Bank of America Plaza default

Nothing unexpected here. My accountant is actually in this building and has been providing on-the-ground reporting as E&Y vacated, and now BOA is reducing its footprint from 29.9% to 13% of NRA. I get to visit it a fair amount when I fly down to play a little game she calls "Taxes", which I always lose even when I win.

The good news is that it has $4.3mm in reserves, its covering at 1.09x, and they've engaged Cushman & Wakefield to lease up the 21% of currently vacant space. The better news is that despite this being Atlanta Office, it is, according to the Bloomberg story out today, the tallest building in the Southeast - someone is going to snap this up.

The bad news is that it is 80% LTV before the Mezzanine loan, and the mezz holder (Petra Mortgage Capital) has tried and failed to auction off its interest.

Movie Gallery Shifting from Chapter 22 to Chapter 7 Strategy

Movie Gallery is finally throwing in the towel. If you look across the CMBS universe, and take into account the square footage exposure per deal, only one deal has more than 0.20% exposure to this company. If you flip it over and look at it from a total loan exposure, you have several deals that exceed 1%.

Deals	Loan Exposure
JPMCC 2006-CB17	9.12%
CASC 1998-D7	7.27%
GSMS 2006-GG6	3.60%
JPMCC 2007-LDPX	2.48%
JPMCC 2009-IWST	2.09%
CLRT 2007-2A	1.60%
LBCMT 1998-C4	1.29%
BACM 2006-3	1.27%
DMARC 1998-C1	1.27%
FUNBC 2001-C2	1.24%
LBUBS 2004-C6	1.06%
SCSC 2007-8	1.03%
CSMC 2006-C3	1.02%

That top one was on a bid list yesterday... wonder who bought that. Horrible timing, but probably not that big deal - it's mostly one huge loan that probably will not miss the Movie Gallery that much.

you can email me at credarkspace at gmail dot com if you want the entire list. I didn't pore over it with any real detail, but it should be relatively complete.