Lending Partner Sought (BBW) by WSJ Bank (SW/M)

The WSJ reports that more banks are looking for lending partners to shorten the amount of time they have to warehouse loans before securitizations.


If only they had a good index to hedge that risk...

Inland Raising $1.8bln for a diverse REIT?

I dunno, this seems like a bad idea. REIT investors don't like diversity across property types.

CRENews reports a sharp increase in lending rates

I'm not a subscriber and thus can only see the little snippet on the front page. If more of you would click all the high quality ads in the sidebar I could afford luxuries like CRENews.com, but until then we all suffer!

711 Third Avenue for sale

This SL Green owned office property has a $120mm senior mortgage in MLMT 2005-MCP1 and they are expecting $200+mm in the sale.

I heard some update on them on Bloomberg News last week about their ability to maintain their "high" dividend... I must have heard wrong, its pathetic at <1%.

Espirit Closing 100% of US stores

Retail Traffic Court highlighted the news. Stores are being closed domestically, in Spain, Denmark and Sweden.

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).

Five Mile takes another bite at Innkeepers USA

The WSJ reports:

Five Mile submitted a preliminary nonbinding offer for Innkeepers earlier this week to acquire its 64 remaining hotels, the people said. The offer is slightly higher than an opening bid Five Mile and Lehman made for Innkeepers in a May bankruptcy-court auction. Since then, the two sides have been negotiating terms. The deal consists mostly of assumed debt and converting debt to equity, the people said.

Under the broad contours of the proposed deal, Five Mile would assume a substantial portion of Innkeepers's senior mortgage debt and, along with investment partners, make certain cash payments to creditors.

Those investment partners are Starwood Capital Group and Hersha Hospitality Management, which both would end up owning a piece of Innkeepers, people familiar with the matter said. Hersha, a hotel-management company partially owned by Starwood, would manage the properties for the ownership group, one of the people said.

Lehman would convert a chunk of its mortgage debt to ownership stakes in Innkeepers. Some of the remaining mortgage debt would be paid back, people familiar with the matter said.

Overall, the assumed debt, conversion of Lehman debt to equity and other cash contributions bring the value of the deal to more than $1 billion, the people said.

Timeline:

* Innkeepers Keeps Chapter 11 Control 9/14/2011
* Innkeepers, Cerberus Spar 9/1/2011
* Innkeepers Sues Cerberus 8/30/2011
* Innkeepers in Escrow Fight 8/24/2011
* Cerberus Puts Off Closing Innkeepers Deal 8/17/2011

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?

Various Loan Updates

Barclays cranked out notes on a number of resolutions, modifications, and appraisals the last few weeks. I went back over the last few weeks and updated any that I missed or didn't post from elsewhere:

WBCMT 2007-C31 - Lembi Portfolio $142.5mm 9/14/11
AREA Properties purchased a portion of the portfolio (20 of the 29 properties) for $59.6mm. BCG estimates a 25% severity related to that purchase, and speculates that the purchase covers the 20 REO properties that accounted for $63mm of the original balance.

LBUBS 2006-C7 AJ takes a shortfall 8/17/11

MSC 2006-IQ12 - $250mm RREEF Industrial Portfolio to be sold. BCG anticipates the loan will be assumed. 8/17/11

BACM 2007-1 and BACM 2007-2 -- $325mm 575 Lexington Avenue. new appraisal is up 30%. See additional comments here. 8/16/11

GCCFC 2007-GG9 - $305mm Schron Portfolio appraised at $121.2mm 8/12/11


WBCMT 2004-C10 and WBCMT 2004-C11 - $500mm Starret-Lehigh refinanced. 8/11/11

JPMCC 2011-C5

No talk, yet.


OFFERED CERTIFICATES
        Rating          Size     WAL    Principal             Certif.   NOI Debt
Class  (MDY/FTC/MSTR)   ($MM)   (Yrs)   Window        C/E     LTV       Yield
 A-1    Aaa/AAA/AAA    $49.765   2.55   10/11-5/16  30.000%   41.7%     16.9%
 A-2    Aaa/AAA/AAA   $199.727   4.83   6/16-10/16  30.000%   41.7%     16.9%
 A-3    Aaa/AAA/AAA   $405.850   9.79   4/21-8/21   30.000%   41.7%     16.9%
A-SB   Aaa/AAA/AAA    $65.448   7.17   5/16-4/21   30.000%   41.7%     16.9%

NON-OFFERED CERTIFICATES (PRIVATE)
 A-S    Aaa/AAA/AAA    $86.237   9.89   8/21-9/21   21.625%   46.6%     15.1%
  B      Aa2/AA/AA     $51.485   9.96   9/21-9/21   16.625%   49.6%     14.2%
  C       A2/A/A       $39.901   9.96   9/21-9/21   12.750%   51.9%     13.5%
  D    Baa3/BBB-/BBB-  $65.644   9.96   9/21-9/21    6.375%   55.7%     12.6%

MSC 2011-C3

CLASS   DBRS/MOODY'S    SIZE($MM)  CE(%)  WAL(YRS)     GUIDANCE
A-1   AAA(sf)/Aaa(sf)     85.448   30.000   2.6        110-115
A-2   AAA(sf)/Aaa(sf)    448.881   30.000   4.8        205-215
A-3   AAA(sf)/Aaa(sf)    219.010   30.000   7.6        225-235
A-4   AAA(sf)/Aaa(sf)    291.053   30.000   9.7        205-215

PRIVATELY  OFFERED CERTIFICATES (144A)
A-J   AAA (sf)/Aaa(sf)   162.253   19.125          *** not available***
B      AA(sf)/Aa2(sf)     69.005   14.500  9.86        400a
C       A(sf)/A2(sf)      44.760   11.500  9.86        500a
D  BBB(high)(sf)/Baa1(sf) 31.704    9.375  9.86        575a
E   BBB(low)(sf)/Baa3(sf) 54.085    5.750  9.93        650a

Delinquency rate for CMBS highest in 14 years

Okay, its some attention grabbing headline to an article about delinquencies by someone who hasn't spent as much time studying them as others, but after she makes a frowny face at me for saying that, they'll go back and notice some imprecise grammar and a few contradictory statements in their analysis. But hey, its a blog, you can't expect perfection from a blog. :-0.

Meanwhile, I really needed a headline to go with this pic from Engrish.com.

What's it supposed to say? I don't get what it is really supposed to say here?

BOA says its time to buy CMBS

Alan Todd said Go Big or Go Home.

Not really, but he did say to cautiously and slowly add exposure at the top of the stack.

Southridge Mall (124mm - JPMCC 2005-CB11)

Southridge lost Steve and Barry's and Linens N Things to bankruptcy and occupancy was at 58% at the end of last year, and a 1.57x NOI DSCR was reported (still included part of the LNT rent, but still impressive). Per Barclays, they extended the maturity date from 4/2012 to 4/2015, and the borrower has committed to a $36mm renovation and leased the vacant space to Macy's.

All else equal, the extension pushes the life of the bond from April 2012 to January 2015, or further (Meridian Mark I & II is with the special and contributes partly to the paydown).

Met Park East ($79.7mm GSMS 2006-GG6) Modified

Barclays reported this Seattle office loan was extended to 11/2015 (from 11/2010), the borrower paid down $2mm of the note, $2mm into an T&I escrow account, an excess cash sweep will go into a rollover reserve, and the note will remain interest only at the original rate (5.54%).

They also noted the A2 should experience some extension risk... I'm getting a cost to the A2 of about 43 bps.

CMBX AJs opening ~2 pts back

         | CMBX.5      | CMBX.4      | CMBX.3      | CMBX.2      | CMBX.1
AAA      | -0-20       | -0-20       | -0-19       | -0-12       | -0-10
AM       | -1-11       | -1-14       | -1-10       | -1-08       | -1-02
AJ       | -1-32       | -2-03       | -2-02       | -1-29       | -1-22
AA       | -1-08       | -1-17       | -1-09       | -1-17       | -1-20
A        | -1-01       | -1-15       | -1-09       | -1-02       | -1-00
BBB      | -0-10       | -0-10       | -0-12       | -0-19       | -0-16
BBB-     | -0-12       | -0-15       | -0-14       | -0-14       | -0-13

*Daily change

Five Mile completes Red Roof Inn acquisition

Barclays noted in their weekly today that it completed on August 25th via a $700mm debt acquisition. They are still forecasting a 50 (reported sales price) - 60% (Barclay's high end estimate) loss severity, to be reflected in September's remits.

Quiet Day - Just Hanging Out

I know how wrong it was to suck you in with a boring heading and then smack you in the face with a huge sack of chimp testicles, but that's just how life is sometimes.

Tomorrow is going to be completely dead too. It probably is not even worth coming into work, but I will be here and will try to post something to make up for this offensive affront to your delicate sensibilities.

Innkeepers sues Cerberus and Chatham

Dealbreaker - with nice imagery
WSJ - more detail

Innkeepers USA Trust said Cerberus Capital Management LP abandoned a $1.12 billion deal to buy the hotelier as part of a ploy to pay a lower price and must close the transaction or pay "substantial damages."

In a lawsuit filed Monday in a federal bankruptcy court in New York, Innkeepers said the two sides "stood at the goal line" Aug. 5 to consummate the deal when the private-equity firm told the hotel owner it wouldn't close, offering "no explanation." The decision upended plans by Innkeepers to exit bankruptcy protection, where it has been since July 2010.

Cerberus, which had agreed to buy 64 Innkeepers hotels with partner Chatham Lodging Trust, terminated the deal earlier this month, saying a "material adverse effect" had occurred that gave it permission to walk away. The buyout firm has since asked for a $20 million deposit on the deal to be returned.

The Renaissance loan extended

 The Real Deal reports, and by "reports", we mean that they posted a prepared press less from The Moinian Group.

Does anyone know how long the extension is for?

Residential - Refi the entire market?

So, the government is going to cause a ginormous refi wave in resi-land, at least that has been the rumor for well over a year now. Instead of demanding MORE collateral from homeowners who owe mortgage debt that is no longer protected adequately by the underlying collateral's value, you constantly hear some politician babble on about saving the poor non-delinquent mortgagor from having to meet obligations that he agreed to in writing and backed with the most precious collateral (the roof over his family's head) - I find the entire affair somewhat disgusting if you cannot tell. You agreed to make payments, you put up collateral in the event you cannot pay, and those are the terms.

I'm sure I will not be consulted for my opinion, but the rumors are now starting to crescendo, and I am really interested in your thoughts on how this might be structured and how to gain from it in the market... PLEASE LEAVE YOUR THOUGHTS IN THE COMMENTS!

i.e.

• Do they only allow Agency mortgages to refi? (Ginnie too, or just the two in conservatorship?)
• What credit characteristics are allowed? Low FICO? Underwater mortgages? Currently not-late?
• Do borrowers have to pay additional amounts to help protect the mortgages (they have higher LTVs, do they pay higher PMI? Is there some new product to help protect the lender against the greater sensitivity to both credit and systemic valuation changes?)
• Who gets to originate the mortgages? and thus receive the origination fees?
• Servicer? Can BOA originate and service them but put the risk to the Agency?
• Will they be securitized - who is going to buy this, and what type of protections are there going to have to be (obviously at a cost to the taxpayer) to protect these new investors?
• Who else benefits?
• Who gets hurt? Does my Ginnie IO from 2009 origination, low coupon, ramp up and flicker out? How about my Fannie IO from 2005, high coupon? What about POs (they seem a little rich)?

I actually can see a path that is economically feasible, politically palatable, and hugely profitable to certain key players in the industry. If you are a policy maker, the Bernank, or Obama bin President, please email me at credarkspace@gmail.com for a detailed plan. All jokes aside, I am working on it, please don't do anything stupid that will destroy our economy in the meantime.

Cerberus uses MAC clause to back out of $1.1 billion Innkeepers USA

From Bloomberg:

Cerberus Capital Management LP and Chatham Lodging Trust terminated their agreement to buy 64 hotels from Innkeepers USA Trust for $1.1 billion, citing a possible adverse change in the business.

$2.5 billion New Cantor deal?

DeReza at Bloomberg reported they filed a new shelf registration.

All is Lost!

No, BTFD. I mean, buy ammo, head for the hills....

CMBS is taking a beating - AJs being quoted in spreads yesterday are being quoted in prices today. 06/07 AJ are off about 3 pts on the week, most of it today. There does seem to be a little bounce back here at the end of the day, but not clear if it will last.

JER trades to C-III

JER sold its special servicing & CDO portfolios to C-III, adding 17 deals worth $35.4billion to C-III's stable and boosting their market share to 22%, or third place.

Hattip CrabsofSteel and Nomura

DB UBS deal contains a 30% SS

Sounds like it priced last week. I'll come back and add pricing once I find it.

Vacation

I was on vacation last week - did anything happen while I was gone?


Calendar:

10 point change in CMBX AJs on the week CMBX:#(

Comings and Goings

Sternlicht blames Goldman for the deal blowing up. He noted that Cap rates were continuing their downward trajectory (he used the word "plunging", actually).

GGP is spinning off 30 malls into a new REIT named Rouse, but the malls are not the same malls purchased in '04 when GGP bought the company fka The Rouse Company. We forsee future plans to further spin the new Rouse into a company that will not have a name represented by alphanumeric symbols but rather by the symbol below.

13 of the malls are in CMBS deals. Nomura did a nice table of these yesterday, that I'm not going to steal outright, but the loans are mostly in '03 - '05 deals, with 4 from '01. As GGP deals go, the DSCRs are relatively low ranging from 0.89 to 2.19, and GGP noted that Rouse will immediately be amongst the largest B mall owners. Two of the malls in Rouse were originally slated to go back to the lender as part of GGP's bankruptcy, but they were bought via DPOs.

According to Wells Fargo - newly delinquent loans increased by 280 loans or $3.9 billion, but 30+ day delinquencies remained flat at 9.94% and 60+ increased by 8 bps to 9.01%. Highest losses concentrated in Retail and Multifamily.

$460mm AMs were out for bid, mostly from HFs, and spreads widened >25bps yesterday. LCFs were 20+bps wider. AJs were down a couple of points as well.

Calendar:

Cleaning House

While dealers thin their balance sheets of CMBS and hedge funds and money managers quickly scuddle their overpriced holdings, the real drama is on House - first the rumors that Olivia Wilde's character, 13, was going to be written off and die of Huntingdon's (although that has thankfully been disputed by the show's director), now Lisa Edelstein, Cuddy, is gone. AND, they may not even transition her out - sounds like she's just done.

After a summer of Jersey Housewives, the occasional Anthony Bourdain, and slow bond trading we better see some action this fall.

CMBS Deal Pulled - Traders Quit

The GC4 deal was pulled today after S&P waffled and then pulled its ratings, but perhaps even more interesting is the fact that the head traders quit at both lead underwriters. Citigroup stated that the departure of Warren Geiger was in no way related to the GC4 transaction. Matthew Salem also left Goldman Sachs today.


So, sell all your CMBS - traders are giving up.

Comings and Goings

It really was busy the last couple of weeks with several new issues rolling out, and at least two (WFRBS 2011-C4, GSMS 2011-GC4) not being met with complete success.

WFRBS 2011-C4 ($1.4808b)
FREMF 2011-K014 ($1.12b - IOs and Bs offered)
City Center 2011-CCHP ($425mm)
GNR 2011-109 ($340mm)
WFDB 2011-BXR ($1b)
FNA 2011-M4 (501mm)
GSMS 2011-GC4 ($1.476b)

GG10s are roughly flat since a week ago, but they were 10 bps wider and 5-6 bps tighter intraweek. 


 
 

Calendar:

JP $425mm Hotel Floater

Per Bloomberg, JP is out with the first floater on the old Columbia Sussex portfolio that Blackstone bought.

It's Party Time!!! Pru and Perella Weinberg set up shop for CMBS

They're going to target $1b a year to start. I don't know who's left at Pru but they used to have a really great team of people - of course all of them may have left when they shuttered the storefront a few years ago.

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.

WFRBS 2011-C4 ($1.480mm)

CLASS        F/MDYs     SIZE($MM) WAL(YRS) C/E   CUM LTV NOI DY

A-1    AAA(sf)/Aaa(sf)    93.159   2.51  16.875%  49.3%  15.1%

A-2    AAA(sf)/Aaa(sf)   201.377   4.81  16.875%  49.3%  15.1%

A-3    AAA(sf)/Aaa(sf)    62.389   6.74  16.875%  49.3%  15.1%

A-FL   AAA(sf)/Aaa(sf)   100.000   9.68  16.875%  49.3%  15.1%

A-4    AAA(sf)/Aaa(sf)   671.432   9.84  16.875%  49.3%  15.1%

A-SB   AAA(sf)/Aaa(sf)   102.472   7.33  16.875%  49.3%  15.1%

B       AA(sf)/Aa2(sf)    42.570   9.93  14.000%  51.0%  14.6%

C       A+(sf)/A2(sf)     42.570   9.93  11.125%  52.7%  14.1% 

D       A-(sf)/Baa1(sf)   33.316   9.93   8.875%  54.1%  13.7%

E     BBB-(sf)/Baa3(sf)   51.824   9.93   5.375%  56.2%  13.2%

X-A    AAA(sf)/Aaa(sf) 1,230.829* 

X-B         NR/Aaa(sf)   249.868*

76 loans, 132 properties, 5.335% WAC, 108 WAM, 61.5% wavgLTV, 1.79x wavgDSCR,

LOAN SELLERS:  WFB (78.9%), RBS (14.3%), GE CAPITAL (6.8%)

Retail (42.6%), Office(13.3%), Hospitality (12.3%), Industrial (11.1%), Multifamily(8.0%)

CA (19.1%), WI (12.9%), NY (10.7%), TX (7.8%), FL (7.0%)

GSMS 2011-GC4 ($1.476b)

New issue fixed-rate from GS and Citi.

Class	MSTR/S&P	Size($mm)	WAL(yr)	CE%	Cum LTV	Debt Yield (UW NOI)
A1	AAA/AAA(sf)	85.249	2.42	14.5	53.70%	13.80%
A2	AAA/AAA(sf)	332.497	4.85	14.5	53.70%	13.80%
A3	AAA/AAA(sf)	90.651	7.38	14.5	53.70%	13.80%
A4	AAA/AAA(sf)	753.667	9.77	14.5	53.70%	13.80%
B	AA+/AA-(sf)	60.889	9.95	10.375	56.30%	13.20%
C	A/A-(sf)	62.734	9.95	6.125	59.00%	12.60%
D	BBB/BBB(sf)	35.058	9.95	3.75	60.40%	12.30%

71 loans, 131 properties, 5.4639% WAC, 104 WAM, 62.8% wavgLTV, 1.67x wavgDSCR, 12.6% have additional debt.

15.0% TX, 14.5% AZ, 11.8% CA, 9.4% NY, 8.3% VA

50.6% Retail, 16.5% Office, 16.1% Multifamily, 7.2% Hospitality, 3.7% Mixed Use, 1.9% Manufactured Housing, 1.9% Industrial, 1.4% Self Storage, 0.7% Ground Leased Land

Comings and Goings

I've got one of those funny feelings that this week might be exciting...


Calendar:

Ward Center - GCMC 2005-C1

CMA also noted today that HHC is looking to refinance the Ward Center, which was previously extended to January 2014.

2600 Michelson - CSMC 2007-C4

CMA reported today that 2600 Michelson was acquired for $70mmand the loan assumed, but modified into a $70mm A note with IO payments at 5.33% and a $25mm B note. The new sponsor put in $9.5mm to partially pay down the A note balance (by $3.5mm) and $6mm went to reserves. Any profits are split in some fashion to send equity back to the new sponsors and hyper-Am down the B note.

It also noted that KBS Real Estate Investment's $15mm mezz note on the property was worthless.

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.

New Issue Pricings from last week

Mark Herschmeyer over at CoStar had an article highlighting all the new issue details from last week.

World Financial Center ($310mm)

Bloomberg had an article noting that BOA was only keeping 1/6th of the current Merrill space in WFC 2 and 4; it formerly occupied just over half the 8mm sq ft in the WFC complex. That's really not a big surprise. Building 1 is in CD 2007-CD4 ($310mm) and is currently fully occupied with one big lease (Fidelity National 13.06%) rolling in 2012, and I don't know their status.

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.

Defeasance and Payoffs

There is a $165mm senior in the CSMC 2006-C5 deal and a $35mm mezz floating around. REAlert states the 49% owner is looking to recapitalize and sell it off, which would result in an early payoff and likely defeasance (its slated for maturity in 2016). Barclays noted today in a research piece that they may be able to negotiate a payoff that waives the call protection resulting in an early payoff.

Barclays also highlighted that 200 Public Square (WBCMT 2005-C20, $110mm) is for sale and is likely to be defeased.

Commercial Prices Drop 3.7% from March to April

From Bloomberg:

U.S. commercial property prices fell in April as sales of distressed assets made up a large share of transactions, according to Moody’s Investors Service. The Moody’s/REAL Commercial Property Price Index dropped 3.7 percent from March and 13 percent from a year earlier. It’s now 49 percent below the peak of October 2007 and at its lowest point in data going back to December 2000

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.

Comings and Goings

Three new issues in one week:DBUBS 2011-LC2, GSMS 2011-ROCK, LSTAR 2011-1.

Beacon Capital is purportedly selling the 2mm sq. ft. 1211 Avenue of the Americas (aka 6th Ave) at $900+/sq. ft. or better.
New rent regulations in NYC being debated with landlords and lawmakers offering trades for tax caps and breaks in exchange for changes in rent regs on stabilized units.


Calendar:

World Market Center modifications

Deutsche Bank summarized the modifications nicely today. This originally represented 8.55% of PW10 (WMC1) and 12.28% of PW15 (WMC2).

For WMC 1:

1. The senior loan is split in to a $94.3mm A note and roughly a $106mm hope note. The coupon on the A note remains unchanged at 6.0165% and the hope note does not accrue interest. An immediate write-down of $10.7mm was passed to the Trust.
2. The Borrower contributed $11.2mm which brought the loan and required reserve accounts current.
3. 80% of the cash flow generated by the property in excess of the amount required to service the new A note will be used to amortize the hope note balance. If the A note is paid off on or before (the prepayment penalty was waived) the scheduled maturity date (July 2015), the hope note can be paid off for $0.2/$1.

For WMC 2:

1. The senior loan is split in to a $73mm A note and a $200mm hope note. The coupon on the A note was reduced 200bps to 4.35% and the hope note does not accrue interest. An immediate write-down of $71.9mm was passed to the Trust.
2. The Borrower contributed $14.7mm which brought the loan and required reserves current.
3. 80% of the cash flow generated by the property in excess of the amount required to service the new A note will be used to amortize the hope note balance. If the A note is paid off on or before (the prepayment penalty was waived) the scheduled maturity date (January 2017), the hope note can be paid off for $0.2/$1.

Someone at Centerline just had to write their b-piece down (on both deals) from $1 to $0 :-(

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...