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

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!

Comings and Goings

The Moody's Real CPPI dropped 2.6% in February - following three months of increases. It's off 41.8% from the peak.

Uniqlo (We'll have to ask my wife what type of retailer they are - ADR FRCOY) got a 1/3 off deal on their rent at 666 Fifth Avenue (several deals) for the street level retail at just $20mm per year (down from $30mm asking). It's being touted as a record breaking deal, but it's not clear which record is being broken - there certainly have been larger over all deal sizes, and the price per square foot doesn't seem like a record breaker... In fact, the square footage must be wrong. It's listed as 89,000 everywhere I look, but that's just $224 psf - there are plenty of leases at $2,000 psf for fifth avenue retail (Abercrombie & Fitch is in the same building at $2+k, although their space is dark). There is an extra zero somewhere in there. Actually, I don't think the floor has that much space available. Abercrombie is out, Brooks Bros. is out. Maybe it stretches up into the office space and actually helps out the CMBS loan (which does not include retail) - the $psf might actually make more sense that way too (assuming the 89k is correct). It could be - I see they have a 51k square foot space at 546 Broadway (JPMCC 2007-LDPX).

Legacy CMBS TALF rejects 1 bond

Sucks for that guy, but PCV/ST deals were brought in even though they carry 20% of the collateral on the deals they're in.

No color on why JPMCC 2007-LDPX A2S was rejected, but you have to wonder about the shorter term loans and extension risk behind that class. It's hard to get behind a 3-year loan on this bond, when it's like to extend out further. Not to mention your GGP and Maguire exposure.

Solana in WSJ: BACM 2007-1 and JPMCC 2007-LDPX

Solana was featured in the WSJ today regarding it's request for debt relief, which we commented on in early March, here.

Nothing much new. Noted that Travelocity did not renew it's 145k sq ft lease (they have a total of 540k sq ft), and that revenue was down 60% at the Marriott. Maguire is the guarantor, the person not the company, and has defended the request as just standard paper pushing - it is not standard when you call up the special servicer (unless you work at a distressed debt fund).

I really don't like Travelocity - you can't open your travel plans in different windows/tabs - it will just crash. They went to some effort to make it work in a non-userfriendly way, as evidenced by American Express travel, which uses Travelocity's framework for their website but just brands it as AmEx Travel. The American Express website doesn't have all the non-user-friendly bits. So, my point is that I'm negative on Solana.

Solana Seeks Debt Relief

Solana is a huge multi-use complex in Westlake, TX owned by Robert Maguire (the man, not the company). It was doing fine last year, but something obviously has gone wrong - its not clear what yet. However, we've never been a fan of Maguire's business model with so much exposure to California, and a surprisingly high amount of exposure to mortgage origination and servicer operations, and even more surprisingly high exposure to the subprime variety!

Solana is has pari passu mortgages in BACM 2007-1 and JPMCC 2007-LDPX.

Fitch:

Solana is secured by a 1.9 million square foot (sf) mixed-use property located in Westlake, TX. The property contains office, retail, and hotel components. The loan transferred to special servicing when the sponsor requested payment relief. As of June 2008, the servicer reported a debt service coverage ratio of 1.88 times (x) and occupancy of 98%.