Thursday, June 3, 2010

More Servicers getting the boot

Bloomberg reports:

Guggenheim Structured Real Estate replaced Bank of America Corp. as the servicer...

The commercial mortgage fund operator, a unit of Guggenheim Partners LLC which has more than $100 billion in assets under supervision, took over management of the $284.5 million loan two weeks ago, according to people familiar with the transaction. The New York-based firm joins Green Loan Services LLC, a unit of SL Green Realty Corp., in using its position as a junior debt holder to name itself to oversee troubled loans.

...Debt holders have replaced special servicers 35 times this year, compared with 44 in all of 2009, according to Moody’s Investors Service.
The MeriStar debt, composed of 18 hotel properties, financed Blackstone Group’s acquisition of the hospitality firm in 2006. Blackstone is trying to extend the maturity of the debt, said one of the people, who declined to be identified because the information isn’t public.
Guggenheim Structured Real Estate, based in New York, owns a junior slice of Blackstone’s debt sold as part of a $1.8 billion commercial-mortgage backed bond in March 2007. Blackstone owes an additional $249.1 million in mezzanine debt, the person said.
Green, which became a special servicer of commercial mortgage-backed securities loans in May 2009, is the junior lender on about half of its $1.3 billion of its assignments on mortgages bundled into bonds, said Andrew Falk, senior director of the unit of New York’s biggest landlord. Green Loan Services has completed $4.8 billion in loan workouts and restructurings during the past 10 years, he said in an e-mail.

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