BSCMS 2005-PWR7: a modified loan = 43.37% of the collateral goes back to the special servicer. Happy New Year!

Transaction: BSCM 2005-PWR7
Property: Shops at Boca Park
City/State: Las Vegas, NV
Property Type: Retail
Balance: $49,231,871
Percentage of Deal: 43.37%
Maturity Date: February 11, 2016
MS: Wells Fargo
SS: C-III Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 1/5/15
Previously in Special Servicing: Yes
Previously Modified: Yes; Maturity date extension and a note rate reduction
 

MLCFC 2007-5: $48MM in losses write down Class D

It looks as if the Fort Henry Mall, a loan just under $40MM in this deal, was liquidated at a loss of ... $40MM.  A couple of other smaller loans contributed another $8MM in losses.  For those who follow this blog (and I realize that you are few but interested in this market sector), I repeat what I have previously stated.  MLCFC = P.O.S.!

(see last month's post on this deal where another $55MM transfers to special servicing)

JPMCC 2005-LDP5: just when you thought things were calm and bright, 3.9% goes barftastic!

Transaction: JPMC 2005-LDP5
Property: Raleigh Office Centre
City/State: Southfield, MI
Property Type: Office
Balance: $29,485,842
Percentage of Deal: 3.94%
Maturity Date: December 1, 2015
MS: Midland Loan Services
SS: CWCapital Asset Management
Reason for Transfer: The loan has matured or is maturing in 60 days
On Servicer Watchlist Prior to Transfer: Yes; 2/9/07
Previously in Special Servicing: No
Previously Modified: No
 

CWCI 2007-C3: 1.7% term defaults

Transaction: Cobalt 2007-C3
Property: Lynnhaven North Shopping Center
City/State: Virginia Beach, VA
Property Type: Retail
Balance: $24,140,000
Percentage of Deal: 1.69% 
Maturity Date: June 11, 2017
MS: Wells Fargo
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 10/14/14
Previously in Special Servicing: No
Previously Modified: No

Transaction: PCMT 2003-PWR1
Property: Brandywine Office Building & Garage
City/State: Wilmington, DE
Property Type: Office
Balance: $29,060,894
Percentage of Deal: 100%
Modified Maturity Date: May 1, 2020
MS: Wells Fargo
SS: C-III Asset Management 
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 6/4/15
Previously in Special Servicing: Yes
Previously Modified: Yes; Maturity Extension; Rate Adjustment; Principal Forgiveness

JPMCC 2007-LD12 and MLCFC 2006-1: two modified loans go back to the special

Transaction: JPMC 2007-LDP12
Property: Oheka Castle
City/State: Huntington, NY
Property Type: Hotel
Balance: $22,750,000 A Note and $5,140,806 B Note
Percentage of Deal: 1.99%
Modified Maturity Date: August 15, 2017
MS: Wells Fargo
SS: LNR Partners
Reason for Transfer: Imminent Non-Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 1/9/14
Previously in Special Servicing: Yes
Previously Modified: Yes; Split into an A&B Note, Term Increased by 60 Periods

Transaction: MLCFC 2006-1
Property: Prince George Center II
City/State: Hyattsville, MD
Property Type: Office
Balance: $37,268,804
Percentage of Deal: 3.89%
Maturity Date: December 8, 2015
MS: Wells Fargo
SS: CWCapital Asset Management
Reason for Transfer: Imminent Maturity Default
On Servicer Watchlist Prior to Transfer: Yes; 5/6/15
Previously in Special Servicing:  Yes
Previously Modified:  Yes

MLCFC 2007-5: this deal is still a dog despite Stuy Town

Transaction: MLCFC 2007-5
Property: Woodhill Circle Plaza
City/State: Lexington, KY
Property Type: Retail
Balance: $30,078,328
Percentage of Deal: 0.92%
Maturity Date: February 1, 2017
MS: Wells Fargo
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 08/08/11
Previously in Special Servicing: No
Previously Modified: No

Transaction: CGCMT 2006-C5
Property: North Campus Crossing Apartments
City/State: Greenville, NC
Property Type: Multifamily
Balance: $25,536,377
Percentage of Deal: 1.73%
Maturity Date: September 1, 2016
MS: Midland Loan Services
SS: LNR Partners, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 03/11/08
Previously in Special Servicing: No
Previously Modified: No

BSCMS 2006-PW11: 2 loans = 21% of the pool transfer to special servicing ... Nice!

Transaction: BSCMS 2006-PWR11
Property: Investcorp Retail Portfolio 1 
City/State: Various, IN and OH  
Property Type: Retail
Balance: $96,120,000
Percentage of Deal: 11.15%
Maturity Date: February 1, 2016
MS: Wells Fargo
SS: C-III Asset Management 
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 8/4/11
Previously in Special Servicing: No
Previously Modified: No

Transaction: BSCMS 2006-PWR11
Property: Investcorp Retail Portfolio 2
City/State: Various, OH
Property Type: Retail
Balance: $88,260,000
Percentage of Deal: 10.24%
Maturity Date: February 1, 2016
MS: Wells Fargo
SS: C-III Asset Management 
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 8/4/11
Previously in Special Servicing: No
Previously Modified: No
 

COMM 2006-C7: It's still called Wachovia Tower? 3.7% transfers to special servicing

Transaction: COMM 2006-C7
Property: Wachovia Tower
City/State: Baltimore, MD
Property Type: Office
Balance: $48,986,384
Percentage of Deal: 3.68%
Maturity Date: May 1, 2016
MS: Midland Loan Services
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 6/4/14
Previously in Special Servicing: No
Previously Modified: No

BACM 2006-2: what have we here?

Not a deal I am very familiar with, but still notable as a 

non-watchlisted balloon default.

Transaction: BACM 2006-2
Property: Belk Headquarters     
City/State: Charlotte, NC
Property Type: Office
Balance: $34,645,000
Percentage of Deal: 1.99%
Maturity Date: April 1, 2016
MS: Berkadia Commercial Mortgage
SS: Torchlight Loan Services
Reason for Transfer: Imminent Maturity Default
On Servicer Watchlist Prior to Transfer: No
Previously in Special Servicing: No
Previously Modified: No

JPMCC 2005-CB13: goes from 33% to 38% in specially servicing

Transaction:  JPMC 2005-CIBC13
Property: The Lakes at West Covina
City/State: West Covina, CA
Property Type: Office
Balance: $29,612,040
Percentage of Deal: 4.98%
Maturity Date: November 1, 2015
MS: Midland Loan Services
SS: LNR Partners
Reason for Transfer: Imminent Maturity Default
On Servicer Watchlist Prior to Transfer: Yes; 5/7/13
Previously in Special Servicing: No
Previously Modified: No

LBUBS 2006-C1: 5% transfers to special

Transaction: LBUBS 2006-C1
Property: River Valley Mall
City/State: Lancaster, OH
Property Type: Retail
Balance: $45,076,743
Percentage of Deal: 4.96%
Maturity Date: January 15, 2016
MS: Wells Fargo
SS: LNR Partners
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 2/11/09
Previously in Special Servicing: No
Previously Modified: No

CSMC 2006-C4: Babcock & Brown again?

The big news today in case you are marooned on a desert island is that

Stuy Town sold for $5.4B, which should be enough to make senior 

bondholders whole with respect to principal and unpaid interest.  I 

think it's a pretty good deal all around (except if you were a mezz 

lender) in that Blackstone's cost is half the average market rate per 

apartment, and the rights of the non-market rate tenants are protected

for a number of years.

In the meantime, CS continued its love affair with bad multifamily 

lending.  Where are you,Andy Stone?  (answer: Petra Capital Mgmt)

Transaction: CSMSC 2006-C4
Property: Babcock & Brown FX 3
City/State: Various
Property Type: Multifamily
Balance: $52,230,067
Percentage of Deal: 1.76%
Modified Maturity Date: February 15, 2017
MS: KeyBank Real Estate Capital 
SS: C-III Asset Management LLC
Reason for Transfer: Borrower Bankruptcy
On Servicer Watchlist Prior to Transfer: No
Previously in Special Servicing: Yes
Previously Modified: Yes; Maturity Extension and Principal Forgiveness

MSC 2007-XLF: top loan=93% transfers back to special

mmmmpphh.

Transaction: MSC 2007-XLF
Property: HRO Hotel Portfolio
City/State: Various
Property Type: Hotel
Balance: $130,551,879
Percentage of Deal: 93.0%
Modified Maturity Date: October 9, 2015
MS: Midland Loan Services
SS: CWCapital Asset Management
Reason for Transfer: Maturity Default
On Servicer Watchlist Prior to Transfer: Yes; 7/9/15
Previously in Special Servicing: Yes
Previously Modified: Yes; Extended Maturity Date until October 2015

Something old, something new: WBCMT 2004-C12 & JPMCC 2010-C2!

Transaction: WBCMT 2004-C12
Property: Eastdale Mall
City/State: Montgomery, AL
Property Type: Retail
Balance: $26,259,812
Percentage of Deal: 41.4%
Modified Maturity Date: December 31, 2018 
MS: Wells Fargo
SS: Torchlight Loan Services, LLC
Reason for Transfer: Imminent Monetary Default  
On Servicer Watchlist Prior to Transfer: Yes; 7/11/14
Previously in Special Servicing: Yes
Previously Modified: Yes; Maturity Date

Transaction: JPMCC 2010-C2
Property: Woodlands Square Shopping Center
City/State: Oldsmar, FL
Property Type: Retail
Balance: $24,086,684
Percentage of Deal: 2.71%
Maturity Date: August 1, 2015
MS: Midland Loan Services
SS: Strategic Asset Services LLC
Reason for Transfer: Maturity Default 
On Servicer Watchlist Prior to Transfer: Yes; 6/11/15
Previously in Special Servicing: No
Previously Modified: No

 

No comment as I am more focussed on legacy 2005-8 deals.

Now that the September remittances are out ...

Wamu!

Transactions: LBUBS 2006-C1 & LBUBS 2006-C7
Property: Triangle Town Center
City/State: Raleigh, NC
Property Type: Retail
Balance: $109,151,315 (A Note)
          $24,917,630 (B Note)
Percentage of Deal: 10.4% (A Note) 
                     1.2% (B Note)
Maturity Date: December 5, 2015
MS: Wells Fargo
SS: LNR Partners, Inc.
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 11/12/2014
Previously in Special Servicing: No
Previously Modified: No

Transaction: MLCFC 2006-3
Property: 16661 Ventura Boulevard
City/State: Encino, CA
Property Type: Office
Balance: $27,902,659
Percentage of Deal: 1.67%
Modified Maturity Date: October 31, 2018
MS: Midland Loan Services
SS: C-III Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 4/7/2015     
Previously in Special Servicing: Yes
Previously Modified: Yes; Extended maturity date until 10/31/2018

BACM 2005-5: such an innocent deal, until 38% transferred to special servicing!

This from S&P:

The Wateridge Office Park loan ($83mn, 34% of pool, CA office), largest in the BACM 2005-C5 transaction, was transferred to the special servicer due to maturity default. The loan was previously on the watchlist due to low occupancy. Currently the property is at 80% occupancy, with a DSCR of 0.78x, which has increased compared to 0.43x last year, but remains well below the underwritten level due to a decrease in base rent & increase in real estate taxes and General & Administrative expenses.

The Orchard Plaza ($10mn, 4% of pool, MI retail), the fourth largest in the transaction, was also transferred to the special due to maturity default. The loan was previously on the watchlist due to low DSCR. Currently the property has a DSCR of 0.71x, which was little changed compared to last year. The decline in DSCR from the underwritten level was due to a 22% decrease in base rent and a 65% increase in expenses.

-------------------

Yeehah!  I wonder if any of the three analytics providers will bother to update their data in advance of next month's reporting.  Probably not.

CSMC 2006-C4: why single-tenant exposure matters

Transaction: CSMC 2006-C4
Property: Maxtor Campus
City/State: Longmont, CO
Property Type: Office
Balance: $45,100,344
Percentage of Deal: 1.51%
Maturity Date: July 11, 2016
MS: KeyBank Real Estate Capital
SS: C-III Asset Management
Reason for Transfer: Imminent Default
On Servicer Watchlist Prior to Transfer: Yes; 4/13/15
Previously in Special Servicing: No
Previously Modified: No

Maxtor ... didn''t they make disk drives?  Oh, now they're part of Seagate Technologies.

From the watchlist:

07/13/2015  Per the borrower, tenant has not renewed and does not have interest in renewing.  The property has been on the market for lease with CBRE.  They currently do not have active prospects.

Oops.

BACM 2006-3: vying for worst 2006 deal ever, 8th top loan = 4.5% transfers to special

Transaction: BACM 2006-3
Property:  Phoenix Airport Marriott        
City/State: Phoenix, AZ
Property Type: Hotel
Balance: $61,879,269
Percentage of Deal: 4.46%
Maturity Date: June 1, 2016
MS: Berkdia Commercial Mortgage
SS: CWCapital Asset Management
Reason for Transfer: Imminent Default
On Servicer Watchlist Prior to Transfer: Yes; 2/4/15
Previously in Special Servicing: Yes
Previously Modified: No

CMBS aficionados will recall this as the Boscov's deal, where a bunch of loans on legacy retail space were liquidated at a massive severity taking out most of the mezzanine bonds.  Interest shortfalls are already reaching the AJ class thanks to an additional A/B note modification, and now this.  Feh!

JPMCC 2008-C2: another servicing transfer makes the worst deal ever even worse!

Transaction: JPMC 2008-C2
Property: Chase South Tower – Baton Rouge
City/State: Baton Rouge, LA
Property Type: Office
Balance: $20,425,633
Percentage of Deal: 2.76%
Maturity Date: January 1, 2018
MS: Midland Loan Services
SS: CWCapital Asset Management
Reason for Transfer: Monetary Default 
On Servicer Watchlist Prior to Transfer: Yes; 1/8/13
Previously in Special Servicing: No
Previously Modified: No

As I am sure many of you know, this deal's AM class is being shorted interest.  I remember JPM saying that this deal represented a return to conservative underwriting standards (while they were selling it, of course).

GMACC 2006-C1: mod, then balloon default

Transaction: GMACC 2006-C1
Property: Mission Greensboro Apartments
City/State: Greensboro, NC
Property Type: Multifamily
Balance: $20,333,066    
Percentage of Deal: 2.62%
Maturity Date: September 1, 2015
MS: Berkadia Commercial Mortgage
SS: LNR Partners
Reason for Transfer: Maturity Default
On Servicer Watchlist Prior to Transfer: Yes; 7/1/2015
Previously in Special Servicing: Yes
Previously Modified: Yes

LBUBS 2005-C7: mod and probably remod

Transaction: LBUBS 2005-C7
Property: Sarasota Main Plaza
City/State: Sarasota, FL
Property Type: Retail
Balance: $20,702,257 (A Note) $14,269,089 (B Note)
Percentage of Deal: 9.02%
Maturity Date: September 15, 2015
MS: Wells Fargo
SS: C-III Asset Management, LLC
Reason for Transfer: Balloon Payment/Maturity Default
On Servicer Watchlist Prior to Transfer: Yes; 5/11/15
Previously in Special Servicing: Yes
Previously Modified: Yes

MSC 2006-IQ11: 5.7% not watchlisted but balloon defaults anyway

Transaction: MSCI 2006-IQ11
Property: Merritt Square Mall
City/State: Merritt Island, FL
Property Type: Retail
Balance: $52,914,188
Percentage of Deal: 5.69%
Maturity Date: September 1, 2015
MS: Wells Fargo
SS: LNR Partners
Reason for Transfer: Imminent Maturity Default
On Servicer Watchlist Prior to Transfer: No
Previously in Special Servicing: No
Previously Modified: No

JPMCC 2005-LDP4: Is Vonage vacating or downsizing?

Transaction:  JPMC 2005-LDP4
Property: 23 Main Street
City/State: Holmdel, NJ
Property Type: Office
Balance: $28,820,415    
Percentage of Deal: 3.89%
Maturity Date: September 1, 2018
MS: Berkadia Commercial Mortgage
SS: C-III Asset Management, LLC
Reason for Transfer: Imminent Default
On Servicer Watchlist Prior to Transfer: No
Previously in Special Servicing: No
Previously Modified: No

This is the Vonage corporate headquarters, so something has to have happened.  Cheaper quarters in Newark?  Patersen?

JPMCC 2005-LDP5: 4.2% goes back to the special for another try

Transaction: JPMC 2005-LDP5
Property: Atlantic Development Portfolio
City/State: Various Cities, NJ
Property Type:  Office
Balance: $80,313,911
Percentage of Deal: 4.15%
Maturity Date: December 5, 2015
MS: Berkadia Commercial Mortgage
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 7/11/11
Previously in Special Servicing: No
Previously Modified: Yes

The subject loan consists of five office buildings and three industrial complex with a total of 890,218 sf built in 1979, 1987,1981,2000, 1987, 1986, and 1985 respectively located in Warren and Somerset, NJ.          04/13/2015  Per borrower reports, occupancy as of 02/17/2015 was at 72%.  Occupancy decreased by 2% when compared with 09/30/2014 rent roll.      12/11/2014  Per borrower reports, occupancy as of 09/30/2014 was at 74%.        11/12/2014  The borrower has been contacted for property performance updates.          09/11/2014  The 2Q 2014 financials have been received.  The borrower will be contacted for property performance and leasing updates.          08/13/2014  This loan consists of seven properties, the consolidated DSCR as of 03/31/2014 was at 1.03.  Property # 1 The DSCR per the 03/31/2014 analysis was at 1.79 and was inline when compared with 03/31/2013 analysis DSCR which was at 1.74.  No major variances were observed within the line items.

MLCFC 2007-9: more profiles in garbage

Transaction: ML-CFC 2007-9                
Property: 534 Broad Hollow Road
City/State: Melville, NY
Property Type: Office
Balance: $21,421,052
Percentage of Deal: 1.29%
Maturity Date: July 6, 2017
MS: Wells Fargo
SS: LNR Partners, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: No
Previously in Special Servicing: No
Previously Modified: No

BSCMS 2006-PWR13: 40% occupancy can be a problem

Transaction: BSCM 2006-PWR13
Property: Brandywine Mixed Use
City/State: Wilmington, DE
Property Type: Retail
Balance: $26,250,000
Percentage of Deal: 1.23%
Maturity Date: July 1, 2016
MS: Wells Fargo
SS: Situs Holdings, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 12/4/14
Previously in Special Servicing: No
Previously Modified: No

Here's the watchlist comment:

Subject property is a 165,575 sf mix-use retail property located in Wilmington, DE built in 1997. UW NCF DSCR was 1.31x with 96.10% occupancy. 6/12/2015 As of June 1, 2015, the property was 40% occupancy. Per Borrower's contact, the property is being marketed through Acadia's internal leasing group and listed the vacancies with local representation equipped for office and non-conforming, non-retail uses.  Borrower is considering not only single users but also smaller format tenants in the 14,000 - 25,000 square foot range which would require the space to be divided. Borrower blasts this to over 7,000 contacts internally and externally.  They do email marketing to a focused local list of brokers as well as to a wider group of national tenants as well as marketing during International Council of Shopping Center (ICSC) events. 6/5/2015 1Q 2015 NCF DSCR = 1.25x at 86% occupancy. Reached out to Borrower for updates on the vacancies. Tenant Access Group should have vacated at lease expiration and if it hasn't been leased up, the properties occupancy may have declinded to 40%. Also, requested from the Borrower to update their rent roll as it still includes the Halloween Store that no longer occupies the premises. 3/5/2015 YE 2014 NCF DSCR = 1.41x at 86% occupancy. Borrower's contact indicates the Halloween store remains vacant and the tenant Access Group that expires in May will not be renewing. They are actively marketing both spaces, but not prospects at this time. Will keep us updated if there are movements. 12/4/2014 3Q 2014 NCF DSCR = 1.40x at 98% occupancy. Largest tenant Access Group occupies 76,458 sf (46% NRA)  to expire 5/31/2015. Reached out to Borrower's contact for leasing updates along with tenant, Halloween City who was only seasonal. What are the marketing plans for the vacancies. Awaiting for response.

GSMS 2006-GG8 & CD 2006-CD3: Fitch is messing with your mind

Transaction: GSMS 2006-GG8 & CD 2006-CD3
Property: Fair Lakes Office Park
City/State: Fairfax, VA
Property Type: Office
Balance: $259,000,000 ($116,550,000 rated by Fitch)
Percentage of Deal: 4.7% & 7.3%
Maturity Date: August 1, 2016
MS: Wells Fargo/Berkadia
SS: C-III Asset Management LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: No
Previously in Special Servicing: No
Previously Modified: No

Fitch sends out a weekly comment about the state of the CMBS market which includes any special servicing transfers of loans over $20MM.  However, in their rush to get out the door on Fridays, they send it in the morning.  This transfer to special servicing was reported as usual in the afternoon.  One more reason to love Fitch!

MLCFC 2007-7: class AJ takes a 20 point writedown

It's not every month that a deal takes $65MM in losses, but when it's time to step up to the plate, you can be sure that MLCFC will be there or pretty close by.  I can't wait to hear about which hedge fund idiot buys class AJ because now the deal is "clean"!

CWCI 2007-C2: what have we here?

Transaction: Cobalt 2007-C2
Property: 1515 Flagler Waterview
City/State: West Palm Beach, FL
Property Type: Office
Balance: $35,802,042
Percentage of Deal: 1.90%
Maturity Date: February 1, 2017
MS: Wells Fargo
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 3/11/15
Previously in Special Servicing: No
Previously Modified: No

CD 2007-CD4: Loan gets cured ... for three months

What is it with CwCapital?  This deal is also known for the Riverton Apartments, which is going on its fourth year as REO.  I didn't even know that was permitted by the PSA.  Anyway, this loan was returned to master servicing three months ago, and transferred back to the special today (7/1).

Transaction:  CD 2007-CD4
Property: Texarkana Pavillion
City/State: Texarkana, TX
Property Type: Retail
Balance: $34,320,000
Percentage of Deal: 0.77%
Maturity Date: November 6, 2016
MS: Midland Loan Services
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: Yes; Returned to master servicer in March 2015
Previously Modified: Yes

CWCI 2007-C2: Loan on watchlist for 7 days transfers to special

Transaction: Cobalt 2007-C2
Property: 275 Broadhollow Road
City/State: Melville, NY
Property Type:  Office
Balance: $33,200,000
Percentage of Deal: 1.76%
Maturity Date: February 11, 2017
MS: Wells Fargo
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 6/11/15
Previously in Special Servicing: No
Previously Modified: No

In fact, because payment date for this deal is the 17th, no one would have seen the watchlist before yesterday (today is 6/18).  So, investors effectively had one day to decide whether to act on this.  This is why we love Fitch!

LBUBS 2005-C5: Space Net Building to now be called the Space Ghost Building

Transaction: BSCM 2006-PWR14
Property: Fountain Square
City/State: Brookfield, WI
Property Type: Retail
Balance: $39,250,000
Percentage of Deal: 2.19%
Maturity Date: October 1, 2016
MS: Wells Fargo
SS: C-III Asset Management, LLC
Reason for Transfer: Monetary Default
On Servicer Watchlist Prior to Transfer: No
Previously in Special Servicing: No
Previously Modified: No

Transaction: LBUBS 2005-C5
Property: Space Net Building
City/State: McLean, VA
Property Type: Office
Balance: $30,670,643
Percentage of Deal: 4.26%
Maturity Date:  July 11, 2015
MS: Wells Fargo
SS: LNR Partners, Inc.
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 4/13/15
Previously in Special Servicing: No
Previously Modified: No

Space Net Building is a 137,000 sf single tenant office building located in McLean, VA, built in 1985.  04/07/2015:  The loan is on the WL because the lease to Space Net expires 03/31/2016 and for a pending loan maturity on 07/11/2015 .  The YE 2014 DSCR is 1.83x, compared to 1.78x at YE 2013.  Occupancy was 100% for both periods.  The borrower reported the renewal status is not yet settled, and that they expect to pay off the loan at the maturity date.now

JPMCC 2006-LDP9: more dreck

Transaction: JPMC 2006-LDP9
Property: Olympia Square
City/State: Olympia, WA
Property Type: Retail    
Balance: $25,400,000
Percentage of Deal: 0.83%
Maturity Date: November 1, 2016
MS: Midland Loan Services
SS: CWCapital Asset Management
Reason for Transfer: Loan is Delinquent
On Servicer Watchlist Prior to Transfer: Yes; 6/10/14
Previously in Special Servicing: No
Previously Modified: No

a little bit of BACM in my life ...

Transaction: BACM 2006-2
Property: Two Rockledge Centre
City/State: Bethesda, MD
Property Type: Office
Balance: $54,600,000    
Percentage of Deal: 2.58%
Maturity Date: July 1, 2015
MS: KeyCorp Real Estate Capital Markets
SS: Torchlight Loan Services, LLC
Reason for Transfer: Balloon Payment/Maturity Default
On Servicer Watchlist Prior to Transfer: Yes; 4/6/15
Previously in Special Servicing: No
Previously Modified:No

Transaction: BACM 2006-3
Property: Fifth Third Center
City/State: Columbus, OH
Property Type: Office
Balance: $49,297,427
Percentage of Deal: 3.53%
Maturity Date: July 1, 2016
MS: KeyCorp Real Estate Capital Markets
SS: CWCapital Asset Management
Reason for Transfer: Imminent Default
On Servicer Watchlist Prior to Transfer: Yes; 2/4/15
Previously in Special Servicing: No
Previously Modified: No

CGCMT 2007-C6 ... not too bad a deal ... yet!

Transaction: CGCMT 2007-C6
Property:  Martin Village
City/State: Lacey, WA
Property Type: Retail
Balance: $20,697,123
Percentage of Deal: 0.55%
Maturity Date: May 6, 2017
MS: Midland Loan Services
SS: CWCapital Asset Management
Reason for Transfer: Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 1/16/15
Previously in Special Servicing: Yes
Previously Modified: No

Transaction: BSCMS 2005-PWR10
Property: 1001 Ross Avenue
City/State: Dallas, TX
Property Type: Multifamily
Balance: $27,212,486
Percentage of Deal: 1.81%
Maturity Date: November 1, 2015
MS: Wells Fargo
SS: Torchlight Loan Services, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 4/5/10
Previously in Special Servicing: Yes
Previously Modified: Yes; IO period extended

Biker Gang Shootout exposure

The Waco shootout occurred at Twin Peaks*, which is part of the complex that includes the Central Texas Marketplace, but is not actually part of the collateral as far as we can tell.

Central Texas Marketplace secures a $45.4mm loan in WBCMT 2007-C31. The loan has a 1.93x DSCR and was appraised for $78mm in 2003.Occupants include Belk, Kohl's, Sports Authority.

There is smaller loan, also named Central Texas Marketplace that is in an outparcel in the same complex, but on the opposite side from the shooting. It is collateral for a $2mm loan in GCCFC 2006-GG7, valued at $2.65mm in 2006, and a 2014 1.34x DSCR. Occupants include Squires, David's Bridal.

*Twin Peaks is a breastaurant that is in an outparcel that is not part of the collateral.

WBCMT 2005-C20 and JPMCC 2006-CB15: Loans Gone Wild!

Transaction: WBCMT 2005-C20
Property: NGP Rubicon GSA Pool
City/State: Various
Property Type: Mixed Use
Balance: $100,040,702
Percentage of Deal: 9.39%
Maturity Date: June 15, 2015
MS: Wells Fargo
SS: CWCapital Asset Management
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 9/11/13
Previously in Special Servicing: No
Previously Modified: No

Transaction: JPMC 2006-CIBC15
Property: Scottsdale Plaza Resort
City/State: Scottsdale, AZ
Property Type: Hotel
Balance: $57,155,285
Percentage of Deal: 4.04%
Maturity Date:  June 12, 2016
MS: Wells Fargo
SS: LNR Partners, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes; 2/6/15
Previously in Special Servicing: No
Previously Modified: No

BACM 2007-5: shorting to class D and another 2% goes in the hopper

Transaction: BACM 2007-5
Property: Cypress I
City/State: Cypress, CA
Property Type: Office
Balance: $20,440,016
Percentage of Deal: 1.77%
Maturity Date: November 10, 2017
MS: KeyBank Real Estate Capital
SS: C-III Asset Management LLC
Reason for Transfer: Imminent Default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: No
Previously Modified: No

3/4/2015    WatchList Comments from Berkadia Shared Services II:     3/4/2015    The subject property is 144,963-sf office building that was built in 1987 and is located in Cypress, CA.    03/03/2015  The DSCR as per 12/31/2014 was at 0.87 which increased by 13% when compared to 12/31/2013 analysis where DSCR was at 0.77.  The DSCR has been below the threshold since 3Q12 due to fluctuations in occupancy and decrease in rental rates from $21.74 psf as of 06/30/2013 to $14.76 psf as of 12/31/2014.  Per borrower reports, occupancy as of 12/31/2014 was at 82%.  Per the borrower, concessions are offered in the form of tenant improvement allowance for new tenants $5 - $25 psf and one month free rent for every three years lease renewal.  The vacant spaces are advertised through email blasts, cold calling and brokers.  To increase the revenue, they have been signing new leasing team of DAUM a total of 10,300 sf of new space has been leased and a total of 7,700 sf of renewal has been signed.  The new best maintenance practice has been implemented to reduce overall operating costs.     3/4/2015    The borrower plans to improve cash flow by leasing the remaining vacancy and enforce the terms of the existing leases.  Per inspection report dated 01/15/2015, the property performance is average when compared to similar properties in the area.  The average market vacancy is 8% and the average rent paid is $18 psf to $24 psf.  The building is currently under new management and common areas have been upgraded.  Vacant units are lease ready and being marketed.  The overall trend in the area is stable.      110/06/2014  Per borrower reports, tenant Focus Diagnostics Inc, which occupies 59,437 sf or 41% of GLA, had a lease which expired on 03/31/2014.  The borrower will be contacted for leasing updates.      09/01/2014  Per borrower reports, occupancy as of 06/01/2014 was at 75%.  The borrower has been contacted for a property performance update.         08/04/2014  Per borrower reports, occupancy has increased from 71% as of rent roll dated 03/31/2013 to 76% as of rent roll dated 03/31/2014.     3/4/2015    The borrower will be contacted for property updates.         05/02/2014  The borrower has been contacted for a property performance update and awaiting a response.      11/06/2013  Per the borrower, Focus Diagnostics, Inc has extended its lease to 03/31/15.  The demand for the office property in the area is poor and there is an abundance of vacant space in the West Orange County, California market.  The occupancy and rental rates are down.  They are heavily discounting the first months rent on long term leases and are offering bonuses of up to $1.00 psf to brokers that bring in new tenants.  Lease rates are in line with the market rates and the overall sluggish economy has impacted the demand for space in the area.  Rental rates are approximately 40% off the peak rate and are stable.  The borrower expects that favorable property tax relief would improve cash flow.     3/4/2015    Occupancy and rental rates would improve as the overal

MLCFC 2006-4: A bad deal gets some good news

Park LaBrea apartments in L.A. paid off with $18MM of yield maintenance, giving someone at Freddie Mac a good day.  Shortfalls were replenished down to class G.  Still, there were $60MM in losses on two other crap loans, which fully wrote down class H.  Still not an AJ I would recommend to Grandma!

BACM 2007-1: Wonder where this AJ is trading?

Another winner from the folks that brought you ... every other post-2006 BACM deal.  This is a 10 year I/O with 22 months left to go that recently lost a tenant,  According to the data, the Sponsor on the loan is none other than "None".

Transaction: BACM 2007-1
Property: Merrymeeting Plaza
City/State: Brunswick, ME
Property Type: Retail
Balance: $24,350,000
Percentage of Deal: 1.59%
Maturity Date: January 15, 2017
MS: KeyCorp Real Estate Capital Markets
SS: CWCapital Asset Management
Reason for Transfer: Potential/Imminent Default
On Servicer Watchlist Prior to Transfer: Yes; 11/8/13
Previously in Special Servicing: No
Previously Modified: No

Shortfalls should still remain within the AJ even with a 40% appraisal reduction.

WBCMT 2007-C30: we have another winner!!!

This deal is already being shorted to the AJ, largely thanks to the Stuy Town appraisal reduction.

Transaction: WBCMT 2007-C30
Property: Eastland Center
City/State: Harper Woods, MI
Property Type: Retail
Balance: $37,469,051
Percentage of Deal: 0.55%
Maturity Date: October 11, 2016
MS: Wells Fargo
SS: CW Capital Asset Management
Reason for Transfer: Imminent Non-Monetary Default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: No
Previously Modified: No

The loan matures in a year and a half.  The watchlist comment says nothing about why a non-monetary default is imminent.  Obviously, a mall built in 1957 is likely not attracting tier 1 tenants. Anyone feel like doing some research, or is it going to have to be me?

JPMCC 06-CB16: ooof!!!

Oy vey, Menashe Frankel!  This deal is already shorting to the AJ.

Transaction: JPMC 2006-CIBC16
Property: REPM Portfolio
City/State: multiple cities
Property Type: Industrial 
Balance: $83,264,586
Percentage of Deal: 5.62%
Maturity Date: June 1, 2016
MS: Berkadia Commercial Mortgage
SS: C-III Asset Management LLC
Reason for Transfer: Potential/Imminent Default
On Servicer Watchlist Prior to Transfer: Yes
Previously in Special Servicing: Yes
Previously Modified: Yes

Silly loan corner - Sierra Vista Mall

There hasn't been a lot of activity in CMBS collateral these last couple of months, but it is of note that Sierra Vista Mall in COMM 2006-C8 became REO in March.  What makes this loan special is that it was written for $77,777,777.  Did the folks at Deutsche Bank convince the borrower that he would get lucky?   Apparently, the special servicer does not share the same sense of humor as the originator judging by their terse commentary:

 03/04/2015 - This is a single property loan which has become REO.

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

I haven't forgotten about you!

Not a lot going on in CMBS land but it's always nice to see another mall loan bite the dust,
Transferred today to the special:

Transaction: MSCI 2007-TOP27
Property: Towne Square Mall
City/State: Owensboro, KY
Property Type: Retail
Balance: $24,504,955
Percentage of Deal: 1.2%
Maturity Date: May 1, 2017
MS: Wells Fargo
SS: C-III Asset Management, LLC
Reason for Transfer: Imminent Monetary Default
On Servicer Watchlist Prior to Transfer: Yes 
Previously in Special Servicing: No
Previously Modified: No