Tuesday, July 28, 2015

JPMCC 2005-LDP5: 4.2% goes back to the special for another try

Transaction: JPMC 2005-LDP5
Property: Atlantic Development Portfolio
City/State: Various Cities, NJ
Property Type:  Office
Balance: $80,313,911
Percentage of Deal: 4.15%
Maturity Date: December 5, 2015
MS: Berkadia Commercial Mortgage
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 7/11/11
Previously in Special Servicing: No
Previously Modified: Yes

The subject loan consists of five office buildings and three industrial complex with a total of 890,218 sf built in 1979, 1987,1981,2000, 1987, 1986, and 1985 respectively located in Warren and Somerset, NJ.          04/13/2015  Per borrower reports, occupancy as of 02/17/2015 was at 72%.  Occupancy decreased by 2% when compared with 09/30/2014 rent roll.      12/11/2014  Per borrower reports, occupancy as of 09/30/2014 was at 74%.        11/12/2014  The borrower has been contacted for property performance updates.          09/11/2014  The 2Q 2014 financials have been received.  The borrower will be contacted for property performance and leasing updates.          08/13/2014  This loan consists of seven properties, the consolidated DSCR as of 03/31/2014 was at 1.03.  Property # 1 The DSCR per the 03/31/2014 analysis was at 1.79 and was inline when compared with 03/31/2013 analysis DSCR which was at 1.74.  No major variances were observed within the line items.

Wednesday, July 22, 2015

MLCFC 2007-9: more profiles in garbage

Transaction: ML-CFC 2007-9                
Property: 534 Broad Hollow Road
City/State: Melville, NY
Property Type: Office
Balance: $21,421,052
Percentage of Deal: 1.29%
Maturity Date: July 6, 2017
MS: Wells Fargo
SS: LNR Partners, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: No
Previously in Special Servicing: No
Previously Modified: No

Tuesday, July 21, 2015

BSCMS 2006-PWR13: 40% occupancy can be a problem

Transaction: BSCM 2006-PWR13
Property: Brandywine Mixed Use
City/State: Wilmington, DE
Property Type: Retail
Balance: $26,250,000
Percentage of Deal: 1.23%
Maturity Date: July 1, 2016
MS: Wells Fargo
SS: Situs Holdings, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 12/4/14
Previously in Special Servicing: No
Previously Modified: No

Here's the watchlist comment:

Subject property is a 165,575 sf mix-use retail property located in Wilmington, DE built in 1997. UW NCF DSCR was 1.31x with 96.10% occupancy.

6/12/2015 As of June 1, 2015, the property was 40% occupancy. Per Borrower's contact, the property is being marketed through Acadia's internal leasing group and listed the vacancies with local representation equipped for office and non-conforming, non-retail uses.  Borrower is considering not only single users but also smaller format tenants in the 14,000 - 25,000 square foot range which would require the space to be divided. Borrower blasts this to over 7,000 contacts internally and externally.  They do email marketing to a focused local list of brokers as well as to a wider group of national tenants as well as marketing during International Council of Shopping Center (ICSC) events.

6/5/2015 1Q 2015 NCF DSCR = 1.25x at 86% occupancy. Reached out to Borrower for updates on the vacancies. Tenant Access Group should have vacated at lease expiration and if it hasn't been leased up, the properties occupancy may have declinded to 40%. Also, requested from the Borrower to update their rent roll as it still includes the Halloween Store that no longer occupies the premises.

3/5/2015 YE 2014 NCF DSCR = 1.41x at 86% occupancy. Borrower's contact indicates the Halloween store remains vacant and the tenant Access Group that expires in May will not be renewing. They are actively marketing both spaces, but not prospects at this time. Will keep us updated if there are movements.

12/4/2014 3Q 2014 NCF DSCR = 1.40x at 98% occupancy. Largest tenant Access Group occupies 76,458 sf (46% NRA)  to expire 5/31/2015. Reached out to Borrower's contact for leasing updates along with tenant, Halloween City who was only seasonal. What are the marketing plans for the vacancies. Awaiting for response.

Friday, July 17, 2015

GSMS 2006-GG8 & CD 2006-CD3: Fitch is messing with your mind

Transaction: GSMS 2006-GG8 & CD 2006-CD3
Property: Fair Lakes Office Park
City/State: Fairfax, VA
Property Type: Office
Balance: $259,000,000 ($116,550,000 rated by Fitch)
Percentage of Deal: 4.7% & 7.3%
Maturity Date: August 1, 2016
MS: Wells Fargo/Berkadia
SS: C-III Asset Management LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: No
Previously in Special Servicing: No
Previously Modified: No

Fitch sends out a weekly comment about the state of the CMBS market which includes any special servicing transfers of loans over $20MM.  However, in their rush to get out the door on Fridays, they send it in the morning.  This transfer to special servicing was reported as usual in the afternoon.  One more reason to love Fitch!

Tuesday, July 14, 2015

MLCFC 2007-7: class AJ takes a 20 point writedown

It's not every month that a deal takes $65MM in losses, but when it's time to step up to the plate, you can be sure that MLCFC will be there or pretty close by.  I can't wait to hear about which hedge fund idiot buys class AJ because now the deal is "clean"!