Famous D.C. Hotel Falls Into Special Servicing

Posted by Orb Staff on January 14, 2010 No Comments
Categories : Commercial Mortgage

The transfer of large-balance commercial mortgage-backed security (CMBS) loans to special servicing continues to increase as commercial property performance declines, according to Fitch Ratings in the latest edition of its ‘What's in Special Servicing?’ bulletin. An additional $1.2 billion of loans in Fitch-rated CMBS have entered special servicing recently, with a high-profile hotel property in Washington, D.C., among the new entries.

Among the 95 new loans in special servicing is the Renaissance Mayflower Hotel – a $217 million hotel property located in Washington, D.C., that transferred to special servicing on Nov. 6, 2009, for imminent default after the borrower indicated it would no longer be able to cover debt service.

This latest entry is in line with Fitch's expectations that retail and hotel properties will continue seeing the most adverse and immediate effects.

"Additional high-profile hotel properties transferring to special servicing are likely," says Senior Director Adam Fox.

Also of note is the $3 billion Peter Cooper Village/Stuyvesant Town loan, which became the second-largest loan to officially transfer to special servicing. The 11,227 square-foot New York apartment complex moved over to special servicing on Nov. 6, as expected.

With the November increase, specially serviced loans now total 7.8% of Fitch-rated CMBS.

SOURCE: Fitch Ratings

Register here to receive our Latest Headlines email newsletter




Leave a Comment