Skyline Appraisal Wrong... Again. *CORRECTION*

 The appraisal was correct this most recent time - the Trustee just didn't know about it and told Nom Nom the value must be wrong. Nom Nom posted a correction this afternoon, and also noted that

The discrepancy between the various reports, as well as the miscommunication between the master servicer and special servicer, highlights a major issue facing CMBS market participants. We encourage further efforts to improve in-place reporting and communication to limit data errors of this nature.

ORIGINAL POST BELOW:
Nomura noted in a research report today that the servicer submitted the wrong value in the remittance report for the appraisal on Skyline Portfolio (GECMC 2007-C1, JPMCC 2007-LDPX), for the second time. Actually, they go on to say that at one point they changed the first wrong value to the original appraised value (also wrong), so it's been wrong at least twice!

Kind of makes wonder what other kinds of mistakes are being made...

Nomura also noted their target loss severity is at 32% on the loan now, and they're looking for an A/B modification.

Skyline officially goes to Special

As Vornado reported in February they let the Skyline portfolio transfer to special servicing yesterday. They blame the drop in occupancy (74%) on BRAC, which has caused havoc in some submarkets (i.e. for Falls Church VA it has been negative, but in markets such as Huntsville, AL it's been positive). They also noted that another 157k sf could be lost in 2012 and a total of 408k sf could be lost by 2016, all related to BRAC.

h/t crabsofsteel

Macy's Closures

On the 4th day of every year, the executives at Macy's have a little ritual that involves a little slap and tickle in the board room followed by a ceremonial closure of stores sure to crush already underperforming malls and dash the hopes and dreams of adjacent in-line retailers. This year was no exception as they announced the closure of 5 Macy's and 4 Bloomingdales, all of which will have going out of business sales for 10 weeks before shuttering their doors forever. The List is below.

Macy's:
Parmatown Mall (aka Parmatown Shopping Center) in GMACC 2004-C2 is already in the hands of a receiver, and in late 2011 the receiver identified "critical life safety capital improvements" that were needed immediately. A March 2011 appraisal pegged the value at $29.7mm, substantially below the $62.4mm in outstanding senior mortgage.

Simon - West Ridge Mall is in BACM 2004-4 and represents 11.15% of the deal. The loan has been on and off the watchlist for low DSCR in 2011 and the most recently reported DSCR was 3Q 2011 @ 1.17x with 85% occupancy. Unfortunately Macy's is the premier anchor at the mall in terms of its location in relation to in-line retailers who will get crushed in the near-term; fortunately, Macy's is in the premier anchor at the mall and hopefully Simon can repopulate the dark space relatively quickly. The mall does have other problems - namely the other anchors, which are Sears (ugh), Burlington Coat Factory (never been in one, but what do they sell when it's not winter?), and JC Penney.
Although Hickory Hollow is not in a CMBS deal, there is an unanchored shopping center adjacent to the mall that is in BSCMS 2002-PBW1 that represents 0.24% of the deal. That property is not in default, but it's struggling.

Bloomingdale's:
Mall of America is the big one here, with Bloomingdale's accounting for 7.90% of the sf (expires 8/2012). The Mall also has a Macy's (9.99%). Other than this tenant, the mall has performed well with 3Q 2011 DSCR at 1.71x and occupancy at 91%. The loan is in three CMBS deals: CD 2007-CD4 (4.85%), GECMC 2007-C1 (3.11%(), and COMM 2006-C8 (10.82%).

White Flint does not have any direct exposure, but the Lord and Taylor pad within this mall is in the Lord & Taylor Portfolio in MLFT 2006-1. Just one more bullet for this property to absorb.

Mall	CMBS Deal	Exposure	Store	City	State
Mall of the Mainland			Macy's	Texas City	TX
Parmatown Mall	GMACC 2004-C2	8.67%	Macy's	Parma	OH
Hickory Hollow			Macy's	Antioch	TN
Laurel Mall			Macy's	Laurel	MD
West Ridge Mall	BACM 2004-4	11.15%	Macy's	Topeka	KS
Mall of America	Multiple	see comment	Bloomingdale	Bloomington	MN
Oakbrook Home and Furniture			Bloomingdale	Oak Brook	IL
White Flint			Bloomingdale	North Bethesda	MD
Perimeter Mall			Bloomingdale	Atlanta	GA

Uniqlo @ 666 Fifth Avenue

Retail Traffic Mag posted some pictures of the new digs for Uniqlo at their two Manhattan locations, including at 666 Fifth Avenue, here.

666 Fifth Avenue Modified

They managed to get 666 Fifth Avenue modified down into senior $1.1 billion senior note and the rest into a hope note, a new maturity date in 2019 (from 2017), and the rate dropped to 4.5% from 6.3% - all according to a Bloomberg article today.

In other news, Kushner was seen outside the Uniqlo store shopping for Christmas gifts for his new kid on CafePress.com

Another AJ takes a shortfall

CSMC 2008-C1 AJ was hit with a shortfall in September. I think this makes for the 4th AJ shortfall?

LBUBS 2006-C7, GECMC 2007-C1, JPMCC 2008-C2, and now CSMC 2008-C1 - am I missing any?

Four Seasons Resort Maui ($425mm pari pasu note) extended FIVE years and split

The maturity was extended from 1/1/2014 until 1/1/2019 and locked out until 1/1/2018. Then they cleaved the loan into an A ($350mm) and B ($75mm - 17.65%) note and added $10mm to reserves from new equity and an LOC for $25mm that is triggered if they BK.

Originally this was split $175 in GECMC 2007-C1 @ $175mm and CD 2007-CD4 @ $250mm; overal it is probably a positive for AJs in those deals.

666 Fifth Avenue Workout

The WSJ reports and every dealer on the street reports that Kushner has worked out a deal on 666 Fifth Avenue. They're going to take a 9.5% haircut back as a B note, Vornado is going to be a partner (improving the ownership) and the coupon is going to be reduced.

Boo, for IOs and deep credit, but huge positive for seniors and mezz portions of the CMBS deals: GECMC 2007-C1, WBCMT 2007-C31, and WBCMT 2007-C33. All of which I own some of and two of which I've had heavy reverse inquiry on the last few days.

*So far, I haven't seen any precise information on what the new coupon is or whether the special has formally confirmed the deal.

GECMC 2007-C1 Manhattan Portfolio ($192mm)

Barclays also noted today that Real Estate Alert highlighted Manhattan Portfolio, a $192mm loan in GECMC 2007-C1, was in a loan portfolio for sale by LNR where average losses were 55-60%.

It was a pretty shitty deal.

I wanna piece of dat...

Vornado purportedly is seeking a portion of 666 Fifth Avenue and is looking to spend 9 figures.

For more on 666 Fifth, read our old posts.

Americold 2010-A

Americold is financing their purchase of the VersaCold acquisition with a $600mm CMBS deal and $375mm of preferred equity. The loan is a 10-year (25 year am) collateralized by 50 fee-owned and 3 ground lease properties, 48.7% LTV, 16.6% debt yield, 2.34x DSCR, 4.85% rate (spread across 6 CMBS classes, floating/fixed, and subordinate).

Class	S/F/R	Size	WAL
A1	AAA/AAA/AAA	$158.68	5.52
A2FX	AAA/AAA/AAA	$148.83	10.08
A2FL	AAA/AAA/AAA	$87.50	10.08
B	AA/AA/AA	$60.00	10.08
C	A/A/A	$62.40	10.08
D	BBB-/BBB-/BBB-	$82.60	10.08

Americold also has two other large CMBS loans spread across multiple deals in pari passue notes - DB AmeriCold Portfolio is $350mm and is in CD 2007-CD4, JPMCC 2007-CB18, JPMCC 2007-LDPX, JPMCC 2007-CB19, and GECMC 2007-C1; AND THE CGM Americold Portfolio $325MM loan split between CD 2007-CD4 and CGCMT 2007-C6. The two legacy pari passu loans are performing fine looking at YE 2009 data with 2.34x DSCRs being reported on each. Also, they've been doing similarly structured CMBS loans since the late 90s with GS.

hat tip to "Anonymous" for pointing out this deal that I completely missed. Thanks!

Four Seasons Resort Maui defaulted

$425mm loan in two pari passu notes in GECMC 2007-C1 ($175mm) and CD 2007-CD4 ($250mm).

3Q 09 DSCR - 0.45x.

Matures 1/1/2014.

666 Fifth Avenue gone to special

666 Fifth Avenue transferred to special seeking modification:

"Since the 666 Fifth Avenue loan does not mature until 2017, the special servicer must believe it is in the best interest of the trust to work with the borrower on a loan modification rather than taking control of the property in a depressed market and declining fundamentals," Mancuso said.

This loan does not cover it's debt service by a long shot, despite being 86% occupied (although a portion of that space is dark and likely at lower leases then today's market - in the $60s for class A in midtown). They're current monthly shortfall amount, is about $2mm, not small, but they do have a $70mm reserve balance - 70/2 equals 35 months until it dies at the current pace. The reserve balance is thanks in part to selling half the equity in 2008 to Carlyle Group, and it's not listed in the reserve report from the servicer (which has got to make you a little uneasy).

The big issue is the Orrick space which accounted for something like 232k sq ft at $45 psf will roll at the end of this month and they are leaving ($10.4mm per year in revenue, roughly). They have no firm prospects, but have 3 proposals out currently asking $70/psf (~$16.2mm revenue). Again, midtown class A is more like $60 psf (~$13.9mm revenue).

Can the servicer even allow a modification if there really is 3 years worth of debt service still in there? Are there any automatic ASERs associated with this event?

The total loan is huge - to quote the article, Kushner defined the top with this deal. $1.215billion is split into 8 different A-notes: Pari Passu loans A-1 & A-2 Notes ($124.5mm each securitized in GECMC 2007-C1), A-3 & A-4 Notes ($197.5mm each, securitized in WBCMT 2007-C31), A-5, A-6 & A-7 Notes ($142.75M each, securitized In WBCMT 2007-C33), and an A-5 Note ($142.75mm). These deals were brought to you by Wachovia and BoA, if anyone is keeping track - blame Charlotte this time.

Mall of America bucks the trend

And they're doing it with promotional Twitter and Blog spots... David Bodamer reports

It's in 3 deals (interestingly, they show three different NCF numbers, two different payment statuses, and various occupancy and other stats - the pari passu thing isn't a problem at all ) within CMBS. We'll just pick the financials from one at random since they disagree - YE 2008 DSCR 1.47x, Occupancy 90%, anchors include Macy's (9.99% GLA, expires 8/2015), Bloomingdales (7.9%, exp 8/2012), and NOrdstrom's (7.61%, expires 8/2022).