Friday, February 11, 2011

Riverchase Galleria ARA 52%!

GGP-owned Riverchase Galleria, in BACM 2006-6, just got hit with a 52% appraisal reduction. The loan represents 12.69% of the deal, the largest.

Looks like they want to keep it and are just sticking it to the CMBS holders for a mod...

1 comment:

Concrete Jungle said...

Today Barclays put out some comments on the loan that were interesting. Notably:

-Valuation is 9 months old and too low (wonder why they waited 9 months for the ARA). Cap rate was over 11%. Barclay's pegs it closer to $235mm/$400psf.

-Due to JV (50% GGP, 50% who?) highly likely to turn the keys in when it ARDs later this year (yes, I made that up). Referenced the similar cases with Silver City JPMCC 2005-LDP4 and Montclair Plaza WBCMT 2006-C28.

-GGP lists this one in their "Other" category. Nobody wants be in that category - it's like Pat: Male/Female/Other.