Friday, March 4, 2011

I'm going to set up a Girl Scout Cookie stand at One Park Ave

Looks like One Park Avenue is likely to pay down as early as next month according to stories in CMAlert and a report out from Barclays today. The $375mm loan is in BACM 2007-2 (6.01%) and BACM 2007-3 (5.36%), and Barclays thinks the defeasance (BB shows it as having 9 months of lockout? maybe that is incorrect) will get waived and it will pay off.

In other words, you might not want to buy the BACM 2007-2 A1s offered at 101-01 today (even though they got lowered from 101-02...), and you probably didn't get that great a deal if you bought those BACM 2007-3 A2 last week at 104

According to Barclays, the recap included a $250mm 5year from MS for the next CMBS deal, $180mm equity from Vornado for 95% of the deal, and Murray Hills is retaining the remainder 5%. The total cash involved here is $430mm. This is not a clean trophy property sale, though. The senior mezzanine holder, RXR owned $75.4mm (M1), was pressing hard for action including potential foreclosure. The $50.4mm residual was held by Citi and the $32.6mm M2 was held by BOA for a total debt stack of $483.4mm. BCG expects the M2 will take a substantial hit - my math says the M1 is going to take a pretty good hit too, and once we start adding in fees it may get worse.

I've really just been looking for an excuse to use this picture - those girl scouts are hard core and you don't want to mess with them.

1 comment:

crabsofsteel said...

you betcha that Bloomberg is incorrect showing 9 months of lockout. It can be defeased out of the pool for 9 months, after which there's a 4 month open period where the loan can be paid off without penalty. I find a lot of other wrong stuff on there, especially servicer comments and interest paid on CDOs.