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CMBS

New CMBS Loan Mod Second Largest to Date

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The second-largest CMBS loan called Beacon Capital Partners Seattle & D.C. portfolio, was modified, according to a Standard & Poor’s report.

Details of the modification are expected to be available within the next 30 days. The key features of the modification include a five-year extended maturity date to May 7, 2017, the pay rate will use reduced coupon (from 5.797% to 3%) triggering shortfalls.

The difference between the accrual (5.797%) and pay (3%) rates will be deferred and outstanding. Individual assets within the portfolio can now be sold. This would trigger unscheduled principal payments that are likely eventually to affect short tranches and IOs,  Barclays Capital.

Excess sales proceeds are expected to cover deferred interest and future tenant improvement/leasing commission (TI/LC).

According to the special servicer, C-III, the additional collateral value now exceeds $200 million, including equity pledges, cash, letters of credit, and guaranties from the borrower and/or its affiliates.

No information regarding treatment of B-note and mezzanine have been disclosed at this point. The loans from the Seattle & D.C. portfolio were securitized across five CMBS deal structures.

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