Thursday, October 27, 2011

Government Property Advisors Portfolio (3.6% LBUBS 2006-C7) transfers to the Special

Happened last month, I just missed it. Saw it in DB's report today. That makes three of the top 10 loans in LBUBS 2006-C7 deal gone to the special over the last two months.

Monday, October 24, 2011

Epic Fail

Last week it was reported the first AAA CMBS in Europe took a principal writedown. However, keep in mind that the EPICP INDU deal was a single floating-rate loan on a portfolio of 119 properties in the UK. It originally matured on 4/20/2011, but the loan terms were modified to extend it to 4/20/2014. Still unable to survive, it ultimately 65% loss on the senior note and 100% on the junior and mezz pieces.


Barclays is growing its CMBS team - suck it CS!

Does HITC count as a source?
Barclays Capital announced several appointments to its Commercial Mortgage Backed Securities (CMBS) Finance business in the U.S.
These appointments accelerate the recent expansion of the firm’s CMBS origination capabilities...

Move along, everything is fine now - CPPI up 2.4% mom

Oct. 24 (Bloomberg) -- 
U.S. commercial property prices rose 2.4 percent in August, the fourth straight months of gains, according to Moody’s Investors Service. 
    The Moody’s/REAL Commercial Property Price Index is now 15 percent above its post-peak low in April, the company said in a statement today. Moody’s doesn’t see “significant” price gains in the near term as loan originations based on commercial- mortgage backed securities slow and demand for vacant space continues to “languish,” the company said.

Wednesday, October 19, 2011

The Belnord gets a $93.5mm appraisal reduction

Special Servicer's Survival Guide: 201

Anon posted a link to a summary from a recent conference with some interesting highlights. You should really click the link, but I'll hit some of the high points of their highlights:

  • More than 2/3rds of CMBS loans coming due have been extended and can be extended no longer due to PSA limitations (I'll need to double check that one...) -Steve Van
  • Flags have been laid back enforcing brand standards on their properties, but it's been three years and they're running out of patience. -Steve Van
  • Pace of workouts are exceeding the pace of transfers to special servicing and he expects to work through the backlog over the next 3 - 5 years. -Clark Rogers, Keybank and echoed by Michael O'Hanlon, Berkadia
  • The lack of financing since August is having a noticeable impact on maturing loans. Expects to see a big uptick in Large Loan Floaters hitting their last extension date with no possibility of refinancing. Expects massive defaults in LL Floaters. -O'Hanlon
  • Big demand for Hotel product coming out of Large Loan Floaters. -Rogers
  • Specials who kicked the can down the road look like geniuses today? (not sure I would call the specials geniuses).
  • Still don't expect a flood of distressed loans. 
  • General agreement that nothing has changed - fundamentals have stayed flat, unemployment hasn't improved, recession never really stopped...
Thanks Anon.

Monday, October 17, 2011

GGP refinances Northbrook Court (NOT in a CMBS)

per Bloomberg.

That brings the total to $996mm in GGP loans refinanced the last few weeks, and that looks like it for the rest of this year. Mathrani said "We have accomplished our 2011 goals and are now focused on 2012 financing opportunities."

Friday, October 14, 2011

Credit Suisse Update

Although they're cutting all the bankers, the trading desk isn't impacted.

MetLife and NY State Teachers fund 3 GGP Malls

CMAlert noted that the two lenders funded three notes:

Natick Mall - $450mm ($250 MetLife, $200 NY Teachers)
Galleria at Tyler - $200mm (just MetLife); WBCMT 2006-C29
First Colony Mall- $185mm Metlife; MLCFC 2006-4

Innkeepers reach tentative deal with Cerberus and Chatham

WSJ and Nomura reporting ~$1 billion. Nomura notes this would result in an 18% loss severity - not too shabby in my opinion.

Thursday, October 13, 2011

GGP Victoria Ward Forgoes Extension (COMM 2006-C8)

Barclays highlighted this earlier in the week. Although Victoria Ward (Honolulu Retail) was modified during the GGP bankruptcy to move it's maturity date from this month to 2016, it paid off this month as originally scheduled. The modification also switched the loan over to an amortizing payment, from IO, and will definitely shorten the front-pays with a $86.5mm outstanding balance.

A2B is the current pay with $244mm outstanding. It was on a list on 9/22, but not sure where it traded.

Colony Square and Midtown Plaza transferred to Special (LBUBS 2006-C7 - $181mm combined)

Both Tishman-owned Atlanta GA office loans were slated to mature this month. Colony Square has a 0.81x DSCR and Midtown Plaza has a 0.54x DSCR (NCF DSCRs as of 1Q 11).

h/t Fitch and Barclays

Monday, October 10, 2011

Cerberus and Innkeepers USA Trust reach a settlement - lower execution price

From Bloomberg:

The settlement includes a reduction in the price New York- based Cerberus and Chatham Lodging Trust will pay to acquire Innkeepers, said the people, who didn’t disclose the new price and asked not to be named because the talks are private. The accord, reached after a weekend of negotiations, isn’t final and could still fall apart, said the people, and a final agreement is subject to approval by the U.S. bankruptcy court judge overseeing Innkeepers’ restructuring.

Friday, October 7, 2011

It's the Frenchies' fault

Barron's blames the French banks for the drop off in CMBS AAA prices. Using Barron's number of $9.4billion in CMBS holdings by French banks, though, it only represents about 1.3% of the total market.

However, despite their 3rd grade level attempt to blame the French, and as the proud parent of a 3rd grader, I am fully comfortable using this opportunity to share this 3rd grader's report that I found online.