Fitch Ratings downgraded seven classes of Bear Stearns Commercial Mortgage Securities Trust, series 2007-PWR17 commercial mortgage pass-through certificates, following the transfer of a $741.9 million loan into special servicing.
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The downgrades are due to increased loss expectations, primarily associated with the specially serviced loans.
The largest contributor to Fitch expected losses is the largest loan (8.96%), DRA/Colonial Office Portfolio. The interest-only loan is secured by 19 office properties that comprise 5.2 million square feet in six metropolitan statistical areas primarily in the South and Southeast.
The loan is split into three equal pari passu notes. The loan transferred to special servicing in August 2012 for imminent default due to declining occupancy and significant rollover before its 2014 maturity of 26%.
Most of the properties are located in secondary and tertiary markets where market rental rates have dropped significantly lower than in-place rents, which are expected to have substantial impact on the property's cash flow.
C-III Asset Management, the special servicer, reports that the property's occupancy was 79.1% as of September 2012.
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. | Property | Address | City | State | Net Rentable SF |
. | Heathrow Inter. Business Ctr. | 300, 400, 701, 801, 901 & 1001 International Pkwy | Lake Mary | FL | 835,201 |
. | CC at Town Park | 100, 200 & 300 Colonial Center Pkwy | Lake Mary | FL | 458,259 |
. | CC at Colonnade | 3500, 3700 & 3800 Colonnade Pkwy | Birmingham | AL | 419,387 |
. | Colonial Place I & II | 4300 & 4350 Cypress St. | Tampa | FL | 371,473 |
. | Research Office Park | 12301-4 Research Blvd., Buildings III & IV | Austin | TX | 357,689 |
. | Peachtree Street | 1355 Peachtree St. NE | Atlanta | GA | 309,625 |
. | Riverchase Center | 2100, 2200 & 2300 Riverchase Center | Birmingham | AL | 306,143 |
. | Concourse Center | 3501, 3503, 3505 & 3507 Frontage Road | Tampa | FL | 294,369 |
. | CP Town Park Combined | 950 Market Promenade Ave. | Lake Mary | FL | 237,191 |
. | Colonial Center at Bayside | 17757 US Highway 19 North | Clearwater | FL | 212,882 |
. | International Office Park | 1800 & 1900 International Park Drive | Birmingham | AL | 210,984 |
. | Esplanade | 2101 Rexford Road | Charlotte | NC | 202,817 |
. | CC at Town Park 600 | 600 Colonial Center Pkwy | Lake Mary | FL | 199,585 |
. | Colonial Plaza | 2101 6th Ave. North | Birmingham | AL | 170,850 |
. | Colonial Center at Blue Lake | 3500 Blue Lake Drive | Birmingham | AL | 166,590 |
. | Maitland Office Building | 901 Lake Destiny Drive | Maitland | FL | 155,730 |
. | Shops at Colonnade - Retail | 3409-3443 Colonnade Pkwy | Birmingham | AL | 125,462 |
. | One Independence Plaza | One Independence Drive | Birmingham | AL | 106,216 |
. | HIBC 1000 Building | 1000 Business Center Drive | Lake Mary | FL | 87,066 |
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