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
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
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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