The Real Deal New York

Posts Tagged ‘fitch’

  • 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]

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    Jumeirah Essex House

    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]

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    From left: Stuyvesant Town, 300 Broadhollow Road and the Westin Ft. Lauderdale

    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]

  • IStar faces potential collapse: Fitch

    September 29, 2010 02:15PM

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    Left: One Mad. Park, Trump Soho, William Beaver House, Dan Fasulo of Real Capital Analytics

    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 W Hotel

    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]

  • Fitch Ratings has handed MetLife, the largest U.S. life insurer, a downgrade to A from A+ on potential losses tied to commercial real estate investments, following in the footsteps of similar actions by Moody’s Investors Service and Standard & Poor’s last year. MetLife, which holds $50 billion in commercial real estate loans and commercial mortgage-backed securities, is expected to post a loss of between $2.2 billion and $2.6 billion for the five quarters that will end in December 2010, Fitch said. MetLife posted profits in 2008 as the market turned sour by using derivatives, but lost $2.57 billion in losses during the first three quarters of 2009. U.S. life insurers, with more than $450 billion in commercial holdings, have yet to see the worst of the commercial real estate fallout, said Andrew Davidson, Fitch’s senior director. Davidson said losses on those holdings, like apartment buildings, offices and shopping malls, will come into view over the next six months, threatening another $15 billion in losses. … [more]


  • From left: Joseph Moinian and his 50 West 23rd Street, and Sitt Asset Management’s 240 West 40th Street

    Fitch downgraded a group of securitized loans from Wachovia Bank that includes a Flatiron office tower owned by Joseph Moinian and a Midtown office tower owned by Sitt Asset Management.

    The ratings agency downgraded eight loans by Wachovia Bank Commercial Mortgage Trust series 2005-C19, citing concerns about declining cash flows and commercial real estate values.

    One Moinian loan is backed by the developer’s 13-story office tower at 50 West 23rd Street in the Flatiron District. The building was 97 percent occupied as of October and has a debt service coverage ratio of 1.52 percent as of June, according to Fitch. A building with a ratio of less than 1 is considered to have negative cash flow.

    In June, the building’s broker, Newmark Knight Frank, renewed the 64,000-square-foot lease for a magnet school, called the Manhattan Village Academy for lower rent, following more than a year of negotiations. … [more]

  • Fitch downgrades Riverton loan

    September 02, 2009 02:19PM

    Fitch Ratings downgraded another series of commercial real estate loans, driven in part by concerns that the troubled Riverton Houses apartment complex in Harlem would incur a “significant loss upon liquidation” based on a recent appraisal report. Wells Fargo, the trustee of the Riverton loan, filed a motion last month in New York State Supreme Court for a summary judgment against developer Laurence Gluck of Stellar Management, who defaulted on a $225 million loan and was thus far unable to arrange a workout with his lenders. Sources close to the case said a hearing is scheduled for tomorrow to determine whether to order a judgment against the developer. If such an order is issued, a referee would be appointed to determine the total amount due and what steps would be taken to place the property up for sale and collect on any personal guarantees. … [more]

  • Fitch warns Midtown loans face default

    August 10, 2009 05:54PM
    alternate textFitch issued warnings about loans backed by One Park Avenue (left), 575 Lexington (source of building photos: PropertyShark)

    Fitch Ratings warned today that loans backed by One Park Avenue and 575 Lexington Avenue are expected to default due to declining cash flow, amid a general downgrade of a package of commercial mortgage-backed securities issued by Banc of America Commercial Mortgage. The building loans represent 5.9 percent and 5.2 percent, respectively, of the CMBS. “Both of these loans had reserves set up at issuance,” said Adam Fox, senior director at Fitch Ratings. “The original plan was that the reserves would last until your tenants left.” … [more]