DBRS Morningstar Confirms Ratings on J.P. Morgan Chase Commercial Mortgage Securities Trust 2021-410T

DBRS, Inc. (DBRS Morningstar) confirmed its ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2021-410T issued by J.P. Morgan Chase Commercial Mortgage Securities Trust 2021-410T:

-- Class A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (high) (sf)
-- Class HRR at BBB (sf)
-- Class X-A at AA (sf)

All trends are Stable.

The rating confirmations reflect a deal that is very early in its life cycle with limited reporting and no changes to the underlying performance since issuance.

The collateral is a 20-story, Class A office building in Manhattan's Hudson Yards on 10th Avenue between 33rd Street and 34th Street. The building is well situated in the highly desirable Hudson Yards submarket with good commuter rail and subway hubs positioned to the east and west of the building. It was originally built in 1927 and underwent a complete redevelopment between 2020 and 2021 costing $145.5 million, which was overseen by the prior owner, SL Green. The trust debt comprises a $300 million senior A note and a $185 million junior B note; total debt is $705 million, including senior and junior mezzanine debt. Proceeds were used primarily to complete the acquisition of the property by the sponsor, 601W Companies.

The deal closed in March 2021, and there has been little updated financial reporting since then. The property is 98% occupied as of the September 2021 rent roll, in line with 99% occupancy at issuance. Approximately 92% of the building's concluded in-place base rent is derived from investment-grade tenants that qualified for long-term credit tenant treatment in DBRS Morningstar's concluded net cash flow. Amazon leases approximately 335,000 sf at the property (53.1% of net rentable area (NRA)) and comprises 55% of base rent, while First Republic Bank leases approximately 212,000 sf of office and retail space at the property (33.4% NRA combined) and comprises 37% of base rent. Collectively, Amazon and First Republic Bank have a weighted-average scheduled remaining lease term of 14.6 years, which is well beyond the fully extended maturity date.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Class X-A is an interest-only (IO) certificate that references multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for this transaction.

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com. The platform includes issuer and servicer data for most outstanding CMBS transactions (including non-DBRS Morningstar rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology (March 26, 2021), which can be found on dbrsmorningstar.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on dbrsmorningstar.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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