And if you are long any tranche of CMBS deals GCCFC 2004-GG1 and LB-UBS Commercial Mortgage Trust 2004-C4, you may want to freak out too. S&P just announced that it is monitoring these two loans "after learning that the loans for three General Growth Properties Inc. (GGP)-related malls that serve as collateral for the transactions were transferred to their respective special servicers on March 18, 2009, due to maturity defaults. The three GGP loans collateralized by three malls were transferred to the special servicer after representative borrowing entities notified the master servicer that they would not be able to repay the loans due to difficult capital market conditions. The borrowing entities have indicated that they are continuing to pursue various financing options."
This is likely just the tip of the iceberg as more and more properties, making up assorted loans, which in turn make up various CMBS pools, move to special servicing. And that is only for GGP... Which, one wonders, will have such an uphill battle to restore all the actions already taken place from the technical defaults on its loans and bonds. 5 pm today will be interesting.
A description of the properties in spec servicing below:
-- The Town East Mall loan is the third-largest loan in the LB-UBS 2004-C4 transaction and is with the special servicer, LNR Partners Inc. The loan has an unpaid principal balance of $105.4 million (9.4% of the pool) and is secured by 415,755 sq. ft. of a 1.3 million-sq.-ft. regional mall in Mesquite, Texas. The property was constructed in 1971 and most recently
renovated in 2004. The five-year loan has a coupon of 3.46% and is scheduled to mature on April 11, 2009. The master servicer reported debt service coverage (DSC) of 2.45x and 99% occupancy for the nine months ended Sept. 30, 2008.
-- The Southland Mall loan is the third-largest loan in the GCCFC 2004-GG1 transaction and is with the special servicer, CWCapital Asset Management LLC. The loan has an unpaid principal balance of $81.3 million (3.6% of the pool) and is secured by 1.0 million sq. ft. of a 1.3
million-sq.-ft. enclosed regional mall in Hayward, Calif. The property was constructed in 1964. The five-year loan has a coupon of 3.62% and was scheduled to mature on March 1, 2009. The master servicer reported a DSC of 2.69x and 98% occupancy for the nine months ended Sept. 30, 2008.
-- The Deerbrook Mall loan ($73.7 million, 3.3% of the pool) is the fourth-largest loan in the GCCFC 2004-GG1 transaction and is secured by 461,298 sq. ft. of a 1.2 million-sq.-ft. enclosed regional mall in Humble, Texas. The property was constructed in 1984. The five-year loan has a coupon of 3.46% and was scheduled to mature on March 1, 2009. The master servicer reported a DSC of 2.55x and 99% occupancy for the nine months ended Sept 30, 2008.
This just out too: Citigroup Moves To Foreclose On General Growth Mall In New Orleans; $95M Mortgage That Wasn't Paid (0.50 +0.00)
Everyone is picking up on the foreclosure run...
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