A $186 million, 10-year CMBS loan secured by a first mortgage on 10 industrial properties in Columbus, OH; Memphis and Nashville, TN; and Woodland, CA; and is the largest loan to go into special servicing in the past month.
Share this story with your followers
The sponsor of the loan and properties is a high net worth individual represented by Strategic Realty Advisors Ltd. (StratREAL), a global real estate investment advisor, based in London, England, with more than $6.2 billion in assets under management. The StratREAL industrial portfolio loan has been structured to be Shariah-compliant as the ultimate investors adhere to Shariah Law.
The StratREAL industrial portfolio consists of the fee simple interests in 10 Class A industrial warehouse/distribution properties containing a total of 5 million net rentable square feet dispersed among the four MSA’s: five in Tennessee, four in Memphis totaling 1.91 million square feet and one in Nashville totaling 770,000 square feet; three in Columbus, totaling 1.52 million square feet and two in Woodland totaling 800,000 square feet
Due to a combined occupancy of 67%, the properties are not generating enough cash flow to support the debt service. There is currently a shortfall for the November 2012 loan payment and borrower had stated it would again be short for December payment. The borrower further stated it is unable to cure the default.
The properties generated debt service coverage through the first six months of 2012 of 0.70x.
The loan transferred to CIII Asset Management as special servicer. The loan matures Jan. 11, 2017; and is paid through October 2012.
Sheet1 | | | | | | |
. | Property | City, State | Prop. Type | Loan Bal. | CMBS; Special Servicer | Reason for Transfer |
. | StratREAL Industrial Portfolio II | Various | Industrial | $186,000,000 | JPMCC 2007-LDP10; C-III | Imminent default |
. | The Mall at Stonecrest | Lithonia, GA | Retail | $98,722,990 | BACM 2005-1; C-III | Imminent default |
. | Rushmore Mall | Rapid City, SD | Retail | $94,000,000 | BACM 2006-3; CWCapital | Imminent default |
. | Coventry Mall | Pottstown, PA | Retail | $68,698,697 | MSCI 2005-TOP17; C-III | Imminent default |
. | U.S. Bank Tower | Los Angeles, CA | Office | $65,000,000 | MSCI 2004-TOP13; LNR Partners | Imminent default |
. | Chiquita Center | Cincinnati, OH | Office | $64,282,594 | COBALT 2006-C1; CWCapital | Imminent default |
. | 3660 Wilshire Boulevard | Los Angeles, CA | Office | $40,771,744 | COBALT 2007-C3; CWCapital | Imminent default |
. | Southern Center | West Palm Beach, FL | Retail | $37,500,000 | WBCMT 2007-C30; CWCapital | Imminent default |
. | Hilton Antlers | Colorado Springs, CO | Hotel | $36,372,662 | Morgan Stanley 2007-IQ16; LNR Partners | Imminent default |
. | Glenview Corporate Center | Bensalem, PA | Office | $27,435,712 | COBALT 2006-C1; CWCapital | Monetary default |
. | Hilton Garden Inn | College Park, GA | Hotel | $24,811,895 | COBALT 2007-C3; CWCapital | Monetary default |
. | Continental Centre | Columbus, OH | Office | $23,846,968 | GECMC 2004-C2; LNR Partners | Imminent default |
. | Martin Village | Lacey, WA | Retail | $21,542,320 | CGCMT 2007-C6; CWCapital | Imminent default |
. | Reflections I | Reston, VA | Office | $20,484,113 | JPMCC 2005-LDP2; LNR Partners | Imminent default |
. | La Place Fashion Centre | Beachwood, OH | Retail | $20,458,034 | JPMCC 2005-LDP2; LNR Partners | Monetary default |
Keep up weekly on national news, trends and property leads with the Watch List Newsletter, a weekly pdf that includes other news and leads not found on the CoStar Group web news pages.
Sign up for the Watch List E-Mail Alert. A new issue is published late each Wednesday.
Advertisement:
1st Service Solutions: Your Partner for CMBS Restructure Success!
