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Thursday, 12 May 2016

CMBS Loan Against Scottsdale Plaza Resort Gets Modified

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Commercial Real Estate Direct Staff Report

The $57.2 million CMBS loan against the Scottsdale Plaza Resort, which has been in special servicing since last year, has been modified.

The loan, securitized through JPMorgan Chase Commercial Mortgage Securities Corp., 2006-CIBC15, was set to mature in June and had been amortizing on a 30-year schedule. It's been extended by two years to June 2018 and its coupon has shrunk to 4.5 percent from 6.32 percent. In addition, its amortization requirement has been lifted. It now requires only interest payments through its new maturity. Its modification, which cost the property's owner a $4 million equity injection, was highlighted this morning in a TreppWire report, which said the modification permits a one-year extension.

The loan got into trouble in 2009 - three years after it was securitized. Its collateral, a 404-room hotel resort at 7200 North Scottsdale Road in Scottsdale, Ariz., which is just outside of Phoenix, since then hasn't come even close to generating the net cash flow that was projected when its loan was written. In 2014, the last full year for which data are available, the property generated $2.4 million of cash flow, roughly half that needed to fully service the pre-modified mortgage. The loan was underwritten with the assumption the property would generate $7.7 million of cash flow.

Servicer notes compiled by Trepp LLC indicate the property operated at a 54 percent occupancy rate and generated an average daily rate of $140 last year, for revenue per available room of $75.

The property has been owned by an investor group led by Plaza Management Corp., which is headed by John Dawson, since the mid-1970s. It was last renovated in 2003.

A $14 million appraisal reduction amount was lodged against the loan in February, indicating that the property is likely worth substantially less than the $104 million appraised value set in 2006.

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: Scottsdale
  • States: Arizona
  • Sector: Retail
  • Subject: Commercial MBS (CMBS)
  • Deal Name: JPMorgan Chase Comm Mtg Sec Corp. 2006-CIBC15
  • Private: No
  • bloombergDealName: JPMCC 2006-CB15
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

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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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