Trepp recently reported their list of the top 15 underwater properties which make up collateral for CMBS loans and are now REO or in foreclosure.
A closer look at the top four properties:
Westin O’Hare – Chicago – Securing a $101 million CMBS loan, the property was most recently appraised for 66% less than that same balance. Ashford Hospitality was in negotiations with Centerline Capital Group to revise the debt, but had no such luck. [WSJ]
119 West 40th Street – New York – After successfully fending off foreclosure actions by their mezz lender, George Comfort & Sons and L.H. Charney Associates got hit by a foreclosure filing by special servicer CWCapital. [The Real Deal]
Allanza at the Lakes – Las Vegas – Acquired by Bean Investment Real Estate in 2007, Bean had plans to convert the 896-unit apartment complex to condominiums. The property most recently appraised for $41 million, or 40% of the loan balance. Centerline is the special servicer for what was a $85 million loan. CRE Console Research
Tallahassee Mall – Tallahassee – Most recently appraised for $14 million, or 66% below the loan balance, this property was previously owned by Feldman Mall Properties. The Great Neck, NY-based REIT gave this property back to special servicer LNR Partners, after writing down the investment more than $48 million in 2008. CRE Console Research
A Closer Look: Top CMBS Loans Underwater
Trepp recently reported their list of the top 15 underwater properties which make up collateral for CMBS loans and are now REO or in foreclosure.
A closer look at the top four properties:
Westin O’Hare – Chicago – Securing a $101 million CMBS loan, the property was most recently appraised for 66% less than that same balance. Ashford Hospitality was in negotiations with Centerline Capital Group to revise the debt, but had no such luck. [WSJ]
119 West 40th Street – New York – After successfully fending off foreclosure actions by their mezz lender, George Comfort & Sons and L.H. Charney Associates got hit by a foreclosure filing by special servicer CWCapital. [The Real Deal]
Allanza at the Lakes – Las Vegas – Acquired by Bean Investment Real Estate in 2007, Bean had plans to convert the 896-unit apartment complex to condominiums. The property most recently appraised for $41 million, or 40% of the loan balance. Centerline is the special servicer for what was a $85 million loan. CRE Console Research
Tallahassee Mall – Tallahassee – Most recently appraised for $14 million, or 66% below the loan balance, this property was previously owned by Feldman Mall Properties. The Great Neck, NY-based REIT gave this property back to special servicer LNR Partners, after writing down the investment more than $48 million in 2008. CRE Console Research
[NREIOnline.com]