Fitch: Additional CMBS Actions Unlikely as Peter Cooper/Stuy Town Moves to Special Servicing.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. does not expect to take any negative rating actions following the transfer of the Peter Cooper Village/Stuyvesant Town (PCV/ST) loan to special servicing today. The $3 billion A-Note was transferred to CWCapital, as special servicer, due to the sponsors' request for relief. Details of the request for relief by Tishman Speyer Properties Tishman Speyer Properties is a leading real estate building and operating company set up in 1978 by two founding partners, Jerry Speyer and Robert Tishman. Overview , LP and Blackrock Realty are not immediately available. Fitch expected the transfer of the loan to special servicing as cash flow generated by the property remains insufficient to service the debt. Debt service reserves are expected to be depleted by the end of December. Fitch downgraded U.S. commercial mortgage backed security (CMBS CMBS See: Commercial Mortgage Backed Securities ) transactions containing portions of the PCV/ST loan on Aug. 28, 2009 and Oct. 30, 2009 based on the expected default of the loan and Fitch's estimate of value. Fitch believes there will be many factors involved in the workout and ultimate recovery of the loan, including a possible modification, potential legislative changes to rent stabilization laws, commitment of the loan sponsors, the remaining seven-year term of the loan, and the low loan per unit ($267,213). (See Fitch Downgrades 3 CMBS Deals on Higher Peter Cooper/Stuy Town Losses, Oct. 30, 2009, available at 'www.fitchratings.com'.) Fitch will continue to monitor the workout of the loan and adjust its modeled recognized losses as details become available. Pieces of the $3 billion pari passu [Latin, By an equal progress; equably; ratably; without preference.] Used especially to describe creditors who, in marshalling assets, are entitled to receive out of the same fund without any precedence over each other. PARI PASSU. By the same gradation. PCV/ST loan are securitized in the following transactions: --WBCMT 2007-C30; --COBALT 2007-C2; --ML-CFC 2007-5; --ML-CFC 2007-6. PCV/ST comprises 56 multi-story buildings, situated on 80 acres, and includes a total of 11,227 apartments. The loan sponsors, Tishman Speyer Properties, LP and BlackRock Realty, acquired the property with the intent of converting rent-stabilized units to market rents as tenants vacated the property; however, the conversion of units Conversion of units refers to conversion factors between different units of measurement for the same quantity. Techniques The simplest way to convert from one unit to another is to carry through the units themselves in the mathematical operation. has since been determined to be illegal by the New York State Court of Appeals. In addition to the $3 billion securitized balance, there is an additional $1.5 billion of mezzanine debt held outside the trust. Additional information is available at 'www.fitchratings.com' ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP HTTP in full HyperText Transfer Protocol Standard application-level protocol used for exchanging files on the World Wide Web. HTTP runs on top of the TCP/IP protocol. ://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion