KBRA Affirms All Ratings for JPMCC 2016-NINE
7 Apr 2025 | New York
KBRA affirms all of its outstanding ratings for JPMCC 2016-NINE, a CMBS SASB transaction. The affirmations follow a surveillance review of the transaction, which has exhibited an improvement in KLTV since last review, which is now in line with the securitization stabilized assumption. The improvement in KLTV is the result of the increased property occupancy, which was reported as 92.1% as of December 2024.
The transaction collateral is an $857.0 million portion of a $1.2 billion non-recourse, first-lien mortgage loan. The whole mortgage loan is represented by six pari passu A notes totaling $1.0 billion and a $186.3 million subordinate B note. The trust collateral includes the $670.7 million senior A-1 note and the subordinate B note. The loan is collateralized by the borrower’s fee simple and leasehold interests in 9 West 57th Street, a 50-story, 1.7 million sf Class-A office building located in Midtown Manhattan. The sponsor developed the property in 1972. The ground is leased from an affiliate of the borrower’s sponsor; however, both the fee simple and leasehold interests are pledged as security for the mortgage loan.
KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The property’s occupancy improved to 92.1% from 81.1% at last review and from 63.5% at issuance. KBRA’s analysis generated a KNCF of $133.7 million and a KBRA value of $1.9 billion ($1,137 per sf). The resulting whole loan KLTV decreased to 62.8%, from 70.5% at last review and is compared to the stabilized KLTV of 62.1% at securitization. KBRA maintains the loan’s KPO of Perform.
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