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JP Morgan Chase Commercial Mortgage Securities

Filed: 29 Jan 15, 7:00pm
 
  FREE WRITING PROSPECTUS
  FILED PURSUANT TO RULE 433
  REGISTRATION FILE NO.: 333-190246-12
   
 
 
Dated January 29, 2015
JPMBB 2015-C27
     
Free Writing Prospectus
Structural and Collateral Term Sheet
 
JPMBB 2015-C27
   
   
$836,528,488
(Approximate Mortgage Pool Balance)
 
$673,597,000
(Approximate Offered Certificates)
 
J.P. Morgan Chase Commercial Mortgage Securities Corp.
Depositor
   
   
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 2015-C27
   
   
JPMorgan Chase Bank, National Association
Barclays Bank PLC
Starwood Mortgage Funding II LLC
Redwood Commercial Mortgage Corporation
RAIT Funding, LLC
Mortgage Loan Sellers
     
J.P. Morgan Barclays
Co-Lead Manager and
Joint Bookrunner
 
Co-Lead Manager and
Joint Bookrunner
     
Wells Fargo Securities Drexel Hamilton
Co-Manager Co-Manager

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.
 
 
 

 
 
Dated January 29, 2015
JPMBB 2015-C27

This material is for your information, and none of J.P. Morgan Securities LLC (“JPMS”), Barclays Capital Inc. (“Barclays”), Wells Fargo Securities, LLC (“Wells Fargo”) and Drexel Hamilton, LLC (“Drexel”) (each individually, an “Underwriter”, and together, the ‘‘Underwriters’’) is soliciting any action based upon it. This material is not to be construed as an offer to sell or the solicitation of any offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal.
 
The Depositor has filed a registration statement (including a prospectus) with the SEC (SEC File no. 333-190246) for the offering to which this Free Writing Prospectus relates. Before you invest, you should read the prospectus in the registration statement and other documents the Depositor has filed with the SEC for more complete information about the Depositor, the issuing trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Depositor or any Underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling 1 (866) 400-7834 or by emailing cmbs-prospectus@jpmorgan.com.
 
Neither this document nor anything contained in this document shall form the basis for any contract or commitment whatsoever.  The information contained in this document is preliminary as of the date of this document, supersedes any previous such information delivered to you and will be superseded by any such information subsequently delivered prior to the time of sale.  These materials are subject to change, completion or amendment from time to time.
 
The attached information contains certain tables and other statistical analyses (the “Computational Materials”) that have been prepared in reliance upon information furnished by the Mortgage Loan Sellers.  Numerous assumptions were used in preparing the Computational Materials, which may or may not be reflected in this document.  The Computational Materials should not be construed as either projections or predictions or as legal, tax, financial or accounting advice.  You should consult your own counsel, accountant and other advisors as to the legal, tax, business, financial and related aspects of a purchase of these certificates.  Any weighted average lives, yields and principal payment periods shown in the Computational Materials are based on prepayment and/or loss assumptions, and changes in such prepayment and/or loss assumptions may dramatically affect such weighted average lives, yields and principal payment periods.  In addition, it is possible that prepayments or losses on the underlying assets will occur at rates higher or lower than the rates shown in the Computational Materials.  The specific characteristics of the certificates may differ from those shown in the Computational Materials due to differences between the final underlying assets and the preliminary underlying assets used in preparing the Computational Materials.  The principal amount and designation of any certificate described in the Computational Materials are subject to change prior to issuance. None of the Underwriters nor any of their respective affiliates make any representation or warranty as to the actual rate or timing of payments or losses on any of the underlying assets or the payments or yield on the certificates.
 
This information is based upon management forecasts and reflects prevailing conditions and management’s views as of this date, all of which are subject to change.
 
This document contains forward-looking statements.  Those statements are subject to certain risks and uncertainties that could cause the success of collections and the actual cash flow generated to differ materially from the information set forth in this document.  While such information reflects projections prepared in good faith based upon methods and data that are believed to be reasonable and accurate as of their dates, the issuer undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances.  Investors should not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determination with respect to the forecasted periods, which reflect the issuer’s view only as of the date of this document.
 
J.P. Morgan is the marketing name for the investment banking businesses of JPMorgan Chase & Co. and its subsidiaries worldwide.  Securities, syndicated loan arranging, financial advisory and other investment banking activities are performed by JPMS and its securities affiliates, and lending, derivatives and other commercial banking activities are performed by JPMorgan Chase Bank, National Association and its banking affiliates.  JPMS is a member of SIPC and the NYSE.
 
THE CERTIFICATES REFERRED TO IN THESE MATERIALS ARE SUBJECT TO MODIFICATION OR REVISION (INCLUDING THE POSSIBILITY THAT ONE OR MORE CLASSES OF CERTIFICATES MAY BE SPLIT, COMBINED OR ELIMINATED AT ANY TIME PRIOR TO ISSUANCE OR AVAILABILITY OF A FINAL PROSPECTUS) AND ARE OFFERED ON A “WHEN, AS AND IF ISSUED” BASIS.  PROSPECTIVE INVESTORS SHOULD UNDERSTAND THAT, WHEN CONSIDERING THE PURCHASE OF THESE CERTIFICATES, A CONTRACT OF SALE WILL COME INTO BEING NO SOONER THAN THE DATE ON WHICH THE RELEVANT CLASS OF CERTIFICATES HAS BEEN PRICED AND THE UNDERWRITERS HAVE CONFIRMED THE ALLOCATION OF CERTIFICATES TO BE MADE TO INVESTORS; ANY “INDICATIONS OF INTEREST” EXPRESSED BY ANY PROSPECTIVE INVESTOR, AND ANY “SOFT CIRCLES” GENERATED BY THE UNDERWRITERS, WILL NOT CREATE BINDING CONTRACTUAL OBLIGATIONS FOR SUCH PROSPECTIVE INVESTORS, ON THE ONE HAND, OR THE UNDERWRITERS, THE DEPOSITOR OR ANY OF THEIR RESPECTIVE AGENTS OR AFFILIATES, ON THE OTHER HAND.
 
AS A RESULT OF THE FOREGOING, A PROSPECTIVE INVESTOR MAY COMMIT TO PURCHASE CERTIFICATES THAT HAVE CHARACTERISTICS THAT MAY CHANGE, AND EACH PROSPECTIVE INVESTOR IS ADVISED THAT ALL OR A PORTION OF THE CERTIFICATES REFERRED TO IN THESE MATERIALS MAY BE ISSUED WITHOUT ALL OR CERTAIN OF THE CHARACTERISTICS DESCRIBED IN THESE MATERIALS.  EACH UNDERWRITER’S OBLIGATION TO SELL CERTIFICATES TO ANY PROSPECTIVE INVESTOR IS CONDITIONED ON THE CERTIFICATES AND THE TRANSACTION HAVING THE CHARACTERISTICS DESCRIBED IN THESE MATERIALS.  IF THE UNDERWRITERS DETERMINE THAT A CONDITION IS NOT SATISFIED IN ANY MATERIAL RESPECT, SUCH PROSPECTIVE INVESTOR WILL BE NOTIFIED, AND NEITHER THE DEPOSITOR NOR THE UNDERWRITERS WILL HAVE ANY OBLIGATION TO SUCH PROSPECTIVE INVESTOR TO DELIVER ANY PORTION OF THE CERTIFICATES THAT SUCH PROSPECTIVE INVESTOR HAS COMMITTED TO PURCHASE, AND THERE WILL BE NO LIABILITY OR OBLIGATION BETWEEN THE UNDERWRITERS, THE DEPOSITOR OR ANY OF THEIR RESPECTIVE AGENTS OR AFFILIATES, ON THE ONE HAND, AND SUCH PROSPECTIVE INVESTOR, ON THE OTHER HAND, AS A CONSEQUENCE OF THE NON-DELIVERY.
 
THE UNDERWRITERS MAY FROM TIME TO TIME PERFORM INVESTMENT BANKING SERVICES FOR, OR SOLICIT INVESTMENT BANKING BUSINESS FROM, ANY COMPANY NAMED IN THESE MATERIALS.  THE UNDERWRITERS AND/OR THEIR AFFILIATES OR RESPECTIVE EMPLOYEES MAY FROM TIME TO TIME HAVE A LONG OR SHORT POSITION IN ANY CERTIFICATE OR CONTRACT DISCUSSED IN THESE MATERIALS.

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.
 
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Structural and Collateral Term Sheet
JPMBB 2015-C27
 
Indicative Capital Structure
 
Publicly Offered Certificates
Class 
Expected Ratings
(Moody’s / KBRA /
Morningstar)
 
Approximate
Initial Certificate
Balance or
Notional Amount(1)
Approximate
Initial Credit
Support(2)
 
Expected
Weighted
Avg. Life
(years)(3)
 
Expected
Principal
Window(3)
 
Certificate
Principal to
Value Ratio(4)
 
Underwritten
NOI Debt Yield(5)
A-1 Aaa(sf) / AAA(sf) / AAA   $38,412,00030.000% 2.77 3/15-12/19 46.1% 14.1%
A-2 Aaa(sf) / AAA(sf) / AAA $135,330,00030.000% 4.88 12/19-1/20 46.1% 14.1%
A-3A1 Aaa(sf) / AAA(sf) / AAA   $75,000,00030.000% 9.77 11/24-12/24 46.1% 14.1%
A-4 Aaa(sf) / AAA(sf) / AAA $222,831,00030.000% 9.88 12/24-1/25 46.1% 14.1%
A-SB Aaa(sf) / AAA(sf) / AAA   $63,997,00030.000% 7.40 12/19-11/24 46.1% 14.1%
X-A Aa1(sf) / AAA(sf) / AAA $635,279,000N/A N/A N/A N/A N/A
X-B NR / AAA(sf) / AAA   $52,766,000N/A N/A N/A N/A N/A
A-S(7)(8)
 Aa2(sf) / AAA(sf) / AAA   $49,709,00024.058% 9.89 1/25-1/25 50.0% 13.0%
B(7)(8)
 NR / AA-(sf) / AA-   $52,766,00017.750% 9.95 1/25-2/25 54.1% 12.0%
C(7)(8)
 NR / A-(sf) / A-   $35,552,00013.500% 9.97 2/25-2/25 56.9% 11.4%
EC(7)(8)(9)
 NR / A-(sf) / A- $138,027,00013.500% 9.93 1/25-2/25 56.9% 11.4%
 
Privately Offered Certificates(10)
Class 
Expected Ratings
(Moody’s / KBRA /
Morningstar)
 
Approximate
Initial Certificate
Balance or
Notional Amount(1)
 
Approximate
Initial Credit
Support(2)
 
Expected
Weighted
Avg. Life
(years)(3)
 
Expected
Principal
Window(3)
 
Certificate
Principal to
Value Ratio(4)
 
Underwritten
NOI Debt Yield(5)
A-3A2 Aaa(sf) / AAA(sf) / AAA $50,000,000 30.000% 9.77 11/24-12/24 46.1% 14.1%
X-C NR / AAA(sf) / AAA 
$35,552,000(6)
 N/A N/A N/A N/A N/A
X-D NR / BBB-(sf) / AAA 
$40,781,000(6)
 N/A N/A N/A N/A N/A
X-E NR / BB-(sf) / AAA 
$24,531,000(6)
 N/A N/A N/A N/A N/A
X-FG NR / B-(sf) / AAA 
$19,387,000(6)
 N/A N/A N/A N/A N/A
X-NR NR / NR / AAA 
$28,232,488(6)
 N/A N/A N/A N/A N/A
D NR / BBB-(sf) / BBB $40,781,000 8.625% 9.97 2/25-2/25 60.1% 10.8%
E NR / BB-(sf) / BB- $24,531,000 5.693% 9.97 2/25-2/25 62.1% 10.5%
F NR / B(sf) / B $11,021,000 4.375% 9.97 2/25-2/25 62.9% 10.4%
G NR / B-(sf) / NR   $8,366,000 3.375% 9.97 2/25-2/25 63.6% 10.2%
NR NR / NR / NR $28,232,488 0.000% 11.07 2/25-2/30 65.8% 9.9%

(1)In the case of each such Class, subject to a permitted variance of plus or minus 5%.
(2)The credit support percentages set forth for Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4, and Class A-SB Certificates represent the approximate initial credit support for the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4 and Class A-SB Certificates in the aggregate.
(3)
Assumes 0% CPR / 0% CDR and a February 25, 2015 closing date. Based on modeling assumptions as described in the Free Writing Prospectus dated January 29, 2015 (the “Free Writing Prospectus”).
(4)
The “Certificate Principal to Value Ratio” for any Class (other than the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4 and Class A-SB Certificates) is calculated as the product of (a) the weighted average Cut-off Date LTV Ratio for the mortgage loans, multiplied by (b) a fraction, the numerator of which is the total initial Certificate Balance of such Class of Certificates and all Classes of Principal Balance Certificates senior to such Class of Certificates and the denominator of which is the total initial Certificate Balance of all of the Principal Balance Certificates. The Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4 and Class A-SB Certificate Principal to Value Ratios are calculated in the aggregate for those Classes as if they were a single Class. Investors should note, however, that excess mortgaged property value associated with a mortgage loan will not be available to offset losses on any other mortgage loan.
(5)
The “Underwritten NOI Debt Yield” for any Class (other than the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4 and Class A-SB Certificates) is calculated as the product of (a) the weighted average UW NOI Debt Yield for the mortgage loans and (b) the total initial Certificate Balance of all of the Classes of Principal Balance Certificates divided by the total initial Certificate Balance for such Class and all Classes of Principal Balance Certificates senior to such Class of Certificates. The Underwritten NOI Debt Yield for each of the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4 and Class A-SB Certificates is calculated in the aggregate for those Classes as if they were a single Class. Investors should note, however, that net operating income from any mortgaged property supports only the related mortgage loan and will not be available to support any other mortgage loan.
(6)The Class X-A, Class X-B, Class X-C, Class X-D, Class X-E, Class X-FG and Class X-NR Notional Amounts are defined in the Free Writing Prospectus.
(7)
A holder of Class A-S, Class B and Class C Certificates (the “Exchangeable Certificates”) may exchange such Classes of Certificates (on an aggregate basis) for a related amount of Class EC Certificates, and Class EC Certificates may be exchanged for a ratable portion of each class of Exchangeable Certificates.
(8)
The initial Certificate Balance of a Class of Exchangeable Certificates represents the principal balance of such Class without giving effect to any exchange. The initial Certificate Balance of the Class EC Certificates is equal to the aggregate of the initial Certificate Balances of the Exchangeable Certificates and represents the maximum principal balance of such Class that could be issued in an exchange. See “Exchangeable Certificates and the Class EC Certificates” below.
(9)Although the Class EC Certificates are listed below the Class C Certificates in the chart, the Class EC Certificates’ payment entitlements and subordination priority will be a result of the payment entitlements and subordination priority at each level of the related component classes of Class A-S, Class B and Class C Certificates. For purposes of determining the Approximate Initial Credit Support, Certificate Principal to Value Ratio and Underwritten NOI Debt Yield for Class EC Certificates, the calculation is based on the aggregate initial Certificate Balance of Class A-S, Class B and Class C Certificates as if they were a single class.
(10)The Class A-3A2, Class X-C, Class X-D, Class X-E, Class X-FG, Class X-NR, Class D, Class E, Class F, Class G, Class NR, Class R and Class Z Certificates are not offered hereby. The Class Z and Class R Certificates are not shown above.
 
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.
 
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Structural and Collateral Term Sheet
JPMBB 2015-C27
 
Summary of Transaction Terms
 
Securities Offered:$673,597,000 monthly pay, multi-class, commercial mortgage REMIC Pass-Through Certificates.
 
Co-Lead Managers and Joint Bookrunners:J.P. Morgan Securities LLC and Barclays Capital Inc.
 
Co-Managers:
Wells Fargo Securities, LLC and Drexel Hamilton, LLC.
 
Mortgage Loan Sellers:
JPMorgan Chase Bank, National Association (“JPMCB”) (39.5%), Barclays Bank PLC (“Barclays”) (25.2%), Starwood Mortgage Funding II LLC (“SMF II”) (21.6%), Redwood Commercial Mortgage Corporation (“RCMC”) (10.0%) and RAIT Funding, LLC (“RAIT”) (3.7%).
 
Master Servicer:
Midland Loan Services, a Division of PNC Bank, National Association (“Midland”).
 
Special Servicer:
LNR Partners, LLC (“LNR”).
 
Directing Certificateholder:LNR Securities Holdings, LLC.
 
Trustee:Wells Fargo Bank, National Association.
 
Certificate Administrator:Wells Fargo Bank, National Association.
 
Senior Trust Advisor:Pentalpha Surveillance LLC.
 
Rating Agencies:
Moody’s Investors Service, Inc. (“Moody’s”), Kroll Bond Rating Agency, Inc. (“KBRA”) and Morningstar Credit Ratings, LLC (“Morningstar”).
 
Pricing Date:On or about February 6, 2015.
 
Closing Date:On or about February 25, 2015.
 
Cut-off Date:With respect to each mortgage loan, the related due date in February 2015, or with respect to any mortgage loan that has its first due date in March 2015, the date that would otherwise have been the related due date in February 2015.
 
Distribution Date:
The 4th business day after the Determination Date in each month, commencing in March 2015.
 
Determination Date:
11th day of each month, or if the 11th day is not a business day, the next succeeding business day, commencing in March 2015.
 
Assumed Final Distribution Date:The Distribution Date in February 2030, which is the latest expected repayment date of the Certificates. The Assumed Final Distribution Date for each Class of Certificates is set forth in the Free Writing Prospectus.
 
Rated Final Distribution Date:The Distribution Date in February 2048.
 
Tax Treatment:The Publicly Offered Certificates are expected to be treated as REMIC regular interests for U.S. federal income tax purposes.
 
Form of Offering:
The Class A-1, Class A-2, Class A-3A1, Class A-4, Class A-SB, Class X-A, Class X-B, Class A-S, Class B, Class C and Class EC Certificates will be offered publicly (the “Publicly Offered Certificates”).  The Class A-3A2, Class X-C, Class X-D, Class X-E, Class X-FG, Class X-NR, Class D, Class E, Class F, Class G, Class NR, Class Z and Class R Certificates (the “Privately Offered Certificates”) will be offered domestically to Qualified Institutional Buyers and to Institutional Accredited Investors and to institutions that are not U.S. Persons pursuant to Regulation S.
 
SMMEA Status:The Certificates will not constitute “mortgage related securities” for purposes of SMMEA.
 
ERISA:The Publicly Offered Certificates are expected to be ERISA eligible.
 
Optional Termination:On any Distribution Date on which the aggregate principal balance of the pool of mortgage loans is less than the greater of (i) 1% of the aggregate principal balance of the mortgage loans as of the cut-off date, or (ii) the product of (x) a percentage that is calculated by dividing the outstanding principal balance of the mortgage loan identified on Annex A-1 to the Free Writing Prospectus as “Plymouth Road Tech Center” on the date that is the 10-year anniversary from the start-up date of the trust by the aggregate principal balance of the mortgage loans as of the cut-off date and (y) the aggregate principal balance of the mortgage loans as of the cut-off date.
 
Minimum Denominations:The Publicly Offered Certificates (other than the Class X-A and Class X-B Certificates) will be issued in minimum denominations of $10,000 and integral multiples of $1 in excess of $10,000. The Class X-A and Class X-B Certificates will be issued in minimum denominations of $1,000,000 and in integral multiples of $1 in excess of $1,000,000.
 
Settlement Terms:DTC, Euroclear and Clearstream Banking.
 
Analytics:The transaction is expected to be modeled by Intex Solutions, Inc. and Trepp, LLC and is expected to be available on Bloomberg L.P., Blackrock Financial Management Inc., Interactive Data Corporation and Markit.
 
Risk Factors:
THE CERTIFICATES INVOLVE CERTAIN RISKS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. SEE THE “RISK FACTORS” SECTION OF THE FREE WRITING PROSPECTUS.

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.
 
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Structural and Collateral Term Sheet
JPMBB 2015-C27

Collateral Characteristics
 
Loan Pool 
 
Initial Pool Balance (“IPB”):
$836,528,488
 Number of Mortgage Loans:44
 Number of Mortgaged Properties:91
 Average Cut-off Date Balance per Mortgage Loan:$19,012,011
 Weighted Average Current Mortgage Rate:4.36942%
 10 Largest Mortgage Loans as % of IPB:56.4%
 
Weighted Average Remaining Term to Maturity(1):
111 months
 Weighted Average Seasoning:1 month
   
Credit Statistics 
 
Weighted Average UW NCF DSCR(2):
1.66x
 
Weighted Average UW NOI Debt Yield(2):
9.9%
 
Weighted Average Cut-off Date Loan-to-Value Ratio (“LTV”)(2)(3):
65.8%
 
Weighted Average Maturity Date LTV(1)(2)(3):
56.7%
   
Other Statistics 
 % of Mortgage Loans with Additional Debt:28.9%
 % of Mortgaged Properties with Single Tenants:3.5%
   
Amortization 
 
Weighted Average Original Amortization Term(4):
347 months
 
Weighted Average Remaining Amortization Term(4):
347 months
 % of Mortgage Loans with Partial Interest-Only followed by Amortizing Balloon:41.5%
 % of Mortgage Loans with Amortizing Balloon:31.0%
 % of Mortgage Loans with Interest-Only:23.6%
 % of Mortgage Loans with Fully Amortizing:3.3%
 % of Mortgage Loans with Amortizing Balloon followed by ARD-Structure:0.4%
   
Cash Management(5)
 
 % of Mortgage Loans with In-Place, CMA Lockboxes:39.0%
 % of Mortgage Loans with In-Place, Hard Lockboxes:32.9%
 % of Mortgage Loans with Springing Lockboxes:26.2%
 % of Mortgage Loans with No Lockbox:1.9%
   
Reserves 
 % of Mortgage Loans Requiring Monthly Tax Reserves:91.4%
 % of Mortgage Loans Requiring Monthly Insurance Reserves:41.0%
 
% of Mortgage Loans Requiring Monthly CapEx Reserves(6):
84.7%
 
% of Mortgage Loans Requiring Monthly TI/LC Reserves(7):
67.1%
 
(1)
In the case of Loan No. 43, with an anticipated repayment date, as of the related anticipated repayment date.
(2)In the case of Loan Nos. 1, 2, 5 and 6, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations include the related Pari Passu Companion Loan. In the case of Loan No. 1, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations exclude the Subordinate Companion Loan.
(3)
In the case of Loan Nos. 25 and 37, the Cut-off Date LTV and the Maturity Date LTV are calculated based upon a “when-complete” or hypothetical “as if stabilized” appraised value based on certain assumptions. Refer to “Description of the Mortgage Pool – Assessments of Property Value and Condition” in the Free Writing Prospectus for additional details.
(4)Excludes three mortgage loans that are interest-only for the entire term.
(5)
For a detailed description of Cash Management, refer to “Description of the Mortgage Pool – Lockbox Accounts” in the Free Writing Prospectus.
(6)CapEx Reserves include FF&E reserves for hotel properties.
(7)Calculated only with respect to Cut-off Date Balance of mortgage loans secured by retail, industrial, office and mixed use properties.

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.
 
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Structural and Collateral Term Sheet
JPMBB 2015-C27

Collateral Characteristics
 
Mortgage Loan
Seller
 
Number of
Mortgage Loans
 
Number of
Mortgaged
Properties
 
Aggregate
Cut-off Date
Balance
 
% of
IPB
JPMCB 13 16 $330,276,538 39.5%
Barclays 12 23   210,420,236 25.2
SMF II 9 37   180,656,148 21.6
RCMC 5 5     84,030,267 10.0
RAIT 5 10     31,145,299 3.7
  44 91 $836,528,488    100.0%

Ten Largest Mortgage Loans
 
No. Loan Name 
Mortgage
Loan
Seller
 
No.
of
Prop.
 
Cut-off Date
Balance
 
% of
IPB
 
SF/
Rooms/
Units
 
Property
Type
 
UW
NCF
DSCR(1)
 
UW NOI
Debt
Yield(1)
 
Cut-off
Date
LTV(1)
 
Maturity
Date
LTV(1)
  1 The Club Row Building JPMCB 1 $110,000,000 13.1% 365,819 Office 1.58x 7.7% 62.0% 62.0%
  2 One Campus Martius SMF II 1 $75,000,000 9.0% 965,078 Office 2.54x 12.1% 66.5% 66.5%
  3 The Branson at Fifth Barclays 1  $73,000,000 8.7% 59,131 Mixed Use 1.22x 7.4% 61.3% 56.0%
  4 
717 14th Street
 RCMC 1 $41,500,000 5.0% 120,215 Office 1.36x 8.5% 74.1% 65.2%
  5 Shaner Hotels Portfolio JPMCB 4 $35,000,000 4.2% 605 Hotel 1.83x 11.1% 68.8% 58.8%
  6 The Outlet Shoppes of the Bluegrass JPMCB 1 $32,406,939 3.9% 374,683 Retail 1.83x 11.3% 62.8% 49.7%
  7 Plymouth Road Tech Center JPMCB 1 $28,000,000 3.3% 1,081,215 Industrial 1.35x 13.6% 63.6% 0.5%
  8 Legacy Apartments JPMCB 1 $27,500,000 3.3% 248 Multifamily 1.36x 8.0% 72.5% 64.2%
  9 4141 North Scottsdale Road SMF II 1 $26,500,000 3.2% 150,892 Office 1.36x 8.6% 73.4% 65.2%
  10 Hotel Abri JPMCB 1 $22,972,906 2.7% 91 Hotel 1.38x 8.5% 52.2% 47.9%
                     
  Top 3 Total/Weighted Average 3 $258,000,000 30.8%     1.76x 8.9% 63.1% 61.6%
  Top 5 Total/Weighted Average 8 $334,500,000 40.0%     1.72x 9.1% 65.1% 61.8%
  Top 10 Total/Weighted Average 13 $471,879,845 56.4%     1.64x 9.4% 65.1% 57.0%
(1)  In the case of Loan Nos. 1, 2, 5 and 6, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations include the related Pari Passu Companion Loan. In the case of Loan No. 1, UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations exclude the Subordinate Companion Loan.

Pari Passu Note Loan Summary
 
No.
 
Loan Name
 
Trust Cut-
off Date
Balance
 
Pari Passu
Companion
Loan Cut-off
Date Balance
 
Whole Loan
Cut-off Date
Balance
 
Controlling
Pooling &
Servicing
Agreement
 
Master
Servicer
 
Special
Servicer
 
Voting Rights
1 
The Club Row Building(1)
 $110,000,000 $45,000,000 $155,000,000  JPMBB 2015-C27 Midland LNR JPMBB 2015-C27
2 One Campus Martius  $75,000,000 $50,000,000 $125,000,000 JPMBB 2015-C27 Midland LNR JPMBB 2015-C27
5 Shaner Hotels Portfolio  $35,000,000 $42,090,000   $77,090,000 JPMBB 2015-C27 Midland LNR JPMBB 2015-C27
6 The Outlet Shoppes of the Bluegrass  $32,406,939 $44,871,146   $77,278,085 JPMBB 2014-C26 Midland Midland JPMBB 2014-C26

(1)  The Club Row Building Whole Loan Cut-off Date Balance does not include the $25.0 million B-Note, which is subordinate to the Note A-1 and Note A-2 equal to $110.0 million and $45.0 million, respectively.
 
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 logo)5 of 122(barclays logo)
 
 
 

 
 
Structural and Collateral Term Sheet
JPMBB 2015-C27
 
Collateral Characteristics
 
Additional Debt Summary(1)
 

No.
 
Loan Name
 
Trust
Cut-off Date
Balance
 
Subordinate
Debt
Cut-off Date
Balance
 
Total Debt
Cut-off
Date
Balance
 
Mortgage
Loan
 UW NCF
DSCR(2)
 
Total
Debt
UW
NCF
DSCR
 
Mortgage
Loan
Cut-off
Date
LTV(2)
 
Total
Debt
Cut-off
Date LTV
 
Mortgage
Loan UW
NOI Debt
Yield(2)
 
Total
Debt
UW NOI
Debt
Yield
1 The Club Row Building $110,000,000 $25,000,000 $180,000,000 1.58x 1.27x 62.0% 72.0% 7.7% 6.6%  
4 
717 14th Street
   $41,500,000   $5,500,000 $47,000,000 1.36x 1.12x 74.1% 83.9% 8.5% 7.5%  
5 
Shaner Hotels Portfolio(3)
   $35,000,000 $12,510,000 $89,600,000 1.83x 1.44x 68.8% 80.0% 11.1% 9.6%  
18 South Pointe   $14,604,402   $2,500,000 $17,104,402 1.66x 1.24x 67.9% 79.6% 12.6% 10.7%  
19 Village at Castle Pines   $14,000,000   $2,600,000 $16,600,000 1.83x 1.37x 71.0% 84.2% 11.3% 9.5%  
(1)  In the case of Loan Nos. 4, 5, 18 and 19, subordinate debt represents mezzanine loans. In the case of Loan No. 1, subordinate debt represents a B-Note.
(2)  In the case of Loan Nos. 1 and 5, Mortgage Loan UW NCF DSCR, Mortgage Loan UW NOI Debt Yield and Mortgage Loan Cut-off Date LTV calculations include the related Pari Passu Companion Loan. In the case of Loan No. 1, Mortgage Loan UW NCF DSCR, Mortgage Loan UW NOI Debt Yield and Mortgage Loan Cut-off Date LTV calculations exclude the Subordinate Companion Loan.
(3)  
In the case of Loan No. 5, the mezzanine loan is cross-collateralized and cross-defaulted with three mezzanine loans related to three mortgage loans which are not part of the pool of mortgage loans. See “Description of the Mortgage Pool – Additional Debt – Existing Mezzanine Debt” in the Free Writing Prospectus.
 
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 logo)6 of 122(barclays logo)
 
 
 

 
 
Structural and Collateral Term Sheet
JPMBB 2015-C27
 
Collateral Characteristics
 
Mortgaged Properties by Type(1)

          Weighted Average
Property Type  Property Subtype Number of Properties 
Cut-off Date
Principal
Balance
 
% of
IPB
 Occupancy 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV(2)(3)
 
Maturity
Date
LTV(2)(3)(4)
Office CBD 3 $226,500,000 27.1% 98.1% 1.86x 9.3% 65.7% 64.1%
  Suburban 9 105,641,041 12.6 91.9% 1.44x 9.9% 71.1% 59.8%
  Subtotal: 12 $332,141,041 39.7% 96.1% 1.72x 9.5% 67.4% 62.7%
                   
Hotel Limited Service 8 $80,912,584 9.7% 77.6% 1.91x 11.8% 64.7% 53.3%
  Full Service 4 58,081,690 6.9 78.2% 1.59x 9.7% 59.3% 53.0%
  Extended Stay 5 34,476,482 4.1 82.9% 1.84x 11.5% 64.1% 53.8%
  Subtotal: 17 $173,470,756 20.7% 78.9% 1.79x 11.1% 62.8% 53.3%
                   
Mixed Use Retail/Multifamily 1 $73,000,000 8.7% 100.0% 1.22x 7.4% 61.3% 56.0%
  Retail/Office 2 18,423,212 2.2 93.9% 1.74x 11.3% 71.1% 60.5%
  Parking/Retail 1 8,977,284 1.1 97.8% 1.79x 11.0% 61.3% 49.2%
  Subtotal: 4 $100,400,497 12.0% 98.7% 1.37x 8.4% 63.1% 56.2%
                   
Retail Outlet Center 1 $32,406,939 3.9% 97.5% 1.83x 11.3% 62.8% 49.7%
  Anchored 2 22,900,000 2.7 87.9% 1.58x 10.1% 61.3% 52.6%
  Freestanding 30 22,234,210 2.7 100.0% 1.34x 8.8% 70.3% 58.0%
  Single Tenant 1 6,000,000 0.7 100.0% 1.49x 9.0% 60.6% 51.3%
  Unanchored 3 5,409,692 0.6 92.3% 1.43x 10.1% 68.4% 56.8%
  Subtotal: 37 $88,950,841 10.6% 95.5% 1.60x 10.1% 64.5% 53.0%
                   
Multifamily Garden 6 $64,215,449 7.7% 93.2% 1.55x 9.9% 71.9% 61.3%
  Mid Rise 1 4,100,000 0.5 100.0% 1.30x 8.0% 62.1% 54.3%
  Subtotal: 7 $68,315,449 8.2% 93.7% 1.54x 9.8% 71.3% 60.9%
                   
Storage Self Storage 9 $35,562,025 4.3% 88.6% 1.97x 9.6% 67.8% 62.8%
                   
Industrial Warehouse/Distribution 1 $28,000,000 3.3% 98.4% 1.35x 13.6% 63.6% 0.5%
  Flex 2 5,167,382 0.6 94.5% 1.96x 13.9% 64.6% 55.2%
  Warehouse 1 734,320 0.1 100.0% 1.25x 8.5% 74.5% 60.8%
  Subtotal: 4 $33,901,702 4.1% 97.8% 1.44x 13.5% 64.0% 10.1%
                   
                   
Other Leased Fee 1 $3,786,178 0.5% 100.0%     1.29x 8.0% 72.8% 59.3%
                   
Total / Weighted Average: 91 $836,528,488 100.0%  92.3%     1.66x 9.9% 65.8% 56.7%
(1)Because this table presents information relating to the mortgaged properties and not mortgage loans, the information for mortgage loans secured by more than one mortgaged property is based on allocated loan amounts.
(2)In the case of Loan Nos. 1, 2, 5 and 6, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations include the related Pari Passu Companion Loan. In the case of Loan No. 1, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations exclude the Subordinate Companion Loan.
(3)
In the case of Loan Nos. 25 and 37, the Cut-off Date LTV and the Maturity Date LTV are calculated based upon a “when-complete” or hypothetical “as if stabilized” appraised value based on certain assumptions. Refer to “Description of the Mortgage Pool – Assessments of Property Value and Condition” in the Free Writing Prospectus for additional details.
(4)In the case of Loan No. 43, which has an anticipated repayment date, Maturity Date LTV is as of the related anticipated repayment date.
 
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.
 
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Structural and Collateral Term Sheet
JPMBB 2015-C27
 
Collateral Characteristics
 
(MAP)
 
Mortgaged Properties by Location(1)
 
        Weighted Average
State 
Number of
Properties
 
Cut-off Date
Principal
Balance
 
% of
IPB
 Occupancy 
UW
NCF DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV(2)(3)
 
Maturity
Date LTV(2)(3)(4)
New York 4 $195,338,344    23.4% 96.6% 1.45x 7.8% 62.4% 59.5%
Michigan 3  110,631,393 13.2 99.5% 2.15x 12.5% 65.7% 48.0%
California 14  103,846,369 12.4 86.5% 1.72x 9.7% 59.9% 52.9%
Texas 14    51,843,192 6.2 90.4% 1.78x 11.4% 68.6% 57.6%
Mississippi 4    46,784,402 5.6 93.7% 1.47x 9.5% 71.2% 61.4%
Kentucky 3    45,208,960 5.4 91.8% 1.79x 11.3% 64.9% 50.4%
Washington, DC 1    41,500,000 5.0 100.0% 1.36x 8.5% 74.1% 65.2%
Arizona 2    29,870,000 3.6 88.5% 1.38x 8.7% 71.5% 63.4%
Ohio 3    23,659,754 2.8 86.7% 1.67x 10.5% 66.5% 53.2%
Colorado 3    22,986,886 2.7 97.6% 1.66x 10.6% 70.8% 60.6%
Florida 2    20,806,136 2.5 84.5% 1.70x 11.1% 71.5% 61.8%
North Carolina 6    18,616,265 2.2 86.3% 1.78x 11.6% 67.9% 57.2%
Alabama 2    17,539,315 2.1 85.8% 1.40x 9.4% 75.0% 68.4%
Connecticut 1    16,280,267 1.9 100.0% 1.34x 8.3% 67.6% 54.6%
Pennsylvania 2    13,773,526 1.6 85.1% 2.23x 13.2% 52.9% 42.7%
Wisconsin 5    12,994,128 1.6 95.2% 1.41x 10.0% 71.4% 58.2%
Virginia 2    12,605,787 1.5 65.7% 1.93x 12.1% 62.1% 57.1%
Rhode Island 1    11,250,486 1.3 62.1% 1.83x 11.1% 68.8% 58.8%
Kansas 1    10,500,000 1.3 97.3% 1.58x 10.1% 66.0% 60.3%
Tennessee 6      8,249,075 1.0 87.6% 1.49x 9.1% 74.0% 71.0%
Georgia 5      6,587,014 0.8 76.4% 1.69x 11.8% 67.4% 51.9%
Minnesota 1      6,565,054 0.8 80.9% 1.83x 11.1% 68.8% 58.8%
New Jersey 1      4,100,000 0.5 100.0% 1.30x 8.0% 62.1% 54.3%
South Carolina 1      3,171,302 0.4 84.0% 1.85x 13.0% 64.7% 48.5%
Oklahoma 2         899,941 0.1 100.0% 1.25x 8.5% 74.5% 60.8%
Illinois 1         471,920 0.1 100.0% 1.25x 8.5% 74.5% 60.8%
Indiana 1         448,973 0.1 100.0% 1.25x 8.5% 74.5% 60.8%
Total / Weighted Average: 91 $836,528,488 100.0% 92.3% 1.66x 9.9% 65.8% 56.7%
(1)Because this table presents information relating to the mortgaged properties and not mortgage loans, the information for mortgage loans secured by more than one mortgaged property is based on allocated loan amounts.
(2)In the case of Loan Nos. 1, 2, 5 and 6, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations include the related Pari Passu Companion Loan. In the case of Loan No. 1, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations exclude the Subordinate Companion Loan.
(3)
In the case of Loan Nos. 25 and 37, the Cut-off Date LTV and the Maturity Date LTV are calculated based upon a “when-complete” or hypothetical “as if stabilized” appraised value based on certain assumptions. Refer to “Description of the Mortgage Pool – Assessments of Property Value and Condition” in the Free Writing Prospectus for additional details.
(4)In the case of Loan No. 43, which has an anticipated repayment date, Maturity Date LTV is as of the related anticipated repayment date.
 
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 logo)8 of 122(barclays logo)
 
 
 

 
 
 
Structural and Collateral Term Sheet JPMBB 2015-C27
 
Collateral Characteristics
 
Cut-off Date Principal Balance
 
         
Weighted Average
Range of Principal Balances Number of Loans Cut-off Date Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining
Loan
Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
$3,457,500-    $4,999,999 5 $20,081,856 2.4 4.50006% 119 1.40x 8.7% 69.4% 57.4%
$5,000,000-    $9,999,999 11 81,766,313 9.8  4.46186% 119 1.73x 11.7% 63.3% 50.6%
$10,000,000-  $14,999,999 11 132,897,184 15.9  4.27118% 108 1.76x 10.7% 67.3% 57.7%
$15,000,000-  $19,999,999 6 106,983,520 12.8  4.44786% 109 1.58x 9.9% 67.4% 58.3%
$20,000,000-  $29,999,999 5 127,892,676 15.3  4.32322% 122 1.44x 10.2% 66.9% 46.5%
$30,000,000-  $39,999,999 2 67,406,939 8.1  4.29527% 117 1.83x 11.2% 65.9% 54.4%
$40,000,000-$110,000,000 4 299,500,000 35.8  4.38743% 104 1.70x 8.8% 64.6% 62.1%
Total / Weighted Average: 44 $836,528,488 100.0 4.36942% 111 1.66x 9.9% 65.8% 56.7%
 
Mortgage Interest Rates
 
         
Weighted Average
Range of
Mortgage Interest Rates
 Number of Loans Cut-off Date Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining
Loan
Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
3.74000%-3.99999% 3 $54,200,000 6.5 3.89475% 120 1.85x 9.6% 68.8% 62.1%
4.00000%-4.19999% 5 111,756,939 13.4  4.12134% 119 1.52x 9.4% 70.0% 59.9%
4.20000%-4.39999% 15 351,331,059 42.0  4.31857% 122 1.55x 9.4% 63.3% 53.3%
4.40000%-4.59999% 13 229,663,561 27.5  4.53419% 89 1.89x 10.8% 65.8% 58.8%
4.60000%-4.79999% 6 58,695,730 7.0  4.69291% 106 1.52x 10.0% 68.6% 57.3%
4.80000%-4.95000% 2 30,881,199 3.7  4.83867% 117 1.81x 12.5% 69.5% 55.8%
Total / Weighted Average: 44 $836,528,488 100.0 4.36942% 111 1.66x 9.9% 65.8% 56.7%
 
Original Term to Maturity/ARD in Months(1)
 
         
Weighted Average
Original Term to
Maturity/ARD in Months
 Number
of Loans
 Cut-off Date Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining Loan
Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity Date
LTV
(1)(2)(3)
60 5 $140,083,667 16.7 4.55896% 59 2.09x 11.0% 63.5% 61.5%
120 38 668,444,821 79.9  4.33345% 119 1.59x 9.6% 66.4% 58.0%
180 1 28,000,000 3.3  4.28000% 180 1.35x 13.6% 63.6% 0.5%
Total / Weighted Average: 44 $836,528,488 100.0 4.36942% 111 1.66x 9.9% 65.8% 56.7%
 
Remaining Term to Maturity/ARD in Months(1)
 
         
Weighted Average
Remaining Term to
Maturity/ARD in Months
 Number
of Loans
 Cut-off Date Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining Loan
Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
58-60 5 $140,083,667 16.7 4.55896% 59 2.09x 11.0% 63.5% 61.5%
61-120 38 668,444,821 79.9  4.33345% 119 1.59x 9.6% 66.4% 58.0%
121-180 1 28,000,000 3.3  4.28000% 180 1.35x 13.6% 63.6% 0.5%
Total / Weighted Average: 44 $836,528,488 100.0 4.36942% 111 1.66x 9.9% 65.8% 56.7%
(1)In the case of Loan No. 43, which has an anticipated repayment date, Remaining Loan Term, Original Term To Maturity/ARD, Remaining Term to Maturity/ARD and Maturity Date LTV are as of the related anticipated repayment date.
(2)In the case of Loan Nos. 1, 2, 5 and 6, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations include the related Pari Passu Companion Loan. In the case of Loan No. 1, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations exclude the Subordinate Companion Loan.
(3)
In the case of Loan Nos. 25 and 37, the Cut-off Date LTV and the Maturity Date LTV are calculated based upon a “when-complete” or hypothetical “as if stabilized” appraised value based on certain assumptions. Refer to “Description of the Mortgage Pool – Assessments of Property Value and Condition” in the Free Writing Prospectus for additional details.
 
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 logo)9 of 122(barclays logo)
 
 
 

 
 
Structural and Collateral Term Sheet JPMBB 2015-C27
 
Collateral Characteristics
 
Original Amortization Term in Months
 
         
Weighted Average
Original
Amortization
Term in Months
 Number
of Loans
 Cut-off Date
Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining Loan
Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
Interest Only 3 $197,700,000 23.6 4.41956% 96 2.03x 9.6% 63.5% 63.5%
180 1 28,000,000 3.3  4.28000% 180 1.35x 13.6% 63.6% 0.5%
240 1 7,631,393 0.9  4.56000% 119 1.30x 12.1% 65.2% 40.5%
300 3 26,449,772 3.2  4.61705% 119 1.74x 11.8% 68.2% 50.4%
336 2 25,829,371 3.1  4.45535% 119 1.62x 11.5% 68.7% 53.7%
360 34 550,917,952 65.9  4.33742% 112 1.55x 9.7% 66.6% 57.7%
Total / Weighted Average: 44 $836,528,488 100.0% 4.36942% 111 1.66x 9.9% 65.8% 56.7%
 
Remaining Amortization Term in Months
 
         
Weighted Average
Remaining
Amortization Term in Months
 Number
of Loans
 Cut-off Date
Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining
Loan
Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
Interest Only 3 $197,700,000 23.6 4.41956% 96 2.03x 9.6% 63.5% 63.5%
180-300 5 62,081,165 7.4  4.45802% 146 1.51x 12.7% 65.8% 26.7%
301-360 36 576,747,323 68.9  4.34270% 112 1.55x 9.8% 66.7% 57.6%
Total / Weighted Average: 44 $836,528,488 100.0% 4.36942% 111 1.66x 9.9% 65.8% 56.7%
 
Amortization Types
 
         
Weighted Average
Amortization Types Number
of Loans
 Cut-off Date
Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining Loan
Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
IO-Balloon 19 $347,408,500 41.5 4.26671% 117 1.50x 9.3% 68.3% 60.5%
Balloon 20 259,669,988 31.0  4.47859% 106 1.63x 10.7% 64.5% 52.3%
Interest Only 3 197,700,000 23.6  4.41956% 96 2.03x 9.6% 63.5% 63.5%
Fully Amortizing 1 28,000,000 3.3  4.28000% 180 1.35x 13.6% 63.6%   0.5%
ARD-Balloon 1 3,750,000 0.4  4.35000% 120 1.41x 8.5% 72.0% 57.9%
Total / Weighted Average: 44 $836,528,488 100.0 4.36942% 111 1.66x 9.9% 65.8% 56.7%     
 
Underwritten Net Cash Flow Debt Service Coverage Ratios(2)
 
         
Weighted Average
Underwritten Net Cash Flow Debt Service Coverage Ratios Number
of Loans
 Cut-off Date Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining
Loan
Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
1.22x-1.35x 7 $151,031,117 18.1 4.38383% 131 1.27x 9.0% 64.5% 45.4%
1.36x-1.45x 9 163,288,109 19.5  4.24825% 111 1.37x 8.6% 70.2% 61.8%
1.46x-1.55x 3 25,409,516 3.0  4.34546% 89 1.49x 9.7% 70.1% 63.2%
1.56x-1.65x 9 189,904,287 22.7  4.40360% 114 1.59x 8.8% 63.2% 59.1%
1.66x-1.80x 5 61,458,957 7.3  4.52483% 118 1.74x 12.0% 68.6% 54.3%
1.81x-2.00x 8 147,749,154 17.7  4.33572% 113 1.87x 11.6% 65.5% 55.4%
12.011x-2.92x 3 97,687,348 11.7  4.44269% 73 2.59x 12.3% 63.3% 62.4%
Total / Weighted Average: 44 $836,528,488 100.0 4.36942% 111 1.66x 9.9% 65.8% 56.7%
(1)In the case of Loan No. 43, which has an anticipated repayment date, Remaining Loan Term and Maturity Date LTV are as of the related anticipated repayment date.
(2)In the case of Loan Nos. 1, 2, 5 and 6, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations include the related Pari Passu Companion Loan. In the case of Loan No. 1, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations exclude the Subordinate Companion Loan.
(3)
In the case of Loan Nos. 25 and 37, the Cut-off Date LTV and the Maturity Date LTV are calculated based upon a “when-complete” or hypothetical “as if stabilized” appraised value based on certain assumptions. Refer to “Description of the Mortgage Pool — Assessments of Property Value and Condition” in the Free Writing Prospectus for additional details.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Collateral Characteristics
 
LTV Ratios as of the Cut-off Date(2)(3)
 
         
Weighted Average
Range of Cut-off Date LTVs Number
of Loans
 Cut-off Date Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining Loan Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
45.4%-49.9% 1 $9,987,348 1.2 4.23000% 119 2.58x 15.2% 45.4% 36.4%
50.0%-54.9% 1 22,972,906 2.7  4.55200% 59 1.38x 8.5% 52.2% 47.9%
55.0%-59.9% 4 48,040,974 5.7  4.27490% 98 1.95x 10.3% 57.9% 52.4%
60.0%-64.9% 11 310,526,439 37.1  4.33946% 122 1.55x 9.3% 62.2% 51.9%
65.0%-69.9% 11 210,486,875 25.2  4.49579% 97 1.99x 11.4% 67.5% 59.3%
70.0%-75.0% 16 234,513,947 28.0  4.30310% 116 1.45x 9.3% 73.0% 63.3%
Total / Weighted Average: 44 $836,528,488 100.0  4.36942% 111 1.66x 9.9% 65.8% 56.7%
 
LTV Ratios as of the Maturity Date(1)(2)(3)
 
         
Weighted Average
Range of
Maturity Date/ARD LTVs
 Number
of
Loans
 Cut-off Date Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining Loan Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
0.5%-44.9% 3 $45,618,741 5.5 4.31589% 156 1.61x 13.7% 59.9% 15.1%
45.0%-49.9% 6 90,679,557 10.8  4.34277% 103 1.66x 10.4% 59.0% 48.6%
50.0%-54.9% 9 107,627,956 12.9  4.42815% 110 1.61x 10.4% 65.2% 53.4%
55.0%-59.9% 14 223,753,955 26.7  4.41298% 115 1.63x 9.9% 65.7% 57.5%
60.0%-64.9% 7 196,083,280 23.4  4.30515% 119 1.54x 8.4% 66.5% 62.3%
65.0%-69.9% 4 160,240,000 19.2  4.39114% 91 1.92x 10.3% 70.5% 66.2%
70.0%-71.5% 1 12,525,000 1.5  4.20300% 58 1.50x 9.1% 74.0% 71.5%
Total / Weighted Average: 44 $836,528,488 100.0 4.36942% 111 1.66x 9.9% 65.8% 56.7%
 
Prepayment Protection
 
         
Weighted Average
Prepayment Protection Number
of
Loans
 Cut-off Date Principal
Balance
 % of
IPB
 Mortgage Rate Remaining Loan Term(1) 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
Defeasance 32 $539,390,950 64.5 4.39333% 108 1.70x 10.1% 67.7% 59.8%
Yield Maintenance 12 297,137,538 35.5  4.32602% 117 1.59x 9.7% 62.4% 51.0%
Total / Weighted Average: 44 $836,528,488 100.0 4.36942% 111 1.66x 9.9% 65.8% 56.7%
 
Loan Purpose
 
         
Weighted Average
Loan Purpose Number
of
Loans
 Cut-off Date
Principal
Balance
 % of
IPB
 Mortgage Rate 
Remaining
Loan Term(1)
 
UW
NCF
DSCR(2)
 
UW
NOI
DY(2)
 
Cut-off
Date
LTV
(2)(3)
 
Maturity
Date
LTV
(1)(2)(3)
Refinance 29 $497,204,107 59.4 4.35094% 116 1.58x 10.1% 65.5% 53.0%
Acquisition 15 339,324,381 40.6  4.39650% 104 1.78x 9.8% 66.3% 62.0%
Total / Weighted Average: 44 $836,528,488 100.0 4.36942% 111 1.66x 9.9% 65.8% 56.7%
(1)In the case of Loan No. 43, which has an anticipated repayment date, Remaining Loan Term and Maturity Date LTV are as of the related anticipated repayment date.
(2)In the case of Loan Nos. 1, 2, 5 and 6, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations include the related Pari Passu Companion Loan. In the case of Loan No. 1, the UW NCF DSCR, UW NOI Debt Yield, Cut-off Date LTV and Maturity Date LTV calculations exclude the Subordinate Companion Loan.
(3)
In the case of Loan Nos. 25 and 37, the Cut-off Date LTV and the Maturity Date LTV are calculated based upon a “when-complete” or hypothetical “as if stabilized” appraised value based on certain assumptions. Refer to “Description of the Mortgage Pool – Assessments of Property Value and Condition” in the Free Writing Prospectus for additional details.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Collateral Characteristics
 
Previous Securitization History(1)
 
No.Loan NameLocationProperty TypePrevious Securitization
4
717 14th Street
Washington, DCOfficeJPMCC 2008-C2
5Shaner Hotels PortfolioVarious, VariousHotelGSMS 2006-GG6
7Plymouth Road Tech CenterLivonia, MIIndustrialMSC 2007-IQ13
11Prescott Place I & IIMesquite, TXMultifamilyCSFB 2005-C1
15
Blue Lake Center(2)
Birmingham, ALOfficeBSCMS 2007-PW17
20EZ Storage PicoLos Angeles, CASelf StorageWBCMT 2005-C17
21Hampton Roads Hotel PortfolioVarious, VAHotelNRF 2012-1
22.03Collierville Mini StorageCollierville, TNSelf StorageGSMS 2012-GC6
26North Regency CenterOverland Park, KSRetailCOMM 2007-C9
28AAA Quality Self StorageTustin, CASelf StorageMLMT 2004-MKB1
29HIEX Philadelphia MidtownPhiladelphia, PAHotelBSCMS 2005-T18
31Arapahoe Service Center IICentennial, COOfficeCSMC 2007-C4
39Winkworth ApartmentsSyracuse, NYMultifamilyCSMC 2007-C5
(1)  The table above represents the properties for which the previously existing debt was most recently securitized, based on information provided by the related borrower or obtained through searches of a third-party database.
(2)  A mortgage loan that was included in the BSCMS 2007-PW17 securitization was secured in part by the Blue Lake Center mortgaged property and in part by additional collateral that does not secure the Blue Lake Center mortgage 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.
 
(j.p.morgan logo)12 of 122(barclays logo)
 
 
 

 
 
Structural and Collateral Term Sheet JPMBB 2015-C27
 
Class A-2(1)
 
No.
 
Loan Name
 
Location
 
Cut-off Date Balance
 
% of
IPB
 
Maturity/ARD Balance
 
% of Certificate Class(2)
 
Original Loan Term
 
Remaining
Loan Term
 
UW NCF DSCR
 
UW NOI
Debt Yield
 
Cut-off
Date LTV
Ratio
 
Maturity
Date/ARD
LTV Ratio
2 One Campus Martius Detroit, MI $75,000,000 9.0 $75,000,000 55.4 60 59 2.54x 12.1% 66.5% 66.5%
10 Hotel Abri San Francisco, CA 22,972,906 2.7  21,063,759 15.6  60 59 1.38x 8.5% 52.2% 47.9%
16 Lodge at Tiburon Belvedere Tiburon, CA 16,979,974 2.0  15,568,865 11.5  60 59 1.62x 9.9% 58.6% 53.7%
21 Hampton Roads Hotel Portfolio Various, VA 12,605,787 1.5  11,593,735 8.6  60 59 1.93x 12.1% 62.1% 57.1%
22 Memphis Self Storage Portfolio Various, Various 12,525,000 1.5  12,105,028 8.9  60 58 1.50x 9.1% 74.0% 71.5%
Total / Weighted Average:   $140,083,667 16.7 $135,331,387   100.0 60 59 2.09x 11.0% 63.5% 61.5%
(1)The table above presents the mortgage loans whose balloon payments would be applied to pay down the principal balance of the Class A-2 Certificates, assuming a 0% CPR and applying the “Modeling Assumptions” described in the Free Writing Prospectus, including the assumptions that (i) none of the mortgage loans in the pool experience prepayments, defaults or losses; (ii) there are no extensions of maturity dates of any mortgage loans in the pool; and (iii) each mortgage loan in the pool is paid in full on its stated maturity date or anticipated repayment date, as applicable.  Each class of Certificates, including the Class A-2 Certificates, evidences undivided ownership interests in the entire pool of mortgage loans.  Debt service coverage ratio, debt yield and loan-to-value ratio information does not take into account subordinate debt (whether or not secured by the mortgaged property), if any, that is allowed under the terms of any mortgage loan.  See Annex A-1 to the Free Writing Prospectus.
(2)Reflects the percentage equal to the Maturity/ARD Balance divided by the initial Class A-2 Certificate Balance.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
    
Accrual: 
Each Class of Certificates (other than the Class Z and Class R Certificates) will accrue interest on a 30/360 basis. The Class R Certificates will not accrue interest. On each Distribution Date, any excess interest collected in respect of any mortgage loan in the trust with an anticipated repayment date during the related due period will be distributed to the holders of the Class Z Certificates.
    
Distribution of Interest: 
On each Distribution Date, accrued interest for each Class of Certificates (other than the Class Z and Class R Certificates) at the applicable pass-through rate will be distributed in the following order of priority to the extent of available funds: first, to the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4, Class A-SB, Class X-A, Class X-B, Class X-C, Class X-D, Class X-E, Class X-FG and Class X-NR Certificates, on a pro rata basis, based on the interest entitlement for each such Class on such date, and then to the Class A-S, Class B, Class C, Class D, Class E, Class F, Class G and Class NR Certificates, in that order, in each case until the interest entitlement for such date payable to each such Class is paid in full.
    
   
The pass-through rate applicable to the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4, Class A-SB, Class A-S, Class B, Class C, Class D, Class E, Class F, Class G and Class NR certificates on each Distribution Date will be a per annum rate equal to one of (i) a fixed rate, (ii) the weighted average of the net mortgage rates on the mortgage loans (in each case adjusted, if necessary, to accrue on the basis of a 360-day year consisting of twelve 30-day months), (iii) the lesser of a specified fixed pass-through rate and the rate described in clause (ii) above or (iv) the rate described in clause (ii) above less a specified percentage.
    
   
The pass-through rate for the Class X-A Certificates for any Distribution Date will equal the excess, if any, of (a) the weighted average of the net mortgage rates on the mortgage loans (in each case adjusted, if necessary, to accrue on the basis of a 360-day year consisting of twelve 30-day months), over (b) the weighted average of the pass-through rates on the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4, Class A-SB and Class A-S Certificates, weighted on the basis of their respective Certificate Balances immediately prior to that Distribution Date and calculated without giving effect to any exchange and conversion of any Class A-S Certificates for Class EC Certificates.
 
The pass-through rate for the Class X-B Certificates for any Distribution Date will equal the excess, if any, of (a) the weighted average of the net mortgage rates on the mortgage loans (in each case adjusted, if necessary, to accrue on the basis of a 360-day year consisting of twelve 30-day months), over (b) the pass-through rate of the Class B Certificates for that Distribution Date.
 
The pass-through rate for the Class X-C certificates for any Distribution Date will equal the excess, if any, of (a) the weighted average of the net mortgage rates on the mortgage loans (in each case adjusted, if necessary, to accrue on the basis of a 360-day year consisting of twelve 30-day months), over (b) the pass-through rate of the Class C certificates for that Distribution Date.
 
The pass-through rate for the Class X-D Certificates for any Distribution Date will equal the excess, if any, of (a) the weighted average of the net mortgage rates on the mortgage loans (in each case adjusted, if necessary, to accrue on the basis of a 360-day year consisting of twelve 30-day months), over (b) the pass-through rate of the Class D Certificates for that Distribution Date.
 
The pass-through rate for the Class X-E Certificates for any Distribution Date will equal the excess, if any, of (a) the weighted average of the net mortgage rates on the mortgage loans (in each case adjusted, if necessary, to accrue on the basis of a 360-day year consisting of twelve 30-day months), over (b) the pass-through rate of the Class E Certificates for that Distribution Date.
 
The pass-through rate for the Class X-FG Certificates for any Distribution Date will equal the excess, if any, of (a) the weighted average of the net mortgage rates on the mortgage
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview

   loans (in each case adjusted, if necessary, to accrue on the basis of a 360-day year consisting of twelve 30-day months), over (b) the weighted average of the pass-through rates on the Class F and Class G Certificates, weighted on the basis of their respective Certificate Balances immediately prior to that Distribution Date.
 
The pass-through rate for the Class X-NR certificates for any Distribution Date will equal the excess, if any, of (a) the weighted average of the net mortgage rates on the mortgage loans (in each case adjusted, if necessary, to accrue on the basis of a 360-day year consisting of twelve 30-day months), over (b) the pass-through rate of the Class NR certificates for that Distribution Date.
 
The Class EC Certificates will not have a pass-through rate, but will be entitled to receive the sum of the interest otherwise distributable on the portion of Exchangeable Certificates that have been converted in an exchange for such Class EC Certificates.
 
On each Distribution Date, any excess interest collected in respect of any mortgage loan in the trust with an anticipated repayment date during the related due period will be distributed to the holders of the Class Z Certificates.
    
   
See “Description of the Certificates—Distributions” in the Free Writing Prospectus.
    
Distribution of Principal: 
On any Distribution Date prior to the Cross-Over Date, payments in respect of principal of the Certificates will be distributed first, to the Class A-SB Certificates until the Certificate Balance of the Class A-SB Certificates is reduced to the planned principal balance for the related Distribution Date set forth in Annex E to the Free Writing Prospectus, second, to the Class A-1 Certificates, until the Certificate Balance of such Class is reduced to zero, third, to the Class A-2 Certificates, until the Certificate Balance of such Class is reduced to zero, fourth, to the Class A-3A1 and Class A-3A2 Certificates, each pro rata, based on their respective Certificate Balances, until the Certificate Balance of such Classes are reduced to zero, fifth, to the Class A-4 Certificates, until the Certificate Balance of such Class is reduced to zero, sixth, to the Class A-SB Certificates, until the Certificate Balance of such Class is reduced to zero and then to the Class A-S, Class B, Class C, Class D, Class E, Class F, Class G and Class NR Certificates, in that order, until the Certificate Balance of each such Class is reduced to zero.
    
   
On any Distribution Date on or after the Cross-Over Date, payments in respect of principal of the Certificates will be distributed first, to the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4 and Class A-SB Certificates, on a pro rata basis, based on the Certificate Balance of each such Class until the Certificate Balance of each such Class is reduced to zero and then, to the Class A-S, Class B, Class C, Class D, Class E, Class F, Class G and Class NR Certificates, in that order, until the Certificate Balance of each such Class is reduced to zero.
 
The “Cross-Over Date” means the Distribution Date on which the aggregate Certificate Balances of the Class A-S, Class B, Class C, Class D, Class E, Class F, Class G and Class NR Certificates (without giving effect to any exchange of the Exchangeable Certificates for Class EC Certificates) have been reduced to zero (after taking into account any allocation of realized losses on the mortgage loans. If Exchangeable Certificates are converted in an exchange for Class EC Certificates, all principal that would otherwise be distributable to such converted Exchangeable Certificates will be distributed to such Class EC Certificates.
 
The Class X-A, Class X-B, Class X-C, Class X-D, Class X-E, Class X-FG and Class X-NR Certificates (the “Class X Certificates”) will not be entitled to receive distributions of principal; however, the notional amount of the Class X-A Certificates will be reduced by the aggregate amount of principal distributions, realized losses and trust fund expenses allocated to Certificates that are components of the Class X-A Certificates’ notional amount (the Certificate Balances of the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4, Class A-SB and Class A-S Certificates (determined without giving effect to any exchange and conversion of any Class A-S Certificates for Class EC Certificates)), the notional amount of the Class X-B Certificates will be reduced by the aggregate amount of
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
 
   principal distributions, realized losses and trust fund expenses allocated to Certificates that are components of the Class X-B Certificates’ notional amount (the Certificate Balance of the Class B Certificates (determined without giving effect to any exchange and conversion of any Class B Certificates for Class EC Certificates)), the notional amount of the Class X-C Certificates will be reduced by the aggregate amount of principal distributions, realized losses and trust fund expenses allocated to Certificates that are components of the Class X-C Certificates’ notional amount (the Certificate Balance of the Class C Certificates (determined without giving effect to any exchange and conversion of any Class C Certificates for Class EC Certificates)), the notional amount of the Class X-D Certificates will be reduced by the aggregate amount of principal distributions, realized losses and trust fund expenses allocated to the Certificates that are components of the Class X-D Certificates’ notional amount (the Certificate Balance of the Class D Certificates), the notional amount of the Class X-E Certificates will be reduced by the aggregate amount of principal distributions, realized losses and trust fund expenses allocated to the Certificates that are components of the Class X-E Certificates’ notional amount (the Certificate Balance of the Class E Certificates), the notional amount of the Class X-FG Certificates will be reduced by the aggregate amount of principal distributions, realized losses and trust fund expenses allocated to the Certificates that are components of the Class X-FG Certificates’ notional amount (the Certificate Balances of the Class F and Class G Certificates) and the notional amount of the Class X-NR Certificates will be reduced by the aggregate amount of principal distribution, realized losses and trust fund expenses allocated to the Certificates that are components of the Class X-NR Certificates’ notional amount (the Certificate Balance of the Class NR Certificates).
    
Exchangeable Certificates
and the Class EC Certificates:
 
A holder of Class A-S, Class B and Class C Certificates (the “Exchangeable Certificates”) may exchange and convert such Classes of Certificates (on an aggregate basis) for a related amount of Class EC Certificates, and Class EC Certificates may be exchanged and converted for a ratable portion of each Class of Exchangeable Certificates.
    
   
The initial Certificate Balance of a Class of Exchangeable Certificates represents the principal balance of such Class without giving effect to any exchange and conversion for Class EC Certificates. The initial Certificate Balance of the Class EC Certificates is equal to the aggregate of the initial Certificate Balances of the Exchangeable Certificates and represents the maximum principal balance of such Class that could be issued in an exchange. In the event that no Exchangeable Certificates are exchanged and converted for Class EC Certificates, the Class EC Certificate Balance would be equal to zero. Any exchange of (a) a portion of the Exchangeable Certificates will result in a conversion and reduction, on a dollar-for-dollar basis, of a proportionate share of each related component Class of the Exchangeable Certificates and an increase, on a dollar-for-dollar basis, of the Certificate Balance of the Class EC Certificates, and (b) any amount of the Class EC Certificates will result in a conversion and reduction, on a dollar-for-dollar basis, of the Certificate Balance of the Class EC Certificates and an increase, on a dollar-for-dollar basis, of a proportionate share of the related Certificate Balances of each Class of Certificates that are components of the Exchangeable Certificates.
 
The Class EC Certificates will not have a pass-through rate, but will be entitled to receive the sum of the interest otherwise distributable on the portion of Exchangeable Certificates that have been exchanged and converted for such Class EC Certificates.
 
If an exchange and conversion has occurred, the Class EC Certificates received in such exchange will be entitled to receive on each Distribution Date distributions equal to the aggregate amount of Interest Distribution Amounts, Accrued Interest From Recoveries, distributions of principal, Yield Maintenance Charges and reimbursements of Collateral Support Deficits that would be distributable to the Exchangeable Certificates that were exchanged and converted for such Class EC Certificates.
 
If an exchange and conversion has occurred, the Class EC Certificates received in such exchange and conversion will be allocated the aggregate amount of Collateral Support Deficits, Net Prepayment Interest Shortfalls and other interest shortfalls (including those
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
 
   resulting from Appraisal Reduction Events) that would be allocated to the Exchangeable Certificates that were exchanged and converted for such Class EC Certificates.
    
Yield Maintenance / Fixed
Penalty Allocation:
 
For purposes of the distribution of Yield Maintenance Charges on any Distribution Date, Yield Maintenance Charges collected in respect of the mortgage loans will first be allocated pro rata between four groups (based on the amount of principal distributed to the Principal Balance Certificates in each group), consisting of (a) the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4, Class A-SB, Class X-A and Class A-S Certificates (calculated without giving effect to any exchange and conversion of Class A-S Certificates for Class EC Certificates), on the one hand (“YM Group A”), (b) the Class B and Class X-B Certificates (calculated without giving effect to any exchange and conversion of Class B Certificates for Class EC Certificates) (“YM Group B”), (c) the Class C and Class X-C Certificates (calculated without giving effect to any exchange and conversion of Class C Certificates for Class EC Certificates) (“YM Group C”) and (d) the Class D and Class X-D Certificates (“YM Group D”). As among the Classes of Certificates in each YM Group, each Class of Certificates entitled to distributions of principal will receive an amount calculated generally in accordance with the following formula and as more specifically described in the Free Writing Prospectus, with any remaining Yield Maintenance Charges on such Distribution Date being distributed to the class of Class X Certificates in such YM Group.
 
 YM ChargeXPrincipal Paid to Classx(Pass-Through Rate on Class – Discount Rate)
   Total Principal Paid (Mortgage Rate on Loan – Discount Rate)
 
   
No Yield Maintenance Charges will be distributed to the Class X-E, Class X-FG, Class X-NR, Class E, Class F, Class G, Class NR, Class Z or Class R Certificates. Once the Certificate Balances of the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4, Class A-SB, Class A-S, Class B, Class C and Class D Certificates have been reduced to zero, all Yield Maintenance Charges will be distributed to the holders of the Class X-C Certificates, regardless of whether the notional amount of such Class of Certificates has been reduced to zero.
 
If Exchangeable Certificates are converted in an exchange for Class EC Certificates, any Yield Maintenance Charges that otherwise would have been distributable to such Exchangeable Certificates had they not been converted will be distributed to the Class EC Certificates.
    
Realized Losses: 
Realized losses on the mortgage loans will be allocated first to the Class NR, Class G, Class F, Class E, Class D, Class C, Class B and Class A-S Certificates, in that order, in each case until the Certificate Balance of each such Class has been reduced to zero, and then, to the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4 and Class A-SB Certificates, on a pro rata basis, based on the Certificate Balance of each such class, until the Certificate Balance of each such class has been reduced to zero. The notional amount of the Class X-A, Class X-B, Class X-C, Class X-D, Class X-E, Class X-FG and Class X-NR Certificates will be reduced by the aggregate amount of realized losses allocated to Certificates that are components of the notional amounts of the Class X-A, Class X-B, Class X-C, Class X-D, Class X-E, Class X-FG and Class X-NR Certificates, respectively.
    
   
Realized losses on each pari passu whole loan will be allocated pro rata, between the related mortgage loan and the related pari passu companion loan, based upon their respective Stated Principal Balances. Realized losses on the whole loan with a subordinate interest will be allocated first to the related subordinate companion loan and then to the related mortgage loan and pari passu companion loan, pro rata.
 
The Class EC Certificates will be allocated the realized losses and other shortfalls otherwise allocable to the Class A-S, Class B and Class C Certificates that are converted in an exchange for such Class EC Certificates.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
    
Interest Shortfalls: 
A shortfall with respect to the amount of available funds distributable in respect of interest can result from, among other sources: (a) delinquencies and defaults by borrowers; (b) shortfalls resulting from the application of Appraisal Reductions to reduce P&I Advances; (c) shortfalls resulting from interest on Advances made by the Master Servicer, the Special Servicer or the Trustee; (d) shortfalls resulting from the payment of Special Servicing Fees and other additional compensation that the Special Servicer is entitled to receive; (e) shortfalls resulting from extraordinary expenses of the trust, including indemnification payments payable to the Depositor, the Master Servicer, the Special Servicer, the Certificate Administrator, the Trustee or the Senior Trust Advisor; (f) shortfalls resulting from a modification of a mortgage loan’s interest rate or principal balance; and (g) shortfalls resulting from other unanticipated or default-related expenses of the trust. Any such shortfalls that decrease the amount of available funds distributable in respect of interest to the Certificateholders will reduce distributions to the classes of Certificates (other than the Class Z and Class R Certificates) beginning with those with the lowest payment priorities, in reverse sequential order. See “Description of the Certificates—Distributions—Priority” in the Free Writing Prospectus.
 
Appraisal Reductions: 
With respect to mortgage loans serviced under the Pooling and Servicing Agreement, upon the occurrence of certain trigger events with respect to a mortgage loan, which are generally tied to certain events of default under the related mortgage loan documents, the Special Servicer will be obligated to obtain an appraisal of the related mortgaged property and the Master Servicer will calculate the Appraisal Reduction amount. The “Appraisal Reduction” amount is generally the amount by which the current principal balance of the related mortgage loan or whole loan, plus outstanding advances, real estate taxes, unpaid servicing fees and certain similar amounts exceeds 90% of the appraised value of the related mortgaged property, plus the amount of any escrows and letters of credit.
    
   
With respect to The Outlet Shoppes of the Bluegrass Whole Loan, any Appraisal Reduction will be similarly determined pursuant to the pooling and servicing agreement under which it is serviced.
 
In general, the Appraisal Reduction amounts that are allocated to the mortgage loans (exclusive of amounts allocated to a Companion Loan (defined below)) are notionally allocated to reduce, in reverse sequential order, the Certificate Balance of each Class of Certificates (other than the Class A-1, Class A-2, Class A-3A1, Class A-3A2, Class A-4 and Class A-SB Certificates) beginning with the Class NR Certificates for certain purposes, including certain voting rights and the determination of the controlling class.
 
With respect to each pari passu whole loan, the Appraisal Reduction amount is notionally allocated pro rata, between the related mortgage loan and the related pari passu companion loan, based upon their respective Stated Principal Balances. With respect to the whole loan with a subordinate interest, the Appraisal Reduction amount will be notionally allocated first, to reduce the principal balance of the related subordinate companion loan and then to reduce the principal balance of the related mortgage loan and pari passu companion loan, pro rata.
    
Appraisal Reduced Interest: 
Accrued and unpaid interest at the related Mortgage Rate for a mortgage loan that is not advanced by the Master Servicer or the Trustee as backup master servicer due to the application of Appraisal Reduction amounts to such mortgage loan.
    
Master Servicer Advances: 
The Master Servicer will be required to advance certain delinquent scheduled mortgage loan payments of principal and interest and certain property protection advances, in each case, to the extent the Master Servicer deems such advances to be recoverable. At any time that an Appraisal Reduction amount exists, the amount that would otherwise be required to be advanced by the Master Servicer in respect of delinquent payments of interest on the mortgage loan will be reduced to equal the product of (x) the interest portion of the amount that would be advanced without regard to any Appraisal Reduction and (y) a fraction, the numerator of which is the then-outstanding principal balance of the mortgage loan minus the Appraisal Reduction amount and the denominator of which is the
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
 
   then-outstanding principal balance of the mortgage loan. The Master Servicer will not make any principal or interest advances with respect to any Companion Loan.
    
Whole Loans: 
Four mortgage loans are each evidenced by one or more separate notes and are each, together with one or more additional companion loans (each a “Companion Loan” and collectively with the related mortgage loan, a “Whole Loan”), secured by the same mortgage(s) on the related mortgaged property or portfolio of related mortgaged properties. Each such mortgage loan and its related Companion Loan(s) are subject to an intercreditor agreement. None of these Companion Loans will be part of the trust.
    
   In the case of one of these Whole Loans, “The Club Row Building Whole Loan”, the Companion Loans are (i) a related pari passu Companion Loan, and (ii) a related subordinate Companion Loan (the “Subordinate Companion Loan”).
    
   
In the case of three of these Whole Loans, referred to as the “One Campus Martius Whole Loan”, the “Shaner Hotels Portfolio Whole Loan” and “The Outlet Shoppes of the Bluegrass Whole Loan”, the related Companion Loan is pari passu with the related mortgage loan (these Companion Loans, together with The Club Row Building pari passu Companion Loan, are also referred to as the “Pari Passu Companion Loans”). The Club Row Building Pari Passu Companion Loan, the One Campus Martius Pari Passu Companion Loan and the Shaner Hotels Portfolio Pari Passu Companion Loan are referred to as “Serviced Companion Loans”.
 
The Club Row Building Whole Loan, the One Campus Martius Whole Loan and the Shaner Hotels Portfolio Whole Loan (the “Serviced Whole Loans”) will be serviced under the pooling and servicing agreement for the JPMBB 2015-C27 transaction (the “Pooling and Servicing Agreement”).
 
The Outlet Shoppes of the Bluegrass Whole Loan will be serviced pursuant to another pooling and servicing agreement as described under “Description of the Mortgage Pool—The Whole Loans— The Outlet Shoppes of the Bluegrass Whole Loan” in the Free Writing Prospectus.
    
Liquidated Loan Waterfall: On liquidation of any mortgage loan, all net liquidation proceeds related to the mortgage loan (but not any related Companion Loan) will be applied so that amounts allocated as a recovery of accrued and unpaid interest will not, in the first instance, include any Appraisal Reduced Interest. After the adjusted interest amount is so allocated, any remaining liquidation proceeds will be allocated to offset certain advances and to pay principal on the mortgage loan until the unpaid principal amount of the mortgage loan has been reduced to zero. Any remaining liquidation proceeds will then be allocated to pay Appraisal Reduced Interest. Any liquidation proceeds in respect of each such mortgage loan in excess of the related outstanding balance will first be applied to offset any interest shortfalls allocated to the Certificates (other than the Class X Certificates), in sequential order, and then to offset any realized losses allocated to the Certificates (other than the Class X Certificates), in sequential order. Any liquidation proceeds remaining after such applications will be distributed to the Class R Certificates.
    
Sale of Defaulted Mortgage
Loans and REO Properties:
 
The Special Servicer may offer to sell or may offer to purchase any defaulted mortgage loan or REO property, if the Special Servicer determines that no satisfactory arrangements can be made for collection of delinquent payments and the sale would be in the best economic interests of the trust (or in the case of any Whole Loan, the trust and the holder of the related Companion Loan, as a collective whole, taking into account the pari passu or subordinate nature of such Companion Loan, as applicable), on a net present value basis. The Special Servicer is required to accept the highest offer for any defaulted mortgage loan or REO property in an amount at least equal to par plus accrued interest plus all other outstanding amounts due under such mortgage loan and any outstanding expenses of the trust relating to such mortgage loan (the “Defaulted Loan Purchase Price”) except as described in the Free Writing Prospectus.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
    
   
With respect to each Serviced Whole Loan, any such sale of the related defaulted mortgage loan will also include the related Pari Passu Companion Loan (but not the Subordinate Companion Loan, if any) and the prices will be adjusted accordingly.
 
In connection with such sale and fair value determination, within 30 days of a mortgage loan becoming a specially serviced mortgage loan, the Special Servicer is required to order an appraisal and, within 30 days of receipt of such appraisal, is required to determine the fair value of such defaulted mortgage loan in accordance with the applicable servicing standard. If, however, the Special Servicer is already in the process of obtaining an appraisal with respect to the related mortgaged property, the Special Servicer is required to make its fair value determination as soon as reasonably practicable (but in any event within 30 days) after its receipt of such appraisal. Additionally, with respect to the mortgage loans that have mezzanine debt (whether in existence now or permitted in the future) or a Subordinate Companion Loan, the mezzanine lenders or Subordinate Companion Loan holder may have the option to purchase the related mortgage loan after certain events of default under such mortgage loan.
 
The Directing Certificateholder will not have a right of first refusal to purchase a defaulted mortgage loan.
 
If the Special Servicer does not receive an offer at least equal to the Defaulted Loan Purchase Price, the Special Servicer may purchase the defaulted mortgage loan or REO property at the Defaulted Loan Purchase Price. If the Special Servicer does not elect to purchase the defaulted mortgage loan or REO property at the Defaulted Loan Purchase Price, the Special Servicer is required to accept the highest offer received from any person that is determined to be a fair price (supported by an appraisal required to be obtained by the Special Servicer within 30 days of a mortgage loan becoming a specially serviced mortgage loan) for such defaulted mortgage loan or REO property, if the highest offeror is a person other than the Depositor, the Master Servicer, the Special Servicer, the Certificate Administrator, the Trustee, the Senior Trust Advisor, any borrower, any manager of a mortgaged property, any independent contractor engaged by the Special Servicer, a holder of any related Companion Loan (but only with respect to the related Serviced Whole Loan), or mezzanine loan (but only with respect to the related mortgage loan), or any known affiliate of any such person (each, an “Interested Person”). If the highest offer is made by an Interested Person, the Trustee must approve the purchase of the defaulted mortgage loan or REO property based upon its determination of the fair price for the defaulted mortgage loan or REO property (based upon updated appraisals received by the Trustee) and the Trustee may conclusively rely on the opinion of an independent appraiser or other independent expert retained by the Trustee in connection with making such determination. Neither the Trustee nor any of its affiliates may make an offer for or purchase any defaulted mortgage loan or REO property.
 
If the Special Servicer does not receive any offers that are at least equal to the Defaulted Loan Purchase Price, the Special Servicer is not required to accept the highest offer and may accept a lower offer (so long as such lower offer was not made by the Special Servicer or any of its affiliates) for a defaulted mortgage loan or REO property if the Special Servicer determines, in accordance with the servicing standard, that a rejection of such offer would be in the best interests of the Certificateholders and, with respect to a Serviced Whole Loan, any holder of a related Companion Loan and in either case, as a collective whole.
 
If title to any mortgaged property is acquired by the trust fund, the Special Servicer will be required to sell such mortgaged property prior to the close of the third calendar year beginning after the year of acquisition, unless (a) the IRS grants or has not denied an extension of time to sell such mortgaged property or (b) the Trustee, the Certificate Administrator and the Master Servicer receive an opinion of independent counsel to the effect that the holding of the property by the trust fund longer than the above-referenced three-year period will not result in the imposition of a tax on any REMIC of the trust fund or cause any REMIC of the trust fund to fail to qualify as a REMIC.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
 
   The foregoing applies to mortgage loans serviced under the Pooling and Servicing Agreement. With respect to The Outlet Shoppes of the Bluegrass Whole Loan, if the special servicer under the related pooling and servicing agreement determines to sell the related Pari Passu Companion Loan as described above, then the special servicer will be required to sell the Whole Loan, including the mortgage loan included in the JPMBB 2015-C27 Trust and the related Pari Passu Companion Loan, as a single loan. In connection with any such sale, the then-applicable special servicer will be required to follow procedures substantially similar to those set forth above.
    
Control Eligible Certificates: 
Classes E, F, G and NR.
    
Control Rights: 
The Control Eligible Certificates will have certain control rights attached to them. The “Directing Certificateholder” will generally be the Controlling Class Certificateholder (or its representative) selected by more than 50% of the Controlling Class Certificateholders; provided, however, that (1) absent that selection, (2) until a Directing Certificateholder is so selected or (3) upon receipt of a notice from a majority of the Controlling Class Certificateholders that a Directing Certificateholder is no longer designated, the Controlling Class Certificateholder that owns the largest aggregate Certificate Balance of the Controlling Class (or its representative) will be the Directing Certificateholder; provided, however, that in the case of this clause (3), then (A) (i) the holder of the largest percentage in excess of 25% that sends notice of the election of a Directing Certificateholder will be entitled to so appoint a Directing Certificateholder or (ii) if no such holder sends notice pursuant to clause (i) then the Certificate Administrator will provide notice thereof to LNR Securities Holdings, LLC, each party to the Pooling and Servicing Agreement and each Controlling Class Certificateholder substantially in the form provided in the Pooling and Servicing Agreement, requesting a certification from an authorized representative that LNR Securities Holdings, LLC or its affiliate owns at least 25% of the Certificate Balance of the Controlling Class and (2) for as long as LNR Securities Holdings, LLC or its affiliate owns at least 25% of such Class of Certificates as confirmed to the Certificate Administrator in such certification then such entity will be the Directing Certificateholder or (B) in the event no one holder owns the largest aggregate Certificate Balance of the Controlling Class and a Directing Certificateholder is not determined through the operation of clause (A) above, then there will be no Directing Certificateholder until appointed in accordance with the terms of the Pooling and Servicing Agreement. With respect to any mortgage loan other than the Excluded Loan, unless a Control Event has occurred and is continuing, the Directing Certificateholder will be entitled to direct the Special Servicer to take, or refrain from taking certain actions with respect to a mortgage loan. Furthermore, the Directing Certificateholder will also have the right to receive notice and provide consent with respect to certain material actions that the Master Servicer and the Special Servicer plan on taking with respect to a mortgage loan. With respect to any mortgage loan that has, or may in the future have, mezzanine debt, pursuant to the related intercreditor agreement, the related mezzanine lender may have certain consent rights with respect to certain modifications related to such mortgage loan.
    
   
With respect to The Club Row Building mortgage loan, direction, consent and consultation rights with respect to the related Whole Loan will be exercised by the holder of the related Subordinate Companion Loan pursuant to the related intercreditor agreement or after a control appraisal period with respect to the Subordinate Companion Loan as described in the Free Writing Prospectus, subject to certain consultation rights of the holder of the related Pari Passu Companion Loan pursuant to the related intercreditor agreement. In addition, the holder of the Subordinate Companion Loan will have certain rights to cure defaults under the related mortgage loan, and in certain circumstances, to purchase the related defaulted mortgage loan.
 
With respect to The Outlet Shoppes of the Bluegrass mortgage loan, direction, consent and consultation rights with respect to the related Whole Loan will be exercised by the Directing Certificateholder or controlling class representative under the applicable pooling and servicing agreement.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
   With respect to the One Campus Martius Whole Loan and the Shaner Hotels Portfolio Whole Loan, direction, consent and consultation rights with respect to the related Whole Loan are subject to certain consultation rights of the holder of the related Pari Passu Companion Loan pursuant to the related intercreditor agreement.
    
Directing Certificateholder: 
LNR Securities Holdings, LLC is expected to be appointed the initial Directing Certificateholder.
    
Controlling Class: 
The “Controlling Class” will at any time of determination be the most subordinate Class of Control Eligible Certificates then outstanding that has an aggregate Certificate Balance, as notionally reduced by any Appraisal Reduction amounts allocable to such Class, equal to no less than 25% of the initial Certificate Balance for such Class. Each holder of a certificate of the Controlling Class is referred to herein as a “Controlling Class Certificateholder”.
    
   The Controlling Class as of the Closing Date will be the Class NR Certificates.
    
Control Event: 
A “Control Event” will occur when the Certificate Balance of the Class E Certificates (taking into account the application of Appraisal Reductions to notionally reduce the Certificate Balance of the Class E Certificates) has been reduced to less than 25% of the initial Certificate Balance of such Class as of the Closing Date.
    
   
Upon the occurrence and during the continuance of a Control Event, the Controlling Class will no longer have any control rights. After the occurrence and during the continuance of a Control Event, the Directing Certificateholder will relinquish its right to direct certain actions of the Special Servicer and will no longer have consent rights with respect to certain actions that the Master Servicer or the Special Servicer plan on taking with respect to a mortgage loan. Following the occurrence and during the continuance of a Control Event, the Directing Certificateholder will retain consultation rights with the Special Servicer with respect to certain material actions that the Special Servicer plans on taking with respect to a mortgage loan. Such consultation rights will continue until the occurrence of a Consultation Termination Event.
 
With respect to The Club Row Building Whole Loan, pursuant to the related intercreditor agreement, the holder of the Subordinate Companion Loan will lose its right to direct or consent to certain actions upon the occurrence of a control appraisal event with respect to such Subordinate Companion Loan, which will occur when the principal balance of such Subordinate Companion Loan (taking into account the application of realized losses, payments of principal and Appraisal Reductions to notionally reduce such balance) has been reduced to less than 25% of the initial principal balance as of the Closing Date less payments of principal.
    
Consultation Termination Event: 
A “Consultation Termination Event” will occur when, without regard to the application of any Appraisal Reduction amount (i.e., giving effect to principal reductions through principal payments and realized losses only), there is no Class of Control Eligible Certificates that satisfies the requirement of a Controlling Class.
    
   
Upon the occurrence of a Consultation Termination Event, there will be no Class of Certificates that will act as the Controlling Class. After the occurrence of a Consultation Termination Event, the Directing Certificateholder will have no rights under the Pooling and Servicing Agreement, other than those rights generally available to all Certificateholders.
    
Appraised-Out Class: 
A Class of Control Eligible Certificates that has been determined, as a result of Appraisal Reduction amounts allocable to such Class, to no longer be the Controlling Class.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
    
Remedies Available to
Holders of an
Appraised-Out Class:
 
Holders of the majority of any Class of Control Eligible Certificates that are determined at any date of determination to no longer be the Controlling Class as a result of an Appraisal Reduction allocable to such class will have the right, at their sole expense, to require the Special Servicer to order a second appraisal report from an MAI appraiser (selected by the Special Servicer) for any mortgage loan that results in the Class becoming an Appraised-Out Class.
    
   
Upon receipt of that second appraisal, the Special Servicer will be required to determine, in accordance with the Servicing Standard, whether, based on its assessment of the second appraisal, any recalculation of the Appraisal Reduction amount is warranted, and if so warranted, the Special Servicer is required to recalculate the Appraisal Reduction amount based on the second appraisal and if required by such recalculation, the Appraised-Out Class will be reinstated as the Controlling Class. The holders of an Appraised-Out Class requesting a second appraisal are not permitted to exercise any control or consent rights of the Controlling Class until such time, if any, as the Class is reinstated as the Controlling Class.
    
Senior Trust Advisor: 
The Senior Trust Advisor will initially be Pentalpha Surveillance LLC. The Senior Trust Advisor will have certain review and consultation rights relating to the performance of the Special Servicer and with respect to its actions taken in connection with the resolution and/or liquidation of specially serviced mortgage loans. The Senior Trust Advisor will generally be responsible for reviewing the Special Servicer’s operational practices with respect to the resolution and liquidation of specially serviced mortgage loans. In addition, after the occurrence and during the continuance of a Control Event, the Senior Trust Advisor will have certain consultation rights with respect to the specially serviced mortgage loans except with respect to The Club Row Building Whole Loan unless a control appraisal period with respect to the Subordinate Companion Loan has occurred. The Senior Trust Advisor will generally have no obligations or consultation rights under the Pooling and Servicing Agreement with respect to The Outlet Shoppes of the Bluegrass Whole Loan. However, Pentalpha Surveillance LLC is also the senior trust advisor under the JPMBB Commercial Mortgage Securities Trust 2014-C26 pooling and servicing agreement and, in such capacity, will have certain obligations and consultation rights with respect to The Outlet Shoppes of the Bluegrass Whole Loan that are substantially similar to those of the senior trust advisor under the Pooling and Servicing Agreement.
 
   The Senior Trust Advisor will be responsible for:
     
   
after the occurrence and during the continuance of a Control Event, consulting with the Special Servicer with respect to each asset status report prepared by the Special Servicer and recommending proposed alternative courses of action.
     
   
after the occurrence and during the continuance of a Control Event, preparing an annual report addressing the Senior Trust Advisor’s overall findings and determinations and setting forth its assessment of the Special Servicer’s performance of its duties under the Pooling and Servicing Agreement on a platform-level basis with respect to the resolution and liquidation of specially serviced mortgage loans that the Special Servicer is responsible for servicing under the Pooling and Servicing Agreement. As used above, “platform-level basis” refers to the Special Servicer’s performance of its duties as they relate to the resolution and liquidation of specially serviced mortgage loans, taking into account the Special Servicer’s specific duties under the Pooling and Servicing Agreement as well as the extent to which those duties were performed in accordance with the servicing standard, with due consideration to (and as limited by) the Senior Trust Advisor’s review of any assessment of compliance report, attestation report, asset status report and other information delivered to the Senior Trust Advisor by the Special Servicer with respect to the specially serviced mortgage loans (other than any communications between the Directing Certificateholder and the Special Servicer that would be privileged information). The annual report will be based on the Senior Trust Advisor’s knowledge of the Special Servicer’s actions taken during the applicable calendar year with
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
     
    respect to the resolution or liquidation of specially serviced mortgage loans that the Special Servicer is responsible for servicing under the Pooling and Servicing Agreement, including knowledge obtained in connection with the Senior Trust Advisor’s review of each asset status report prepared by the Special Servicer.
     
   
prior to the occurrence and continuance of a Control Event, the Special Servicer will forward any Appraisal Reduction and net present value calculations used in the Special Servicer’s determination of what course of action to take in connection with the workout or liquidation of a specially serviced mortgage loan to the Senior Trust Advisor after such calculations have been finalized. The Senior Trust Advisor will be required to review such calculations but will not opine on or take any affirmative action with respect to such Appraisal Reduction calculations and/or net present value calculations.
     
   
after the occurrence and during the continuance of a Control Event, recalculating and verifying, on a limited basis, the accuracy of mathematical calculations and the corresponding application of the non-discretionary portion of the applicable formulas utilized in connection with any Appraisal Reduction or net present value calculations performed by the Special Servicer. In the event the Senior Trust Advisor does not agree with the mathematical calculations or the application of the non-discretionary portion of the applicable formulas required to be utilized for such calculation, the Senior Trust Advisor and the Special Servicer will consult with each other in order to resolve any disagreement. Any disagreement with respect to such calculations that the Senior Trust Advisor and the Special Servicer are unable to resolve will be determined by the Certificate Administrator.
    
   
In addition, the Senior Trust Advisor is required to promptly review all information available to Privileged Persons (as defined in the Free Writing Prospectus) on the Certificate Administrator’s website related to specially serviced mortgage loans and certain information available to Privileged Persons on the Certificate Administrator’s website related to mortgage loans included on the monthly CREFC® servicer watch list report, each final asset status report delivered to the Senior Trust Advisor by the Special Servicer and each assessment of compliance report and attestation report prepared by the Special Servicer in order to maintain its familiarity with the mortgage loans and the performance of the Special Servicer under the Pooling and Servicing Agreement.
 
After the occurrence and during the continuance of a Control Event, the Senior Trust Advisor will also consult with the Special Servicer in connection with certain major decisions and propose possible alternative courses of action.
 
In addition, after the occurrence of a Consultation Termination Event, if the Senior Trust Advisor determines that the Special Servicer is not performing its duties as required under the Pooling and Servicing Agreement or is otherwise not acting in accordance with the Servicing Standard, the Senior Trust Advisor will have the right to recommend the replacement of the Special Servicer and will submit its formal recommendation to the Trustee and the Certificate Administrator (along with its rationale, its proposed replacement special servicer and other relevant information justifying its recommendation) except with respect to The Club Row Building Whole Loan unless a control event with respect to the Subordinate Companion Loan has occurred.
 
The Senior Trust Advisor’s recommendation to replace the Special Servicer must be confirmed by an affirmative vote of holders of Certificates evidencing at least a majority of the aggregate notional balance of all Classes of Certificates entitled to principal distributions (taking into account the application of any Appraisal Reduction amounts to notionally reduce the Certificate Balances of the Classes to which such Appraisal Reduction amounts are allocable). In the event the holders of such Certificates elect to remove and replace the Special Servicer, the Certificate Administrator will be required to obtain a rating agency confirmation from each of the rating agencies at that time.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
    
Replacement of
Senior Trust Advisor:
 
The Senior Trust Advisor may be terminated or removed under certain circumstances and a replacement Senior Trust Advisor appointed as described in the Free Writing Prospectus.
    
   
Any replacement Senior Trust Advisor (or the personnel responsible for supervising the obligations of the replacement Senior Trust Advisor) must (A) (i) be regularly engaged in the business of analyzing and advising clients in commercial mortgage-backed securities matters and have at least 5 years of experience in collateral analysis and loss projections and (ii) have at least 5 years of experience in commercial real estate asset management and experience in the workout and management of distressed commercial real estate assets or (B) be an institution that is a special servicer, senior trust advisor or operating advisor on a rated CMBS transaction, but has not been a special servicer or a senior trust advisor on a transaction that a rating agency has downgraded, qualified or withdrawn its ratings citing servicing concerns with the special servicer or a senior trust advisor as the sole or a material factor in such rating action. Any Senior Trust Advisor is prohibited from making an investment in any class of certificates in the Trust as described in the Free Writing Prospectus.
    
Appointment and
Replacement of Special
Servicer:
 
The Directing Certificateholder will appoint the initial Special Servicer as of the Closing Date. Prior to the occurrence and continuance of a Control Event, the Special Servicer may generally be replaced by the Directing Certificateholder (a) for cause at any time and (b) without cause if either (i) LNR Partners, LLC or its affiliate is no longer the special servicer or (ii) LNR Securities Holdings, LLC or its affiliate owns less than 25% of the Controlling Class; provided, however, that with respect to The Club Row Building Whole Loan, the holder of the Subordinate Companion Loan (prior to a control event under the intercreditor agreement, with respect to such Subordinate Companion Loan) will have the right to replace the Special Servicer with respect to that Whole Loan.
    
   
Upon the occurrence and during the continuance of a Control Event, the Directing Certificateholder will no longer have the right to replace the Special Servicer and such replacement will occur based on a vote of holders of all voting eligible Classes of Certificates as described below.
 
After the occurrence of a Consultation Termination Event, the Senior Trust Advisor may also recommend the replacement of the Special Servicer as described above.
 
The holder of the Subordinate Companion Loan will have the right, prior to the occurrence of a Control Appraisal Period (as defined in the Free Writing Prospectus), to replace the Special Servicer solely with respect to The Club Row Building Whole Loan.
 
Notwithstanding the foregoing, the Senior Trust Advisor will not be permitted to recommend the replacement of the Special Servicer with respect to The Club Row Building Whole Loan so long as the holder of the Subordinate Companion Loan is not subject to a Control Appraisal Period under the intercreditor agreement.
 
In addition, with respect to the Mortgaged Property identified as “4141 North Scottsdale Road” on Annex A-1 to the Free Writing Prospectus, Starwood Mortgage Funding IV LLC, the holder of a preferred equity interest in the related borrower is an affiliate of LNR Partners, LLC, the Special Servicer and LNR Securities Holdings, LLC, the anticipated initial Directing Certificateholder.
 
At any time that (a) the Directing Certificateholder or any of its affiliates or a Controlling Class Certificateholder and/or (b) LNR Partners, LLC or any of its affiliates, in each case, is the direct or indirect holder of an equity interest in the borrower of the 4141 North Scottsdale Road mortgage loan, such mortgage loan shall be the “Excluded Loan”. At such times that the Excluded Loan is a Specially Serviced Mortgage Loan, Midland Loan Services, a Division of PNC Bank, National Association, will act as the Special Servicer and will be entitled to all special servicing compensation related thereto with respect to such mortgage loan earned during such time as it is the Excluded Loan. Upon the release or termination of such equity interest in the related borrower and/or the termination of the
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
    
   borrower as borrower under the loan or the termination of the borrower’s interest in the related property (including, without limitation, a release of the related borrower in connection with any payoff, foreclosure or deed-in-lieu of foreclosure), the 4141 North Scottsdale Road mortgage loan will no longer be an Excluded Loan, will be specially serviced by LNR Partners, LLC and the Directing Certificateholder will act as the Directing Certificateholder with respect to such mortgage loan.
    
Replacement of Special
Servicer by Vote of
Certificateholders:
 
After the occurrence and during the continuance of a Control Event and upon (a) the written direction of holders of Certificates evidencing not less than 25% of the aggregate notional balance of all Classes of Certificates entitled to principal (taking into account the application of Appraisal Reduction amounts to notionally reduce the Certificate Balances of Classes to which such Appraisal Reduction amounts are allocable) requesting a vote to replace the Special Servicer with a replacement special servicer, (b) payment by such requesting holders to the Certificate Administrator of all reasonable fees and expenses to be incurred by the Certificate Administrator in connection with administering such vote and (c) delivery by such holders to the Certificate Administrator and the Trustee of written confirmations from each Rating Agency that the appointment of such replacement special servicer will not result in a downgrade, withdrawal or qualification of the Certificates (which confirmations will be obtained at the expense of such holders), the Certificate Administrator will be required to promptly post such notice on its Internet website, and by mail conduct the solicitation of votes of all Certificates in such regard, which such vote must occur within 180 days of the posting of such notice. Upon the written direction of holders of at least 75% of a Certificateholder Quorum, the Trustee will immediately replace the Special Servicer with the replacement special servicer.
    
   
A “Certificateholder Quorum” means, in connection with any solicitation of votes in connection with the replacement of the Special Servicer described above, the holders of Certificates evidencing at least 75% of the aggregate voting rights (taking into account the application of realized losses and the application of any Appraisal Reductions to notionally reduce the Certificate Balance of the Certificates) of all Classes of Certificates entitled to principal on an aggregate basis.
 
With respect to each of The Club Row Building Whole Loan, the One Campus Martius Whole Loan and the Shaner Hotels Portfolio Whole Loan, the holders of the related Pari Passu Companion Loan, under certain circumstances following a servicer termination event with respect to the special servicer, will be entitled to direct the trustee (and the trustee will be required) to terminate the special servicer solely with respect to such Whole Loan except that this right with respect to The Club Row Building Whole Loan prior to a control event with respect to the related Subordinate Companion Loan will not be exercisable. A replacement special servicer will be selected by the trustee or, prior to a Control Event, by the Directing Certificateholder; provided, however, that any successor special servicer appointed to replace the Special Servicer with respect to such Whole Loan can generally not be the person (or its affiliate) that was terminated at the direction of the holder of the related Pari Passu Companion Loan.
 
With respect to The Outlet Shoppes of the Bluegrass Whole Loan, the JPMBB 2015-C27 Trust as holder of the related mortgage loan has similar termination rights in the event of a servicer termination event with respect to the special servicer under the applicable pooling and servicing agreement as described above, which may be exercised by the Directing Certificateholder prior to the Control Event, however, the successor special servicer will be selected pursuant to the applicable pooling and servicing agreement by the related directing holder prior to a control event under such pooling and servicing agreement.
    
Master Servicer and
Special Servicer Compensation:
 
The Master Servicer is entitled to a fee (the “Servicing Fee”) payable monthly from interest received in respect of each mortgage loan (including the non-serviced mortgage loan) and REO loan (including specially serviced mortgage loans and Serviced Companion Loan) that will accrue at the related servicing fee rate described in the Free Writing Prospectus. The Special Servicer is also entitled to a fee (the “Special Servicing Fee”) with respect to
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
 
   each specially serviced mortgage loan and REO loan at the special servicing fee rate described in the Free Writing Prospectus.
    
   
In addition to the Servicing Fee, Special Servicing Fee and certain other fees described below, the Master Servicer and Special Servicer are entitled to retain and share certain additional servicing compensation, including assumption application fees, assumption fees, defeasance fees and certain Excess Modification Fees and consent fees with respect to the mortgage loans. The Special Servicer may also be entitled to either a Workout Fee or Liquidation Fee, but not both, from recoveries in respect of any particular mortgage loan.
 
An “Excess Modification Fee” with respect to any mortgage loan (other than the non-serviced mortgage loan) or Serviced Whole Loan is the sum of (A) the excess of (i) any and all Modification Fees with respect to a mortgage loan or Serviced Whole Loan over (ii) all unpaid or unreimbursed additional expenses described in the Free Writing Prospectus (excluding Special Servicing Fees, Workout Fees and Liquidation Fees) outstanding with respect to the related mortgage loan or Serviced Whole Loan, as applicable, and reimbursed from such Modification Fees and (B) expenses previously paid or reimbursed from Modification Fees as described in clause (A), which expenses have subsequently been recovered from the related borrower or otherwise.
 
With respect to the Master Servicer and Special Servicer, the Excess Modification Fees collected and earned by such servicer from the related borrower (taken in the aggregate with any other Excess Modification Fees collected and earned by such servicer from the related borrower within the prior 12 months of the collection of the current Excess Modification Fees) will be subject to a cap of 1.00% of the outstanding principal balance of the related mortgage loan or Serviced Whole Loan on the closing date of the related modification, extension, waiver or amendment. A “Modification Fee” with respect to any mortgage loan (other than the non-serviced mortgage loan) or Serviced Whole Loan is generally any fee with respect to a modification, extension, waiver or amendment of any mortgage loan or Serviced Whole Loan.
 
A “Workout Fee” will generally be payable with respect to each corrected mortgage loan (as more specifically described in the Free Writing Prospectus) and will be calculated at a rate of 1.00% of payments of principal and interest on the respective mortgage loan for so long as it remains a corrected mortgage loan. After receipt by the Special Servicer of Workout Fees with respect to a corrected mortgage loan in an amount equal to $25,000, any Workout Fees in excess of such amount will be reduced by the Excess Modification Fee Amount; provided that in the event the Workout Fee, collected over the course of such workout, calculated at the Workout Fee Rate is less than $25,000, then the Special Servicer will be entitled to an amount from the final payment on the related corrected mortgage loan that would result in the total Workout Fees payable to the Special Servicer in respect of that corrected mortgage loan to be $25,000.
 
The “Excess Modification Fee Amount” for any corrected mortgage loan is an amount equal to any Excess Modification Fees paid by or on behalf of the related borrower with respect to the related mortgage loan (including the related Serviced Companion Loan) and received and retained by the Master Servicer or the Special Servicer, as applicable, as additional servicing compensation within the prior 12 months of the related modification, waiver, extension or amendment resulting in the mortgage loan or REO loan being a corrected mortgage loan, but only to the extent those fees have not previously been deducted from a Workout Fee or Liquidation Fee.
 
A “Liquidation Fee” will generally be payable with respect to each specially serviced mortgage loan or REO property as to which the Special Servicer obtains a full or partial recovery of the related asset. The Liquidation Fee for each specially serviced mortgage loan will be payable at a rate of 1.00% of the liquidation proceeds; provided, however, that no Liquidation Fee will be less than $25,000.
 
The Liquidation Fees will be reduced by the amount of any Excess Modification Fees received by the Special Servicer with respect to the related mortgage loan (including a
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Structural Overview
     
   
Companion Loan) or REO property as additional compensation within the prior 12 months, but only to the extent those fees have not previously been deducted from a Workout Fee or Liquidation Fee.
 
Similar fees to those described above will be payable to the special servicer for The Outlet Shoppes of the Bluegrass under the applicable pooling and servicing agreement.
 
Subject to certain limited exceptions, in connection with its duties under the Pooling and Servicing Agreement, the Special Servicer and its affiliates are prohibited from receiving or retaining any compensation (other than compensation specifically provided for under the Pooling and Servicing Agreement) from anyone in connection with the disposition, workout or foreclosure of any mortgage loan, the management or disposition of any REO property, or the performance of any other special servicing duties under the Pooling and Servicing Agreement. In the event the Special Servicer does receive any such compensation, it will be required to disclose those fees to the Certificate Administrator who will include it as part of the statement to Certificateholders.
 
In addition, no liquidation fee will be payable to the Special Servicer if a mortgage loan becomes a specially serviced mortgage loan only because of a maturity default and the related liquidation proceeds are received within 90 days following the stated maturity date as a result of the related mortgage loan being refinanced or otherwise repaid in full.
 
The Master Servicer and Special Servicer are entitled to certain additional fees in connection with the servicing and administration of the mortgage loans as more fully described in “Transaction Parties–Servicing and Other Compensation and Payment of Expenses” in the Free Writing Prospectus.
     
Deal Website: 
The Certificate Administrator will maintain a deal website to which certain persons will have access to certain information including, but not limited to the following, which will be posted:
   §
special notices
   §
summaries of asset status reports
   §
appraisals in connection with Appraisal Reductions plus any second appraisals ordered
   §
an “Investor Q&A Forum”
   §
a voluntary investor registry
   §
SEC EDGAR filings
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Club Row Building
 
(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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Club Row Building
 
(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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Club Row Building
 
(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.
 
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Structural and Collateral Term Sheet
 JPMBB 2015-C27
 
The Club Row Building
 
Mortgage Loan Information Property Information
 Mortgage Loan Seller:JPMCB  Single Asset / Portfolio:Single Asset
 Original Principal Balance(1):
$110,000,000  Title:Fee
 Cut-off Date Principal Balance(1):
$110,000,000  Property Type - Subtype:Office - CBD
 % of Pool by IPB:13.1%  Net Rentable Area (SF):365,819
 Loan Purpose:Acquisition  Location:New York, NY
 Borrower:APF 28 W 44 Owner L.P.  Year Built / Renovated:1920 / 2014
 Sponsors:Ken Aschendorf and Berndt Perl  Occupancy:96.1%
 Interest Rate(1):
4.38181%  Occupancy Date:10/1/2014
 Note Date:12/12/2014  Number of Tenants:72
 Maturity Date:1/1/2025 
 2011 NOI(2)(3):
$6,083,939
 Interest-only Period:120 months 
 2012 NOI(3):
$9,704,598
 Original Term:120 months 
 2013 NOI(3):
$10,781,841
 Original Amortization:None 
 TTM NOI (as of 10/2014)(3)(4):
$11,696,028
 Amortization Type:Interest Only  UW Economic Occupancy:95.0%
 Call Protection:L(24),Grtr1%orYM(92),O(4)  UW Revenues:$20,965,896
 Lockbox:Hard  UW Expenses:$9,071,371
 Additional Debt:Yes 
 UW NOI(4):
$11,894,525
 Additional Debt Balance:$45,000,000 / $25,000,000  UW NCF:$10,870,232
 Additional Debt Type:Pari Passu / B-Note  Appraised Value / Per SF:$250,000,000 / $683
    Appraisal Date:12/1/2014
     
 
Escrows and Reserves(5)
 Financial Information
 InitialMonthlyInitial Cap  
A-Note(1)
 Whole Loan
 Taxes:$351,400$351,400N/A  Cut-off Date Loan / SF:$424 $492
 Insurance:$0SpringingN/A  Maturity Date Loan / SF:$424 $492
 Replacement Reserves:$6,100$6,100N/A  Cut-off Date LTV:62.0% 72.0%
 TI/LC:$80,000$80,000$2,880,000  Maturity Date LTV:62.0% 72.0%
 Other:$368,419$0N/A  UW NCF DSCR:1.58x 1.27x
      UW NOI Debt Yield:7.7% 6.6%
        
 
Sources and Uses
 SourcesProceeds% of Total  UsesProceeds% of Total 
 A-Note(1)
$155,000,00072.0 JV Partner Buy-out$107,586,22450.0% 
 B-Note(1)
25,000,00011.6  Payoff of Existing Debt100,517,22046.7   
 Sponsor Equity
35,129,28516.3  Closing Costs6,219,9222.9  
     Upfront Reserves805,9190.4  
 Total Sources$215,129,285100.0 Total Uses$215,129,285100.0%   
(1)  
The Club Row Building is part of a loan evidenced by two pari passu senior notes (“A-Note”) and a subordinate B-note (“B-Note”), with an aggregate principal balance of $180.0 million. The A-Note Financial Information presented in the chart above reflects the $155.0 million senior portion of The Club Row Building Whole Loan. The interest rate above reflects the interest rate on the A-Note.  The interest rate on the B-Note is 6.50000%.
(2)  The borrower provided partial-year operating statements for 2011. 2011 NOI is based on January through September operating performance annualized.
(3)  
The increase in NOI from 2011 through TTM can be attributed to lease-up at the property.  The sponsor initially purchased the property as part of a joint venture in May 2011 (please refer to “The Sponsors” below) when occupancy was 87.0%. Since acquisition, the occupancy has increased to 96.1% currently as a result of 158,311 square feet of both new and renewal leases at the property with average rent per square foot of $53.54.
(4)  The increase in UW NOI from TTM NOI is primarily due to contractual rent increases of $427,233 through December 2015 which is partially offset by higher real estate taxes.
(5)  
For a full description of Escrows and Reserves, please refer to “Escrows and Reserves” below.
 
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.
 
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Structural and Collateral Term Sheet
 JPMBB 2015-C27
 
The Club Row Building
 
The Loan. The Club Row Building loan is secured by a first mortgage lien on a 22-story, 365,819 square foot office building located in Midtown Manhattan, New York. The whole loan has an outstanding principal balance of $180.0 million (“The Club Row Building Whole Loan”), which is comprised of two pari passu notes, Note A-1 and Note A-2, and a $25.0 million subordinate B-Note. Note A-1 has an outstanding principal balance as of the Cut-off Date of $110.0 million and is being contributed to the JPMBB 2015-C27 Trust. Note A-2, with an outstanding principal balance as of the Cut-off Date of $45.0 million, is currently held by JPMCB and is expected to be contributed to a future securitized trust. The holder of Note A-1 will be the Trustee of the JPMBB 2015-C27 Trust. The subordinate B-Note has been sold to a third party investor. Under the related intercreditor agreement, prior to a control event with respect to the subordinate B-Note, under certain circumstances, the holder of the subordinate B-Note will have the right to approve certain major decisions with respect to The Club Row Building Whole Loan and to replace the related special servicer with or without cause. After a control event with respect to the subordinate B-Note, the holder of Note A-1, which is the Trustee of the JPMBB 2015-C27 Trust (or, prior to the occurrence and continuance of a control event under the Pooling and Servicing Agreement, the Directing Certificateholder), will be entitled to exercise all of the rights of the Controlling Noteholder with respect to The Club Row Building 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 Club Row Building Whole Loan has a 10-year term and will be interest-only for the entire term of the loan.
 
The Borrower. The borrowing entity for The Club Row Building Whole Loan is APF 28 W 44 Owner L.P., a Delaware limited partnership and special purpose entity.
 
The Sponsors. The loan’s sponsors and nonrecourse carve-out guarantors are Ken Aschendorf and Berndt Perl, on a joint and several basis, who are the principals of APF Properties (“APF”), a fully integrated real estate investment firm with a commercial portfolio valued at approximately $800 million. Founded by Ken Aschendorf, Berndt Perl and Robert Faktor in 1995, the firm has its headquarters in New York City with offices in Philadelphia, Pennsylvania and Frankfurt, Germany. APF focuses exclusively on commercial office buildings in the Northeastern seaboard region anchored by its New York and Philadelphia offices.  APF previously owned the property through a joint venture with Prudential Real Estate Investors (20% APF / 80% Prudential Real Estate Investors).  The joint venture purchased the property in May 2011 for a total acquisition cost of $161.0 million when the property was 87.0% occupied. APF has operated the property since its acquisition and the joint venture spent approximately $6.3 million upgrading the lobby, entrances, elevators, public corridors, bathrooms, mechanical systems and windows. Since the original acquisition, the sponsorship increased occupancy to the current level of 96.1% with a retention rate of over 80.0% for existing tenants. As part of this financing, APF purchased Prudential Real Estate Investors’ equity interest in the joint venture to own all of the equity.
 
The Property. The Club Row Building is a Class B office building located at 28 West 44th Street between 5th and 6th Avenue in Midtown Manhattan. The property was constructed in 1920 and renovated in 2014.  The 22-story property totals 365,819 square feet and consists of primarily office space with a small retail component. The building houses two restaurants, a newsstand, a barber shop, a shoe repair shop, a tailor, and a post office. The property is on a through-block parcel, meaning it has two entrances, one on 44th Street and one on 43rd Street.
 
As of October 1, 2014, the property was 96.1% leased by 72 tenants. The largest tenant at the property, the City University of New York (“CUNY”), leases 16.3% of the net rentable area through March 2016 and has been a tenant at the property since September 2004. CUNY provides high-quality, accessible education for more than 269,000 degree credit students and 247,000 adults, continuing and professional education students at 24 campuses across New York City. CUNY operates adult and continuing professional education from this location. The second largest tenant, Emerge212 (“Emerge”), leases 8.4% of the net rentable area through December 2017 and has one extension option of either 5- or 10-years. Emerge has been a tenant at the property since June 2005. Emerge is a wholly owned subsidiary of SL Green Realty Corp. and offers boutique office space for small businesses in a turnkey solution. The space is fully furnished, fully wired and fully serviced. The company also offers pay-as-you-go conference rooms and a comprehensive menu of business services. The third largest tenant, American National Standards Institute (“ANSI”), leases 5.5% of the net rentable area through July 2024.  ANSI has been a tenant at the property since January 2001. ANSI has served as coordinator of the U.S. private sector, voluntary standardization system for more than 90 years. The institute is a private non-profit organization that oversees the development of voluntary consensus standards for products, services, processes, systems, and personnel in the United States. The organization also coordinates U.S. standards with international standards so that American products can be used worldwide.
 
The property is located in the heart of Midtown Manhattan and is within walking distance of Bryant Park, the New York Public Library, Rockefeller Center and Times Square. The property also benefits from being close to public transportation hubs such as Grand Central Terminal (serviced by the 4, 5, 6, 7, and S subway lines and the Metro North commuter rail line) which is located two blocks east, Port Authority Bus Terminal which is four blocks west, and Penn Station (serviced by the A, C, E, 1, 2, 3 subway lines and the LIRR, PATH and Amtrak rail lines) which is approximately 11 blocks southwest.
 
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.
 
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Structural and Collateral Term Sheet
 JPMBB 2015-C27
 
The Club Row Building
 
According to the appraisal, the property is located in the Grand Central submarket of Manhattan.  As of the third quarter of 2014, the submarket consists of 87 buildings totaling approximately 44.3 million square feet of office space with an overall vacancy rate of 8.5% and average rents of $64.39 per square foot. This compares to 10.8% and $60.81 per square foot respectively, when compared with the third quarter of 2013. The appraisal identified eight directly competitive properties built between 1914 and 1931 and ranging in size from approximately 72,000 to 477,207 square feet. The comparable properties reported occupancies ranging from 91.1% to 100.0% with a weighted average of 95.6%. Asking rents for the comparable properties range from $46.00 to $59.00 per square foot. The in-place office rental rate at the property is $47.42 per square foot, which is below the appraisal concluded market rent of $52.00 per square foot for floors 2-10 and $55.00 per square foot for floors 11-22.  Since the beginning of 2013, the sponsor has executed 28 new or renewal leases.
 
Historical and Current Occupancy(1)
2010(2)
2011
2012
2013
Current(3)(4)
94.1%90.8%88.9%95.2%96.1%
(1)  Historical Occupancies are as of December 31, of each respective year.
(2)  2010 Occupancy was not provided by the sponsors and was provided by a third party source. This was prior to the sponsors’ ownership interest in the property.
(3)  Current Occupancy is as of October 1, 2014.
(4)  Current Occupancy includes 28 West 44th Restaurant LLC, which has signed a lease but is not yet in occupancy. The tenant is expected to take occupancy of its space in the second quarter of 2015.
 
Tenant Summary(1)
  Tenant 
Ratings
Moody’s/S&P/Fitch(2)
 Net Rentable
Area (SF)
 % of Total
NRA
 Base Rent Base Rent
PSF
 Lease Expiration
Date
  The City University of New York
 NR / NR / NR 59,530  16.3%  $2,154,737 $36.20 3/31/2016 
  Emerge212
 Ba1 / BB+ / BBB- 30,905  8.4%  $1,411,749 $45.68 12/31/2017 
  American National Standards Institute
 NR / NR / NR 19,986  5.5%  $1,083,149 $54.20 7/31/2024 
  Crew Cuts, Inc.
 NR / NR / NR 18,076  4.9%  $1,128,369 $62.42 12/31/2022 
  Invision, Inc.
 NR / NR / NR 13,114  3.6%  $549,709 $41.92 6/30/2022 
  New York Consumer Center, LLC
 NR / NR / NR 12,220  3.3%  $559,342 $45.77 3/31/2017 
  SAX-BST, LLC
 NR / NR / NR 9,813  2.7%  $671,281 $68.41 2/28/2018 
  Tom James Company
 NR / NR / NR 9,770  2.7%  $491,093 $50.27 5/31/2017 
  The Princeton Club of New York(3)
 NR / NR / NR 9,578  2.6%  $406,505 $42.44 1/31/2018 
  TV Guide Entertainment Group(4)
 NR / NR / NR 9,541  2.6%  $515,930 $54.08 9/30/2021 
(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.
(3)The Princeton Club of New York has multiple leases at the property and the expiration date listed above reflects the expiration date of the largest space (5,832 square feet) the tenant occupies. The tenant leases 3,746 additional square feet expiring in March 2016.
(4)TV Guide Entertainment Group may terminate its lease at any time after September 2019 with at least 180 days’ notice and a termination fee of three months’ base rent.
 
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  14,332       3.9% NAP  NAP  14,332     3.9% NAP  NAP 
 2015 & MTM 11  18,059    4.9 $912,346  5.1%  32,391     8.9% $912,346  5.1% 
 2016 12  85,180  23.3 3,554,552  20.0  117,571   32.1% $4,466,899  25.1% 
 2017 14  88,185  24.1 4,292,886  24.2  205,756   56.2% $8,759,785  49.3% 
 2018 11  41,701  11.4 2,399,743  13.5  247,457   67.6% $11,159,527  62.8% 
 2019 5  10,414    2.8 528,224  3.0  257,871   70.5% $11,687,751  65.8% 
 2020 3  10,291    2.8 515,537  2.9  268,162   73.3% $12,203,288  68.7% 
 2021 5  25,219    6.9 1,202,812  6.8  293,381   80.2% $13,406,100  75.5% 
 2022 4  40,035  10.9 2,066,185  11.6  333,416   91.1% $15,472,286  87.1% 
 2023 0  0    0.0 0  0.0  333,416   91.1% $15,472,286  87.1% 
 2024 4  27,625    7.6 1,571,494  8.8  361,041   98.7% $17,043,780  96.0% 
 2025 0  0    0.0 0  0.0  361,041   98.7% $17,043,780  96.0% 
 2026 & Beyond 3  4,778    1.3 718,844  4.0  365,819  100.0% $17,762,624  100.0% 
 Total 72  365,819      100.0% $17,762,624  100.0%             
(1)Based on the underwritten rent roll.
 
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.
 
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Structural and Collateral Term Sheet
 JPMBB 2015-C27
 
The Club Row Building
 
Operating History and Underwritten Net Cash Flow
               
  
      2011(1)
    2012    2013 
     TTM(2)
 Underwritten Per Square Foot 
%(3)
 Rents in Place(4)(5)
 $8,030,488 $14,648,919 $15,283,475 $16,836,288 $17,762,624 $48.56 80.5%
 Vacant Income 0 0 0 0 697,317 1.91 3.2
 Gross Potential Rent $8,030,488 $14,648,919 $15,283,475 $16,836,288 $18,459,941 $50.46 83.6%
 Total Reimbursements 2,140,531 2,871,415 3,452,114 3,384,148 3,609,423 9.87 16.4
 Net Rental Income $10,171,019 $17,520,334 $18,735,589 $20,220,436 $22,069,364 $60.33 100.0%
 (Vacancy/Credit Loss) 0 0 0 0 (1,103,468) (3.02) (5.0)
 Effective Gross Income $10,171,019 $17,520,334 $18,735,589 $20,220,436 $20,965,896 $57.31 95.0%
               
 Total Expenses $4,087,080 $7,815,736 $7,953,748 $8,524,408 $9,071,371 $24.80 43.3%
               
 Net Operating Income $6,083,939 $9,704,598 $10,781,841 $11,696,028 $11,894,525 $32.51 56.7%
               
 Total TI/LC, Capex/RR 0 0 0 0 1,024,293 2.80 4.9
               
 Net Cash Flow $6,083,939 $9,704,598 $10,781,841 $11,696,028 $10,870,232 $29.71 51.8%
               
 Average Annual Rent PSF(6)
 $24.18 $45.04 $43.89 $47.89 $50.54    
               
(1)  The borrower provided partial-year operating statements for 2011. The 2011 operating history is based on January through September operating performance annualized.
(2)  TTM represents the trailing twelve months ending October 31, 2014.
(3)  Percentage column represents percent of Net Rental Income for all revenue lines and represents percent of Effective Gross Income for the remainder of fields.
(4)  
The increase in Rents in Place from 2011 through TTM can be attributed to lease-up at the property.  The sponsor initially purchased the property as part of a joint venture in May 2011 (please refer to “The Sponsors”) when occupancy was 87.0%. Since acquisition, the occupancy has increased to 96.1% currently as a result of 158,311 square feet of both new and renewal leases at the property with average rent per square foot of $53.54.
(5)  The increase in Underwritten Rents in Place from 2013 Rents in Place is primarily the result of approximately 25,373 square feet of leasing activity at the property throughout 2014. The Underwritten Rents in Place also includes $427,233 in future contractual rent steps through December 1, 2015.
(6)  Average Annual Rent PSF is based on historical financial statements and leased square footage as of December 31, of each respective year. Underwritten Average Annual Rent PSF is based on Underwritten Rents in Place and current occupancy of 96.1% as of October 1, 2014.
 
Property Management. The property is managed by APF Properties LLC, an affiliate of the borrower.
 
Escrows and Reserves. At origination, the borrower deposited into escrow approximately $351,400 for real estate taxes, $295,713 for outstanding tenant improvements associated with leases in effect at closing, $72,706 for outstanding free rent, rent abatements and tenant reimbursements associated with leases in effect at closing, $80,000 for future tenant improvements and leasing commissions and $6,100 for replacement reserves.
 
Tax Escrows - On a monthly basis, the borrower is required to escrow 1/12 of the annual estimated tax payments, which currently equates to $351,400.
 
Insurance Escrows - The requirement for the borrower to make monthly deposits into the insurance escrow is waived so long as (i) no event of default exists and (ii) the borrower provides satisfactory evidence that the property is insured under an approved blanket policy in accordance with the loan documents.
 
Replacement Reserves - On a monthly basis, the borrower is required to escrow $6,100 (approximately $0.20 per square foot annually) for replacement reserves.
 
TI/LC Reserves - On a monthly basis, the borrower is required to deposit $80,000 (approximately $2.62 per square foot annually) into the TI/LC escrow. The reserve is subject to a cap of $2,880,000 (approximately $7.87 per square foot).
 
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 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 term of the loan in accordance with the loan documents. To the extent that (i) there is an event of default under the loan documents, (ii) the DSCR (as calculated in the loan documents) based on the immediately preceding trailing six-month period falls below 1.10x or (iii) the borrower or the property manager becomes the subject of a bankruptcy, insolvency or similar action, then all excess cash flow after payment of debt service, required reserves and operating expenses will be held as additional collateral for 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.
 
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Structural and Collateral Term Sheet
 JPMBB 2015-C27
 
[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.
 
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Structural and Collateral Term SheetJPMBB 2015-C27
 
One Campus Martius
 
(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.
 
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Structural and Collateral Term SheetJPMBB 2015-C27
 
One Campus Martius
 
(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.
 
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Structural and Collateral Term SheetJPMBB 2015-C27
 
One Campus Martius
 
(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.
 
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Structural and Collateral Term SheetJPMBB 2015-C27
 
One Campus Martius
 
Mortgage Loan Information Property Information
Mortgage Loan Seller:SMF II 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:Office – CBD
% of Pool by IPB:9.0% Net Rentable Area (SF):965,078
Loan Purpose:Acquisition Location:Detroit, MI
Borrower:1000 Webward LLC Year Built / Renovated:2003 / N/A
Sponsors:Bedrock Real Estate Services and 
Occupancy:
99.9%
 Caidan Enterprises, Inc. Occupancy Date:1/1/2015
Interest Rate:4.59000% Number of Tenants:25
Note Date:12/31/2014 
2011 NOI(2):
N/A
Maturity Date:1/6/2020 
2012 NOI(2):
N/A
Interest-only Period:60 months 
2013 NOI(2):
N/A
Original Term:60 months 
TTM NOI(2):
N/A
Original Amortization:None UW Economic Occupancy:92.3%
Amortization Type:Interest Only UW Revenues:$29,990,438
Call Protection(3):
L(25),Def(31),O(4) UW Expenses:$14,827,686
Lockbox:Hard UW NOI:$15,162,751
Additional Debt:Yes UW NCF:$14,752,878
Additional Debt Balance:$50,000,000 Appraised Value / Per SF:$188,000,000 / $195
Additional Debt Type:Pari Passu Appraisal Date:11/11/2014
     

Escrows and Reserves(4)
 
Financial Information(1)
 InitialMonthlyInitial Cap    Cut-off Date Loan / SF:$130
Taxes:$197,941$197,941N/A    Maturity Date Loan / SF:$130
Insurance:$70,347$24,075N/A    Cut-off Date LTV:66.5%
Replacement Reserves:$0$11,876$142,512    Maturity Date LTV:66.5%
TI/LC:$0$8,043$200,000    UW NCF DSCR:2.54x
Other:$13,170,000$0N/A    UW NOI Debt Yield:12.1%
       
 
Sources and Uses
SourcesProceeds% of Total  UsesProceeds% of Total 
Mortgage Loan(1)
$125,000,00079.9%  Purchase Price$142,000,00090.8% 
Sponsor Equity31,402,06620.1  Upfront Reserves13,438,2888.6 
     Closing Costs963,7790.6 
Total Sources$156,402,066100.0%  Total Uses$156,402,066100.0% 
(1)  
One Campus Martius is part of a loan evidenced by two pari passu notes with an aggregate original principal balance of $125.0 million. The Financial Information presented in the chart above reflects the Cut-off Date balance of the $125.0 million One Campus Martius Whole Loan.
(2)  2011 NOI, 2012 NOI, 2013 NOI and TTM NOI are not available as the seller of the property did not provide historical operating statements.
(3)  
The lockout period will be at least 25 payments beginning with and including the first payment date of February 6, 2015. Defeasance of the full $125.0 million One Campus Martius Whole Loan is permitted after the date that is the earlier of (i) two years from the closing date of the securitization that includes the pari passu note to be securitized and (ii) December 31, 2017.
(4)  
For a full description of Escrows and Reserves, please refer to “Escrows and Reserves” below.
 
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.
 
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Structural and Collateral Term SheetJPMBB 2015-C27
 
One Campus Martius
 
The Loan. The One Campus Martius loan is secured by a first mortgage lien on a 16-story, 965,078 square foot, Class A high-rise office building located in downtown Detroit, Michigan. The whole loan has an outstanding principal balance of $125.0 million (the “One Campus Martius 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 2015-C27 Trust. Note A-2, which has an outstanding principal balance as of the Cut-off Date of $50.0 million, is expected to be contributed to a future securitization trust. The holder of the Note A-1 (the “Controlling Noteholder”) will be the trustee of the JPMBB 2015-C27 Trust. The trustee of the JPMBB 2015-C27 Trust (or, prior to the occurrence and continuance of a Control Event under the pooling and servicing agreement, the Directing Certificateholder) will be entitled to exercise all of the rights of the Controlling Noteholder with respect to the One Campus Martius Whole Loan; however, the holder of Note A-2 will be entitled, under certain circumstances, to consult with respect to certain major decisions. The loan has a five-year term and is interest-only for the term of the loan. Additionally, the One Campus Martius Whole Loan is not assumable.

The Borrower. The borrowing entity for the One Campus Martius Whole Loan is 1000 Webward LLC, a Delaware limited liability company and special purpose entity.
 
The Sponsors. The loan sponsors are Bedrock Real Estate Services and Caidan Enterprises, Inc. 1000 Webward LLC, the borrowing entity under the One Campus Martius Whole Loan, is a 50-50 joint venture between Bedrock Real Estate Services and Caidan Enterprises, Inc. Bedrock Real Estate Services is the real estate investment company owned by Dan Gilbert. Mr. Gilbert is the Chairman and founder of Quicken Loans, Inc., a tenant at the property, and has a current estimated net worth of approximately $4 billion. Bedrock Real Estate Services’ current portfolio consists of a controlling interest in more than 60 commercial properties totaling approximately 8.6 million square feet throughout downtown Detroit. Caidan Enterprises, Inc. is the parent company of Meridian Health Plan, a tenant at the property. Meridian Health Plan is the largest of 14 Medicaid health providers in the state of Michigan. The nonrecourse carve-out guarantors are Zup Ventures LLC (an affiliate of Bedrock Real Estate Services) and Caidan Enterprises, Inc.

The Property. One Campus Martius is a 16-story high-rise office building with 965,078 square feet of Class A office and retail space located in downtown Detroit, Michigan. The property features 15 levels of office space, ground floor retail space and a penthouse level dedicated to the building’s mechanical systems. The property includes an attached 12-level parking garage with 2,662 parking stalls that connect to the property via the ground floor as well as a second story skyway. The property was constructed in 2003 and is situated on 4.97 acres. The property was originally developed by Compuware Corporation to serve as its corporate headquarters for a reported cost in excess of $350 million. Between March 2010 and November 2013, Compuware Corporation spent approximately $9.0 million on capital expenditures including electric vehicle charging stations, an urban garden and various other capital improvements. Although not required by the engineering report, according to the loan sponsors, they plan to invest over $3.2 million in capital expenditures over the next year to modernize the parking garage, add building signage for Quicken Loans, Inc. and Meridian Health Plan, improve exterior lighting, refurbish the lobby and fund commissioned art installations for the common areas.

As of January 1, 2015, the property was 99.9% occupied. The largest tenant, Quicken Loans, Inc., is the nation’s largest online home lender and the second largest overall residential mortgage lender in the U.S., with a workforce of approximately 12,000 employees, the majority of which are based out of downtown Detroit. Quicken Loans, Inc. is an affiliate of the loan sponsor. Quicken Loans, Inc. expanded from 275,698 square feet to 346,244 square feet at closing by absorbing a portion of the space Compuware Corporation is vacating. The tenant anticipates completing the build-out of the space by June 2015. Quicken Loan, Inc.’s new lease commenced in January 2015, however, the tenant has been in occupancy at the property since 2010 and leases 35.9% of the net rentable area through December 2024. Simultaneously with the closing of the loan, the property seller, Compuware Corporation, downsized its existing office space from 485,644 square feet to 134,564 square feet. Quicken Loans, Inc. and Meridian Health Plan each executed new ten-year leases to immediately absorb the space formerly occupied by Compuware Corporation. All costs and work related to the expansion and relocation are the sole responsibility of Quicken Loans, Inc. and Meridian Health Plan, respectively. Both Quicken Loans, Inc. and Meridian Health Plan commenced paying rent on January 1, 2015. The second largest tenant, Meridian Health Plan, is a Detroit-based privately-held managed care organization and wholly owned subsidiary of Caidan Enterprises, Inc. and is an affiliate of the loan sponsor. Meridian Health Plan is the largest HMO Medicaid provider in Michigan by member-count and by geographic range. Meridian Health Plan will take occupancy of its 6th, 7th, 14th and 15th floor spaces in phases throughout 2015 and 2016. Meridian Health Plan anticipates completing build-out of its 6th and 7th floor spaces by June 2015 and September 2015, respectively. If build-out of Meridian Health Plan’s 6th and 7th floor space is not completed by December 2015 and March 2016, respectively, an excess cash flow trap will be triggered. Meridian Health Plan’s lease commenced in January 2015 and it leases 29.1% of the net rentable area through December 2024. Compuware Corporation, the third largest tenant, is the seller of the property and originally constructed the building as its headquarters in 2003. Compuware Corporation agreed to a buyout by Thomas Bravo, LLC, a private equity firm, in 2014. Thomas Bravo, LLC plans to spin off Compuware Corporation’s ancillary business units, including those in occupancy at the property in order to focus on other business lines. Compuware Corporation occupies 13.9% of net rentable area on a new lease that commenced in January 2015 and runs through December 2019. Meridian Health Plan has pre-leased 117,109 square feet of the Compuware Corporation space, resulting in no rental downtime.
 
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.
 
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Structural and Collateral Term SheetJPMBB 2015-C27
 
One Campus Martius
 
The property is located at the center of the Detroit central business district (the “CBD”), directly north of Campus Martius Park. The Downtown People Mover has a stop adjacent to the One Campus Martius property. The M-1 Rail Line, a planned streetcar line along Woodward Avenue that is currently being constructed in downtown Detroit is expected to have an adjacent stop to the One Campus Martius property. Completion of the M-1 Rail Line is expected in late 2016, though we cannot guarantee the completion of the project by such time. The property is located in the Detroit CBD office submarket which, according to the appraisal, has an overall vacancy rate of 13.1% as of the third quarter of 2014 for Class A office properties. The Detroit CBD submarket contains approximately 7.2 million square feet of Class A office space as of the third quarter of 2014. The appraisal identified seven comparable recently executed leases ranging from $12.50 to $25.66 per square foot and concluded market rent in the submarket of $24.00 plus electric charges per square foot for the property’s office suites, $21.00 per square foot for the property’s exterior retail suites and $18.00 per square foot for the property’s interior retail suites. The in-place rent at the property is $23.62 per square foot. The appraisal identified 15 properties that are directly competitive with One Campus Martius. The properties range from 245,862 to 2,933,886 square feet and range from 69.0% to 100.0% occupied. The weighted average occupancy for the group is 90.0% and the average rental rate is $22.37.

Historical and Current Occupancy(1)
    
201120122013
Current(2)
N/AN/AN/A99.9%
(1)Historical Occupancy is not available as the seller of the property did not provide historical operating statements.
(2)Current Occupancy is as of January 1, 2015.
 
Tenant Summary(1)
            
Tenant 
Ratings
Moody’s/S&P/Fitch
 Net Rentable
Area (SF)
 
% of
Total NRA
 Base Rent
PSF
 Lease
Expiration Date
 
Quicken Loans, Inc.(2)
 NA / NA / NA 346,244 35.9% $24.00 12/31/2024 
Meridian Health Plan(3)
 NA / NA / NA 280,534 29.1% $24.00 12/31/2024 
Compuware Corporation(4)
 NA / NA / NA 134,564 13.9% $25.00 12/31/2019 
Wellness Center(5)
 NA / NA / NA 50,116 5.2% $24.00 12/31/2024 
Child Development Center(5)
 NA / NA / NA 43,297 4.5% $24.00 12/31/2024 
Market Place Café(5)
 NA / NA / NA 28,171 2.9% $24.00 12/31/2024 
Plante Moran(6)
 NA / NA / NA 16,207 1.7% $29.75 11/30/2018 
Hard Rock Café(7)
 NA / NA / NA 7,988 0.8% $24.95 11/30/2018 
Texas de Brazil NA / NA / NA 7,739 0.8% $20.68 6/30/2026 
Olga’s Kitchen NA / NA / NA 3,815 0.4% $24.86 4/30/2022 
(1)Based on the underwritten rent roll.
(2)
Quicken Loans, Inc. expanded from 275,698 square feet to 346,244 square feet at closing by absorbing Compuware Corporation’s 8th floor space. The tenant anticipates completing build-out of the 8th floor space by June 2015. If build-out of Quicken Loan, Inc.’s 8th floor space is not completed by December 2015, an excess cash flow trap will be triggered. Quicken Loans, Inc. is affiliated with the loan sponsor.
(3)
Meridian Health Plan will take occupancy of its 6th, 7th, 14th and 15th floor spaces in phases throughout 2015 and 2016. Meridian Health Plan anticipates completing build-out of its 6th and 7th floor spaces by June 2015 and September 2015, respectively. If build-out of Meridian Health Plan’s 6th and 7th floor space is not completed by December 2015 and March 2016, respectively, an excess cash flow trap will be triggered. Meridian Health Plan is affiliated with the loan sponsor.
(4)Compuware Corporation plans to vacate its space at expiration of its current lease. Meridian Health Plan has pre-leased 117,109 square feet of the Compuware Corporation space and plans to take possession of the space upon Compuware Corporation vacating in 2019.
(5)The Wellness Center, Child Development Center and Market Place Café are leased to an entity owned by Caidan Enterprises, Inc., a tenant at the property and affiliate of the loan sponsor, and all three leases are co-guaranteed by Quicken Loans, Inc. and Caidan Enterprises, Inc.
(6)Plante Moran’s rent includes reserved parking fees. Net of parking fees, Plante Moran’s rent payable is $24.75 per square foot.
(7)Excludes 1,040 square feet of storage space.
 
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.
 
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Structural and Collateral Term SheetJPMBB 2015-C27
 
One Campus Martius
 
Lease Rollover Schedule(1)
                  
YearNumber
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
VacantNAP1,425 0.1% NAP NAP 1,425 0.1% NAP NAP 
Data Center(2)
NAP14,096 1.5 NAP NAP 15,521 1.6% NAP NAP 
2015 & MTM58,142 0.8 $113,130 0.5% 23,663 2.5% $113,130 0.5% 
201659,140 0.9 166,424 0.7 32,803 3.4% $279,554 1.2% 
201700 0.0 0 0.0 32,803 3.4% $279,554 1.2% 
2018225,235 2.6 681,490 3.0 58,038 6.0% $961,044 4.2% 
20192136,236 14.1 3,400,550 14.9 194,274 20.1% $4,361,593 19.2% 
202012,694 0.3 16,164 0.1 196,968 20.4% $4,377,757 19.2% 
202112,383 0.2 50,043 0.2 199,351 20.7% $4,427,800 19.5% 
202227,303 0.8 170,723 0.8 206,654 21.4% $4,598,523 20.2% 
202300 0.0 0 0.0 206,654 21.4% $4,598,523 20.2% 
20246750,685 77.8 18,000,202 79.1 957,339 99.2% $22,598,725 99.3% 
202500 0.0 0 0.0 957,339 99.2% $22,598,725 99.3% 
2026 & Beyond17,739 0.8 160,062 0.7 965,078 100.0% $22,758,787 100.0% 
Total25965,078 100.0% $22,758,787 100.0%         
(1)  Based on the underwritten rent roll.
(2)  Data Center is leased on a per rack basis and is currently derived from year-one rack usage by Compuware Corporation and Meridian Health Plan. Data Center Revenue is underwritten to $723,028 and included in the Data Center net income line item in the Underwritten Net Cash Flow.

Underwritten Net Cash Flow
       
 Underwritten Per Square
Foot
 
%(1)
 
Rents in Place$22,758,787 $23.58 70.0% 
Vacant Income29,925 0.03 0.1 
Gross Potential Rent$22,788,712 $23.61 70.1% 
Total Reimbursements2,617,445 2.71 8.1 
Parking Income6,344,572 6.57 19.5 
Data Center723,028 0.75 2.2 
Other Income15,718 0.02 0.0 
Net Rental Income$32,489,475 $33.67 100.0% 
(Vacancy/Credit Loss)(2,499,037) (2.59) (7.7) 
Effective Gross Income$29,990,438 $31.08 92.3% 
       
Total Expenses$14,827,686 $15.36 49.4% 
       
Net Operating Income$15,162,751 $15.71 50.6% 
       
Total TI/LC, Capex/RR409,873 0.42 1.4 
       
Net Cash Flow$14,752,878 $15.29 49.2% 
(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.
 
Property Manager. The property is managed by Bedrock Management Services, LLC, an affiliate of the sponsor.

Escrows and Reserves. At origination, the borrower deposited approximately $10.0 million related to the build-out of Meridian Health Plan’s 14th and 15th floor spaces, approximately $3.2 million for budgeted capital expenditures, $197,941 for real estate taxes and $70,347 for insurance.

Tax Escrows – On a monthly basis, the borrower is required to escrow 1/12 of the annual estimated tax payments, which currently equates to $197,941.

Insurance Escrows – On a monthly basis, the borrower is required to escrow 1/12 of annual insurance premiums, which currently equates to $24,075.
 
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.
 
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Structural and Collateral Term SheetJPMBB 2015-C27
 
One Campus Martius
 
Replacement Reserves – On a monthly basis, the borrower is required to escrow $11,876 (approximately $0.15 per square foot annually and as recommended in the engineering report) for replacement reserves. The reserve is subject to a cap of $142,512 (approximately $0.15 per square foot, which equates to 12 months’ worth of deposits).

TI/LC Reserves – On a monthly basis, the borrower is required to escrow $8,043 (approximately $0.10 per square foot annually) for TI/LC reserves. The reserve is subject to a cap of $200,000 (approximately $0.21 per square foot annually).

Meridian Health Plan Build-out Reserve  At origination, the borrower deposited approximately $5.1 million into a reserve with the lender in association with Meridian Health Plan’s 14th floor space. Provided no default has occurred, the funds in this reserve will be released to the borrower in three equal installments, one each time (a) the tenant completes the build-out of the tenant improvements in at least one-third of the 65,521 square foot space and (b) the tenant takes occupancy and opens for business in such space, by December 31, 2016. Also at origination, the borrower deposited approximately $4.9 million into a reserve with the lender in association with Meridian Health Plan’s 15th floor space. Provided no default has occurred, the funds in this reserve will be released to the borrower in three equal installments, one each time (a) the tenant completes the build-out of the tenant improvements in at least one-third of the 63,592 square foot space and (b) the tenant takes occupancy and opens for business in such space by December 31, 2016.

Quicken/Meridian Reserve – Following the occurrence and during the continuance of a Tenant Trigger Period, the borrower is required to deposit all excess cash flow after payment of debt service, required reserves and operating expenses into the Quicken/Meridian reserve to pay the costs of tenant improvements and leasing commission costs incurred in connection with replacement tenants taking occupancy of the related spaces at the property.

Contemplated Building Expansion Reserve – The loan documents allow for potential expansion of the property. Prior to the commencement of the property expansion, the borrower will be required to deposit with the lender an amount determined by the lender to be 120% of the total estimated cost to complete the expansion. The borrower will be required to pay for the expansion work on an all-cash basis with no financing permitted.

Lockbox / Cash Management. The loan is structured with a hard lockbox and in-place cash management. Tenant direction letters were sent to the tenants upon the closing of the loan 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 the term of the loan in accordance with the loan documents. To the extent that (i) there is an event of default under the loan documents, (ii) debt service coverage ratio as calculated in the loan documents based on a trailing twelve month period falls below 1.15x, (iii) within five business days after July 6, 2019, the borrower fails to either (a) deposit $3.0 million with the lender or (b) deliver a $3.0 million letter of credit to the lender, (iv) on or prior to December 31, 2015, the borrower has failed to provide the lender with a satisfactory estoppel from Quicken Loans, Inc. certifying that the build-out related to its space has been completed, (v) on or prior to December 31, 2015, the borrower has failed to provide the lender with a satisfactory estoppel from Meridian Health Plan certifying that the build-out related to its 6th floor space has been completed, (vi) upon the later of (x) March 31, 2016 or (y) six months after former Compuware Corporation’s affiliate Covisint vacates the 7th floor space of the property, the borrower has failed to provide the lender with a satisfactory estoppel from Meridian Health Plan certifying that the build-out related to the 7th floor space has been completed or (vii) a Tenant Trigger Period has commenced, then all excess cash flow after payment of debt service, required reserves and operating expenses will be held as additional collateral for the loan. In an excess cash flow sweep resulting from clause (iii) above, the excess cash flow sweep is capped at $3.0 million.
 
A “Tenant Trigger Period” means that either Quicken Loans, Inc. or Meridian Health Plan (i) is in monetary default or other material default under its lease, which default continues beyond any applicable notice and/or grace period, (ii) gives notice to vacate or sublets 40% or more of its leased space at the property, provided that any sublease to one or more affiliated tenants of up to 40% of its leased space will not trigger a Tenant Trigger Period, (iii) becomes a debtor in any bankruptcy or other insolvency proceeding or (iv) “goes dark” on at least 40% of its aggregate space, provided, however, that, with respect to either tenant’s space, if the other of the two tenants signs a lease on terms satisfactory to the lender for the space and occupies the space, then the space will cease to be considered “dark”. For purposes of this provision, space which has not yet been built out with tenant improvements by Quicken Loans, Inc. or Meridian Health Plan will not be considered “dark”.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Branson at Fifth
 
(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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Branson at Fifth
 
(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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Branson at Fifth
 
Mortgage Loan Information Property Information
Mortgage Loan Seller:Barclays Single Asset / Portfolio:Single Asset
Original Principal Balance:$73,000,000 Title:Fee
Cut-off Date Principal Balance:$73,000,000 Property Type - Subtype:Mixed Use - Retail / Multifamily
% of Pool by IPB:8.7% 
Net Rentable Area (SF)(1):
59,131
Loan Purpose:Refinance Location:New York, NY
Borrower:15 West 55th St. Property LLC Year Built / Renovated:1915 / 2014
Sponsors:Salim Assa, Steven Finkelstein and 
Occupancy(2):
100.0%
 Marilyn Finkelstein Occupancy Date:12/10/2014
Interest Rate:4.30000% Number of Commercial Tenants:1
Note Date:1/13/2015 
2011 NOI(3):
N/A
Maturity Date:2/6/2025 
2012 NOI(3):
N/A
Interest-only Period:60 months 
2013 NOI(3):
N/A
Original Term:120 months 
TTM NOI(3):
N/A
Original Amortization:360 months UW Economic Occupancy:96.5%
Amortization Type:IO-Balloon UW Revenues:$6,899,433
Call Protection:L(24),Def(91),O(5) UW Expenses:$1,477,979
Lockbox:CMA UW NOI:$5,421,454
Additional Debt:N/A UW NCF:$5,296,833
Additional Debt Balance:N/A Appraised Value / Per SF:$119,000,000 / $2,012
Additional Debt Type:N/A Appraisal Date:12/2/2014
     
 
Escrows and Reserves(4)
 Financial Information
 InitialMonthlyInitial Cap   Cut-off Date Loan / SF: $1,235
Taxes:$0$66,667N/A   Maturity Date Loan / SF: $1,126
Insurance:$0SpringingN/A   Cut-off Date LTV: 61.3%
Replacement Reserves:$0$833N/A   Maturity Date LTV: 56.0%
TI/LC:$0$0N/A   UW NCF DSCR: 1.22x
Other:$4,573,500SpringingN/A   UW NOI Debt Yield: 7.4%
        
 
Sources and Uses
SourcesProceeds% of Total   UsesProceeds% of Total   
Mortgage Loan$73,000,000100.0% 
Payoff Existing Debt(5)
$34,954,52347.9%  
    
Return of Equity(6)
29,868,50040.9  
    Upfront Reserves4,573,5006.3  
    Closing Costs3,603,4774.9  
Total Sources$73,000,000100.0% Total Uses$73,000,000100.0%  
(1)  The Net Rentable Area of 59,131 square feet represents 44,250 square feet of multifamily space (31 units) and 14,881 square feet of commercial space.
(2)  Occupancy includes Domenico Vacca, a high-end luxury clothier, which executed a lease for the 14,881 square feet of commercial space and is funding an approximately $3.5 million build-out. The tenant is expected to open for business in April 2015.
(3)  Historical and TTM NOI was unavailable as the property was acquired by the loan sponsors in November 2013 and underwent a gut renovation and conversion in 2014.
(4)  
For a full description of Escrows and Reserves, please refer to “Escrows and Reserves” below.
(5)  Payoff Existing Debt reflects The Branson at Fifth’s allocated portion of approximately $58.3 million in previously existing debt that encumbered the property and an adjacent property acquired simultaneously by the loan sponsors in November 2013. The proceeds of the loan were used to pay off the entire $58.3 million in previously existing debt.
(6)  Return of Equity is a gross amount that includes approximately $23.3 million in proceeds used to pay off the adjacent property’s allocated portion of the $58.3 million in previously existing debt that also encumbered The Branson at Fifth. At origination, net of the payoff of the entire $58.3 million in previously existing debt, approximately $6.6 million of equity was returned to the loan sponsors.
 
The Loan. The Branson at Fifth loan has an outstanding principal balance of $73.0 million and is secured by a first mortgage lien on the fee interest in a 10-story, 59,131 square foot mixed use building comprised of 31 multifamily units and 14,881 square feet of retail space located on the north side of West 55th Street and Fifth Avenue in New York, New York. The loan has a 10-year term and, subsequent to a five-year interest-only period, will amortize on a 30-year schedule.
 
The Borrower. The borrowing entity for The Branson at Fifth loan is 15 West 55th St. Property LLC, a Delaware limited liability company 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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Branson at Fifth
 
The Sponsors. The loan sponsors and nonrecourse carve-out guarantors are Salim Assa and Steven and Marilyn Finkelstein. Salim Assa is a partner in Assa Properties, a real estate development firm founded in 2000 that invests in major residential, retail and commercial properties. Assa Properties has acquired over three million square feet of premier assets located throughout the United States and Mexico. In 2002, Assa Properties began acquiring buildings within the New York City area, namely 743 Fifth Avenue, 2 Herald Square and 6 Times Square—originally the Knickerbocker Hotel built by John Jacob Astor—focusing on the development of luxury retail and hotel experiences in some of New York Citys most distinctive neighborhoods. Steven Finkelstein is a partner in Finkelstein Timberger Real Estate (“FTRE”), a full service commercial real estate management company established in 1978 that specializes in multifamily properties. FTRE manages over 4,000 units in 68 buildings.
 
The Property. The Branson at Fifth is a 59,131 square foot mixed use retail/multifamily building located in Midtown Manhattan. The 10-story building sits on a 7,500 square foot parcel of land and was originally constructed in 1915 and gut renovated and converted to its existing use in 2014. The property consists of multi-level retail space from the basement to the second floor leased to Domenico Vacca, 30 one-, two- and three-bedroom apartments on floors three through nine and a three-bedroom penthouse apartment with a 3,000 square foot outdoor terrace.
 
The Branson at Fifth is located on the north side of West 55th Street and Fifth Avenue, across the street from the iconic Peninsula Hotel in Manhattan. The property is located steps away from the Fifth Avenue shopping district, which features flagship locations of high-end luxury retailers such as Dolce & Gabbana, Fendi, Gucci, Harry Winston, Louis Vuitton, Prada, Omega, Rolex, Tiffany & Co. and Valentino, among others. In addition, the property is located within walking distance of Central Park, the Museum of Modern Art and Rockefeller Center. The property’s location provides easy access to public transportation, with the F, N, Q, R, 4, 5 and 6 trains accessible within a short distance. Access to the N, Q, and R trains is provided by the 59th Street/5th Avenue subway station. Access to the north/south 4, 5, 6 trains is available at 59th Street and Lexington Avenue. The F train is accessible at 57th Street/6th Avenue and the E and M trains are available at the 53rd Street/5th Avenue subway station.
 
The borrower acquired The Branson at Fifth in November 2013 for $36.0 million. According to the borrower, at the time of acquisition, the property was 25.8% occupied by eight rent stabilized multifamily tenants with no commercial tenancy. The borrower bought out one of the rent stabilized tenants and subsequently gut renovated the 24 market rate units for approximately $6.0 million or $250,000 per unit. The renovated units feature chef’s kitchens with stone countertops and stainless steel appliances, hardwoods floors, original marble fireplaces and prewar detailing. The building’s amenities include a fitness studio, onsite laundry, a 24-hour doorman and valet and housekeeping services. As of December 10, 2014, the multifamily portion of the property, inclusive of the rent stabilized units, was 100.0% leased.
 
According to the appraisal, the overall New York market reported a multifamily vacancy rate of 2.7% with average asking rents of $3,282 per unit, as of the third quarter of 2014. The Midtown West submarket reported a vacancy rate of 3.2% with multifamily average asking rents of $4,269 per unit, which was up from $4,065 per unit in the third quarter of 2013. The appraisal identified six competitive properties ranging from 28 to 330 units that were constructed between 1920 and 2008. The competitive set reported an average monthly rent per unit of $3,421 for studios, $5,445 for one-bedrooms, $7,908 for two-bedrooms, $11,436 for three-bedrooms and $7,537 for penthouse space. The appraisal determined that the property’s total multifamily annual rents are below concluded market rents by $586,123, of which rent stabilized units account for $529,703. Following any expiration of rent stabilization regulations pertaining to the units at the property, the loan documents provide that the borrower will take measures to promptly deregulate the seven remaining rent stabilized multifamily units (please refer to “J-51 Tax Abatement / Rent Stabilized Units” below for additional details). None of the potential increase in annual rents associated with any future deregulation of the seven rent stabilized units is underwritten.
 
Multifamily Unit Mix(1)
 
Unit Type
# of
Units(2)
% of
Total
Average
Unit SF
In-Place
Annual
Rents
Market Rate Annual
Rents
(3)
Average
Monthly In-
Place Rents
Per Unit
Average
Monthly
Market Rents
Per Unit(3)
Average
Annual
In Place
Rent PSF
Average
Annual
Market
Rent PSF(3)
1 Bedroom - Stabilized2 6.5%700 $30,933 $108,000 $1,289 $4,500 $22.09 $77.14 
2 Bedroom11 35.5 1,200 1,029,180 1,056,000 $7,797 $8,000 $77.97 $80.00 
2 Bedroom - Stabilized3 9.7 1,200 60,893 288,000 $1,691 $8,000 $16.91 $80.00 
3 Bedroom12 38.7 1,600 1,626,600 1,656,000 $11,296 $11,500 $84.72 $86.25 
3 Bedroom - Stabilized2 6.5 1,600 50,471 276,000 $2,103 $11,500 $15.77 $86.25 
Penthouse1 3.2 3,650 100,000 100,200 $8,333 $8,350 $27.40 $27.45 
Total / Wtd. Avg.31 100.01,427 $2,898,077 $3,484,200 $7,791 $9,366 $65.49 $78.74 
(1)  Based on the underwritten rent roll, excluding the commercial component.
(2)  As of December 10, 2014, the multifamily portion of the property was 100.0% leased.
(3)  Based on the appraisal. Income from the multifamily components was underwritten to the respective In-Place Annual Rents.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Branson at Fifth
 
As of December 10, 2014, the commercial portion of the property was 100.0% leased to Domenico Vacca, a high-end luxury clothier through November 2024. Domenico Vacca’s lease commenced in December 2014 and the tenant funded an approximately $3.5 million build out of the commercial space in anticipation of an April 2015 opening date. The space includes the basement, ground floor and second floor, totaling 14,881 square feet or 25.2% of the net rentable area. Commencing in April 2015, Domenico Vacca will pay $4.0 million in annual base rent (approximately $268.80 per square foot) or 58.0% of in-place base rent. Beginning in April 2016, Domenico Vacca’s annual base rent will increase 3.0% and will continue increasing annually by 3.0% thereafter. Domenico Vacca founded his namesake atelier in New York in 2001 and has since opened stores in Beverly Hills, Miami, Palm Beach, London, Milan, Doha, Abu Dhabi and Mayakoba, Mexico. Domenico Vacca was recognized twice by the Robb Report magazine with the award for Best Italian Collection in the annual “Best of the Best” issue and Best Life Magazine has recognized the Domenico Vacca’s tie collection as the finest in the world. Domenico Vacca is moving from its current space at 781 Fifth Avenue to establish its global flagship location at the property.
 
According to the appraisal, the property falls within the Plaza District of Manhattan, a highly sought after retail space in New York City, with average rents of $3,500 per square foot in the second quarter of 2014, appreciating approximately 14.8% year over year. The appraisal noted that retail space in the Plaza District totaled approximately 3.8 million square feet across 259 buildings with an average vacancy rate of 2.4%. In relation to the retail portion of the property, the appraisal identified six competitive properties with retail components ranging from approximately 3,300 to 15,223 square feet. The comparable properties, which are located off of avenues in Midtown Manhattan, had executed leases ranging from $224.00 to $373.33 per square foot on a blended basis.
 
Commercial Tenant Summary(1)
 
TenantTenant Type
Ratings
Moody’s/S&P/Fitch
Net Rentable
Area (SF)
% of
Total NRA
Base Rent
PSF(2)
Lease Expiration
Date
Domenico Vacca(3)
RetailNA / NA / NA14,881100.0%$276.8611/30/2024
(1)  Based on the underwritten rent roll, excluding the multifamily component.
(2)  UW Base Rent PSF is based on Domenico Vacca’s $4.0 million base rent ($268.80 per square foot) with an April 2016 rent step of approximately $120,000 ($8.06 per square foot).
(3)  Domenico Vacca has an executed lease but is not expected to take occupancy or pay rent until April 2015. At origination, the borrower deposited into escrow $0.5 million for debt service prior to April 2015.
 
Commercial 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 NAP0 0.0NAP NAP 0 0.0% NAP NAP 
2015 & MTM 00 0.0 $0 0.00 0.0% $0 0.0% 
2016 00 0.0 0 0.0 0 0.0% $0 0.0% 
2017 00 0.0 0 0.0 0 0.0% $0 0.0% 
2018 00 0.0 0 0.0 0 0.0% $0 0.0% 
2019 00 0.0 0 0.0 0 0.0% $0 0.0% 
2020 00 0.0 0 0.0 0 0.0% $0 0.0% 
2021 00 0.0 0 0.0 0 0.0% $0 0.0% 
2022 00 0.0 0 0.0 0 0.0% $0 0.0% 
2023 00 0.0 0 0.0 0 0.0% $0 0.0% 
2024 114,881 100.0 4,120,000 100.0 14,881 100.0% $4,120,000 100.0% 
2025 00 0.0 0 0.0 14,881 100.0% $4,120,000 100.0% 
2026 & Beyond 00 0.0 0 0.0 14,881 100.0% $4,120,000 100.0% 
Total 114,881 100.0$4,120,000 100.0        
(1)  
Based on the underwritten rent roll, excluding the multifamily component.
 
Historical and Current Occupancy(1)
 
201120122013
Current(2)
N/AN/AN/A100.0%
(1)  2011, 2012 and 2013 Occupancy figures are not available because the property was acquired by the loan sponsors in November 2013 and gut renovated and converted in 2014.
(2)  
Current Occupancy is as of December 10, 2014 and is inclusive of both the commercial and multifamily components of the property.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Branson at Fifth
 
Underwritten Net Cash Flow(1)
 
 
 Underwritten
Per Square
Foot
%(2)
Rents in Place - Commercial(3)
$4,120,000 $69.68 57.6
Rents in Place - Multifamily(4)
2,898,077 49.01 40.5 
Vacant Income0 0.00 0.0 
Gross Potential Rent$7,018,077 $118.69 98.2
Total Reimbursements131,594 2.23 1.8 
Net Rental Income$7,149,671 $120.91 100.0
(Vacancy/Credit Loss)(250,238) (4.23(3.5
Effective Gross Income$6,899,433 $116.68 96.5
       
Total Expenses(5)
$1,477,979 $24.99 21.4
       
Net Operating Income$5,421,454 $91.69 78.6
       
Total TI/LC, Capex/RR124,621 2.11 1.8 
       
Net Cash Flow$5,296,833 $89.58 76.8
       
(1)  Historical operating information is unavailable as the property was acquired by the loan sponsors in November 2013 and underwent a gut renovation and conversion in 2014.
(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)  Underwritten Rents in Place - Commercial is based on Domenico Vacca’s base rent with an underwritten April 2016 rent step of approximately $120,000.
(4)  Underwritten Rents in Place - Multifamily is based on the December 10, 2014 rent roll, which reflects 100.0% occupancy.
(5)  
Underwritten Total Expenses include tax expenses which are underwritten to the appraisers estimated stabilized taxes of $799,858. The actual gross tax expense for the 2014/15 tax year is $303,642, however, the appraisal assumes a tax reassessment will take place for the 2015/16 tax year due to the 2014 renovation of the property.
 
Property Management. The property is managed by Assa Hospitality Management LLC, an affiliate of the loan sponsors.
 
Escrows and Reserves. At origination, the borrower deposited into escrow $4,000,000 for the Domenico Vacca Holdback (as described below), $500,000 for debt service prior to Domenico Vacca’s April 2015 rent commencement date and $73,500 for deferred maintenance.
 
Tax Escrows - On a monthly basis, the borrower is required to escrow 1/12 of the annual estimated tax payments, which currently equates to $66,667.
 
Insurance Escrows - The requirement for the borrower to make monthly deposits to the insurance escrow will be waived so long as there is no event of default and the borrower provides the lender with evidence that the property is insured pursuant to an acceptable blanket insurance policy.
 
Replacement Reserves - On a monthly basis, the borrower is required to escrow $833 (approximately $0.15 per square foot annually for the commercial component and $250 per unit annually for the multifamily component) for replacement reserves.
 
Domenico Vacca Reserve - Following a Domenico Vacca Lease Event, all excess cash flow after payment of debt service, required reserves and operating expenses will be swept into a reserve for tenant improvements and leasing commissions associated with re-tenanting the commercial space.
 
Domenico Vacca Holdback - At origination, the borrower deposited into escrow $4,000,000, of which 50.0% will be disbursed to the borrower when: (i) no default beyond any applicable cure periods exists under the tenant’s lease, (ii) all work required to be performed by the tenant pursuant to its lease has been performed in accordance with all legal requirements and that tenant has taken possession of the space, (iii) tenant has commenced paying full unabated rent pursuant to its lease and (iv) tenant is open for business to the general public and the store is sufficiently merchandised with quality products and inventory that is customary and substantially similar to the tenant’s other stores, if applicable. The remaining 50.0% of the Domenico Vacca Holdback will be disbursed to the borrower 180 days following the disbursement of the initial 50.0%, provided that, Domenico Vacca (or a replacement tenant acceptable to the lender) is current on all rent payments due under its lease (or any replacement tenant lease acceptable to the lender, as applicable) and no defaults exist under the lease beyond any applicable notice and/or cure periods set forth therein.
 
In the event Domenico Vacca does not take possession of its space, fails to commence paying full unabated rent, fails to sufficiently merchandise the store or otherwise defaults on its lease, the Domenico Vacca Holdback will be deposited into a reserve for tenant improvements and leasing commissions associated with re-tenanting the commercial space.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
The Branson at Fifth
  
Lockbox / Cash Management.  The loan is structured with a CMA lockbox. The borrower or manager was required to send tenant direction letters to all commercial tenants instructing them to deposit all rents and other payments directly into the lockbox account controlled by the lender. In addition, the borrower or manager is required to deposit any rents received from multifamily tenants directly into the lockbox account controlled by the lender. The funds are then returned to an account controlled by the borrower until the earliest occurrence of: (i) an event of default under the loan documents, (ii) the debt service coverage ratio, as calculated in the loan documents, falls below 1.10x, (iii) any bankruptcy event of the borrower, loan sponsors or manager and (iv) a Domenico Vacca Lease Event, in which case, all available funds will be transferred into the cash trap subaccount and held as additional collateral for the loan, provided that, if a Domenico Vacca Lease Event has occurred and is continuing, all available funds will be swept into the Domenico Vacca Reserve.
 
A “Domenico Vacca Lease Event” means the occurrence of any of the following: (i) 12 months prior to the expiration of the Domenico Vacca lease (or any replacement tenant lease acceptable to the lender, as applicable), (ii) Domenico Vacca (or a replacement tenant acceptable to the lender) defaults on its lease, (iii) Domenico Vacca (or a replacement tenant acceptable to the lender) goes dark, fails to be in actual physical position of its space or fails to open during customary hours in all of its space, (iv) Domenico Vacca (or a replacement tenant acceptable to the lender) terminates its lease for all or any portion of its space or (v) any bankruptcy event of Domenico Vacca (or a replacement tenant acceptable to the lender).
 
J-51 Tax Abatement / Rent Stabilized Units. The Branson at Fifth benefits from a City of New York Department of Housing Preservation and Development residential real estate J-51 tax abatement, which commenced in the 2006/07 tax year and phases out following the 2015/16 tax year. The program stipulates that residential properties that receive J-51 tax abatements must be registered with the Division of Housing and Community Renewal (“DHCR”) and subjected to rent stabilization for the full term of the J-51 tax abatement benefit period. These rent stabilization guidelines affect seven units at the property. Rent stabilized units may be decontrolled under two scenarios. In the first scenario, if a rent stabilized unit becomes vacant and can be offered at a legal regulated rent of $2,500 or more per month, then the unit is no longer subject to rent stabilization. In the second scenario, which pertains to occupied units subject to rent stabilization, if the tenant occupying the rent stabilized unit has an average annual income in excess of $250,000 for the two years preceding a lease renewal offered at a legal regulated renewal rent of $2,500 or more per month, then the unit is no longer subject to rent stabilization. This second scenario is also referred to as “luxury deregulation.” In the loan documents, the borrower represents and warrants that (i) borrower will operate and manage the property, or cause the property to be managed in compliance with the J-51 tax abatement and rent stabilization requirements (ii) borrower will register all units with the DHCR, (iii) upon expiration of the J-51 tax abatement affecting the property, borrower will take all steps necessary to cause the rent stabilized units to be deregulated in accordance with the “luxury deregulation” process, (iv) borrower will not apply for an extension or reinstatement of the J-51 tax abatement and (v) borrower will maintain complete receipts, invoices and records of all improvements performed at the property and will deliver copies to the lender, if requested.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
[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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
717 14th Street
 
(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.

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Structural and Collateral Term Sheet JPMBB 2015-C27
 
717 14th Street
 
(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.

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Structural and Collateral Term Sheet JPMBB 2015-C27
 
717 14th Street
 
(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.

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Structural and Collateral Term Sheet JPMBB 2015-C27
 
717 14th Street
 
Mortgage Loan Information Property Information
 Mortgage Loan Seller:RCMC Single Asset / Portfolio:Single Asset
 Original Principal Balance:$41,500,000 Title:Leasehold
 Cut-off Date Principal Balance:$41,500,000 Property Type - Subtype:Office - CBD
 % of Pool by IPB:5.0% Net Rentable Area (SF):120,215
 Loan Purpose:Refinance Location:Washington, DC
 Borrower:
717 14th Street LLC
 Year Built / Renovated:1928 / 2012
 Sponsor:Peter C. Minshall Occupancy:100.0%
 Interest Rate:4.19000% Occupancy Date:12/16/2014
 Note Date:12/30/2014 Number of Tenants:4
 Maturity Date:1/1/2025 2011 NOI:$2,893,233
 Interest-only Period:42 months 2012 NOI:$2,922,578
 Original Term:120 months 2013 NOI:$3,658,507
 Original Amortization:360 months 
TTM NOI(1):
N/A
 Amortization Type:IO-Balloon UW Economic Occupancy:94.9%
 Call Protection:L(25),Def(90),O(5) UW Revenues:$5,905,836
 Lockbox:Springing UW Expenses:$2,377,264
 Additional Debt:Yes UW NOI:$3,528,571
 Additional Debt Balance:$5,500,000 UW NCF:$3,306,173
 Additional Debt Type:Mezzanine Loan Appraised Value / Per SF:$56,000,000 / $466
   Appraisal Date:9/17/2014
     
       
Escrows and Reserves(2)
 Financial Information
 InitialMonthlyInitial Cap Cut-off Date Loan / SF:$345
 Taxes:$305,833$61,167N/A Maturity Date Loan / SF:$304
 Insurance:$13,602$1,943N/A Cut-off Date LTV:74.1%
 Replacement Reserves:$0$819$29,484 Maturity Date LTV:65.2%
 TI/LC:$0$17,531$1,000,000 UW NCF DSCR:1.36x
 Other:$1,000,000SpringingN/A UW NOI Debt Yield:8.5%
       
           
Sources and Uses
SourcesProceeds % of Total   UsesProceeds % of Total 
Mortgage Loan$41,500,000 88.3  Payoff Existing Debt$29,294,685 62.3
Mezzanine Loan5,500,000 11.7   Return of Equity15,140,986 32.2 
       Upfront Reserves1,319,435 2.8 
       Closing Costs1,244,894 2.6 
Total Sources$47,000,000 100.0%  Total Uses$47,000,000 100.0%
(1)TTM NOI is not available as the borrower has historically only prepared year end statements.
(2)
For a full description of Escrows and Reserves, please refer to “Escrows and Reserves” below.
 
The Loan. The 717 14th Street loan has an outstanding balance of $41.5 million and is secured by a first mortgage lien on the borrower’s leasehold interest in a 120,215 square foot office building located in Washington, DC. The loan has a 10-year term and, subsequent to a 42-month interest-only period, amortizes on a 30-year schedule.  Loan proceeds were used to repay previously existing debt, pay defeasance costs, fund upfront reserves and return equity to the sponsor.  The previously existing loan was securitized in 2008 as part of the JPMCC 2008-C2 transaction.
 
The Borrower. The borrowing entity for the 717 14th Street loan is 717 14th Street LLC, a District of Columbia limited liability company and special purpose entity.
 
The Sponsor. The sponsor and nonrecourse carve-out guarantor, Peter C. Minshall, has been actively involved in Washington, DC, Maryland, and Virginia real estate since 1995 participating in the acquisition, management, leasing, financing, and development of real estate assets in transactions in excess of $175 million.  Mr. Minshall currently serves as the Managing Partner for Washington Capitol Partners, a real estate investment and management company he founded in 2007.  Mr. Minshall acquired the 717 14th Street property in 2001.
 
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.

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Structural and Collateral Term Sheet JPMBB 2015-C27
 
717 14th Street
 
The Property. 717 14th Street is a 12-story, 120,215 square foot Class B office building located on the east side of 14th Street between G Street and New York Avenue approximately two blocks from the White House in Washington, DC. The property was constructed in 1928 and most recently renovated between 2010 and 2012.  The property is situated on a mid-block, rectangular shaped parcel totaling 0.27 acres and offers 25 below-grade parking spaces.  Since 1997, the property has never been less than 91.3% occupied.
 
As of December 16, 2014, the property was 100.0% leased by four credit-rated tenants.  The largest tenant at the property, GSA – U.S. Department of the Treasury, leases 56.0% of the net rentable area through October 2016. The Treasury Department houses their Office of Financial Research (“OFR”) at the subject property.  The OFR was established by Title I of the Dodd-Frank Act, tasked with the oversight of Dodd-Frank compliance. The OFR is working in conjunction with the Financial Stability Oversight Council (“FSOC”) and regulators such as the SEC and CFTC to standardize data and identify systemic vulnerabilities in the financial sector. GSA – U.S. Department of the Treasury took occupancy in 2011 after the District of Columbia government vacated a portion of their leased premises at lease maturity. In conjunction with the re-tenanting, the sponsor upgraded the space at a cost of approximately $5.3 million.
 
The second largest tenant at the property, District of Columbia – Office of the Inspector General (“OIG”), leases 28.4% of the net rentable area through August 2021. The OIG is an executive branch agency of the District of Columbia government that conducts audits, inspections, and investigations of government programs and operations.  The third largest tenant at the property, District of Columbia– Office of the Auditor, leases 9.0% of the net rentable area through July 2021 and is rated Aa2/AA/AA by Moody’s, S&P and Fitch, respectively.  This office is the legislative auditor of the District of Columbia and examines the use of public funds, evaluates district government programs and activities, and provides analyses and recommendations to assist in making effective oversight, programmatic, and budgetary decisions.  Between 1997 and 2010, various agencies of the District of Columbia government leased 100% of the office space.
 
The fourth largest tenant at the property, CVS, leases 7,969 square feet of ground floor retail at the subject (6.6% of the net rentable area) through January 2026 and is rated Baa1/BBB+ by Moody’s and S&P, respectively. CVS is the second largest pharmacy chain in the United States with more than 7,600 stores and is the second largest U.S. pharmacy based on prescription revenue. CVS has been at the subject since 1990 and recently executed a 12-year lease extension in February 2014.
 
The property is located in the 14th Street Corridor, on the east side of 14th Street between G and New York Avenue, within the East End submarket of Washington, DC. The neighborhood is an area of high-density commercial and mixed-use development with close proximity to multiple government buildings, including the White House, the U.S. Treasury Building and the Executive Office building which are all less than four blocks from the subject.  The property is serviced by five Metro stations within one-mile of the subject,  including Metro Center (0.2 miles), McPherson Square (0.2 miles), Federal Triangle (0.5 miles), Farragut West (0.6 miles) and Farragut North (0.7 miles). Neighborhoods surrounding the property include Franklin Square, located three blocks north of the property, which contains high-end luxury apartments and office buildings that have been renovated over the past several years as well as Dupont Circle, located approximately five blocks northwest, which is home to numerous restaurants, bars, and residential units. According to the appraisal, the Dupont Circle neighborhood is one of the district’s most popular areas to live. Additional large demand drivers in the property’s greater area include the new convention center site situated five blocks to the east and the Verizon Center located six blocks southeast.
 
According to the appraisal, the property is situated within the East End office submarket, at its border with the central business district (“CBD”).  The CBD and East End markets are the primary downtown business districts and, according to CoStar, have an inventory of 325 buildings comprising over 31.1 million square feet.  Vacancy and average rent as of the second quarter 2014 within the East End/CBD submarket are 8.2% and $44.06 per square foot, respectively.  Per the appraisal, the Class B inventory has remained relatively stable, losing some inventory in recent years to redevelopment.  The property is also within the Downtown Retail market which includes the CBD, East End and West End. According to CoStar, the Downtown market has remained relatively stable over the past four years with less than 2% added to inventory. Absorption has generally been positive with vacancy and average rents equal to 4.4% and $47.92 per square foot, respectively, as of the second quarter of 2014.
 
The appraisal identified five competitive properties built between 1912 and 1967 and ranging in size from approximately 98,372 to 217,199 square feet. The comparable properties reported occupancies ranging from 82.0% to 99.0% with a weighted average of 92.6%. Asking rents for the comparable properties range from $44.50 to $51.00 per square foot under full-service lease provisions.
 
Historical and Current Occupancy(1)
2011
2012
2013
Current(2)
91.3%100.0%100.0%100.0%
(1)  Historical Occupancies are as of December 31 of each respective year.
(2)  Current Occupancy is as of December 16, 2014.
 
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.

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Structural and Collateral Term Sheet JPMBB 2015-C27
 
717 14th Street
 
Tenant Summary(1)
 Tenant 
Ratings
Moody’s/S&P/Fitch(2)
 Net Rentable
Area (SF)
 % of Total
NRA
 Base Rent
PSF
 Lease Expiration Date
GSA – U.S. Department of the Treasury Aaa / AA+ / AAA 67,283  56.0%  $43.65 10/27/2016 
District of Columbia – Office of the Inspector General(3)
 Aa2 / AA / AA 34,171  28.4%  $47.65 8/31/2021 
District of Columbia – Office of the Auditor(3)
 Aa2 / AA / AA 10,792  9.0%  $43.28 7/31/2021 
CVS Baa1 / BBB+ / NA 7,969  6.6%  $90.50 1/31/2026 
(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 (or in the case of this loan, parent government entity) guarantees the lease.
(3)  The tenants District of Columbia – Office of the Inspector General and District of Columbia – Office of the Auditor are only liable under their lease for rent and other obligations to the extent they receive sufficient appropriations from the state government.
 
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 0  0.0% NAP NAP  0  0.0%  NAP NAP 
2015 & MTM 0 0  0.0  $0 0.0% 0  0.0%  $0 0.0% 
2016 1 67,283  56.0  2,936,862 51.0  67,283  56.0%  $2,936,862 51.0% 
2017 0 0  0.0  0 0.0  67,283  56.0%  $2,936,862 51.0% 
2018 0 0  0.0  0 0.0  67,283  56.0%  $2,936,862 51.0% 
2019 0 0  0.0  0 0.0  67,283  56.0%  $2,936,862 51.0% 
2020 0 0  0.0  0 0.0  67,283  56.0%  $2,936,862 51.0% 
2021 2 44,963  37.4  2,095,166 36.4  112,246  93.4%  $5,032,028 87.5% 
2022 0 0  0.0  0 0.0  112,246  93.4%  $5,032,028 87.5% 
2023 0 0  0.0  0 0.0  112,246  93.4%  $5,032,028 87.5% 
2024 0 0  0.0  0 0.0  112,246  93.4%  $5,032,028 87.5% 
2025 0 0  0.0  0 0.0  112,246  93.4%  $5,032,028 87.5% 
2026 & Beyond 1 7,969  6.6  721,196 12.5  120,215  100.0%  $5,753,223 100.0% 
Total 4 120,215  100.0 $5,753,223 100.0%           
(1)  Based on the underwritten rent roll.
 
Operating History and Underwritten Net Cash Flow
  
2011
 
2012
 
2013
 
Underwritten
 
Per Square
Foot
 
%(1)
Rents in Place(2)
 $4,637,007 $4,653,222 $5,319,675 $5,753,223 $47.86 94.2%
Vacant Income 0 0 0 0 0.00             0.0
Gross Potential Rent $4,637,007 $4,653,222 $5,319,675 $5,753,223 $47.86 94.2%
Total Reimbursements 63,603 480,876 366,260 355,788 2.96             5.8
Net Rental Income $4,700,609 $5,134,098 $5,685,935 $6,109,011 $50.82 100.0%
(Vacancy/Credit Loss) 0 0 0 (310,833) (2.59)                 (5.1)
Other Income 118,513 99,895 107,658 107,658 0.90              1.8
Effective Gross Income $4,819,122 $5,233,993 $5,793,593 $5,905,836 $49.13 96.7%
             
Total Expenses $1,925,889 $2,311,416 $2,135,086 $2,377,264 $19.78 40.3%
             
Net Operating Income $2,893,233 $2,922,578 $3,658,507 $3,528,571 $29.35 59.7%
             
Total TI/LC, Capex/RR 0 0 0 222,398 1.85            3.8
Net Cash Flow $2,893,233 $2,922,578 $3,658,507 $3,306,173 $27.50 56.0%
             
(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)  Per the December 16, 2014 rent roll, the amount includes CVS underwritten at $90.50 per square foot, which is the average rent over the loan term. CVS is currently paying $62.00 per square foot which increases to $72.00 per square foot on February 1, 2015 and $82.00 per square foot on February 1, 2016.  Subsequently, the lease calls for 3.0% annual increases.
 
Property Management. The property is managed by Washington Capitol Partners LLC, an affiliate of the borrower.
 
Ground Lease.  The property is subject to a ground lease, which commenced on September 22, 1986 and expires on March 31, 2057. The ground lease also has two 10-year extension options. The current total ground lease payment is equal to $505,468 per year. As of April 1, 2015, the total ground rent payment will equal $515,577 per year, with rent escalations of 2% annually through April 1, 2056.
 
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.

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Structural and Collateral Term Sheet JPMBB 2015-C27
 
717 14th Street
 
Escrows and Reserves. At origination, the borrower deposited into escrow $1,000,000 for a GSA – U.S. Department of the Treasury lease reserve, $305,833 for real estate taxes and $13,602 for insurance premiums. The GSA – U.S. Department of the Treasury lease reserve may be released to the borrower if the tenant exercises their renewal in 2016 in accordance with the lease agreement.
 
Tax Escrows - On a monthly basis, the borrower is required to escrow 1/12 of the annual estimated tax payments, which currently equates to $61,167.
 
Insurance Escrows - On a monthly basis, the borrower is required to escrow 1/12 of the annual estimated insurance premiums, which currently equates to $1,943.
 
Replacement Reserves - On a monthly basis, the borrower is required to escrow $819 (approximately $0.08 per square foot annually) for replacement reserves. The reserve is subject to a cap of $29,484 (approximately $0.25 per square foot).
 
TI/LC Reserves - On a monthly basis, the borrower is required to escrow $17,531 (approximately $1.75 per square foot annually) into the TI/LC reserve. The reserve is subject to a cap of $1,000,000 (approximately $8.32 per square foot), provided the property maintains an occupancy percentage of at least 75%.
 
Ground Rent Reserve - The requirement for the borrower to make monthly deposits into the ground rent reserve is waived so long as: (i) no event of default has occurred and is continuing, (ii) the borrower continues to pay the ground rent due in monthly installments in accordance with the terms of the ground lease and (iii) the borrower provides the lender with evidence reasonably satisfactory to lender that all ground rent has been paid when due.
 
Lockbox / Cash Management.  The loan is structured with a springing lockbox. Upon the occurrence and during the continuance of a Trigger Event, the borrower and manager shall cause all income from the property to be deposited directly into the lockbox account. Upon the occurrence and during the continuance of a Trigger Event, 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. Commencing with the first billing statement delivered after the occurrence of a Trigger Event, and for each subsequent statement thereafter delivered during the continuance of a Trigger Event, the borrower and manager shall instruct all persons and entities that maintain open accounts with the borrower or manager or with whom the borrower or manager does business with respect to the property to deliver all payments to the lockbox account. Neither borrower nor manager shall direct any such person or entity to make payments due under such lockbox account in any other manner.
 
A Trigger Event” means: a period commencing upon the earliest of (i) the occurrence of an event of default, (ii) the occurrence of a mezzanine event of default or (iii) a Tenant Trigger Event.
 
A “Tenant Trigger Event” shall occur if either GSA – U.S. Department of the Treasury (“GSA”) or District of Columbia – Office of the Inspector General (“OIG”): (i) files for bankruptcy or becomes the subject of an insolvency proceeding, whether voluntary or involuntary, (ii) terminates or cancels the GSA lease or the OIG lease, or their respective leases cease to be in full force and effect, (iii) a monetary or material non-monetary default exists under the GSA lease or the OIG lease, (iv) GSA or OIG goes dark, vacates or otherwise fails to occupy all or any portion of the GSA space or the OIG space or be open for business during customary business hours, and such condition continues for a period of twelve (12) months, (v) GSA or OIG gives a notice of termination for all or any portion of the respective space or (vi) GSA or OIG fails on or before the date that is twelve (12) months prior to any expiration date or renewal date contained in the respective leases to renew or extend for a minimum term of five (5) years and a rent that is equal to or greater than the rent payable at such time (or immediately prior to termination) under the GSA lease or the OIG Lease.
 
Additional Debt. A $5.5 million mezzanine loan was provided by Redwood Commercial Mortgage Corporation that is secured by the direct equity interests in the borrower and is coterminous with the mortgage loan. The mezzanine loan has a 9.00000% coupon and, subsequent to a 42-month interest-only period, amortizes on a 30-year schedule. Including the mezzanine loan, the Cut-off Date LTV is 83.9%, the UW NCF DSCR is 1.12x and the UW NOI Debt Yield is 7.5%.
 
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.

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Structural and Collateral Term Sheet JPMBB 2015-C27
 
[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.

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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Shaner Hotels 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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Shaner Hotels 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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Shaner Hotels Portfolio
 
Mortgage Loan Information Property Information
Mortgage Loan Seller:JPMCB Single Asset / Portfolio:Portfolio
Original Principal Balance(1):
$35,000,000 Title:Fee / Leasehold
Cut-off Date Principal Balance(1):
$35,000,000 Property Type - Subtype:Hotel – Various
% of Pool by IPB:4.2% Net Rentable Area (Rooms):605
Loan Purpose:Refinance Location:Various
Borrowers(2):
Various Year Built / Renovated:Various / Various
Sponsor:Lance T. Shaner Occupancy / ADR / RevPAR:74.4% / $148.56 / $110.46
Interest Rate:4.52700% Occupancy / ADR / RevPAR Date:10/31/2014
Note Date:10/31/2014 Number of Tenants:N/A
Maturity Date:11/1/2024 2011 NOI:$5,064,044
Interest-only Period:24 months 2012 NOI:$6,405,743
Original Term:120 months 2013 NOI:$7,522,769
Original Amortization:360 months TTM NOI (as of 10/2014):$8,706,127
Amortization Type:IO-Balloon UW Occupancy / ADR / RevPAR:74.8% / $147.23 / $110.02
Call Protection(3):
L(27),Def(89),O(4) UW Revenues:$29,219,074
Lockbox:Hard UW Expenses:$20,636,779
Additional Debt:Yes UW NOI:$8,582,295
Additional Debt Balance:$42,090,000 / $12,510,000 UW NCF:$8,582,295
Additional Debt Type:Pari Passu / Mezzanine Loan Appraised Value / Per Room:$112,000,000 / $185,124
   Appraisal Date:9/1/2014
     

Escrows and Reserves(4)
 
Financial Information(1)
 InitialMonthlyInitial Cap    Cut-off Date Loan / Room:$127,421
Taxes:$572,693$108,522N/A    Maturity Date Loan / Room:$108,897
Insurance:$197,014$32,838N/A    Cut-off Date LTV:68.8%
FF&E Reserves:$133,0004% of Gross RevenuesN/A    Maturity Date LTV:58.8%
TI/LC:$0$0N/A    UW NCF DSCR:1.83x
Other:$103,893$248,483N/A    UW NOI Debt Yield:11.1%
       
 
Sources and Uses
SourcesProceeds % of Total UsesProceeds % of Total
Mortgage Loan(1)
$77,090,000 86.0 Payoff Existing Debt$41,518,490 46.3%
Mezzanine Loan12,510,000 14.0  Return of Equity46,029,748 51.4 
      Closing Costs1,045,162 1.2 
      Upfront Reserves1,006,600 1.1 
Total Sources$89,600,000 100.0 Total Uses$89,600,000 100.0%
(1)  
Shaner Hotels Portfolio is part of a loan evidenced by two pari passu notes with an aggregate original principal balance of approximately $77.1 million. The Financial Information presented in the chart above reflects the Cut-off Date balance of the approximately $77.1 million Shaner Hotels Portfolio Whole Loan.
(2)  
For a full description of the borrowers, please refer to “The Borrowers” below.
(3)  
Defeasance of the approximately $77.1 million Shaner Hotels Portfolio Whole Loan is permitted after the date that is two years after the closing date of the securitization of the last pari passu note to be securitized.
(4)  
For a full description of Escrows and Reserves, please refer to “Escrows and Reserves” below.

The Loan. The Shaner Hotels Portfolio loan is secured by a first mortgage lien on the fee and leasehold interests in two full service hotels, one limited service hotel and one extended stay hotel totaling 605 rooms located in Rhode Island, Florida, North Carolina and Minnesota. The whole loan has an outstanding principal balance of approximately $77.1 million (the “Shaner Hotels Portfolio 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 $35.0 million and is being contributed to the JPMBB 2015-C27 Trust. Note A-2 has an outstanding principal balance as of the Cut-off Date of approximately $42.1 million and is expected to be contributed to a future securitization trust. The holder of the Note A-1 (the “Controlling Noteholder”) will be the trustee of the JPMBB 2015-C27 Trust. The trustee of the JPMBB 2015-C27 Trust (or, prior to the occurrence and continuance of a Control Event under the pooling and servicing agreement, the Directing Certificateholder) will be entitled to exercise all of the rights of the Controlling Noteholder with respect to the Shaner Hotels Portfolio Whole Loan; however, the holder of Note A-2 will be entitled, under certain circumstances, to consult with respect to certain major decisions. The Shaner Hotels Portfolio Whole Loan has a 10-year term, and subsequent to a two-year interest-only period, will amortize on a 30-year schedule. The previously existing debt was securitized in 2006 as part of the GSMS 2006-GG6 securitization.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Shaner Hotels Portfolio
 
The Borrowers. The borrowing entities for the loan are Shaner Newport Harbor LLC, Shaner Durham LLC, Shaner Jacksonville LLC and Shaner Edina LLC, each a Delaware limited liability company and a special purpose entity.
 
The Sponsor. The loan sponsor and nonrecourse carve-out guarantor is Lance T. Shaner, chairman and CEO of Shaner Hotel Group (“Shaner”). Shaner, an owner-operator in the hospitality industry, owns or manages 40 hotel properties in 17 states and two countries with gross revenues in excess of $150.0 million. Shaner’s hotels comprise 16 different brands, and Shaner employs approximately 2,700 people.
 
The Portfolio. The collateral consists of two full service hotels, one limited service hotel and one extended stay hotel totaling 605 rooms located in Rhode Island, Florida, North Carolina and Minnesota, respectively. The portfolio is comprised of one unflagged Newport Harbor Hotel & Marina (133 rooms, 27.4% of UW NCF), and three properties which have Marriott flags: one Courtyard (150 rooms, 31.7% of UW NCF), one Marriott (189 rooms, 20.3% of UW NCF) and one Residence Inn (133 rooms, 20.6% of UW NCF).
 
Portfolio Summary
Property Location Rooms Year Built / Renovated Cut-off Date
Allocated
Loan Amount
 % of
Allocated
Loan
Amount
 Appraised Value Underwritten
Net Cash Flow
 
% of
 Underwritten
Net Cash Flow
Newport Harbor Hotel & Marina Newport, RI 133  1972 / NA $11,250,486  32.1 $36,000,000 $2,349,181  27.4
Courtyard - Jacksonville Jacksonville Beach, FL 150  1969 / 2013 10,306,136  29.4  33,000,000 2,724,679  31.7 
Durham Marriott City Center Durham, NC 189  1989 / 2008 6,878,324  19.7  22,000,000 1,744,104  20.3 
Residence Inn - Edina Edina, MN 133  1989 / 2012 6,565,054  18.8  21,000,000 1,764,330  20.6 
  Total   605    $35,000,000  100.0 $112,000,000 $8,582,295  100.0
 
Historical Occupancy, ADR and RevPAR(1)
 
  Occupancy ADR RevPAR 
 Property 2011 2012 2013 
TTM(2)
 2011 2012 2013 
TTM(2)  
 2011 2012  2013 
TTM(2)  
 
Newport Harbor Hotel & Marina 53.5% 54.3% 60.4% 62.1% $195.46 $203.12 $191.69 $207.74 $104.65 $110.39 $115.69 $128.92 
Courtyard - Jacksonville 75.4% 76.5% 82.1% 81.1% $139.05 $143.58 $146.62 $158.52 $104.82 $109.79 $120.34 $128.53 
Durham Marriott City Center 73.2% 76.3% 77.2% 73.1% $110.37 $119.25 $125.52 $129.30 $80.77 $91.01 $96.85 $94.48 
Residence Inn - Edina 82.0% 72.3% 82.6% 80.9% $100.12 $105.78 $109.92 $116.62 $82.13 $76.47 $90.76 $94.31 
Weighted Average(3)
 71.3% 70.6% 75.9% 74.4% $129.33 $136.93 $139.02 $148.56 $92.28 $96.73 $105.48 $110.46 
(1)  Based on operating statements provided by the borrowers.
(2)  TTM as of October 31, 2014.
(3)  Weighted by room count.
 
Historical Occupancy, ADR and RevPAR Penetration Rates(1)
  Occupancy ADR RevPAR
Property 2010 2011 2012 2013 
TTM(2)
 2010 2011 2012 2013 
TTM(2)
 2010 2011 2012  2013 
TTM(2)(3)
Newport Harbor Hotel & Marina 86.8% 88.7% 89.1% 100.4% 101.6% 111.2% 110.7% 111.8% 101.6% 104.8% 96.5% 98.2% 99.7% 102.0% 106.5% 
Courtyard - Jacksonville 123.0% 114.8% 113.5% 115.9% 106.9% 112.8% 116.9% 113.8% 109.9% 112.1% 138.8% 134.2% 129.1% 127.3% 119.9% 
Durham Marriott City Center 106.6% 116.4% 123.0% 127.4% 108.3% 127.0% 127.5% 133.7% 132.9% 130.3% 135.4% 148.3% 164.4% 169.3% 141.1% 
Residence Inn - Edina 115.4% 114.1% 102.1% 111.3% 107.7% 96.0% 97.4% 101.2% 104.0% 99.8% 110.8% 111.2% 103.4% 115.8% 107.5% 
Weighted Average(4)
 108.3% 109.4% 108.6% 115.1% 106.4% 113.2% 114.5% 116.8% 114.0% 113.5% 122.3% 125.6% 128.0% 132.3% 120.8% 
(1)  2010, 2011, 2012, 2013 and TTM Penetration Rates are per reports provided by a third party data provider.
(2)  TTM is as of October 31, 2014.
(3)  
TTM RevPAR Penetration Rate at Courtyard – Jacksonville was impacted by renovations of the bistro and the lobby at the hotel which resulted in rooms being offline during the first quarter of 2014. TTM RevPAR Penetration Rate at Durham Marriott City Center was impacted by the changing composition of its competitive set when the newly opened 128 room Hilton Garden Inn Durham University Medical Center was added in November 2013 TTM RevPAR Penetration Rate at Residence Inn - Edina was impacted by the changing composition of its competitive set when the 159 room Holiday Inn Express & Suites Bloomington West replaced the 209 room Park Plaza Bloomington in the first quarter of 2014.
(4)  Weighted by room count.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Shaner Hotels Portfolio
 
Newport Harbor Hotel & Marina (Newport, RI). The Newport Harbor Hotel & Marina is a four-story, full service hotel, situated on a 5.59 acre site located on the harbor off of state highway 138A in historic Newport, Rhode Island. The property was built in 1972 and is comprised of 133 guest rooms of various layouts. The Newport Harbor Hotel & Marina features a business center, fitness center, approximately 4,000 square feet of meeting space, two full service restaurants, an indoor pool, a spa and a 60-slip marina. Between 2008 and 2013, the loan sponsor invested approximately $883,000 (approximately $6,639 per room) in capital expenditures and has budgeted approximately $780,000 (approximately $5,894 per room) of capital expenditures for 2014 and 2015. The property is located in Newport, home of the Naval Undersea Warfare Center and a major United States Navy training center. The city of Newport attracts approximately 3.5 million tourists annually for the city’s colonial history, 1700’s and 1800’s architecture, arts, beaches, water attractions including sailing and yachting, shopping and dining. The city of Newport had an average household income of $57,690 and an estimated total population of 24,027 residents as of 2013 according to the U.S. Census Bureau. According to the appraisal, in 2013 the property generated approximately 55% of its room nights from leisure business, 40% from meeting and group business and 5% from commercial business. The primary competitive set for the property consists of six hotels, which range in size from 95 to 319 rooms. Per the appraisal, there are no new hotel projects under construction in the Newport market at this time.
 
Courtyard - Jacksonville (Jacksonville Beach, FL). The Courtyard - Jacksonville is a seven-story, limited service hotel situated on a 1.98 acre site, on North First Street near State Route A1A approximately 17 miles east of downtown Jacksonville in Jacksonville Beach, Florida. The property was built in 1969 and renovated in 2013 and is comprised of 150 guest rooms of various layouts. The Courtyard - Jacksonville features a lobby sundry shop, business center, outdoor swimming pool, guest self-service laundry facility, 70-seat Bistro Restaurant, onsite parking and approximately 2,500 square feet of meeting space. The property is located alongside approximately 7.33 square miles of Jacksonville Beach and approximately 16 miles east of EverBank Field, home to  the NFL’s Jacksonville Jaguars and major college football games. Jacksonville, the fourth largest city in Florida, attracts approximately 3.0 million tourists annually for the city’s beaches, golf courses, sporting venues and cultural sites. The surrounding area has over 1,220 holes of golf with more than 70 public and private courses including the PGA Tour Players Championship home, Ponte Vedra Golf Course, less than 10 miles north of the Courtyard – Jacksonville. Jacksonville Beach had a median household income of approximately $59,371 and an estimated total population of approximately 21,823 residents as of 2013 according to the U.S. Census Bureau. According to the appraisal, in 2013 the property generated approximately 50% of its room nights from commercial business, 40% from leisure business and 10% from meeting and group business. The primary competitive set for the property consists of eight hotels, which range in size from 51 to 193 rooms. Per the appraisal, there are no new hotel projects under construction in the Jacksonville Beach market at this time.
 
Durham Marriott City Center (Durham, NC). The Durham Marriott City Center is a 10-story, full service hotel situated on a 3.09 acre site in the heart of Durham, North Carolina. The property was built in 1989 and renovated in 2008 and is comprised of 189 guest rooms of various layouts situated next to Durham Convention Center and less than half a mile north of Highway 147. The Durham Marriott City Center features a restaurant, business center and fitness center. Between 2008 and 2013, the loan sponsor invested approximately $4.0 million (approximately $21,371 per room) in capital expenditures and has budgeted approximately $947,300 (approximately $5,012 per room) of capital expenditures for 2014 and 2015.  Durham, 30 miles northwest of Raleigh, North Carolina’s state capital, is home to Duke University, the University of North Carolina at Chapel Hill and the Research Triangle Park. The Durham Marriott City Center is located in the Durham metropolitan statistical area, which had a per capita income of $43,343 and an estimated total population of approximately 534,578 residents as of 2013 according to a report by Moody’s Analytics. According to the appraisal, in 2013 the property generated approximately 50% of its room nights from commercial business, 25% from leisure business and 25% from meeting and group business. The primary competitive set for the property consists of five hotels, which range in size from 128 to 224 rooms. Per the appraisal, there are four new hotel projects under construction in the Downtown Durham market at this time: a 54-room unflagged hotel, The Durham, which is scheduled to open in April 2015, a 125-room unflagged hotel, 21c Museum Hotel, which is scheduled to open in March 2015, a 134-room Aloft, which is scheduled to open in May 2015 and a 145-room Residence Inn expected to open in July 2015.
 
Residence Inn - Edina (Edina, MN). The Residence Inn - Edina is a seven-story, extended stay hotel situated on a 3.58 acre site approximately 11 miles south of Minneapolis in Edina, Minnesota. The property was built in 1989 and renovated in 2012 and is comprised of 133 guest rooms of various layouts. The Residence Inn - Edina features complimentary breakfast, guest laundry facility, a convenience shop, on-site Hertz Rental Car desk and approximately 874 square feet of meeting space. The property is located in Edina, 11 miles south of Minneapolis, the largest city in the state of Minnesota. According to the Twin Cities Business, 22 separate companies will invest a total of approximately $241.0 million and add 950 new jobs to the area.  The hotel also benefits from other demand generators in the area such as the Valley Fair Amusement Park, Como Park & Conservatory Zoo, Minnesota Zoo, Downtown St. Paul, Downtown Minneapolis, the State Capitol, shopping centers including Southdale Center, Yorktown, Centennial Lakes Plaza, the Galleria and 50th & France. The Minneapolis metropolitan statistical area had a median household income of approximately $51,233 and an estimated total population of approximately 3.4 million residents as of 2013 according to a report by Moody’s Analytics. According to the appraisal, in 2013 the property generated approximately 55% of its room nights from extended stay business, 25% from commercial business, 10% from meeting and group business and 10% from leisure business. The primary competitive set for the property consists of seven hotels, which range in size from 108 to 218 rooms. Per the appraisal, there is one new hotel project under construction in the Minneapolis market at this time: a 342-room J.W. Marriott at The Mall of America which is scheduled to open in August 2015.
 
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.
 
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Structural and Collateral Term Sheet JPMBB 2015-C27
 
Shaner Hotels Portfolio
 
Operating History and Underwritten Net Cash Flow
  2011 2012 2013 
TTM(1)
 Underwritten 
Per Room(2)
 
% of Total Revenue(3)
Occupancy 71.3% 70.6% 75.9% 74.4% 74.8%     
ADR $129.33 $136.93 $139.02 $148.56 $147.23     
RevPAR $92.28 $96.73 $105.48 $110.46 $110.02     
                
Room Revenue $20,378,291 $21,418,976 $23,291,859 $24,392,391 $24,296,632 $40,160 83.2
Food & Beverage Revenue 2,974,141 2,922,196 2,899,574 3,169,316 3,169,316 5,239 10.8 
Telephone Revenue 11,057 11,396 13,557 10,776 10,776 18 0.0 
Other Department Revenues 1,212,494 1,271,132 1,305,511 1,742,350 1,742,350 2,880 6.0 
Total Revenue $24,575,983 $25,623,700 $27,510,501 $29,314,833 $29,219,074 $48,296 100.0
                
Room Expense $5,144,522 $5,295,932 $5,705,339 $5,608,664 $5,600,181 $9,256 23.0
Food & Beverage Expense 2,704,908 2,518,843 2,421,945 2,453,590 2,453,590 4,056 77.4 
Telephone Expense 101,551 118,782 107,878 73,648 73,648 122 683.4 
Other Departmental Expenses 364,863 334,456 355,223 399,335 399,335 660 22.9 
Departmental Expenses $8,315,844 $8,268,013 $8,590,385 $8,535,237 $8,526,754 $14,094 29.2
                
Departmental Profit $16,260,139 $17,355,687 $18,920,116 $20,779,596 $20,692,320 $34,202 70.8
                
Operating Expenses $7,669,129 $7,205,230 $7,354,339 $7,839,780 $7,839,780 $12,958 26.8
Gross Operating Profit $8,591,010 $10,150,457 $11,565,777 $12,939,816 $12,852,540 $21,244 44.0
                
Management Fees(4)
 $737,279 $768,711 $824,551 $879,445 $876,572 $1,449 3.0
Property Taxes 1,011,912 1,099,416 1,206,053 1,275,484 1,276,577 2,110 4.4