Another AJ shortfall - MLCFC 2007-6

The two MSKP Retail Portfolio loans in the deal, owned by MS RE Fund V and  Kitson&Partners, were modified into A/B notes resulting shortfalls totaling over $500k last month that ate into the AJ bond.

Parkus lands at Morgan Stanley

Richard Parkus, one of the few CMBS guys not to change seats over the last few years, finally jumped from Deutsche (-1) to MS (+1).

All we want for Christmas is some Jingle Mail

Morgan Stanley is turning in the keys to 5 properties that were part of the Blackstone EOP-flip. All are in San Francisco. I'd say these properties are off more than the 50% quoted in the article - they were the peak of CRE market, and they're in San Fran which already has issues that are worse than the average MSA.

My favorite part about the story is this:

“This isn’t a default or foreclosure situation,” Barnes said. “We are going to give them the properties to get out of the loan obligation.”

They're not defaulting - they're just going to give the lender the keys and stop paying the mortgage payments, permanently, which is the opposite of what was agreed to in the loan docs. He sounds like the traffic cop who explained to me that he was giving me a "simple" speeding ticket, not one of those complicated ones.

The buildings Morgan Stanley is giving up are One Post, 201 California St., Foundry Square I, 60 Spear St. and 188 Embarcadero, Barnes said. The bank will continue to own the five other office buildings it acquired in the deal, Barnes said.