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Thursday, 15 December 2016

Ariz. Mall Backing $75.3Mln CMBS Loan Gets Valued at $18Mln

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Commercial Real Estate Direct Staff Report

The Foothills Mall in Tucson, Ariz., which backs a $75.3 million CMBS loan that became delinquent a year ago, has been appraised at a value of $18 million.

That compares with an appraised value of $115 million in 2006, when its mortgage, securitized through JPMorgan Chase Commercial Mortgage Securities Corp., 2006-LDP8, was originated. The loan had matured last July and had been classified as being in foreclosure, according to servicer data compiled by Trepp LLC. Those data indicate that the loan has been hit with a $59.2 million appraisal reduction amount.

The loan had transferred to special servicer C-III Asset Management last year when the property's owner, J Schottenstein Property Group of Columbus, Ohio, said it wouldn't continue to service the loan because of its cash-flow shortfalls. Last year, the collateral property was 87 percent occupied and generated $5.3 million of cash flow, which was nearly 10 percent less than the amount needed to fully service the loan. The debt had been amortizing on a 35-year schedule. Occupancy as of the end of July had slipped to 77 percent.

The 501,514-square-foot collateral property, at 7325 North La Cholla Blvd., was purchased five years ago by Schottenstein for $89.8 million. It was hit hard when Simon Property Group opened the Tucson Premium Outlets nearby last October. At the same time, some of its largest tenants are on leases with relatively short fuses. Among them: an AMC cinema, whose lease for 77,284 sf rolls next October, and Barnes & Noble, which occupies 40,472 sf under an agreement that runs through January.

Servicer notes compiled by Trepp indicate that a note sale might be in the works, with a resolution of the loan anticipated by next February.

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: Tucson
  • States: Arizona
  • Sector: Retail
  • Subject: Commercial MBS (CMBS)
  • Deal Name: JPMorgan Chase Comm Mtg Securities Trust, 2006-LDP8
  • Private: No
  • bloombergDealName: JPMCC 2006-LDP8
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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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