Press Release

DBRS Morningstar Confirms All Classes of Benchmark 2019-B11 Commercial Mortgage Trust, Removes Four Classes from Under Review with Negative Implications

CMBS
November 24, 2020

DBRS, Inc. (DBRS Morningstar) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2019-B11 issued by Benchmark 2019-B11 Commercial Mortgage Trust 2019-B11 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (low) (sf)
-- Class G at B (sf)
-- Class X-A at AAA (sf)
-- Class X-B at A (sf)
-- Class X-D at BBB (sf)
-- Class X-F at BB (sf)
-- Class X-G at B (high)

Classes F, G, X-F, and X-G were removed from Under Review with Negative Implications where they were placed on August 6, 2020. The trend on these classes and all others is Stable. Although all classes have a Stable trend, there are continued performance challenges for the underlying collateral, many of which have been driven by the impact of the Coronavirus Disease (COVID-19) pandemic. In addition to loans representing 7.5% of the pool being in special servicing as of the October 2020 remittance, DBRS Morningstar also notes that the pool has a moderate concentration of hospitality and retail properties, representing 14.9% and 6.0% of the pool balance, respectively. These property types have been the most severely affected by the initial impact of the coronavirus pandemic and, as such, those concentrations are suggestive of slightly increased risks for the pool, particularly at the lower rating categories, since issuance.

As of the October 2020 remittance, all of the original 40 loans remain in the pool and there has been negligible amortization since issuance. Five loans, representing 7.5% of the current pool balance, are in special servicing, although none of the 10 largest loans in the pool are in special servicing. The largest loan in special servicing is Greenleaf at Howell, a 227,045 square foot (sf) anchored retail center located in Howell, New Jersey. The collateral property’s occupancy rate has remained high at 99.4% as of June 30, 2020. Additionally, the collateral property’s cash flow has remained relatively healthy, with a year to date (YTD) Q2 2020 debt service coverage ratio (DSCR) of 1.35 times (x), as reported by the servicer. Although the collateral property has performed adequately since issuance, especially given the current economic environment, the tenant profile is at risk of depressed performance due to the pandemic. Among these risky tenants are Xscape Theatres, LA Fitness, and Climbzone Howell. The loan was transferred to the special servicer in September 2020 for imminent monetary default related to the pandemic. The special servicer is currently in discussions with the borrower regarding the next steps toward a resolution. Given the risks surrounding the collateral property, this loan was analyzed with elevated probability of default for this review.

The other four loans in special servicing are backed by full-service hotel, anchored retail, and unanchored retail property types. The second-largest loan in special servicing is Hilton Melbourne (Prospectus ID#17, 2.2% of the current pool balance), which transferred to special servicing in March 2020. The loan is currently 60 to 89 days delinquent. The collateral is a 238-key full-service hotel located in Melbourne, Florida. The loan has not reported any updated financials in 2020, however was performing well in 2019 as the loan reported a YE2019 DSCR of 2.50x, according to the servicer. The special servicer reports that it is in the process of reviewing a forbearance request submitted by the borrower as well as the borrower’s request for pandemic-related relief.

According to the October 2020 remittance, five loans are on the servicer’s watchlist, representing 21.8% of the current pool balance. Of these five loans, four are in the top 10, including 59 Maiden Lane (Prospectus ID#3, 6.8% of the current pool balance), SWVP Portfolio (Prospectus ID#5, 4.6% of the current pool balance), Arbor Hotel Portfolio (Prospectus ID#6, 4.6% of the current pool balance), and Green Hills Corporate Center (Prospectus ID#7, 4.6% of the current pool balance). The SWVP Portfolio is secured by a portfolio of four full-service hotels located in New Orleans; Durham, North Carolina; Charlotte, North Carolina; and Sunrise, Florida. The largest property in the portfolio is the Intercontinental New Orleans, which has seen particular performance declines in 2020 related to the pandemic environment. The collateral property has been significantly outperformed by the rest of the submarket according to a June 30, 2020, Smith Travel Research report. In the YTD Q2 2020 reporting, the collateral property achieved the revenue per available room (RevPAR) of $62.57, which is significantly lower than the competitive set RevPAR of $76.60 in the same period. The DoubleTree Durham also experienced similar performance issues when compared with its competitive set, as the collateral property achieved a RevPAR of $43.49 in the first two quarters of 2020 and the competitive set achieved a RevPAR of $49.02, while the DoubleTree Charlotte and DoubleTree Sunrise have performed relatively in line with the competitive set. Because of its decline in performance compared with the rest of the market, this loan was analyzed with an elevated probability of default for this review.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Classes X-A, X-B, X-D, X-F, and X-G are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

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

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID#5 – SWVP Portfolio (4.6% of the pool)
-- Prospectus ID#15 – Greenleaf at Howell (2.4% of the pool)

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

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

The principal methodology is North American CMBS Surveillance Methodology (March 6, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on dbrsmorningstar.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905

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

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

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

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602 USA
Tel. +1 312 696-6293

Ratings

  • Date IssuedDebt RatedRatingTrendActionAttributesi
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class A-1AAA (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class A-2AAA (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class A-3AAA (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class A-4AAA (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class A-5AAA (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class A-SAAA (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class A-SBAAA (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class X-AAAA (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class BAA (low) (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class X-BA (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class CA (low) (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class DBBB (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class X-DBBB (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class EBBB (low) (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class X-FBB (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class FBB (low) (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class X-GB (high) (sf)StbConfirmed
    US
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2019-B11, Class GB (sf)StbConfirmed
    US
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Benchmark 2019-B11 Commercial Mortgage Trust
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AA (low) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:A (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:A (low) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:BBB (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:BBB (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:BBB (low) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:BB (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:BB (low) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:B (high) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:B (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • US = Lead Analyst based in USA
  • CA = Lead Analyst based in Canada
  • EU = Lead Analyst based in EU
  • UK = Lead Analyst based in UK
  • E = EU endorsed
  • U = UK endorsed
  • Unsolicited Participating With Access
  • Unsolicited Participating Without Access
  • Unsolicited Non-participating

ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.