Morningstar DBRS Confirms Credit Ratings on All Classes of J.P. Morgan Chase Commercial Mortgage Securities Trust 2019-OSB

DBRS Limited (Morningstar DBRS) confirmed its credit ratings on all classes of Commercial Mortgage Pass-Through Certificates issued by J.P. Morgan Chase Commercial Mortgage Securities Trust 2019-OSB as follows:

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

All trends are Stable.

The credit rating confirmations and Stable trends reflect the collateral's continued strong performance since issuance as it continues to benefit from its 100% occupancy rate, healthy submarket dynamics, and strong tenancy, a majority of which comprises investment-grade tenants on long-term leases that have invested heavily in their respective spaces.

Whole-loan proceeds of $575.0 million, along with $581.9 million of cash equity, were primarily used to finance the sponsors' $1.15 billion acquisition of the collateral from the Massachusetts Institute of Technology's (MIT), which, along with its 5.0% interest in the collateral, retains ownership of the underlying ground. The underlying 10-year, interest-only (IO) loan is a pari passu portion of a first mortgage loan secured by the borrower's leasehold interest in Osborn Triangle, a collection of three Class A office and laboratory buildings totaling 676,947 square feet (sf) and a 650-space parking garage. The three buildings, known as 610 Main Street North (278,738 sf), One Portland Street (229,330 sf), and 700 Main Street (168,879 sf), are in the East Cambridge/Kendall Square submarket of Boston, all clustered directly across from MIT's campus. Sponsorship for the loan is a joint venture between Harrison Street Real Estate Capital LLC (94.5%); The Bulfinch Companies, Inc. (0.5%); and MIT (5.0%).

The collateral continues to report 100% occupancy as of December 2024. Pfizer Inc., an investment-grade tenant, comprises 73.8% of the total net rentable area (NRA) on leases scheduled to expire in 2031 and 2034. Approximately half of its space is subleased to life science tenants including CRISPR Therapeutics AG, Casebia Therapeutics LLP, and KSQ Therapeutics, Inc. The second and third largest tenants are Novartis (14.7% of NRA, lease expires August 2029) and Lab Central Inc. (10.2% of NRA, lease expires March 2037), both of which signed recent lease extensions at the subject. The collateral is expected to continue to report strong occupancy through the term of the loan given the long-term leases for its three largest tenants and its location within the Cambridge submarket, one of the most desirable submarkets for lab space nationally with a dominant presence of life sciences and biotechnology companies.

According to the YE2024 financials, net cash flow (NCF) increased to $61.6 million from $52.3 million at YE2023, reflecting a debt service coverage ratio of 2.77 times. Morningstar DBRS' previous credit rating action in April 2024 included an update to the asset's valuation. For more information regarding the approach and analysis conducted, please refer to the press release titled "Morningstar DBRS Takes Rating Actions on North American Single-Asset/Single-Borrower Transactions Backed by Office Properties," published on April 15, 2024. For purposes of this credit rating action, Morningstar DBRS maintained the valuation approach from the April 2024 review, which was based on a capitalization rate of 6.5% applied to the Morningstar DBRS NCF of $44.7 million. Morningstar DBRS also maintained positive qualitative adjustments to the loan-to-value ratio (LTV)-sizing benchmarks totaling 8.0% to reflect the subject property's quality, stable tenancy, and its location within a strong submarket. The Morningstar DBRS concluded value of $687.2 million represents a variance of -40.7% from the issuance appraised value of $1.16 billion million and implies a whole-loan LTV of 83.7%.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) at https://dbrs.morningstar.com/research/437781.

Classes X-A and X-B are 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 credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

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

The principal methodology is North American CMBS Surveillance Methodology (December 13, 2024) https://dbrs.morningstar.com/research/444617.

Other methodologies referenced in this transaction are listed at the end of this press release.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info-DBRS@morningstar.com.

The credit ratings were initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for these credit rating actions.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with these credit rating actions.

These are solicited credit ratings.

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

DBRS Limited
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Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- North American Single-Asset/Single-Borrower Ratings Methodology (December 13, 2024)
https://dbrs.morningstar.com/research/444612
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024)
https://dbrs.morningstar.com/research/439702
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024)
https://dbrs.morningstar.com/research/438283
-- Legal Criteria for U.S. Structured Finance (December 3, 2024)
https://dbrs.morningstar.com/research/444064

A description of how Morningstar DBRS analyzes structured finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/417279.

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.