Wednesday, October 22, 2014

Babcock & Brown: one mod wasn't good enough?

Transaction: CSMC 2006-C4
Property: Babcock & Brown FX 3
City/State: Various
Property Type: Multifamily
Balance: $90,037,030
Percentage of Deal: 2.78%
Original Maturity Date: January 11, 2016
MS: Berkadia Commercial Mortgage
SS: Situs Holdings, LLC
Reason for Transfer: Material default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: Yes
Previously Modified: Yes; Maturity extended to February 2017 and principal forgiveness
 
Also, the October remittance cycle was pretty ho-hum.  Biggest move I saw was 400mm in 60 day dq in MLMT 2007-C1 on two Ezra Beyman loans which had already benefited from a 70/30 A/B note mod, but apparently that was due to a late payment being applied by the servicer.  We shall see.

Monday, October 20, 2014

Stuy Town appraised at 3.5bln ... so what?


People are besides themselves that Stuy Town has been reappraised for $500mm more than the senior loan balance, as a potential sale approaches early 2015 (which is also not going to happen without a co-op conversion plan).  So what???  At least that amount has been advanced by the servicer, and they are at the front of the line to get repaid upon loan liquidation.

Friday, October 17, 2014

Another $200mm goes to special ... whoop whoop!

Transaction:
CSMSC 2007-C5
Property: Jericho Plaza I & II
City/State: Jericho, NY
Property Type: Office
Balance: $163,750,000  
Percentage of Deal: 8.65%
Maturity Date: June 11, 2017
MS: Berkadia Commercial Mortgage
SS: C-III Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: No
Previously Modified: No

 
Transaction: WBCMT 2005-17
Property: Great Wolf Resorts Pool
City/State: Traverse City, MI and Kansas City, KS
Property Type: Hotel
Balance: $38,992,732
Percentage of Deal: 2.65%
Maturity Date: January 11, 2015
MS: Wells Fargo
SS: Midland Loan Services
Reason for Transfer: Imminent Maturity Default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: Yes
Previously Modified: No
 

Wednesday, October 15, 2014

GSMS 2007-GG10: oops

" Per the Borrower, all three of the largest tenants will be vacating their space upon their lease expirations (American Express this month, International Paper in 2015, and UBS in 2018)."

Transaction:
GSMS 2007-GG10
Property: 400 Atlantic Street
City/State: Stamford, CT
Property Type: Office
Balance: $265,000,000  
Percentage of Deal: 5.26%
Maturity Date: June 6, 2017
MS: Wells Fargo
SS: CWCapital Asset Management, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: No
Previously Modified: No

For all of you avid CMBS fans, GG10 is supposed to be the benchmark issue ... super-senior spreads on A4 are considered the level where super-seniors should trade.  But, lo and behold, this deal is looking like a POS.  AJs are getting shorted interest, and with this transfer, is the AM not far behind?

Tuesday, October 14, 2014

MSC 2007-HQ13 top loan to be sold at an estimated 133% loss

http://www.crenews.com/top-stories.html


Pier at Caesars is under contract to be sold for $3mm.  Well, it had to get resolved at some point.  A colleague who had visited the place once said, "Everyone I saw there looked lost."

Two aspects of this property's story point to how the special servicer was negligent. 

First was when, soon after Hurricane Sandy, they issued a bulletin relaying that damage was minimal and tenants were being allowed back into their premises.  A few months later, Sandy-related damages of over $10mm were reported.  Huh? 

Second, as pointed out by Barclays, the special rejected a $25mm bid when the property was put up for sale on Auction.com about 3 years ago.  So, the special managed to subtract $7mm/year in value, yet will still collect their fees.

By the way, the HQ in HQ13 stands for "High Quality"