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Wednesday, 25 February 2015

CMBS Debt Against Willis Tower Goes Back to Master, Sans Mod

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Commercial Real Estate Direct Staff Report

The $500 million senior securitized debt against Chicago's Willis Tower has been transferred back to master servicing without having been modified.

The transfer was highlighted by JPMorgan Securities in research yesterday.

The CMBS debt, which is part of a $780 million financing package, had been transferred to special servicer CWCapital Asset Management last June when the 3.8 million-square-foot office property's owner, an investor group led by Joseph Chetrit and Joseph Moinian, sought to modify its terms. The group sought a modification in order to free up capital to fund tenant improvement and leasing commission costs.

The property at the end of 2013 was 83 percent leased. And JPMorgan noted that it didn't quite generate the cash flow needed to fully service its debt. But the CMBS debt has remained current with its payments, according to servicer data compiled by Trepp LLC.

JPMorgan's CMBS analysts noted that the property doesn't face significant lease maturities in the next few years, and its main tenant, United Airlines, occupies 22 percent of the property under an agreement that runs through 2028. No other tenant occupies more than 5 percent of the building. It called the move back to master servicing, without a modification, "a solid outcome," and lauded CWCapital for not "capitulating and offering a modification."

The property formerly was known as the Sears Tower and sits at 233 South Wacker Drive. It was acquired by the Chetrit/Moinian group in 2004 for $840 million. The $500 million of CMBS debt is comprised of a $337.6 million piece that's securitized through LB-UBS Commercial Mortgage Trust, 2007-C2; a $91.8 million piece that's in JPMorgan Chase Commercial Mortgage Securities Trust, 2013-WT; a $49.6 million piece in LB-UBS 2007-C7 and a $19.9 million piece in LB-UBS 2008-C1.

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: Chicago
  • States: Illinois
  • Sector: Office
  • Subject: Commercial MBS (CMBS)
  • Deal Name: LB-UBS Commercial Mortgage Trust 2008-C1, LB-UBS Commercial Mortgage Trust, 2007-C2
  • Private: No
  • bloombergDealName: LBUBS 2007-C2, LBUBS 2008-C1, JPMCC 2013-WT
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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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