Loan Modifications

Georgian Apartments (COMM 2007-C9 and CD 2007-CD5) - Sold out of bankruptcy. Final details not clear. I'll post an update.

ProLogis Portfolio (JPMCC 2007-LDP5 - $127mm) returned to the special servicer.

Forum in Carlsbad (WBCMT 2005-C20 - $85mm). This is a office (218k s.f.)/retail (47k s.f.) property in Carlsbad, CA that prepaid (maturity=7/2015) paying off the A5 and a portion of A6A, and resultig in a penalty of $3.4mm. The mezz lender had taken over by the Mezz Lender, LEM Mezz (aka Lubert-Adler).

Red Roof Inn - 48% Loss Severity

That could have been way worse.... Barclays reported today that this month's remit for CGCMT 2008-C7 reflected a 48% loss severity, hitting the J tranche on that deal.

See our prior thoughts here.




And, btw, I'm back - Apparently everything wasn't really 'better' in CRE-land like they told me...

Red Roof Inn Defaults

Accor (owner of Motel 6) sold RRI for $1.3 billion back in 2007 to Citigroup's Global Special Situations Group (GSSG), Westmont Hospitality Group ("Westmont"), and Westbridge Hospitality Fund, and partially financed that with 2 pari passu loans spread across 4 CMBS deals totaling $366 million. The rest of the senior mortgage ($655mm) didn't make it into a CMBS, and is likely on Citi or Bear's books, but it's not clear, and there is also some mezz debt ($164mm). That put's the new owners' equity at about 8 or 9 % of the purchase price. See the WSJ article for more.

The CMBS loans:
CGM RRI Hotel Portfolio - CD 2007-CD5 and CGCMT 2008-C7, 52 properties, $103mm

RRI Hotel Portfolio - BSCMS 2007-PW17 and BSCMS 2007-PW18, 79 properties, $263mm

UPDATE: Corrected the ownership structure.