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Tuesday, 16 November 2010

CMBS Trustee Reports Confirm $2.8Bln Appraisal for StuyTown

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Commercial Real Estate Direct Staff Report

Manhattan's Stuyvesant Town/Peter Cooper Village apartment complex has been appraised at $2.8 billion, according to reports from the trustees for two of the five CMBS deals that hold $3 billion of debt against the 11,227-unit property.

That means the CMBS deals will be hit with $616 million of appraisal reductions, or 20.5 percent of the loan balance, according to an estimate by Barclays Capital's CMBS research group.

The trustee reports for the two deals, ML-CFC Commercial Mortgage Trust, 2007-5 and 2007-6, included appraisal reductions for their pieces of the debt of $164.3 million and $41.5 million, respectively.

As such, Barclays estimated that the three other CMBS deals, Wachovia Bank Commercial Mortgage Trust, 2007-C30, which owns a $1.5 billion piece of the debt, will be hit with a $308 million reduction; Cobalt CMBS Commercial Mortgage Trust, 2007-C2, which owns a $250 million piece, will see a $51.3 million hit, and Wachovia, 2007-C31, which owns a $247.7 million piece, will see a $51 million reduction.

The ML-CFC 2007-5 deal holds an $800 million piece of the debt, while the 2007-6 deal holds a $202.3 million piece.

The new appraisal means that the master servicers for the five deals will now advance only $13.2 million every month, down from the $16.6 million they had been advancing, according to a Barclays estimate. The difference between the two numbers is deemed an appraisal subordinate entitlement reduction, or ASER, that is absorbed by bondholders and might be recovered only when the collateral property is liquidated. The ASER will result in shortfalls of interest payments to some bondholders.

Barclays, in its analysis this morning, noted that the ML-CFC 2007-5 transaction, which includes a total of 23 loans in special servicing at a combined $1 billion, saw interest shortfalls climb up to its $77.3 million B class, which originally carried ratings of AA from S&P and Fitch and Aa2 from Moody's. The class now is rated B/BB/Caa2 and received only $318,886.18 in interest payments. It was due $352,925.22.

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

Copyright © 2010 Commercial Real Estate Direct


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Additional Info

  • Syndicate to Realpoint: No
  • Cities: New York City
  • States: New York
  • Sector: Multifamily
  • Subject: CMBS - non-deal specific (CMBS-G), Commercial MBS (CMBS)
  • Deal Name: Macerich SCG Funding Limited Partnership, Series 1996-C1, ML-CFC Commercial Mortgage Trust, 2007-5, Wachovia Bank Commercial Mortgage Trust, 2007-C30, Wachovia Bank Commercial Mortgage Trust, 2006-C23, Mezz Cap Commercial Mortgage Trust, 2005-C3, ML-CFC Commercial Mortgage Trust, 2007-8
  • Company: Bay View Capital Corp.
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