Fitch af­firms COMM Mort­gage Trust

The Pak Banker - - Front Page -


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.

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