Tuesday, May 19, 2015

CGCMT 2007-C6 ... not too bad a deal ... yet!

Transaction: CGCMT 2007-C6
Property:  Martin Village
City/State: Lacey, WA
Property Type: Retail
Balance: $20,697,123
Percentage of Deal: 0.55%
Maturity Date: May 6, 2017
MS: Midland Loan Services
SS: CWCapital Asset Management
Reason for Transfer: Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 1/16/15
Previously in Special Servicing: Yes
Previously Modified: No

Transaction: BSCMS 2005-PWR10
Property: 1001 Ross Avenue
City/State: Dallas, TX
Property Type: Multifamily
Balance: $27,212,486
Percentage of Deal: 1.81%
Maturity Date: November 1, 2015
MS: Wells Fargo
SS: Torchlight Loan Services, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 4/5/10
Previously in Special Servicing: Yes
Previously Modified: Yes; IO period extended

Monday, May 18, 2015

Biker Gang Shootout exposure

The Waco shootout occurred at Twin Peaks*, which is part of the complex that includes the Central Texas Marketplace, but is not actually part of the collateral as far as we can tell.

Central Texas Marketplace secures a $45.4mm loan in WBCMT 2007-C31. The loan has a 1.93x DSCR and was appraised for $78mm in 2003.Occupants include Belk, Kohl's, Sports Authority.

There is smaller loan, also named Central Texas Marketplace that is in an outparcel in the same complex, but on the opposite side from the shooting. It is collateral for a $2mm loan in GCCFC 2006-GG7, valued at $2.65mm in 2006, and a 2014 1.34x DSCR. Occupants include Squires, David's Bridal.

*Twin Peaks is a breastaurant that is in an outparcel that is not part of the collateral.


Wednesday, April 29, 2015

WBCMT 2005-C20 and JPMCC 2006-CB15: Loans Gone Wild!

Transaction: WBCMT 2005-C20
Property: NGP Rubicon GSA Pool
City/State: Various
Property Type: Mixed Use
Balance: $100,040,702
Percentage of Deal: 9.39%
Maturity Date: June 15, 2015
MS: Wells Fargo
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 9/11/13
Previously in Special Servicing: No
Previously Modified: No

Transaction: JPMC 2006-CIBC15
Property: Scottsdale Plaza Resort
City/State: Scottsdale, AZ
Property Type: Hotel
Balance: $57,155,285
Percentage of Deal: 4.04%
Maturity Date:  June 12, 2016
MS: Wells Fargo
SS: LNR Partners, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 2/6/15
Previously in Special Servicing: No
Previously Modified: No

Thursday, April 23, 2015

BACM 2007-5: shorting to class D and another 2% goes in the hopper

Transaction: BACM 2007-5
Property: Cypress I
City/State: Cypress, CA
Property Type: Office
Balance: $20,440,016
Percentage of Deal: 1.77%
Maturity Date: November 10, 2017
MS: KeyBank Real Estate Capital
SS: C-III Asset Management LLC
Reason for Transfer: Imminent Default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: No
Previously Modified: No

3/4/2015    WatchList Comments from Berkadia Shared Services II:     3/4/2015    The subject property is 144,963-sf office building that was built in 1987 and is located in Cypress, CA.    03/03/2015  The DSCR as per 12/31/2014 was at 0.87 which increased by 13% when compared to 12/31/2013 analysis where DSCR was at 0.77.  The DSCR has been below the threshold since 3Q12 due to fluctuations in occupancy and decrease in rental rates from $21.74 psf as of 06/30/2013 to $14.76 psf as of 12/31/2014.  Per borrower reports, occupancy as of 12/31/2014 was at 82%.  Per the borrower, concessions are offered in the form of tenant improvement allowance for new tenants $5 - $25 psf and one month free rent for every three years lease renewal.  The vacant spaces are advertised through email blasts, cold calling and brokers.  To increase the revenue, they have been signing new leasing team of DAUM a total of 10,300 sf of new space has been leased and a total of 7,700 sf of renewal has been signed.  The new best maintenance practice has been implemented to reduce overall operating costs.     3/4/2015    The borrower plans to improve cash flow by leasing the remaining vacancy and enforce the terms of the existing leases.  Per inspection report dated 01/15/2015, the property performance is average when compared to similar properties in the area.  The average market vacancy is 8% and the average rent paid is $18 psf to $24 psf.  The building is currently under new management and common areas have been upgraded.  Vacant units are lease ready and being marketed.  The overall trend in the area is stable.      110/06/2014  Per borrower reports, tenant Focus Diagnostics Inc, which occupies 59,437 sf or 41% of GLA, had a lease which expired on 03/31/2014.  The borrower will be contacted for leasing updates.      09/01/2014  Per borrower reports, occupancy as of 06/01/2014 was at 75%.  The borrower has been contacted for a property performance update.         08/04/2014  Per borrower reports, occupancy has increased from 71% as of rent roll dated 03/31/2013 to 76% as of rent roll dated 03/31/2014.     3/4/2015    The borrower will be contacted for property updates.         05/02/2014  The borrower has been contacted for a property performance update and awaiting a response.      11/06/2013  Per the borrower, Focus Diagnostics, Inc has extended its lease to 03/31/15.  The demand for the office property in the area is poor and there is an abundance of vacant space in the West Orange County, California market.  The occupancy and rental rates are down.  They are heavily discounting the first months rent on long term leases and are offering bonuses of up to $1.00 psf to brokers that bring in new tenants.  Lease rates are in line with the market rates and the overall sluggish economy has impacted the demand for space in the area.  Rental rates are approximately 40% off the peak rate and are stable.  The borrower expects that favorable property tax relief would improve cash flow.     3/4/2015    Occupancy and rental rates would improve as the overal

Friday, April 10, 2015

MLCFC 2006-4: A bad deal gets some good news

Park LaBrea apartments in L.A. paid off with $18MM of yield maintenance, giving someone at Freddie Mac a good day.  Shortfalls were replenished down to class G.  Still, there were $60MM in losses on two other crap loans, which fully wrote down class H.  Still not an AJ I would recommend to Grandma!