Friday, February 13, 2015

Profiles in Garbage: LBUBS 2007-C6

If you are a serious CMBS investor, it should have long ago dawned on you that there are 
certain deals/shelves that just flat out suck.  LBUBS is one of them, MLCFC is another, 
CSMC ranks right up there.  To be fair, there are other deals such as MSC 2008-T29 which 
would make you look like a genius if you bought them early on.

Here is today's proof of the pudding.

Transaction: LBUBS 2007-C6
Property: Greensboro Park
City/State: McLean, VA
Property Type: Office
Balance: $108,926,767
Percentage of Deal: 5.85%
Maturity Date: June 11, 2015
MS: Wells Fargo
SS: LNR Partners
Reason for Transfer: Imminent Balloon Payment Default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: Yes
Previously Modified: Yes; Maturity Date Extension


crabsofsteel said...

thanks to our friends at Barcap:

$109mn DC office modified with second extension (LBUBS 2007-C6)

The $108.9mn Greensboro Park office property located in McLean, Virginia, has been modified
with a second extension, according to trustee remittance. The loan represents 5.9% of LBUBS
2007-C6 and was last transferred into special servicing in February for imminent default. The loan was previously extended back in 2012 with a three-year extension. The loan has
underperformed in recent years, with DSCR NOI measuring 0.85x in the first three quarters of 2014 and 64% occupancy. This can be compared with the 0.94x DSCR NOI and 74%
occupancy results from 2013. No immediate lease rollover is expected from the top tenants,
as the closest lease rollover date is in 2018 for BB&T Bank, which occupies 7.24% of the
leasable areas; this should give the borrower an opportunity to lease up the property.
According to special servicer LNR’s commentary, a new modification has granted a two-year
extension, with the option for one additional year after the end of the extension. The borrower has made a $2mn paydown funded from the liquidation of an existing $7.5mn letter of credit. The remaining $5.5mn will be used as a leasing and capital expenditure reserve. In addition, the existing guarantor will provide an additional $15mn payment guarantee, subject to reduction based on TILC and capital expenditure dollars spent, floored at $5mn. The modification should help extend the A4 tranche, which is currently the front cash flow.

crabsofsteel said...

As of today, 10/13/15, there's more!

Transaction: LBUBS 2007-C6
Property: Dolce Norwalk
City/State: Norwalk, CT
Property Type: Hotel
Balance: $23,082,133
Percentage of Deal: 1.34%
Modified Maturity Date: April 15, 2016
MS: Wells Fargo
SS: LNR Partners, Inc.
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 8/12/13
Previously in Special Servicing: Yes
Previously Modified: Yes; Extended Maturity Date until April 2016