Fitch downgrades 11 Madison, other loans

TRD New York /
Feb.February 17, 2012 08:19 PM

Fitch Ratings today downgraded nine classes of a $3.9 billion pool of loans led by 11 Madison Avenue, a 29-story office tower and U.S. headquarters for Credit Suisse.

Fitch said the 11 Madison loan, representing 20.7 percent of the pool, may default upon maturity as pro-forma cash flow that was predicted will be difficult to achieve. Fitch said that while the loan is currently performing, asking rents have fallen below the expected amounts when the loan was originated.In December 2010, Los Angeles-based CIM Group bought a 49 percent stake in the tower from the Sapir Organization for $469.4 million.

Credit Suisse occupies 82 percent of the space at the 2.2-million-square-foot office tower near Madison Square Park, and overall occupancies are stable. The loan pool, Credit Suisse Commercial Mortgage Trust, series 2006-C4 had an original balance of $4.22 billion, but the principal balance has shrunk by 7.9 percent.

The next largest contributor to the loan pool is the Babcock & Brown FX-3 Sonterra loan, backed by 14 properties totaling 3,720 units, in Nevada, Texas, Maryland, Florida and South Carolina. Fitch said the loan is in foreclosure and had a receiver named in August 2011.

CIM officials were not immediately available for comment and nor was a Credit Suisse spokesperson.


Related Articles

arrow_forward_ios
SL Green's Mark Holliday with Industry City in Brooklyn and 95 Morton Street (Credit: Industry City; SL Green; Google Maps)

SL Green in talks to sell loans to CIM, Rockwood

SL Green in talks to sell loans to CIM, Rockwood
Missed loan payments will approach Great Recession highs, a new report finds (Credit: iStock, Getty Images)

Missed loan payments to approach Great Recession levels: Fitch

Missed loan payments to approach Great Recession levels: Fitch
685 Fifth Avenue and Michael Shvo (Credit: Shvo)

Shvo, partners land $120M construction loan for 685 Fifth Avenue

Shvo, partners land $120M construction loan for 685 Fifth Avenue
Canarsie Plaza and Blackstone’s Kathleen McCarthy (Credit: Google Maps and Blackstone)

Blackstone picks up Canarsie shopping plaza for $130M

Blackstone picks up Canarsie shopping plaza for $130M
The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation
Mexico Beach, Florida, in the aftermath of Hurricane Michael in 2018 (Credit: Getty Images)

Fitch to include natural disasters risks to RMBS ratings

Fitch to include natural disasters risks to RMBS ratings
CIM Group acquires resi portion of UES luxury rental for $200M

CIM Group acquires resi portion of UES luxury rental for $200M

CIM Group acquires resi portion of UES luxury rental for $200M
Former Trump Soho hotel hit with tax lien from city

Former Trump Soho hotel hit with tax lien from city

Former Trump Soho hotel hit with tax lien from city
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...