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Tuesday, 04 November 2014

$94Mln CMBS Loan Against Dakota Mall Gets Modified into A/B Notes

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Commercial Real Estate Direct Staff Report

The $94 million CMBS loan against the Rushmore Mall in Rapid City, S.D., has been modified into A and B notes.

The property's owner, Washington Prime Group, detailed the modification in its third-quarter earnings report earlier today, which was highlighted in a research note from Nomura Securities.

The loan, which encumbers 737,725 square feet of the 839,284-sf property, is securitized through Banc of America Commercial Mortgage Trust, 2006-3. It has been with special servicer CWCapital Asset Management since December 2012, when it was transferred because it was expected to default.

At the time, the property, at 2200 North Maple Ave., was owned by Simon Property Group, which had recently acquired it from a venture it operated with Macerich Co. It was one of the 98 properties that Simon had spun off as Washington Prime Group.

The Bethesda, Md., REIT said it ponied up $11.6 million to fund certain costs and reserves. It also said that under a sale or refinance of the property that principal and interest against the B-note "may be forgiven."

According to servicer notes compiled by Trepp LLC, the CMBS loan has been split into a $58 million A-note and $36 million B-note. Both retain their 5.79 percent coupon, which is payable only on the A-note. Interest accrues on the B-note and becomes payable in the event the collateral property is sold or the loan is refinanced. The loan's term, meanwhile, has been extended to February 2019 from June 2016.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.


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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Rapid City
  • States: South Dakota
  • Sector: Retail
  • Subject: Commercial MBS (CMBS)
  • Deal Name: Banc of America Comm Mtg Trust 2006-3
  • Company: Developers Diversified Realty Corp.
  • Private: No
  • bloombergDealName: BACM 2006-3
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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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