Bank of America Plaza default

Nothing unexpected here. My accountant is actually in this building and has been providing on-the-ground reporting as E&Y vacated, and now BOA is reducing its footprint from 29.9% to 13% of NRA. I get to visit it a fair amount when I fly down to play a little game she calls "Taxes", which I always lose even when I win.

The good news is that it has $4.3mm in reserves, its covering at 1.09x, and they've engaged Cushman & Wakefield to lease up the 21% of currently vacant space. The better news is that despite this being Atlanta Office, it is, according to the Bloomberg story out today, the tallest building in the Southeast - someone is going to snap this up.

The bad news is that it is 80% LTV before the Mezzanine loan, and the mezz holder (Petra Mortgage Capital) has tried and failed to auction off its interest.