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
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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.
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
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