Two big loans missed part of their October mortgage payments, resulting in a 20% delinquency rate on a rather small CMBS deal that was the worst of 2008. It wasn't a surprise that these particular loans failed, but rather that it happened so quickly (even that was just a little surprising). The other big surprise is how badly it affected the market - the head of CMBS research from Citi was on CNBC last week for pete's sake.
Commercial Mortgage Alert reported on Friday that the owner's of the two Westin hotels were attempting to raise capital and cure the default, but they also have mezz debt on the properties and the senior mezz holders (Ashford Capital) have stated they will cure it within 60 days and take over the properties if the owner is unsuccessful. So the mechanisms in place are working, and the loan will likely cure for the time being. The Arizona Westin still seems like a weak asset to me, but maybe it will right itself.
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