From left: 30 East End Avenue and 25 East 67th Street
Fitch Ratings has downgraded a pool of loans, led in part by a 312-unit portfolio of Manhattan rental apartments owned by the Parkoff Organization.
The Parkoff Portfolio represents 10.3 percent of the total loan pool from Morgan Stanley Capital Trust, which trades under the name MSCI 2007 HQ-12. The size of the pooled loans was $1.96 billion at issuance, but the balance is down to $1.65 billion. [more]
Fitch Ratings said it expects a loan backed by the Jumeirah Essex House to take a loss as the loan is scheduled to mature in September. The loan represents 15.2 percent of a UBS Commercial Mortgage Trust series 2007-FL1, and the property is the largest of 11 loans expected to take a loss in the pool. The 515-room Essex House, at 160 Central Park South, underwent a $91 million conversion to partial condominium in 2007, and has struggled amid less-than-expected income, Fitch reported. [more]
Fitch Ratings downgraded a $6.6 million class of commercial real estate loans led by 10 Metrotech Center, a seven-story office building owned by Forest City Ratner in Downtown Brooklyn.
Fitch downgraded one class of COMM Mortgage Trust 2005-FL-10, saying 42 percent of the pool is expected to default due a 10 percent overall decline in cash flow compared with the last update.
The 359,000 square foot property, located at 625 Fulton Street in Brooklyn, is faced with an expiring lease with the Internal Revenue Service, which occupies nearly 88 percent of the building. The loan represents 7.4 percent of the pool balance. [more]
Fitch Ratings yesterday downgraded a pool of commercial real estate loans
led by Stuyvesant Town and Peter Cooper Village, a Florida hotel and a
Melville, N.Y. office property.
Fitch said the $2.42 billion loan pool, sold under the name Cobalt 2007-
C2, has 57 loans of concern, representing 38 percent of the pool, and 15 of
the loans are in special servicing, representing 17 percent. The current loan
balance is $2.32 billion.
The Peter Cooper Village and Stuy Town loan represents the largest
percentage of the pool, or 10.3 percent, and remains in special servicing
under CW Capital. The 80-acre site, with more than 11,000 units, is
currently under new management with Manhattan-based Rose Associates,
which declined to comment. [more]
Loan modifications are declining to the point where eventual foreclosures for distressed U.S. homeowners are becoming all but certain, if somewhat delayed, according to a report from Fitch Ratings, released yesterday. Just 36,500 mortgage modifications were completed in December 2010, down from a high of 86,500 in April 2009, the report says, and Fitch says it expects the majority of those modified borrowers to default again within one year, which could lead to another spike in foreclosures. TRD [more]
Financial rating firm Fitch Ratings said today the special servicer at Stuyvesant Town plans to begin the renovation of 570 vacant units at the sprawling complex on Manhattan’s East Side. (Click here to see story posted Jan. 25 for more details.) CWCapital, the special servicer at the 11,227-apartment complex located on 80 acres, formally took control of the property in October. That same month it designated property manager Rose Associates as operator of the buildings, which are 95 percent leased. (note: clarification made) TRD [more]
Fitch Ratings downgraded and issued a dire warning about iStar Financial, saying the Manhattan-based commercial lender would need to negotiate significant concessions from bondholders to avoid a [more]
Delinquencies on commercial mortgage-backed securities are still on the rise, albeit at the slowest pace seen in the last 11 months, according to a new report from Fitch. The ratings agency’s delinquency rate index rose to 8.14 percent in June from 7.97 percent in May, with hotels still registering the highest delinquency rate — 18.6 percent — which was flat on a month-over-month basis. Still, the report warns that delinquencies are poised to accelerate amid depressed commercial rents and occupancy rates, which could leave landlords crunched for cash to pay off their mortgages, according to National Mortgage News. [National Mortgage News]
The $80 million loan for a 600,000-square-foot downtown Manhattan office building at 40 Rector Street was transferred to a special servicer yesterday, according to Fitch Ratings, Crain’s reported. The owner of the property, Philips International, defaulted on the loan, which matured June 1. As a result, it was transferred to J.E. Robert Company, a Va.-based special servicer that works out troubled loans. The Rector Street loan is secured by a 440,000-square-foot office property that Philips owns elsewhere in the Financial District, according to a recent Fitch Ratings U.S. CMBS focus performance
report. The report noted that many leases were up for renewal. Nine separate New York City agencies lease nearly half of the actual rentable space in the building, which is located between Washington and West streets. All of those leases are scheduled to expire next month. The lease of the third largest tenant in the 19-story building, Merrill Lynch, also expires next month. Manhattan-based Philips International owns and operates more than 3 million square feet of retail properties, 1.3 million feet of office space and two hotels throughout the East Coast. The company is also the co-developer of a new rental building, the Corner, at 200 West 72nd Street at the southwest corner of Broadway. [Crain's]
The Moinian Group is negotiating with lenders after defaulting on a collateralized $25 million mezzanine loan last October, backed by the W New York Downtown Hotel & Residences, The Real Deal has learned.
Fitch yesterday downgraded a $942 million collateralized debt obligation issued by Realty Finance, a Rocky Hill, Conn.-based lender. Two of the three largest loans in the pool were backed by the W New York and the Riverton, a 1,230-unit multi-family complex in Harlem.
Moinian, led by developer Joseph Moinian, defaulted on the loan amid budget problems and construction delays, according to Fitch. Fitch said it “modeled a full loss on this highly-leveraged mezzanine loan,” however the ratings agency told The Real Deal that Moinian is currently negotiating with CW Capital Asset Management, the special servicer on the loan.
Moinian confirmed through a spokesperson that he is in talks with CW Capital and said he is continuing to make interest payments.
“No action has been taken against them and they are continuing to work with the special servicer to arrange new terms,” the spokesperson said in an e-mailed statement. [more]
