current(2)
99.7%
99.7%
99.7%
98.7%
(1)  
Historical Occupancies are as of December 31 of each respective year.
(2)  
Current Occupancy is as of June 30, 2013.
 
THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
(j.p.morgan)
Annex A-3-57
 (barclays)
 
 

 
 
Annex A-3
 
JPMBB 2013-C14
 
Plaza La Cienega
 
Historical In-line Sales and Occupancy Costs(1)
 
 
2010
2011
2012
In-line Sales PSF
N/A
$374    
$388     
Occupancy Costs
N/A
10.4%   
10.1%    
(1) 
In-line Sales PSF and Occupancy Costs are as of the twelve month period ending December 31 of each respective year for those tenants reporting sales.
 
Tenant Summary(1)
 
Tenant
Ratings(2)
Moody’s/S&P/Fitch
Net
Rentable
Area (SF)
% of
Total NRA
Base
Rent PSF
Sales
PSF
(3)
Occupancy
Costs
Lease
Expiration
Date
LA Fitness
NA / NA / NA
65,000
 
21.1%
 
$15.71
 
N/A
 
N/A
 
1/31/2037
 
Toys R Us
NA / NA / NA
61,965
 
20.1%
 
$9.19
 
$220
 
5.8%
 
11/29/2020
 
Ross Dress for Less
NA / A- / NA
27,003
 
8.8%
 
$32.40
 
$433
 
8.3%
 
1/31/2020
 
Staples
Baa2 / BBB / BBB
24,000
 
7.8%
 
$20.15
 
$271
 
8.4%
 
12/31/2016
 
Career Colleges of America(4)
NA / NA / NA
20,420
 
6.6%
 
$20.08
 
N/A
 
N/A
 
Various