Transactions: LBUBS 2007-C2 ($337.6 million) & LBUBS 2007-C7 ($49.6 million) Property: Sears Tower (Willis Tower) City/State: Chicago, IL Property Type: Office Balance: $498,885,497 Senior CMBS Debt* ($774,389,429 Total Loan Balance) *Also includes loan pieces in LBUBS 2008-C1 and JPMCC 2013-WT (Not Rated by Fitch) MS: Wells Fargo SS: CWCapital Asset Management Reason for Transfer: Imminent Monetary Default (Borrower requested a loan modification) According to the servicer, the borrower anticipates significant capital costs going forward in order to secure additional new leases. Occupancy has improved to 83.8% as of March 2014, from 75% in December 2012.
One of the co-owners, Joe Moinian, is known for asking for loan modifications (e.g. The Renaissance). Another co-owner, Joseph Chetrit, has quite a reputation in CRE circles.
It is interesting that LBUBS 2007-C2 AJ is already a first-loss piece (thanks to Orix dumping all the loans they serviced in one single month). An A/B note modification could make it the first zombie AJ!