Fitch affirms COMM Mortgage Trust
Global rating agency Fitch has affirmed four classes of COMM Mortgage Trust 2005FL10. The affirmations of the distressed ratings are due to continued high credit risk associated with the remaining loan.
As of the November 2012 remittance, the pool has paid down by 98% since issuance, with only one loan remaining. Since Fitch’s last rating action, the 10 MetroTech Center loan was disposed of for a $7.9 million loss. The remaining loan, Berkshire Mall ( 100%), is secured by 589,146 square feet ( sf) of a 715,146- sf regional mall located in Lanesboro, MA, about 30 miles east of Albany, NY. The collateral consists of 192,793 sf of in-line space and 396,353 sf of anchor/major tenant space. The non- collateral anchor space ( Target) totals approximately 126,000 sf. The property has suffered from a tertiary location and weak in-line / junior anchor occupancy.
In March 2012, a two- year forbearance through March 2014 was executed after the borrower was unable to refinance the loan at its extended maturity. Per the forbearance agreement, the borrower contributed $ 250,000 in new equity to a rollover reserve. In addition, the loan is subject to hard cash management requiring excess cash flow be applied to an excess cash flow reserve ( up to $ 300,000), then to a rollover reserve ( up to $ 4 million), and t hen to amortize the loan. As of Nov. 9, 2012, the loan had approximately $ 4.2 million in total reserves.