J.P. Morgan Trust appoints new special servicer for CMBS

In a recent filing with the Securities and Exchange Commission, J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-C6 announced a change in its special servicer. Effective today, Midland Loan Services has been replaced by Rialto Capital Advisors, LLC (RCA) in the role of special servicer for its commercial mortgage-backed securities (CMBS) pool.

The change was enacted under the pooling and servicing agreement dated April 1, 2012, which governs the servicing of the trust’s commercial mortgages. RCA, a Delaware limited liability company, will now be responsible for managing specially serviced mortgage loans and real estate-owned (REO) properties as per the agreement.

RCA, which has been active in special servicing of commercial mortgage loans since May 2012, holds significant industry ratings, including a “CSS2+” by Fitch and an “Above Average” by S&P. As of June 30, 2024, RCA was actively special servicing around 407 loans and REO properties with an unpaid principal balance of approximately $11.58 billion.

The firm is part of Rialto Management Group, LLC and is affiliated with Rialto Capital Management, LLC, an investment adviser registered with the SEC. Rialto Capital Management is notable for its extensive experience in underwriting and purchasing commercial mortgage-backed securities.

This transition is part of the trust’s regular operations and is not expected to impact the performance of the mortgage pool or the certificates. RCA’s appointment as special servicer does not involve any material changes to the policies or procedures used in servicing assets of this type.

The filing also details RCA’s robust operating policies, procedures, and strategies for managing delinquent loans and other borrower defaults aimed at maximizing asset value for certificateholders. RCA’s financial condition is reported to be stable, and it does not anticipate any adverse effects on its ability to fulfill its duties under the Pooling and Servicing Agreement.

The information in this article is based on a press release statement.

In other recent news, JPMBB Commercial Mortgage Securities Trust 2014-C21 has appointed Rialto Capital Advisors as the new special servicer for its commercial mortgage loans, following the removal of Midland Loan Services. This change is expected to bring a high level of expertise to the servicing of JPMBB’s mortgage loans due to RCA’s strong track record in the special servicing of commercial mortgage loans.

Lennar Corporation (NYSE:LEN) has initiated a spin-off of Millrose shares, with stockholders entitled to one share of Millrose Class A common stock for every two shares owned. However, the completion of the spin-off is subject to various conditions. In board-related news, Sidney Lapidus, a long-standing member of Lennar’s Board of Directors, will not seek re-election at the upcoming Annual Meeting of Stockholders, reducing the board size from eleven to ten members.

In terms of analyst notes, Lennar’s stock rating has seen both upgrades and downgrades. RBC Capital Markets upgraded the company’s stock from ’Underperform’ to ’Sector Perform’, while Wolfe Research downgraded the stock from ’Outperform’ to ’Peer Perform’, citing a projected sharp gross margin decline in 2025. These are recent developments shaping the trajectory of both JPMBB and Lennar Corporation.

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