Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 02 December 2019

CMBS Trust Seen Taking Okla. Student-Housing Property

The student-housing property that backs a $37.7 million loan that's in special servicing has been appraised at a value of $36.3 million, which could spell losses for the CMBS trust that holds it. The property, some three miles from Oklahoma State University's main campus in Stillwater, Okla., is one of at least five owned by Aspen Heights Management, whose CMBS loans either are in special servicing or could soon transfer.

Commercial Real Estate Direct Staff Report

Morgan Stanley Bank of America Merrill Lynch Trust, 2014-C16, is poised to take title to the Aspen Heights-Stillwater student-housing complex near Oklahoma State University's main campus in Stillwater, Okla.

The property, however, recently was appraised at a value of $36.3 million, according to a report on TreppWire this morning. That's down from $50.8 million six years ago, when a CMBS loan was written against it. That loan, with an original balance of $38.1 million, has amortized to $37.7 million. The property hasn't made a payment since August and servicer notes compiled by Trepp LLC indicate that the collateral property's owner, Aspen Heights Management of Austin, Texas, plans to turn the property over in a deed-in-lieu of foreclosure.

The CMBS loan has been with special servicer LNR Partners since July.

Aspen Heights-Stillwater, constructed in 2013 at 920 East Loveland Drive, has 792 beds in 231 units. The property hasn't performed up to expectations. During its first 12 months, it was more than 98 percent occupied and generated $3.5 million of net cash flow, which was 41 percent more than needed to cover its debt-service requirement.

Last April, occupancy was 78 percent and cash flow for the previous eight months totaled $1.1 million. That was about 30 percent less than needed to fully service the loan, which started amortizing on a 30-year schedule earlier this year. It previously required only interest payments and pays a coupon of 5.07 percent.

The property is roughly three miles from campus...





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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

 

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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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