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Friday, 13 April 2018

Vacancy Threat Prompts $94Mln CMBS Loan's Transfer to Special Servicing

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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 transferred to special servicing again, as the property faces substantial potential vacancies.

The loan, which was modified into A and B notes four years ago, is one of two left in the collateral pool for the Banc of America Commercial Mortgage Trust, 2006-3. Its transfer to KeyBank's special servicing unit was highlighted yesterday by Fitch Ratings in a Daily Special email alert.

As part of its modification, the loan was split into a $58 million A note that pays its original 5.794 percent coupon, and a $36 million B note, which accrues but doesn't pay interest at the same rate. The loan originally was slated to mature in June 2016, but that was extended to next February.

The modification was completed to provide the property's owner, Washington Prime Group, incentive to hang on to it. At the time, the property was worth only $52 million, based on an appraisal, and was in need of repairs as a floor slab in anchor JCPenney's space had collapsed, increasing the risk that the retailer would vacate.

In exchange for the loan modification, Washington Prime had agreed to invest the $11.6 million needed to repair the slab and make other physical improvements to the 40-year-old property.

Last year, the property was 85 percent occupied and generated $7 million of net cash flow, according to servicer data compiled by Trepp LLC. That compares with $7.7...





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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Sioux Falls
  • States: South Dakota
  • Sector: Retail
  • Subject: Bankruptcy/Foreclosure (BKRPT), Commercial MBS (CMBS)
  • Deal Name: Banc of America Comm Mtg Trust 2006-3
  • Company: Glimcher Realty Trust, KeyBank Commercial Mortgage
  • Private: Yes
  • bloombergDealName: BACM 2006-3
Read 290 times Last modified on Friday, 13 April 2018

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

 

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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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