Fitch and Barclays are reporting this loan flipped into Special Servicing due to imminent default. Roughly 2/3rds of the underlying properties are located around Baltimore and have heavy exposure to GSA tenants which were severely impacted by BRAC in that area.
Office Markets in places like Huntsville AL (where a large portion of civilian support positions were relocated due to BRAC) have benefited while areas in the greater DC area have been hurt.
Barclays notes that this could impact the AJ, but also highlights the other three COPT Office Portfolios in CMLT 2008-LS1 ($150mm, Northrop, the third largest tenant amongst the two collateral properties, terminated its lease and plans to leave this year), MSC 2006-HQ8 ($108.5mm), and GSMS 2006-GG6 ($103mm).
Showing posts with label GCCFC 2007-GG9. Show all posts
Showing posts with label GCCFC 2007-GG9. Show all posts
Monday, April 1, 2013
Wednesday, September 14, 2011
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
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
Monday, October 4, 2010
John Hancock Tower flipped, again
WSJ reports:
Timeline
2006 - Broadway acquires from Beacon using $640mm Senior and a $723mm mezz.; Appraises at $1.3mm
2009 - Borrower defaults, Normandy and Five Mile pick up the mezz for $20.1mm, assume the senior, takeover ownership.
2010 - Normandy and Five Mile make 10x their investment less than 1.5 years later.
Good for GG9.
Boston Properties Inc. agreed to acquire the John Hancock Tower and Garage in Boston from private-equity firms Normandy Real Estate Partners and Five Mile Capital Partners for about $289.5 million, plus the assumption of about $640.5 million in debt.
Timeline
2006 - Broadway acquires from Beacon using $640mm Senior and a $723mm mezz.; Appraises at $1.3mm
2009 - Borrower defaults, Normandy and Five Mile pick up the mezz for $20.1mm, assume the senior, takeover ownership.
2010 - Normandy and Five Mile make 10x their investment less than 1.5 years later.
Good for GG9.
Thursday, April 2, 2009
John Hancock Tower
John Hancock Tower has received ample coverage elsewhere, but it deserves a little clarification. At the risk of sounding like an optimist (please don't accuse me of that), it really doesn't imply much at all for commercial real estate in general.
Some believe it implies severe price corrections are coming for CMBS, but it doesn't really tell that story. The sole bidder had been buying up the mezz position for months - not only did they have a higher basis, but who would bid against them? They obviously are going to protect their position, so no serious bidder is going to compete, thus guaranteeing a low price.
Others point to it and say it proves CMBS are a good investment because the senior mortgage isn't close to taking a hit on this one. That is not fair either. The average LTV is just below 70% in CMBS, significantly higher than the 50 handle LTV on this loan. Further, LTV has historically been somewhat correlated to credit (lower credit requires a lower LTV by the underwriter), but that wasn't the case in recent years where lower credits could come into CMBS and receive high senior LTVs (some of the lowest LTVs went to high credit institutional investors).
Some believe it implies severe price corrections are coming for CMBS, but it doesn't really tell that story. The sole bidder had been buying up the mezz position for months - not only did they have a higher basis, but who would bid against them? They obviously are going to protect their position, so no serious bidder is going to compete, thus guaranteeing a low price.
Others point to it and say it proves CMBS are a good investment because the senior mortgage isn't close to taking a hit on this one. That is not fair either. The average LTV is just below 70% in CMBS, significantly higher than the 50 handle LTV on this loan. Further, LTV has historically been somewhat correlated to credit (lower credit requires a lower LTV by the underwriter), but that wasn't the case in recent years where lower credits could come into CMBS and receive high senior LTVs (some of the lowest LTVs went to high credit institutional investors).
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