Fitch Ratings yesterday downgraded a pool of commercial real estate
loans including one backed by the Westin Fort Lauderdale at 400
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 293-room Westin Fort Lauderdale, which was acquired by the
Procaccianti Group from Starwood for about $40 million in 2007, is the
second largest contributor to the downgrade.
(The 80-acre Peter Cooper Village and Stuy Town loan in Manhattan
represents the largest percentage of the pool, or 10.3 percent.)
About $12.9 million was spent on renovating the hotel, but due to
the weak local economy, net operating income has fallen 31 percent
since the end of 2007 through the end of 2010, Fitch said.
The property cannot generate enough income to service the debt on the
interest-only loan, which is scheduled to amortize starting in May 2012.
A spokesperson from the Procaccianti Group was not immediately
available for comment.