Distressed Ginnie Mae Properties

November 23, 2021

This week, CRED iQ calculated real-time valuations for 5 distressed multifamily properties that secure GNMA loans. Ginnie Mae loans secured by distressed properties as well as loans with near-term maturities are sources for intriguing opportunities within the multifamily sector that expand into several property sub-types, including affordable housing and student housing. Mortgage originators, distressed investors, and commercial brokers are able to search CRED iQ’s database of approximately 15,000 Ginnie Mae loans totaling more than $138 billion in outstanding debt for their next opportunity. The properties featured in this week’s WAR Report secure a subset of the largest distressed Ginnie Mae loans by outstanding balance that are at least 60 days delinquent.

CRED iQ valuations factor in a base-case (Most Likely), a downside (significant loss of tenants), and dark scenarios (100% vacant). For full access to the valuation reports as well as full CMBS and GNMA loan reporting, including detailed financials and borrower contact information, sign up for a free trial here.

Residence at Oakmont

256 units, Multifamily, Bryan, TX

GNMA 2020-36197DLG1

This $28.8 million loan, which is over 120 days delinquent, is secured by a 3-story, 256-unit multifamily property in Bryan, TX, located about 100 miles northeast of Austin, TX. The loan was over 90 days delinquent in the prior reporting period. The mortgage was issued through the Department of Housing and Urban Development’s (HUD) 221(d)(4) program to facilitate the construction and rehabilitation of multifamily properties for low to moderate-income families. Orix Real Estate Capital originated the mortgage in June 2017 and construction of the property began soon after. The loan has a 3.83% interest rate, a maturity date in April 2059, and a 10% prepayment penalty that declines annually by 100 basis points through the first 10 years its term. For full access to the valuation reports as well as full CMBS and GNMA loan reporting, including borrower contact information, sign up for a free trial here.

Property Name	Residence At Oakmont
Address	^{4225 Pendleton Drive Bryan, TX 77802}
Outstanding Balance	$28,808,766
Interest Rate	3.83%
Origination Date	6/28/2017
Maturity Date	4/1/2059

Keys Lake Villas

110 units, Multifamily, Key Largo, FL

GNMA 2017-36196LLN9

This $21.2 million loan, which is 6 months delinquent, is secured by a 2-story, 110-unit multifamily property located in Key Largo, FL. Similar to the Residence at Oakmont, this mortgage was issued through HUD’s 221(d)(4) program to facilitate the construction of multifamily properties for moderate-income families. Wells Fargo Multifamily Capital originated the loan in 2011 just prior to development and construction of the collateral property. The loan, which has an interest rate of 3.62%, is scheduled to exit its prepayment penalty period in January 2022. Maturity is scheduled for August 2052. CRED iQ’s data records indicate the loan was modified, although details regarding the terms of the modification were not provided by the servicer. Despite the distressed nature of the loan, the collateral likely benefits from limited multifamily inventory in the Key Largo market as well as barriers to entry with regards to new development. For full access to the valuation reports as well as full CMBS and GNMA loan reporting, including borrower contact information, sign up for a free trial here.

Property Name	Keys Lake Villas
Address	^{106003 Overseas Highway Key Largo, FL 33037}
Outstanding Balance	$21,178,406
Interest Rate	3.62%
Origination Date	6/29/2011
Maturity Date	8/1/2052

The Jordan Apartments

62 units, Multifamily, Baltimore, MD

GNMA 2020-3617GFUQ8

This $11.6 million loan, which is over 90 days delinquent, is secured by a 62-unit mixed-income apartment complex located in the Bolton Hill neighborhood of Baltimore, MD. The loan was originated by Wells Fargo Multifamily Capital under Section 221(d)(4) in February 2018 through the Choice Neighborhood Program, which operates under the HUD. The loan has a 3.75% interest rate and a 10% prepayment penalty that declines 1% annually. Loan maturity is scheduled for August 2059.

Prior to construction in 2018, the property served as a parking lot for the Linden Park Apartments, a 266-unit senior-living facility that serves as collateral for a $13.6 million GNMA mortgage loan. The Jordan Apartments became open for leasing in 2019 and offers mixed-income rental rates. The property features a ground-floor restaurant and benefits from a 10-year property tax credit from the city of Baltimore based on the property’s National Green Building Standard Certification. CRED iQ’s Base-Case valuation uses estimates for fully unabated property taxes. For full access to the valuation reports as well as full CMBS and GNMA loan reporting, including borrower contact information, sign up for a free trial here.

Property Name	The Jordan Apartments
Address	^{1517 Eutaw Place Baltimore, MD 21217}
Outstanding Balance	$11,299,360
Interest Rate	3.75%
Origination Date	2/1/2018
Maturity Date	8/1/2059

The Village at Castleberry Hill Phase II

284 units, Multifamily, Atlanta, GA

GNMA 2011-36230MEY9

This $8.4 million loan, which is over 60 days delinquent, is secured by a 3-story, 284-unit multifamily property located in the Midtown West submarket of Atlanta, GA. The loan was originated by Prudential Huntoon Paige in December 2010. Mortgage financing was provided through the Section 221(d)(4) program as well as Section 223(a)(7), which provides refinancing of existing FHA loans. The loan has a 4.10% interest rate and became open to prepayment without penalty in January 2021. Maturity is scheduled for March 2039.

The mortgage collateral is Phase II of a larger 449-unit multifamily complex known as The Village at Castleberry Hill. Phase II was constructed in 2011 and benefits from a Low-Income Housing Tax Credit (LIHTC). Of the 284 units, there are 114 units set aside for rents equal to 50% of Area Median Income (AMI) or lower, 57 units with rents at 60% AMI or below, and 57 units with rents at 80% AMI or lower. There are 56 market rate units. The LIHTC presents affordable housing options in a central location within the Atlanta MSA. The collateral property is located in the Castleberry Hill neighborhood of Atlanta, and is adjacent to 3 universities — Morehouse College, Spelman College, and Clark Atlanta University — and is in close proximity to the Mercedes-Benz Stadium. Loan delinquency may be related to the need for rehabilitation for units requiring upgrades since loan origination was more than 10 years ago. For full access to the valuation reports as well as full CMBS and GNMA loan reporting, including borrower contact information, sign up for a free trial here.

Property Name	The Village at Castleberry Hill
Address	^{600 Greensferry Avenue Atlanta, GA 30314}
Outstanding Balance	$8,366,047
Interest Rate	4.10%
Origination Date	12/29/2010
Maturity Date	3/1/2039

Latitude 49 Apartments

158 units, Student Housing, Charlotte, NC

GNMA 2012-36177NKX7

This $11.0 million loan, which is over 60 days delinquent, is secured by a 3-story, 158-unit student housing facility located in Charlotte, NC. The collateral provides housing to students enrolled at UNC Charlotte. Orix Real Estate Capital originated the loan in April 2012 under Section 221(d)(4) and 223(a)(7) programs. The loan’s prepayment penalty period will end in May 2022 and loan maturity is scheduled for May 2052. The prepayment penalty started at 8% and declined annually by 100 basis points. The interest rate is 3.19%.

The Latitude 49 Apartments, formerly known as 901 Place Apartments, were constructed in 2000 but have had several issues since initial development including bug infestations and break-ins. The property’s name was changed to ‘Latitude 49’ after a shooting on site in 2019 and the extended fallout of the event in the form of adverse impacts on leasing may be an underlying issue behind the loan’s delinquency. For full access to the valuation reports as well as full CMBS and GNMA loan reporting, including borrower contact information, sign up for a free trial here.

Property Name	Latitude 49 Apartments
Address	^{901 Forty Niner Avenue Charlotte, NC 28262}
Outstanding Balance	$10,975,166
Interest Rate	3.19%
Origination Date	4/25/2012
Maturity Date	5/1/2052

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. For full access to our loan database and valuation platform, sign up for a free trial below:

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Recent Commercial Mortgage Originations

CRED iQ

November 16, 2021

BBCMS_2021-C12---399_jefferson-445_vanderbilt-sorrel_river_ranch-lending_landscape-mortgage_originations — This week’s landscape takes us to the Delicate Arch in Moab, UT, a 52-foot natural freestanding stone arch, which is located 5 miles (33 miles driving distance) away from one of this week’s highlighted properties — Sorrel River Ranch.

This week, CRED iQ reviewed the commercial real estate lending landscape and highlighted 5 properties that have secured financing in the past month. The highlighted loan originations cover most property types (office, multifamily, industrial, lodging, and self-storage), giving a broad range of financing deals that have been completed. Notable among this group of recent mortgage originations is a hospitality loan – an uncommon occurrence given the operational struggles of lodging properties since the onset of the pandemic.

Using the CRED iQ platform’s Comps functionality, which features propriety Comps scoring for the CRE loan universe, we compared lending terms and loan structures to get a sense of the trends in the CRE lending environment. Additionally, we provided valuations for each asset to evaluate leverage levels in relation to originators’ LTVs. The CRED iQ valuations factor in a base-case (Most Likely), a downside (significant loss of tenants), and dark scenarios (100% vacant). Base-case valuations for select properties are provided below. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

399 Jefferson Road

206,155 sf, Office, Parsippany, NJ

Prism Capital Partners secured a $37 million loan from KeyBank on October 26, 2021 to refinance existing debt of $35.4 million. The loan was structured with a 10-year term, an interest rate of 4.19%, and an amortization schedule of 30 years. The loan will be locked out from prepayment for 2 years, and defeasance will be permitted after lockout through the remainder of the term. One of CRED iQ’s most relevant comps for this new origination is a $62.4 million loan, which was originated on September 15, 2020 and has an interest rate equal to 1-month LIBOR + 4.75%. The comparable loan is secured by a portfolio of 10 office properties located throughout Parsippany, NJ with an average building size of approximately 165,000 sf.

The 399 Jefferson Road mortgage loan is secured by fee interest in a single-story, 206,155-sf office property located in Parsippany, NJ. The property, which contains about 75% office space and 25% R&D space, is 100% leased between two tenants — Remarkable Foods (50% of the GLA) and Zimmer Biomet (50% of the GLA). At loan origination, Remarkable Foods was subleasing its space from Conagra Brands but is committed to a direct lease that takes effect in April 2023. The Remarkable Foods direct lease expires in April 2031 (with 2, 5-year extension options) and the Zimmer Biomet lease expires in July 2028 (with 2, 5-year extension options). The two tenants’ lease expirations, both of which occur prior to loan maturity in November 2031, will be the primary credit events during the loan’s term, absent any tenant bankruptcy action.

The property was appraised at a value of $54.4 million, equal to $264/sf, as of August 13, 2021, which implied an LTV of 68% and a capitalization rate of 6.05% based on the originator’s underwritten NCF. For the full valuation report and loan-level details, click here.

Subject Property	BBCMS 2021-C12
Name	399 Jefferson Road
Address	^{399 Jefferson Road Parsippany, NJ 07054}
Property Type	Office
Property Subtype	Suburban
Building Size	206,155 sf
Year Built	1968
Submarket	Parsippany-Troy Hills
County	Morris
MSA	New York-Northern New Jersey-Long Island, NY-NJ-PA
Origination Date	10/26/2021
Loan Amount	$37,000,000
Interest Rate	4.19%
Valuation
Appraised Value	$54,400,000 ($264/sf)
Appraisal Date	8/13/2021
Appraisal LTV	68.00%
CRED iQ Base-Case Value	$49,730,000 ($241/sf)

445 Vanderbilt

43 units, Multifamily, Brooklyn, NY

A $22 million loan was originated by Société Générale on October 28, 2021 to refinance existing debt of $16.1 million and return approximately $5.2 million in equity to loan sponsors Pinny Loketch and Allan Lebovits. The interest-only loan was structured with a 10-year term and an interest rate of 3.6625%. The loan will be locked out from prepayment for 2 years, and defeasance will be permitted after lockout through the remainder of the loan term. The newly originated mortgage represents financing on an asset with limited operational history given the collateral was developed within the past year; however, terms of the loan appear to be in line with CRED iQ’s comps database. As an example, Greystone originated a $23.5 million 10-year loan in January 2020 that is secured by a 33-unit multifamily property located about 2 blocks away from 445 Vanderbilt. The interest rate for the comparable loan was 3.49% with an amortization schedule of 30 years.

The 445 Vanderbilt mortgage loan is secured by fee interest in a 5-story, 43-unit multifamily property located in the Clinton Hill submarket of Brooklyn, NY. The property was developed in 2021, along with several adjacent townhouses that do not serve as collateral for the mortgage loan. Of the 43 units, there are 13 affordable housing units as required by the property’s 421-a (16) tax exemption, which provides for 35 years of post-construction tax benefits. The 421a affordable units may be rented to tenants at 130% of area median income (AMI). As first reported by New York YIMBY, a lottery for the affordable housing units occurred in August 2021.

The property was appraised at a value of $33 million, equal to $767,442/unit, on September 15, 2021, which resulted in an LTV of 67% and an implied cap rate of 4.43% based on the originator’s underwritten NCF. CRED iQ calculated a value assuming the fully unabated real estate tax for the property. For the full valuation report and loan-level details, click here.

Subject Property	BBCMS 2021-C12
Name	445 Vanderbilt
Address	^{445 Vanderbilt Avenue Brooklyn, NY 11238}
Property Type	Multifamily
Property Subtype	Mid Rise
Building Size	43 units
Year Built	2021
Submarket	Clinton Hill
County	Kings
MSA	New York-Northern New Jersey-Long Island, NY-NJ-PA
Origination Date	10/28/2021
Loan Amount	$22,000,000
Interest Rate	3.66%
Valuation
Appraised Value	$33,000,000 ($767,442/unit)
Appraisal Date	9/15/2021
Appraisal LTV	66.70%
CRED iQ Base-Case Value	$25,320,000 ($588,806/unit)

Glendale Industrial

129,326 sf, Industrial, Los Angeles, CA

A $20 million loan was originated by Starwood Mortgage Capital on October 29, 2021 to refinance existing debt on a 129,326-sf industrial flex property located in the Frogtown submarket of Central Los Angeles, CA. The loan was structured with a 10-year term, an interest rate of 4.80%, and a two-year interest-only period. The loan would require a yield maintenance charge for prepayment, which is permitted after a 6-month lockout period.

The mortgaged property is a former Hostess bakery that was repositioned as industrial flex space in 2013 and includes an adjacent parking lot. The property is 100% leased to Academy Film Studios through September 2036, which is nearly 5 years beyond loan maturity. The tenant is affiliated with the loan’s sponsor, Frank Novak, owner of Modernica Props.

The property was appraised at a value of $38.7 million, equal to $299/sf, as of July 14, 2021. However, the NNN master lease with the property’s single tenant yielded a slightly lower appraisal based on contracted rent, which was deemed to be below market. CRED iQ’s Comp Set Average Rent for the property was $14.67/sf. The as-is appraisal at origination implies an LTV of 52% and an implied cap rate of 4.16%. For the full valuation report and loan-level details, click here.

Subject Property	BBCMS 2021-C12
Name	Glendale Industrial
Address	^{2330 Ripple Street Los Angeles, CA 90039}
Property Type	Industrial
Property Subtype	Flex
Building Size	129,326 sf
Year Built	1935
Submarket	Frogtown
County	Los Angeles
MSA	Los Angeles-Long Beach-Santa Ana, CA
Origination Date	10/29/2021
Loan Amount	$20,000,000
Interest Rate	4.80%
Valuation
Appraised Value	$38,720,000 ($299/sf)
Appraisal Date	7/14/2021
Appraisal LTV	51.65%
CRED iQ Base-Case Value	$37,140,000 ($287/sf)

Sorrel River Ranch

56 rooms, Full-Service Hotel, Moab, UT

Commercial mortgage originations secured by lodging properties have been rare sightings in 2021. This $19 million loan was provided by Starwood Mortgage Capital on October 29, 2021 to provide refinancing for existing debt on the Sorrell River Ranch Resort and Spa. The interest-only loan has a 10-year term and an interest rate of 4.02%. The loan will be locked out from prepayment for 2 years, and defeasance will be permitted after lockout through the remainder of the loan term. Due to the nature of the collateral, the loan was also structured with a seasonality reserve that had a balance of approximately $576,000 at origination. Comparable loans were limited based on property type and location of the collateral; however, this mortgage origination is a prime example of the types of lodging deals that are getting completed in the current landscape.

Perhaps best known for providing guests the option of arriving at the resort via skydiving adventures, the Sorrel River Ranch has 56 rooms across 11 acres in Moab, UT, along the banks of the Colorado River. Average occupancy for the resort was 42% for the trailing 12 months ended August 31, 2021. The ADR and RevPAR for the same period were $1,116 and $469, respectively. The property was appraised at a value of $42.0 million, equal to $750,000 per room, as of October 1, 2021, which resulted in an LTV of 42%. The originator’s underwritten net cash flow for the property implied a cap rate of 9.89%. For the full valuation report and loan-level details, click here.

Subject Property	BBCMS 2021-C12
Name	Sorrel River Ranch
Address	^{17 Utah 128 Moab, UT 84532}
Property Type	Hotel
Property Subtype	Resort
Building Size	56 rooms
Year Built	1999
Submarket	Moab
County	Grand
MSA	Non-Metropolitan Area-UT
Origination Date	10/29/2021
Loan Amount	$19,000,000
Interest Rate	4.02%
Valuation
Appraised Value	$42,000,000 ($750,000/room)
Appraisal Date	10/1/2021
Appraisal LTV	42.20%
CRED iQ Base-Case Value	$38,960,000 ($695,797/room)

Fort Storage – Milton, FL

100,105 sf, Self Storage, Milton, FL

KeyBank provided $8.0 million in financing on October 26, 2021 to pay off existing debt on a 100,105-sf self-storage property located in Milton, FL. The interest-only loan had a term of 5 years with an interest rate of 4.42%. One of CRED iQ’s highest rated comps for this new origination is a $6.9 million loan that is secured by a 57,848-sf self-storage facility located further east on the Florida Panhandle. This comparable loan was originated on July 2, 2020 and had an interest rate of 4.34%.

Fort Storage is a self-storage facility in Milton, FL, located about 20 miles northeast of Pensacola. The facility offers a variety of unit configurations, including climate-controlled solutions, ranging in size from 5×5 feet to 20×30 feet. The property was 97% occupied as of October 19, 2021 and was appraised for $15.9 million as of August 2, 2021, which was equal to an LTV of 50%. Based on the originator’s underwritten net cash flow, the implied cap rate for the property was 4.57%. For the full valuation report and loan-level details, click here.

Subject Property	BBCMS 2021-C21
Name	Fort Storage
Address	^{4114 Avalon Boulevard Pensacola, FL 32583}
Property Type	Self Storage
Property Subtype	Self Storage
Building Size	100,105 sf
Year Built	2006
Submarket	Pensacola
County	Santa Rosa
MSA	Pensacola, FL
Origination Date	10/27/2021
Loan Amount	$8,000,000
Interest Rate	4.42%
Valuation
Appraised Value	$15,860,000 ($158/sf)
Appraisal Date	8/2/2021
Appraisal LTV	50.40%
CRED iQ Base-Case Value	$15,530,000 ($155/sf)

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Specially Serviced Loans

CRED iQ

November 9, 2021

This week, CRED iQ calculated real-time valuations for 5 distressed properties that have transferred to special servicing within the past 2 months, including 2 multifamily properties located in Manhattan, NY and a regional mall located in Spartanburg, SC. Distressed regional malls have been on CRED iQ’s radar for quite some time. A recent MarketWatch article cited CRED iQ for identifying at least 45 malls with $3 billion in outstanding debt that have had appraisal values reduced by 70% or more. This week’s highlight, WestGate Mall, appears to be on its way to joining that list.

The CRED iQ valuations factor in a base-case (Most Likely), a downside (significant loss of tenants), and dark scenarios (100% vacant). For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

The Branson at Fifth

59,131 sf, Mixed-Use (Retail/Multifamily), New York, NY

This $73.0 million loan transferred to special servicing for a second time on September 21, 2021, nearly 5 months after it returned to the master servicer. The loan’s initial transfer to special servicing occurred in July 2019 after the lease with the property’s retail tenant was terminated by the borrower amid legal disputes over rent obligations, as reported by The Real Deal. LNR, as special servicer, negotiated a loan modification that closed in January 2021. Salient terms of the loan modification included a 130 basis point reduction in the loan’s interest rate (to 3.0%) and an infusion of new equity in the form of an $11.0 million guaranty by the loan sponsor, Assa Properties. The loan was paid current before returning to the master servicer in April 2021 but became delinquent in September before transferring back to the special servicer in October. A deed-in-lieu of foreclosure agreement was on the table prior to the modification agreement, which included cooperation covenants in the event of a future default — potentially allowing for an expedited title transfer of the asset to LNR or an alternative workout.

The loan is secured by a 10-story, 59,131-sf mixed-use building located within the Plaza District of Manhattan. The building contains 31 multifamily units and 14,881 sf of ground-floor retail space. The ground-floor retail space was formerly occupied by luxury fashion retailer Domenico Vacca, which paid approximately $4.12 million in annual rent. At loan origination in March 2015, the retail portion of the building accounted for approximately 58% of total base rent. Domenico Vacca vacated in 2019 and the retail space was unable to permanently attract new tenants before the onset of the pandemic in 2020. The pandemic caused issues with the multifamily portion of the building, which was last reported as 67% occupied. As few as a third of the multifamily tenants may have been paying rent at certain points throughout 2020.

The property was most recently appraised on an as-is basis for $37.8 million, equal to $639/sf, in December 2020, which represented a 68% decline from the appraisal at origination. A stabilized appraisal value from the same time period came in slightly higher at $42.0 million and two Broker Opinions of Value (BOV) from late-2019 suggested an average valuation of $52.4 million. The wide range of values indicates pricing discovery is not yet complete for this property. CRED iQ calculated a componentized valuation for the property, aggregating individual values for the retail and multifamily portions of the collateral. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Property Name	The Branson At Fifth
Address	^{15 W 55th Street New York, NY 10019}
Outstanding Balance	$73,000,000
Interest Rate	4.30%
Maturity Date	2/6/2025
Most Recent Appraisal	$37,800,000 ($639/sf)
Most Recent Appraisal Date	12/2/2020

PacStar Retail Portfolio

398,131 sf, Retail, Chicago, IL and Houston, TX

This $45.2 million loan transferred to special servicing on September 29, 2021 due to imminent default. The loan is secured by a portfolio of two retail properties located in Chicago, IL and Houston, TX. High vacancy at the Houston property, Willowbrook Court Shopping Center, caused shortfalls in net cash for the portfolio as a whole. The Yards Plaza property, located in Chicago, IL, maintains healthy occupancy of 98% but has been adversely impacted by the pandemic, which has also caused declines in net cash flow. Yards Plaza also has significant lease rollover in 2022, equal to 83% of the GLA. However, value deterioration appears to be marginal compared to Willowbrook Court Shopping Center, which has minimal prospects for stabilization without a full-scale redevelopment.

Willowbrook Court Shopping Center is a 137,650-sf retail property in Northwest Houston, adjacent to the Willowbrook Mall. The primary portion of the property is a 58,421-sf suite, accounting for 42% of the GLA, that is vacant and was formerly occupied by Toys “R” Us. The property is 29% occupied and barely generates positive net cash flow. CRED iQ anticipates leasing prospects for the property to continue to be an issue given more compelling retail locations in the immediate area, including the Commons at Willowbrook, Willowbrook Mall, and Willowbrook Plaza. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Willowbrook Court Shopping Center - MSBAM 2014-C19 — Willowbrook Court Shopping Center

Property Name	Size (sf)	Address	Allocated Loan Amount	CRED iQ Base-Case Value
The Yards Plaza	260,480	^{4500 South Damen Avenue Chicago, IL 60609}	$25,216,243	$30,490,000 ($117/sf)
Willowbrook Court Shopping Center	137,650	^{17776 Tomball Parkway Houston, TX 77066}	$19,936,125	$7,982,000 ($58/sf)

WestGate Mall

453,544 sf, Regional Mall, Spartanburg, SC

This $30.5 million loan transferred to special servicing on October 1, 2021 due to imminent default. Westgate Mall was briefly mentioned in CRED iQ’s Delinquency Report last week as one of the highest profile loans that transferred to special servicing in October 2021. Occupancy at the collateral property has steadily declined from a pre-pandemic level of 90% to 78% as of early-2021, which has corresponded with lower net cash flow. The mall is owned by CBL Properties, which emerged from Chapter 11 bankruptcy on November 1. According to documents from CBL Properties, the mall REIT’s initial Chapter 11 filing in November 2020 constituted an event of default on the loan but a transfer to special servicing did not occur until October 2021. The next steps of workout are negotiations between CBL Properties and Rialto Capital Advisors, as special servicer.

WestGate Mall is a 950,927-sf regional mall in Spartanburg, SC, which is about 80 miles southwest of Charlotte, NC. Only a 453,544-sf portion of the mall serves as collateral for the loan and part of the collateral consists of leasehold interests that are subject to multiple ground leases. The mall is anchored, in the traditional sense, by JCPenney (93,959), Dillard’s, Belk and a vacant box that was formerly occupied by Sears; however, traffic to the area is primarily driven by a semi-adjacent, non-collateral Costco Wholesale. Recent tenant departures from WestGate Mall include Dick’s Sporting Goods (35,011 sf) and the 8-screen Regal Westgate Mall Cinema (23,360 sf). The attached movie theater was made obsolete by Regal Cinemas’ newer freestanding 16-screen theater located just north of the mall loop. The downward trend of financial performance at WestGate Mall coupled with CBL Properties’ propensity to turn over titles for underperforming assets creates the potential for a distressed acquisition by opportunistic investors. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Property Name	WestGate Mall
Address	^{205 West Blackstock Road Spartanburg, SC 29301}
Outstanding Balance	$30,535,547
Interest Rate	4.99%
Maturity Date	7/1/2022
Most Recent Appraisal	$61,500,000 ($136/sf)
Most Recent Appraisal Date	5/1/2012

350 East 52^nd Street (Eastgate House)

137 units, Multifamily, New York, NY

This $32.1 million loan transferred to special servicing on October 8, 2021 due to collateral performance issues caused by the pandemic. The borrower had trouble making timely payments in the first half of 2020 and the loan was periodically delinquent throughout 2020 and 2021. Occupancy at the property declined to 89% during 2020, compared to 99.5% in 2019.

The loan is secured by a leasehold interest in a 15-story, 137-unit multifamily property located in the Midtown East submarket of Manhattan. The property features an 80-stall parking garage and 4,170 sf of ground-floor retail space. The property operates under a ground lease with 939 First Avenue LLC that requires annual ground rent of $37,500 and expires in June 2031. At loan origination, the parking garage was leased to Icon Parking through December 2026 for approximately $588,000 per year, although revenue collected from Icon Parking was reported as significantly less in recent years. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Property Name	350 East 52nd Street
Address	^{350 East 52nd Street New York, NY 10022}
Outstanding Balance	$31,200,000
Interest Rate	4.98%
Maturity Date	8/6/2028
Most Recent Appraisal	$62,900,000 ($459,124/unit)
Most Recent Appraisal Date	6/19/2018

I.M. Pei Building

169,494 sf, Office, Wilmington, DE

This $14.6 million loan transferred to special servicing on September 21, 2021 due to the impending departure of the collateral property’s largest tenant, M&T Bank. M&T Bank has a lease that expires at year-end 2021 and accounts for 10% of the collateral’s GLA. The tenant will vacate at lease expiration and the borrower has requested a modification, leveraging its willingness to contribute additional capital for repairs and re-tenanting. The loan is secured by the I.M. Pei Building, a 23-story office tower located in the CBD of Wilmington, DE. Occupancy at the property was 88% as of June 2021, but will decline to 78% occupancy following the departure of M&T Bank. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Property Name	I.M. Pei Building
Address	^{1105 Market Street Wilmington, DE 19801}
Outstanding Balance	$14,640,130
Interest Rate	4.92%
Maturity Date	10/6/2027
Most Recent Appraisal	$21,300,000 ($126/sf)
Most Recent Appraisal Date	7/19/2017

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November 2021 Delinquency Report

CRED iQ

November 2, 2021

The CRED iQ overall delinquency rate declined for the 16^th consecutive month since June 2020 and is now below 5%. The delinquency rate, equal to the percentage of all delinquent specially serviced loans and delinquent non-specially serviced loans, for CRED iQ’s sample universe of $500+ billion in CMBS conduit and single-asset single-borrower (SASB) loans was 4.70%. CRED iQ’s special servicing rate, equal to the percentage of CMBS loans that have transferred to special servicing, was equal to 7.15%. Aggregating these two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate (DQ + SS%) equals 7.51% of CMBS loans that are specially serviced, delinquent, or a combination of both. The overall distressed rate has declined in parallel with the delinquency rate over the past 16 months.

*DQ = All delinquent CMBS loans in the conduit and SASB universe, including specially serviced and non-specially serviced loans*
*SS = All specially serviced CMBS loans in the conduit and SASB universe, including current, delinquent and REO*
*DQ + SS = All distressed CMBS loans in the conduit and SASB universe that are delinquent, specially serviced, or a combination of both*

By property type, lodging and retail continue to have the highest individual delinquency rates. Delinquency for hotels declined month-over-month and has declined over 800 basis points compared to 12 months prior. Similarly, delinquency for retail has been reduced over the course of the trailing 12 months, declining approximately 500 basis points. Despite the month-over-month decline in retail delinquency, the special servicing rate for retail increased slightly, due partly to the transfer of Westgate Mall in October, which is a regional mall located in Spartanburg, SC that is owned by CBL Properties. Rounding out the remaining property types, the delinquency rate for office has been hovering just north of 2% while delinquency rates for industrial and office remain below 1%.

CRED iQ also monitors distressed rates (DQ + SS%) and market performance for nearly 400 MSAs across the United States, covering over $900 billion in outstanding CRE debt, including conduit, agency, SASB and CRE CLO. Among property sectors by market, lodging has been the most volatile. Of the Top 10 sector changes by market, hotels account for 7 out the top 10 decreases in rates of distressed collateral. Two sectors from the New Orleans MSA — lodging and multifamily — exhibited the highest increases in distressed rates. Additionally, the Washington, DC office sector exhibited one of the largest month-over-month increases in its distressed rate – caused by the delinquency of One Union Center, a 191,000-sf office property located in the Capitol Hill submarket of DC. The property is 5% occupied and failed to pay off at its initial maturity date in October 2021.

New Orleans maintains its position as one the 3 MSAs with the highest overall rates of distress, joining Minneapolis and Louisville. The Sacramento MSA has the lowest distressed rate among the Top 50 MSAs for the second month in a row.

For the full CRED DQ report, download here:

The-CRED-DQ-Report-2021-11-1 Download

MSA – Property Type	DQ/SS (millions)	DQ/SS (%)	Monthly Change
Allentown-Bethlehem-Easton, PA-NJ MSA	$19.4	0.6%	0.0%
Hotel	$0.0	0.0%	0.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$19.4	5.1%	0.0%
Self Storage	$0.0	0.0%	0.0%
Atlanta-Sandy Springs-Marietta, GA MSA	$748.5	3.2%	0.0%
Hotel	$247.0	13.0%	0.1%
Industrial	$0.0	0.0%	0.0%
Multifamily	$4.7	0.0%	0.0%
Office	$34.0	1.2%	-0.2%
Other	$0.0	0.0%	0.0%
Retail	$462.9	17.7%	0.7%
Self Storage	$0.0	0.0%	0.0%
Austin-Round Rock, TX MSA	$495.2	5.4%	-0.4%
Hotel	$406.1	44.1%	-1.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$86.5	12.7%	-3.0%
Self Storage	$2.6	2.2%	0.0%
Baltimore-Towson, MD MSA	$413.5	4.2%	0.0%
Hotel	$128.3	27.8%	-0.9%
Industrial	$0.0	0.0%	0.0%
Multifamily	$6.1	0.1%	0.0%
Office	$22.9	3.6%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$256.3	24.0%	-0.2%
Self Storage	$0.0	0.0%	0.0%
Birmingham-Hoover, AL MSA	$45.5	1.7%	0.0%
Hotel	$22.6	21.4%	-1.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	-0.1%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$22.9	3.2%	0.0%
Self Storage	$0.0	0.0%	0.0%
Boston-Cambridge-Quincy, MA-NH MSA	$356.1	2.1%	-0.2%
Hotel	$98.6	13.3%	-3.5%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$257.5	13.5%	0.3%
Self Storage	$0.0	0.0%	0.0%
Bridgeport-Stamford-Norwalk, CT MSA	$169.2	4.4%	-0.4%
Hotel	$43.0	42.0%	-9.4%
Industrial	$17.8	14.0%	0.4%
Multifamily	$0.0	0.0%	0.0%
Office	$63.1	5.3%	0.0%
Other	$23.6	5.8%	0.0%
Retail	$21.7	6.9%	0.0%
Self Storage	$0.0	0.0%	0.0%
Charlotte-Gastonia-Concord, NC-SC MSA	$303.6	3.8%	0.7%
Hotel	$100.4	8.4%	-2.1%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$21.3	2.5%	0.0%
Other	$85.0	25.2%	1.0%
Retail	$96.9	8.1%	6.3%
Self Storage	$0.0	0.0%	0.0%
Chicago-Naperville-Joliet, IL-IN-WI MSA	$2,019.4	7.6%	0.2%
Hotel	$1,119.6	52.8%	7.8%
Industrial	$0.0	0.0%	0.0%
Multifamily	$119.9	1.2%	0.0%
Office	$395.5	5.6%	0.0%
Other	$99.2	5.1%	0.0%
Retail	$285.2	8.6%	0.9%
Self Storage	$0.0	0.0%	0.0%
Cincinnati-Middletown, OH-KY-IN MSA	$280.1	7.2%	-0.7%
Hotel	$116.9	39.4%	-6.8%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$11.5	2.2%	0.0%
Other	$15.7	5.1%	0.1%
Retail	$135.1	19.5%	0.0%
Self Storage	$1.0	1.8%	0.1%
Cleveland-Elyria-Mentor, OH MSA	$469.3	11.8%	-0.6%
Hotel	$97.7	50.0%	-7.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	-0.3%
Office	$105.0	12.9%	0.0%
Other	$177.6	42.5%	1.1%
Retail	$88.9	11.9%	0.6%
Self Storage	$0.0	0.0%	0.0%
Columbus, OH MSA	$247.2	4.0%	-0.2%
Hotel	$84.3	26.8%	-0.1%
Industrial	$11.9	2.6%	-0.3%
Multifamily	$0.0	0.0%	-0.1%
Office	$12.4	2.8%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$127.5	15.3%	0.2%
Self Storage	$11.0	18.9%	0.0%
Dallas-Fort Worth-Arlington, TX MSA	$836.9	2.5%	-0.2%
Hotel	$360.6	10.0%	-2.2%
Industrial	$1.7	0.1%	0.0%
Multifamily	$47.7	0.2%	0.0%
Office	$165.9	4.5%	-0.2%
Other	$23.8	1.3%	0.2%
Retail	$225.3	9.9%	0.4%
Self Storage	$11.9	2.3%	-0.1%
Denver-Aurora, CO MSA	$289.6	1.8%	-0.1%
Hotel	$30.7	3.8%	-1.4%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$193.8	9.5%	0.1%
Other	$6.9	1.4%	0.0%
Retail	$54.9	3.7%	-0.5%
Self Storage	$3.3	1.9%	-0.1%
Detroit-Warren-Livonia, MI MSA	$522.0	6.0%	0.1%
Hotel	$283.9	39.0%	-3.6%
Industrial	$18.6	3.7%	-4.8%
Multifamily	$25.2	0.8%	-0.4%
Office	$0.0	0.0%	0.0%
Other	$22.8	3.7%	0.2%
Retail	$171.6	10.2%	3.7%
Self Storage	$0.0	0.0%	0.0%
Hartford-West Hartford-East Hartford, CT MSA	$208.0	8.3%	-0.3%
Hotel	$88.9	60.5%	-2.3%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	-0.3%
Office	$87.6	22.3%	0.0%
Other	$1.2	0.6%	0.0%
Retail	$30.3	12.8%	0.0%
Self Storage	$0.0	0.0%	0.0%
Houston-Sugar Land-Baytown, TX MSA	$1,425.1	5.9%	0.7%
Hotel	$665.7	58.1%	-1.1%
Industrial	$4.2	0.8%	0.1%
Multifamily	$66.6	0.5%	0.0%
Office	$540.2	13.9%	0.2%
Other	$0.0	0.0%	0.0%
Retail	$103.9	2.8%	0.4%
Self Storage	$44.4	9.5%	3.1%
Indianapolis-Carmel, IN MSA	$385.4	8.0%	0.2%
Hotel	$159.6	25.7%	-0.2%
Industrial	$0.0	0.0%	0.0%
Multifamily	$98.2	4.2%	0.0%
Office	$75.8	13.6%	0.9%
Other	$9.8	4.6%	0.1%
Retail	$38.1	7.4%	0.4%
Self Storage	$4.0	6.1%	0.7%
Jacksonville, FL MSA	$71.7	1.4%	0.1%
Hotel	$38.6	9.0%	-0.3%
Industrial	$0.0	0.0%	0.0%
Multifamily	$19.9	0.6%	0.0%
Office	$4.2	1.1%	1.1%
Other	$0.0	0.0%	0.0%
Retail	$9.0	2.2%	0.1%
Self Storage	$0.0	0.0%	0.0%
Kansas City, MO-KS MSA	$155.3	3.3%	0.2%
Hotel	$89.9	30.4%	3.4%
Industrial	$0.0	0.0%	0.0%
Multifamily	$7.6	0.3%	0.0%
Office	$0.0	0.0%	0.0%
Other	$2.8	1.5%	0.5%
Retail	$53.3	8.3%	0.0%
Self Storage	$1.7	0.8%	0.0%
Las Vegas-Paradise, NV MSA	$396.0	2.0%	0.0%
Hotel	$18.3	0.3%	0.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$13.5	2.1%	0.4%
Other	$0.0	0.0%	0.0%
Retail	$361.4	7.7%	0.1%
Self Storage	$2.8	1.5%	0.1%
Los Angeles-Long Beach-Santa Ana, CA MSA	$1,569.7	3.2%	-0.8%
Hotel	$647.0	16.3%	-0.2%
Industrial	$2.0	0.2%	0.2%
Multifamily	$127.1	0.6%	0.0%
Office	$89.2	0.8%	-2.5%
Other	$149.3	4.9%	-0.7%
Retail	$555.1	8.4%	-0.4%
Self Storage	$0.0	0.0%	-0.4%
Louisville/Jefferson County, KY-IN MSA	$630.9	21.0%	0.7%
Hotel	$242.9	54.4%	-1.7%
Industrial	$0.0	0.0%	0.0%
Multifamily	$3.8	0.3%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$384.2	59.4%	0.2%
Self Storage	$0.0	0.0%	0.0%
Memphis, TN-AR-MS MSA	$141.2	6.5%	0.0%
Hotel	$40.9	21.6%	-7.4%
Industrial	$0.0	0.0%	0.0%
Multifamily	$17.8	1.8%	0.0%
Office	$0.0	0.0%	0.0%
Other	$18.4	35.8%	2.2%
Retail	$62.4	17.1%	1.8%
Self Storage	$1.7	1.1%	0.0%
Miami-Fort Lauderdale-Pompano Beach, FL MSA	$798.8	3.8%	0.5%
Hotel	$360.9	8.1%	-0.3%
Industrial	$0.0	0.0%	0.0%
Multifamily	$5.8	0.1%	0.0%
Office	$21.6	1.1%	0.0%
Other	$8.7	0.6%	0.0%
Retail	$401.9	8.4%	2.7%
Self Storage	$0.0	0.0%	0.0%
Milwaukee-Waukesha-West Allis, WI MSA	$254.5	10.3%	-0.1%
Hotel	$35.6	23.1%	0.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$66.2	11.8%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$152.7	30.5%	0.0%
Self Storage	$0.0	0.0%	0.0%
Minneapolis-St. Paul-Bloomington, MN-WI MSA	$1,934.4	23.5%	0.0%
Hotel	$332.1	53.3%	-0.6%
Industrial	$4.1	1.4%	-0.1%
Multifamily	$0.0	0.0%	0.0%
Office	$154.8	7.7%	0.0%
Other	$11.6	2.7%	-0.1%
Retail	$1,431.8	71.6%	0.5%
Self Storage	$0.0	0.0%	0.0%
Nashville-Davidson-Murfreesboro-Franklin, TN MSA	$169.7	2.7%	-0.8%
Hotel	$160.2	11.8%	-3.9%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$9.5	1.2%	0.0%
Self Storage	$0.0	0.0%	0.0%
New Orleans-Metairie-Kenner, LA MSA	$539.7	16.1%	2.9%
Hotel	$465.0	41.4%	4.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$34.5	4.4%	2.7%
Office	$17.4	3.2%	3.2%
Other	$0.0	0.0%	0.0%
Retail	$22.8	3.2%	0.1%
Self Storage	$0.0	0.0%	0.0%
New York-Northern New Jersey-Long Island, NY-NJ-PA MSA	$6,125.9	5.3%	-0.3%
Hotel	$1,615.6	44.8%	-1.6%
Industrial	$7.5	0.5%	0.0%
Multifamily	$524.4	1.6%	-0.2%
Office	$717.3	1.7%	-0.2%
Other	$1,430.3	7.0%	-0.4%
Retail	$1,830.8	13.3%	-0.7%
Self Storage	$0.0	0.0%	0.0%
Orlando-Kissimmee, FL MSA	$435.3	3.8%	-0.1%
Hotel	$188.3	6.6%	0.6%
Industrial	$0.0	0.0%	0.0%
Multifamily	$25.4	0.4%	0.0%
Office	$47.1	9.6%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$174.5	20.9%	-2.7%
Self Storage	$0.0	0.0%	0.0%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA	$958.0	5.2%	0.2%
Hotel	$360.8	41.2%	4.6%
Industrial	$0.0	0.0%	0.0%
Multifamily	$110.4	1.3%	-0.1%
Office	$102.5	2.5%	1.0%
Other	$47.9	3.7%	-0.5%
Retail	$336.3	13.7%	-0.5%
Self Storage	$0.0	0.0%	0.0%
Phoenix-Mesa-Scottsdale, AZ MSA	$409.6	2.4%	-0.1%
Hotel	$39.0	2.4%	-1.2%
Industrial	$10.2	2.2%	0.3%
Multifamily	$0.0	0.0%	0.0%
Office	$23.7	1.1%	0.0%
Other	$180.5	24.1%	0.0%
Retail	$156.3	7.3%	0.1%
Self Storage	$0.0	0.0%	0.0%
Pittsburgh, PA MSA	$149.3	3.2%	-1.0%
Hotel	$118.0	41.6%	-4.3%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$15.4	1.7%	0.0%
Other	$8.1	2.1%	0.0%
Retail	$7.8	1.2%	-5.9%
Self Storage	$0.0	0.0%	0.0%
Portland-Vancouver-Beaverton, OR-WA MSA	$514.2	7.8%	0.0%
Hotel	$502.5	58.1%	-4.6%
Industrial	$0.0	0.0%	0.0%
Multifamily	$10.2	0.2%	0.0%
Office	$1.6	0.6%	0.1%
Other	$0.0	0.0%	0.0%
Retail	$0.0	0.0%	0.0%
Self Storage	$0.0	0.0%	0.0%
Raleigh-Cary, NC MSA	$122.4	3.0%	-0.3%
Hotel	$86.6	21.1%	0.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	-4.0%
Other	$0.0	0.0%	0.0%
Retail	$35.8	9.1%	0.0%
Self Storage	$0.0	0.0%	0.0%
Richmond, VA MSA	$141.5	4.1%	0.1%
Hotel	$50.5	17.8%	0.0%
Industrial	$6.9	4.9%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$84.2	15.3%	0.0%
Self Storage	$0.0	0.0%	0.0%
Riverside-San Bernardino-Ontario, CA MSA	$359.7	4.0%	0.5%
Hotel	$73.3	16.4%	-2.1%
Industrial	$0.0	0.0%	0.0%
Multifamily	$2.4	0.1%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$283.9	13.3%	2.2%
Self Storage	$0.0	0.0%	0.0%
Sacramento-Arden-Arcade-Roseville, CA MSA	$30.9	0.6%	0.0%
Hotel	$6.3	1.7%	0.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$10.9	1.9%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$13.7	1.9%	0.1%
Self Storage	$0.0	0.0%	0.0%
Salt Lake City, UT MSA	$57.6	1.6%	0.7%
Hotel	$57.6	19.1%	8.4%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$0.0	0.0%	0.0%
Self Storage	$0.0	0.0%	0.0%
San Antonio, TX MSA	$176.5	2.8%	-0.2%
Hotel	$26.1	7.4%	-0.4%
Industrial	$0.0	0.0%	0.0%
Multifamily	$4.9	0.1%	-0.2%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$143.9	16.4%	-0.9%
Self Storage	$1.5	1.0%	0.0%
San Diego-Carlsbad-San Marcos, CA MSA	$217.7	2.0%	0.0%
Hotel	$79.4	3.8%	-0.1%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	0.0%
Other	$20.7	3.4%	0.0%
Retail	$117.6	9.9%	-0.1%
Self Storage	$0.0	0.0%	0.0%
San Francisco-Oakland-Fremont, CA MSA	$324.4	1.4%	-0.1%
Hotel	$203.4	8.8%	-0.4%
Industrial	$0.0	0.0%	0.0%
Multifamily	$23.8	0.3%	0.0%
Office	$18.8	0.2%	0.0%
Other	$30.6	1.8%	0.0%
Retail	$47.7	3.5%	-0.1%
Self Storage	$0.0	0.0%	0.0%
San Jose-Sunnyvale-Santa Clara, CA MSA	$136.9	1.0%	0.0%
Hotel	$122.1	6.2%	0.1%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$14.7	0.2%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$0.0	0.0%	0.0%
Self Storage	$0.0	0.0%	0.0%
Seattle-Tacoma-Bellevue, WA MSA	$217.5	1.3%	0.1%
Hotel	$210.8	16.8%	1.2%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$6.7	0.4%	0.0%
Self Storage	$0.0	0.0%	0.0%
St. Louis, MO-IL MSA	$406.7	9.4%	-0.3%
Hotel	$58.5	21.9%	1.3%
Industrial	$0.0	0.0%	0.0%
Multifamily	$20.0	1.1%	-0.2%
Office	$107.6	19.2%	0.2%
Other	$24.7	5.3%	0.4%
Retail	$196.0	19.3%	-1.2%
Self Storage	$0.0	0.0%	0.0%
Tampa-St. Petersburg-Clearwater, FL	$381.6	4.0%	-0.1%
Hotel	$74.8	6.4%	-0.1%
Industrial	$0.0	0.0%	0.0%
Multifamily	$34.6	0.6%	0.0%
Office	$20.3	3.5%	0.1%
Other	$0.0	0.0%	0.0%
Retail	$251.9	27.3%	-0.2%
Self Storage	$0.0	0.0%	0.0%
Tucson, AZ MSA	$264.7	9.2%	0.0%
Hotel	$1.4	0.5%	0.0%
Industrial	$0.0	0.0%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$0.0	0.0%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$263.4	41.7%	2.2%
Self Storage	$0.0	0.0%	0.0%
Virginia Beach-Norfolk-Newport News, VA-NC MSA	$242.8	5.5%	1.9%
Hotel	$24.6	6.0%	0.7%
Industrial	$21.2	13.1%	0.0%
Multifamily	$0.0	0.0%	0.0%
Office	$12.4	3.1%	0.0%
Other	$0.0	0.0%	0.0%
Retail	$184.5	20.5%	8.5%
Self Storage	$0.0	0.0%	0.0%
Washington-Arlington-Alexandria, DC-VA-MD-WV MSA	$847.7	3.1%	0.3%
Hotel	$66.3	6.1%	0.9%
Industrial	$0.0	0.0%	0.0%
Multifamily	$1.3	0.0%	0.0%
Office	$362.8	5.7%	1.1%
Other	$249.7	12.9%	0.6%
Retail	$167.7	6.2%	0.7%
Self Storage	$0.0	0.0%	0.0%
Grand Total	$28,417.1	4.4%	-0.1%

Hotel Auctions

CRED iQ

November 2, 2021

This week, CRED iQ reviewed real-time valuations for 5 REO lodging assets that we expect to be sold in November. Each of these assets previously secured commercial mortgage loans that defaulted and transferred to special servicing. Following the foreclosure of each of these properties, the final step of workout is a sale or liquidation. Distressed hotels have been a popular target for distressed investors so far in 2021 after many properties were not able to overcome demand disruptions in 2020 and the coinciding shortfalls in net cash flow.

The CRED iQ valuations factor in a base-case (Most Likely), a downside (significant loss of tenants), and dark scenarios (100% vacant). For full access to the valuation reports including the Downside and Dark scenarios as well as full CMBS loan reporting, with detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Sheraton Denver West

242 keys, Full-Service Hotel, Lakewood, CO

This REO property, which has outstanding debt of $11.6 million, has been with the special servicer since August 2020. The title transferred to CWCapital, as special servicer, from LHA Real Estate, LLC in May 2021 following a foreclosure sale. The property was severely impacted by the pandemic and monthly occupancy dropped below 10% for a period in late-2020. An auction sale of the property is expected during the month of November.

The Sheraton Denver West is a 12-story full-service hotel that operates as a Sheraton. The hotel has been known as a popular destination for conferences and features over 16,000 sf of meeting space. In 2019, the hotel generated about 36% of its revenue from food & beverage or events/conferences. Hotel operations were unable to recover given the slow rebound of business travel and conference circuits. Average occupancy for the hotel for the trailing 12 months ended August 2021 was 34%, whereas the hotel typically operated at about 60% occupancy pre-pandemic. The property was appraised for $21.5 million ($88,843/room) in May 2021, which was a 9% decline from a September 2020 appraisal but a 13% increase compared to the July 2013 appraisal from origination. For the full valuation report and property-level details, click here.

Property Name	Sheraton Denver West
Address	^{360 Union Boulevard Lakewood, CO 80228}
Outstanding Balance	$11,594,828
Most Recent Appraisal	$21,500,000 ($88,843/room)
Most Recent Appraisal Date	5/1/2021

Holiday Inn Fort Worth North-Fossil Creek

126 keys, Full-Service Hotel, Fort Worth, TX

This lodging property has outstanding debt of $11.5 million and has been with special servicing since February 2018. Unlike most of today’s distressed hotels, this property’s initial transfer to the special servicer was not pandemic-related and operational issues with the property go back several years. Cash flow issues with the hotel can be traced back to 2018 when the former owner had difficulty with operating expense growth and funding a required property improvement plan (PIP). The hotel went into receivership in January 2019 and title to the property was acquired in March 2021.

Holiday Inn Fort Worth North-Fossil Creek is a 4-story full-service hotel that operates through a franchise agreement with IHG that expires in October 2025. IHG had previously issued a franchise termination notice in early 2019 for failure to pay franchise fees and delays in a required PIP. The latest servicer commentary indicates the roof had been leaking and needed replacement, which was completed by the receiver. GF Hospitality is responsible for hotel management. We expect the hotel to be put up for sale in November.

The property was most recently appraised for $7.2 million, equal to $57,143/room, in July 2021. The most recent appraisal represented a 24% increase compared to a November 2020 appraisal but a 17% decrease compared to a May 2020 appraisal. Potential investors may also want to take note of a new IHG-branded hotel that came online in May 2021, located 3 miles north of the Holiday Inn. The avid hotel Fort Worth – Fossil Creek is a relatively newer flag under IHG’s Essentials brand portfolio, competing in a similar segmentation to Holiday Inn. For the full valuation report and property-level details, click here.

Holiday Inn Fort Worth North - Fossil Creek - COMM 2016-CR28

Property Name	Holiday Inn Fort Worth North – Fossil Creek
Address	^{4635 Gemini Place Fort Worth, TX 76106}
Outstanding Balance	$11,503,410
Most Recent Appraisal	$7,200,000 ($57,143/room)
Most Recent Appraisal Date	7/1/2021

Holiday Inn Corpus Christi Airport

237 keys, Full-Service Hotel, Corpus Christi, TX

This full-service hotel has outstanding debt totaling $8.7 million and has been with the special servicer since May 2020. Initially, the former borrower had requested forbearance for temporary COVID relief; however, a superseding request was made by the end of 2020 to hand the keys over to the lender. CWCapital, as special servicer, acquired title to the hotel on March 2, 2021 and appears to have put the property up for auction in November.

The hotel operates as a Holiday Inn through a franchise agreement with IHG that expires on October 16, 2023. The property is located in close proximity to the Corpus Christi International Airport and has historically benefited from substantial conference revenue with approximately 11,000 sf of meeting space. The hotel had average occupancy of 27.5% for the trailing 12 months ended August 2021, whereas the property generally operated at approximately 50% occupancy prior to the pandemic.

The property was appraised for $8.8 million, equal to $37,131/room, in May 2021, which represented a 16% decline compared to a September 2020 appraisal and a 65% decline compared to a June 2015 appraisal from origination. For the purpose of pricing discovery, CRED iQ’s Property Comp tool identified a comparable hotel – Holiday Inn Express & Suites Rockport – that was sold in October 2021. The sales agreement indicated a sales price that was approximately 63% higher than a June 2020 appraisal value for the same property. For the full valuation report and property-level details, click here.

Holiday Inn Corpus Christi Airport - COMM 2016-CR28

Property Name	Holiday Inn Corpus Christi Airport
Address	^{5549 Leopard Street Corpus Christi, TX 78408}
Outstanding Balance	$8,651,012
Most Recent Appraisal	$8,800,000 ($37,131/room)
Most Recent Appraisal Date	5/1/2021

Fairfield Inn & Suites – Toledo

84 keys, Limited-Service Hotel, Toledo, OH

This limited-service hotel has outstanding debt of $7.2 million. The property transferred to special servicer earlier this year in March 2021 and the property became REO through consensual foreclosure that was completed on July 28, 2021. Workout for the distressed asset continues to move quickly with a scheduled auction sale in November.

The hotel operates as a Fairfield Inn & Suites through a franchise agreement with Marriott that expires in April 2028. Financial performance at the hotel was adversely impacted in 2020 by the pandemic; however, the loan wasn’t added to the servicer’s watchlist until February 2021, shortly before its transfer to special servicing. The loan was most recently appraised at a value of $7.7 million, equal to $91,667/room, which represents a 29% decline from the appraised value at origination in March 2017. For the full valuation report and property-level details, click here.

Fairfield Inn & Suites - Toledo - WFCM 2017-C39

Property Name	Fairfield Inn & Suites – Toledo
Address	^{5685 Benore Road Toledo, OH 43612}
Outstanding Balance	$7,237,650
Most Recent Appraisal	$7,700,000 ($91,667/room)
Most Recent Appraisal Date	4/12/2021

Holiday Inn Express Alliance

70 keys, Limited-Service Hotel, Alliance, OH

This REO hotel has been with the special servicer since April 2020. Despite the transfer coinciding with the onset of the pandemic, the property had exhibited volatile net cash for several years prior to 2020. Volatility in occupancy and net cash flow was related, in part, to the region’s reliance on energy exploration of the Utica Shale formation under eastern Ohio. Title to the asset was acquired on April 1, 2021 and the property appears to be up for sale via auction in November.

The hotel operates as a Holiday Inn Express & Suites through a franchise agreement with IHG. Average occupancy for the hotel was 52% for the trailing 12 months ended August 2021, which was within range of pre-pandemic performance. The property was appraised for $2.7 million ($38,714/room) in February 2021, which represented a 58% decline compared to the appraised value at origination in December 2012. For the full valuation report and property-level details, click here.

Holiday Inn Express Alliance - WFRBS 2013-C11

Property Name	Holiday Inn Express Alliance
Address	^{2341 West State Street Alliance, OH 44601}
Outstanding Balance	$2,905,501
Most Recent Appraisal	$2,710,000 ($38,714/room)
Most Recent Appraisal Date	2/2/2021

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Non-Performing Matured Loans

CRED iQ

October 26, 2021

This week, CRED iQ reviewed real-time valuations for several assets that secure non-performing matured loans. Maturity defaults often can be a result of distress but may also be a mismatch in the timing of a refinancing effort or sale closing. Most of this week’s assets are attributed to prior distress and had transferred to special servicing before the loan’s maturity balloon was due. Non-performing matured loans are opportunities for distressed investors to step in and infuse capital in situations where traditional solutions may not be an option. This week’s batch of non-performing matured loans includes a prime redevelopment opportunity in White Plains, NY as well as 2 distressed hospitality portfolios.

The CRED iQ valuations factor in a base-case (Most Likely), a downside (significant loss of tenants), and dark scenarios (100% vacant). Base-Case valuations are provided for the properties below. For full access to the valuation reports including the Downside and Dark scenarios as well as full CMBS loan reporting, with detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Shoppes on Main

257,360 sf, Storefront Retail, White Plains, NY 10601

This $31.5 million loan was scheduled to mature on October 6, 2021 but has been in special servicing since January 2020. CWCapital, as special servicer, arranged a note sale in September and the non-performing loan was reportedly sold for approximately $3.3 million. The loan is secured by a leasehold interest in 10-story building located in the CBD of White Plains, NY that features 257,360 sf of retail space with garage parking on the top 6 floors. The property was formerly leased to Walmart and Burlington Coat Factory but is now vacant. Walmart closed its store in 2018, citing poor financial performance and incompatibility with its Supercenter store strategy. Burlington vacated at lease expiration in 2019 and moved its store location across the street to City Center, a better-positioned mixed-use development that features a performing arts center, a Target, and a ShopRite.

As previously discussed, part of the loan’s distress is attributed to the property’s ground lease, which required annual payments of $100,000. Ground rent for the property was significantly reduced from $216,000 per year starting in 2016. There has not been any indication of redevelopment plans from the loan’s sponsor, Ivy Realty, but the property’s CBD location has sparked much interest and speculation. The improvements were last appraised for $10.8 million ($42/sf) in September 2020. The market ultimately decided that the note secured by the improvements was worth much less. For the full valuation report and loan-level details, click here.

Property Name	Shoppes o n Main
Address	^{275 Main Street White Plains, NY 10601}
Outstanding Balance	$31,521,518
Interest Rate	7.25%
Maturity Date	10/6/2021
Most Recent Appraisal	$10,800,000 ($42/sf)
Most Recent Appraisal Date	9/7/2020

CRED iQ Base-Case Value	$3,257,000 ($13/sf)

Hospitality Specialists Portfolio – Pool 2

257 Keys, Limited-Service Hotels, Moline, IL & Stevenson, MI

This $17.3 million loan was scheduled to mature on October 6, 2021 but transferred to special servicing about 7 months earlier in February 2021. The loan is secured by 3 hotel properties that were severely impacted by the pandemic. A forbearance agreement was signed in June 2020 but the temporary relief did not provide a permanent solution to the properties’ distressed operations. The loan had been delinquent for the 8 months leading up to its maturity date. Rialto Capital Advisors, as special servicer, indicated it is preparing for a deed-in-lieu of foreclosure agreement. The loan’s sponsor is Hospitality Specialists, Inc.

The loan is secured by fee interests in a Residence Inn hotel located in Moline, IL and a Hampton Inn hotel located in Stevensville, MI. The loan is also secured by a leasehold interest in a Hampton Inn located in Moline, IL. The ground lease for the property expires in 2035 but has 30 years in additional extension options. Despite the borrower citing COVID-19 as the primary reason for delinquency and poor performance, the loan had a pre-pandemic below-breakeven DSCR for the year ended 2019. The portfolio was appraised for $22.65 million in August 2021, equal to $88,132/key, which represented a 41% decline from the appraisal at origination. For the full valuation report and loan-level details, click here.

Property Name	Size (Keys)	Address	Allocated Loan Amount	CRED iQ Base-Case Value
Residence Inn Moline	84	^{4600 53rd Street Moline, IL 61625}	$6,684,179	$8,129,000 ($96,779/key)
Hampton Inn & Suites Moline	98	^{2450 69th Avenue Moline, IL 61265}	$6,365,885	$9,302,000 ($94,922/key)
Hampton Inn Stevensville	75	^{5050 Red Arrow Highway Stevensville, MI 49127}	$4,274,237	$1,845,000 ($24,607/key)

Hospitality Specialists Portfolio – Pool 1

285 Keys, Limited-Service Hotels, Michigan

This $16.5 million loan, which shares Hospitality Specialists, Inc. as a sponsor, was also scheduled to mature on October 6, 2021. The loan transferred to special servicing simultaneously with Pool 2, mentioned above; however, commentary for the Pool 1 loan exhibits a slightly more positive syntax than Pool 2 by stating that negotiations for forbearance are in progress. A forbearance agreement for the loan was previously documented in June 2020. Unlike Pool 2, the Pool 1 loan is current in payment.

The loan is secured by fee interests in 3 limited-service hotels located in western Michigan. Two of the properties are located in Grand Rapids, MI. The hotels operate under 3 different flags: SpringHill Suites, Hampton Inn, and Residence Inn. The extent of operational disruption caused by COVID-19 is evident with the transfer to special servicing, although, the degree of distress is not clear since financial statements have not been reported since 2019. For the full valuation report and loan-level details, click here.

Property Name	Size (Keys)	Address	Allocated Loan Amount	CRED iQ Base-Case Value
SpringHill Suites Grand Rapids	109	^{5250 28th Street SE Grand Rapids, MI 49512}	$6,423,758	$10,980,000 ($100,696/key)
Hampton Inn & Suites Grand Rapids	98	^{5200 28th Street SE Grand Rapids, MI 49512}	$5,555,683	$9,985,000 ($101,885/key)
Residence Inn Holland	78	^{631 Southpoint Ridge Road Holland, MI 49423}	$4,557,395	$10,520,000 ($134,810/key)

147-149 Grand Street

8,409 sf, Mixed-Use (Retail/Multifamily), New York, NY 10013

This $12.0 million loan was previously featured in the July 14, 2021 WAR Report shortly after it transferred to special servicing. The loan has passed its scheduled maturity date of October 6, 2021 and continues to be non-performing. Since our last update, the borrower submitted a maturity extension proposal that was rejected. The borrower followed with a proposal for a discounted payoff. Midland Loan Services, as special servicer, may wait until 2022 to pursue foreclosure, absent any foreclosure moratorium. For the latest updates on this loan as well as a full valuation report and loan-level details, click here.

Broadmoor Towne Center

143,797 sf, Retail, Colorado Springs, CO 80906

This $10.4 million loan transferred to special servicing on September 23, 2021 due to delinquency and imminent maturity default. Loan maturity was scheduled for October 6, 2021 and the loan is now non-performing. Servicer commentary indicated the borrower was having difficulty securing refinancing, likely due to uncertain tenancy at the Colorado Springs retail center. The retail strip lost its 2 largest tenants since loan origination. Gordman’s formerly occupied 49,995 sf, equal to 35% of the GLA, until it vacated in 2020 after its parent company, Stage Stores, filed for bankruptcy. Office Depot formerly occupied 15,000 sf, equal to 10% of the GLA, but vacated in 2016. Furniture store Rush Market is on a month-to-month lease and occupies the former Gordman’s space while the former Office Depot space remains vacant. The property, which is adjacent to a former Sears department store that has been redeveloped into a Magnum Shooting Center, also operates under a ground lease. The most recent ground rent payment was $224,000 but the terms will reset upon a 10-year renewal in January 2023. CRED iQ’s estimated occupancy for the property is 52%, assuming that Rush Mark is a temporary tenant. For the full valuation report and loan-level details, click here.

Property Name	Broadmoor Town e Center
Address	^{1802-1918 Southgate Road Colorado Springs, CO 80906}
Outstanding Balance	$10,359,780
Interest Rate	4.51%
Maturity Date	10/6/2021
Most Recent Appraisal	$25,200,000 ($175/sf)
Most Recent Appraisal Date	8/6/2014

CRED iQ Base-Case Value	$8,765,000 ($61/sf)

(Former) BI-LO Portfolio

276,852 sf, Retail Shopping Centers, South Carolina

This $8.5 million loan failed to pay off at its October 6, 2021 maturity date but the borrower was granted a maturity extension to December 1, 2021. The loan is secured by 4 retail centers located in South Carolina. The borrower is in the process of selling 2 of the properties. The remaining 2 properties are expected to be refinanced, according to servicer commentary. Despite the extension, the loan was flagged as a non-performing matured loan by the servicer.

All 4 of the properties were formerly anchored by a BI-LO grocery store, which is a subsidiary of Southeastern Grocers. Southeastern Grocers dissolved its BI-LO brand of supermarkets in 2020 and many locations were sold to other grocers or retailers. Food Lion took over at two of the properties in Cayce, SC and Chesnee, SC. Big Lots now occupies the former BI-LO location at Collins Corner Shopping Center in Greer, SC and the BI-LO location at the Gaffney Shopping center remains dark. BI-LO’s leases at each of the properties appear to still be in place, according to the servicer. The properties have performed well in aggregate, which is evidenced by NCF that has increased by approximately 38% since loan origination. For the full valuation report and loan-level details, click here.

Property Name	Size (square feet)	Address	Allocated Loan Amount	CRED iQ Base-Case Value
Collins Corner Shopping Center	70,538	^{715 E Wade Hampton Boulevard Greer, SC 29650}	$3,070,180	$5,224,000 ($74/sf)
Edenwood Shopping Center	98,467	^{2451 Charleston Highway Cayce, SC 29033}	$2,951,115	$4,669,000 ($47/sf)
Gaffney Shopping Center	45,048	^{1013 W Floyd Baker Boulevard Gaffney, SC 29341}	$1,241,679	$1,062,000 ($24/sf)
Chesnee Shopping Center	62,799	^{712 South Alabama Avenue Chesnee, SC 29323}	$1,241,679	$2,086,000 ($33/sf)

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Recent Commercial Mortgage Originations

CRED iQ

October 19, 2021

This week, CRED iQ reviewed the commercial real estate lending landscape and highlighted 5 properties that have secured financing in the past 2 months. Using the CRED iQ platform’s Comps functionality, which features propriety Comps scoring for the CRE loan universe, we compared lending terms and loan structures to get a sense of the trends in the CRE lending environment. In certain cases, mortgage loans from properties’ prior financing packages were catalogued in CRED iQ’s system, which enables users to evaluate prior loans terms and pre-origination financial history. Additionally, we provided valuations for each asset to evaluate leverage levels in relation to originators’ LTVs. The CRED iQ valuations factor in a base-case (Most Likely), a downside (significant loss of tenants), and dark scenarios (100% vacant). For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Superstition Gateway

495,204 sf, Retail, Mesa, AZ 85209

A $77.1 million loan was originated by KeyBank on September 16, 2021 to refinance existing debt of $81.3 million, which was first reported by Commercial Observer. The borrower, Desert Troon Companies, contributed $5.7 million in equity as part of the deal. The loan was structured with a 10-year term, an interest rate of 3.62%, and a five-year interest-only period. The loan will be locked out from prepayment for 2 years, and defeasance will be permitted after lockout through the remainder of the loan term. The existing debt was held by Carbon Capital IV, a BlackRock US real estate debt fund, and had a floating interest rate of 1M LIBOR + 3.65% over a 3-year initial term.

The Superstition Gateway loan is secured by the fee interest in a 495,204-sf open-air power center that was developed in multiple phases starting in 2006. The property is located within the Phoenix-Mesa-Scottsdale, AZ MSA and features a combination of retail storefronts and ground-leased outparcels. The retail center is shadow-anchored by Walmart and major tenants include Kohl’s (18% of the GLA), LA Fitness (9% of the GLA), and AMC Theatres (8.5% of the GLA). Kohl’s owns its improvements and pays annual ground rent of approximately $221,400 with a lease that expires in January 2027.

The property was 94% occupied as of August 2021; however, the retail property has had pandemic-related tenant issues dating back to Q1 2020. The property’s prior floating-rate mortgage transferred to special servicing in April 2020 when rent collections declined to below 70%. A 5-month forbearance agreement was signed in July 2020 as rent collections started to recover and the prior mortgage returned to the master servicer in December 2020 after all outstanding forbearance amounts were repaid. Rent collections were reportedly at 100% at the time of the new loan’s origination. Tenancy will be a key credit consideration for the current mortgage, especially with approximately 25% of the property’s rent rolling in 2027. An August 26, 2021 appraisal valued the property at $112.6 million, equal to $227/sf, which implied an LTV of 68.5% and a capitalization rate of 6.43% based on the originator’s underwritten NCF. For the full valuation report and loan-level details, click here.

Subject Property
Name	Superstition Gateway
Address	^{1614 – 1959 Signal Butte Rd Mesa, AZ 85212}
Property Type	Retail
Property Subtype	Power Center
Building Size	495,204
Year Built	2006
Submarket	East Valley
County	Maricopa
MSA	Phoenix-Mesa-Scottsdale, AZ MSA
Origination Date	9/16/2021
Loan Amount	$77,125,000
Interest Rate	3.62%
Valuation
Appraisal Value	$112,600,000 ($227/sf)
Appraisal Date	8/26/2021
Appraisal LTV	68.50%
CRED iQ Base-Case Value	$92,780,000 ($187/sf)

Fairway Vista

250 units, Multifamily, West Palm Beach, FL 33409

A $44.8 million loan was originated by CBRE Capital Markets on August 31, 2021 to refinance existing debt on a 250-unit multifamily property located in West Palm Beach, FL. The 10-year loan has a 5-year partial-term interest-only period and has an interest rate of 3.17%. The loan will be locked out from prepayment for 2 years, and defeasance will be permitted after lockout through the remainder of the term. One of CRED iQ’s most relevant comps for this new origination is the $36.5 million Jefferson Palm Beach loan, which is scheduled to mature in August 2023 and has an interest rate of 3.54%. The comparable loan is secured by a 282-unit multifamily complex located about a mile south of the subject.

The Fairway Vista mortgage loan is secured by fee interest in a 250-unit garden-style multifamily community that overlooks the Bear Lakes Country Club. The property is located adjacent to Interstate 95 and is visible from the highway. Across from I-95 are the Palm Beach Outlets. The property was 99% occupied as of August 2021. The property was appraised at a value of $64.0 million, equal to $256,000/unit, as of June 17, 2021, which implied an LTV of 70% and a capitalization rate of 4.53%. For the full valuation report and loan-level details, click here.

Subject Property
Name	Fairway Vista
Address	^{1951 Brandywine Road West Palm Beach, FL 33409}
Property Type	Multifamily
Property Subtype	Garden
Building Size	250
Year Built	1999
Submarket	West Palm Beach
County	Palm Beach
MSA	Miami-Fort Lauderdale-Pompano Beach, FL MSA
Origination Date	8/31/2021
Loan Amount	$44,827,000
Interest Rate	3.17%
Valuation
Appraisal Value	$64,000,000 ($256,000/unit)
Appraisal Date	6/17/2021
Appraisal LTV	70.00%
CRED iQ Base-Case Value	$56,650,000 ($226,601/unit)

384-390 Fulton Street

29,904 sf, Mixed-Use (Retail/Office), Brooklyn, NY 11201

A $32.0 million loan was originated by Argentic Real Estate Finance on September 14, 2021 to refinance existing debt of $21.1 million and return $10.0 million in equity to the loan sponsor, Sutton Management Corp. The 5-year interest-only loan has an interest rate of 3.925%. The loan will be locked out from prepayment for 2 years, and defeasance will be permitted after lockout through the remainder of the term. The existing debt was in the form of a 10-year fixed-rate mortgage, which was originated in 2012 and had an interest rate of 4.95%. CRED iQ’s most relevant comp for the new origination is the $16.1 million 345 Adams Street loan, which is scheduled to mature in December 2022 and has an interest rate of 4.05%. This comparable loan is secured by a 35,000-sf retail condo that features Bright Horizons as a primary tenant and is located two blocks away from 384 Fulton Street.

The 384 Fulton Street property contains 4 stories and approximately 30,000 sf. Duane Reade operates on the ground-floor retail portion of the building with a lease that expires in August 2031, nearly 5 years after loan maturity. The lease terms of Duane Reade are vital to the performance of the loan because the tenant accounts for 75% of the property’s rent. The remaining floors are occupied by office tenants with expiring leases in 2024. Perhaps the most notable feature of the property from a value-add perspective is a zoning ordinance that allows for 76,628 sf in excess development rights. A July 1, 2021 appraisal valued the property at $50.9 million, equal to $1,702/sf, which implied an LTV of 62.9% and a capitalization rate of 4.67% based on the originator’s underwritten NCF. For the full valuation report and loan-level details, click here.

Subject Property
Name	384-390 Fulton Street
Address	^{384-390 Fulton Street Brooklyn, NY 11201}
Property Type	Mixed-Use
Property Subtype	Retail/Office
Building Size	29,904
Year Built	1925
Submarket	Downtown Brooklyn
County	Kings
MSA	New York-Northern New Jersey-Long Island, NY-NJ-PA MSA
Origination Date	9/14/2021
Loan Amount	$32,000,000
Interest Rate	3.93%
Valuation
Appraisal Value	$50,900,000 ($1,702/sf)
Appraisal Date	7/1/2021
Appraisal LTV	62.90%
CRED iQ Base-Case Value	$48,970,000 ($1,637/sf)

Los Arcos Apartments

516 units, Multifamily, Houston, TX 77035

The Los Arcos Apartments previously secured an $18.9 million loan that was scheduled to mature in January 2026 and had an interest rate of 4.76%. The borrower, Shyam H. Hingorani, was able to secure $24.95 million in refinancing from KeyBank on September 15, 2021 with a rate of 3.15% and was able to defease the existing mortgage loan. Total defeasance costs for the existing debt were estimated to be $22.0 million. (As a reminder, the CRED iQ platform provides real-time defeasance costs for loans in its database through the integration of the Waterstone Defeasance Calculator into its User Interface.)

The newly originated loan, secured by Los Arcos Apartments, has a 10-year term and requires interest-only debt service payments. The loan will be locked out from prepayment for 2 years, and defeasance will be permitted after lockout through the remainder of the term. CRED iQ’s highest scoring comp is the $27.5 million Westmount At Braesridge Apartments loan combination, which consists of a senior lien $22.1 million mortgage with an interest rate of 4.33% and a $5.4 million junior-lien mortgage with an interest rate of 5.71%. The comparable loan is secured by a 542-unit multifamily property located within a mile of Los Arcos Apartments.

Los Arcos Apartments is a garden-style multifamily complex located in the Southwest submarket of Houston, TX. A $2.9 million renovation on the property was reportedly completed in 2021. The property was 98% occupied as of August 2021; however, historical records indicates occupancy has trended between 91% and 93% over the past several years. A June 7, 2021 appraisal valued the property at $42.3 million, equal to $81,996/unit, which implied an LTV of 59% and a capitalization rate of 5.50% based on the originator’s underwritten NCF. For the full valuation report and loan-level details, click here.

Subject Property
Name	Los Arcos Apartments
Address	^{11315 Fondren Road Houston, TX 77035}
Property Type	Multifamily
Property Subtype	Garden
Building Size	516
Year Built	1977
Submarket	Southwest
County	Harris
MSA	Houston-Sugar Land-Baytown, TX MSA
Origination Date	9/15/2021
Loan Amount	$24,950,000
Interest Rate	3.15%
Valuation
Appraisal Value	$42,310,000 ($81,996/unit)
Appraisal Date	6/7/2021
Appraisal LTV	59.00%
CRED iQ Base-Case Value	$39,190,000 ($75,946/unit)

Dulles Greene

806 units, Multifamily, Herndon, VA 20170

JLL Real Estate Capital provided supplemental financing in the form of a second-lien $11.0 million mortgage loan for Dulles Greene, an 806-unit multifamily property located in Herndon, VA, in close proximity to the Dulles International Airport. The subordinate mortgage was originated on September 23, 2021 and has a 7-year term with a 3.91% interest rate. The loan is interest-only for the first 4 years and would require a yield maintenance charge for prepayment prior to its open period, which starts about 3 years prior to maturity.

Accounting for the newly originated second-lien mortgage, the financing package for the Dulles Greene property totals $139.0 million. The senior mortgage has an outstanding balance of $128.0 million and is scheduled to mature on September 1, 2028, which is co-terminus with the junior debt. The senior mortgage carries an interest rate of 4.40% and requires amortizing debt service based on a 30-year schedule.

Dulles Greene was 96% occupied as of July 2021 and throughout 2020. The property was appraised for $242.0 million, equal to $300,248/unit, as of July 16, 2021, which represented a 23% increase in value compared to a July 2018 appraisal for the property. The 2021 appraisal implied a total debt LTV of 57.4% and a capitalization rate of 4.35%. For the full valuation report and loan-level details, click here.

Dulles Greene - FREMF 2021-KJ35 | FREMF 2018-K85

Subject Property
Name	Dulles Greene
Address	^{2150 Astoria Circle Herndon, VA 20170}
Property Type	Multifamily
Property Subtype	Garden
Building Size	806
Year Built	1998
Submarket	Herndon
County	Fairfax
MSA	Washington-Arlington-Alexandria, DC-VA-MD-WV MSA
Origination Date	9/23/2021
Loan Amount	$11,000,000
Interest Rate	3.91%
Valuation
Appraisal Value	$242,000,000 ($300,248/unit)
Appraisal Date	7/16/2021
Appraisal LTV	57.40%
CRED iQ Base-Case Value	$227,000,000 ($281,629/unit)

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Lease Expirations

CRED iQ

October 12, 2021

This week, CRED iQ calculated real-time valuations for 5 office properties that have major tenants with lease expirations in the next 6 months. Featured leases include a large block of space in the Midtown West submarket of Manhattan and spaces in suburban office complexes located across the Washington, DC, Memphis, and Dallas MSAs. Lease expirations are opportunities for tenant reps to source options and find solutions for clients. Additionally, lease expirations can serve as a preemptive signal of distress for CRE loans if prospects for leasing the newly vacant space are low.

1740 Broadway

603,928 sf, Office, New York, NY 10019

L Brands is vacating approximately 418,000 sf of space upon lease expiration on March 31, 2022 at 1740 Broadway. The property, a 26-story office tower located in the Midtown West submarket of Manhattan, NY, secures a $308.0 million mortgage loan that has been on the servicer’s watchlist since April 2021. News of L Brands’ departure pre-dated the loan’s addition to the servicer’s watchlist, however, when a CBRE Research note first pointed out the fashion retailer’s impending move to 55 Water Street in March 2020. The property’s second largest tenant at origination, law firm Davis & Gilbert, also vacated its 95,000-sf space, equal to 16% of the GLA, at lease expiration in December 2020.

The timing of L Brands’ departure announcement is two-fold. First, there is a benefit of additional time to prepare to backfill the vacant space, and Blackstone, the loan sponsor, has taken advantage of the early notice to redevelop the building’s lobby and add new tenant amenities including a tenant-only gym, café, and lounge. Second, there was a disadvantage due to the announcement’s coincidence with the onset of the pandemic, which left many office tenants in the market uncertain about future needs of space. CRED iQ’s estimated occupancy for the property is 13%. The loan remains current in payment and has a maturity date of January 6, 2025. For the full valuation report and loan-level details, click here.

BWAY 2015-1740 - 1740 Broadway - Lease Expirations

Property Name	1740 Broadway
Address	^{1740 Broadway New York, NY 10019}
Outstanding Balance	$308,000,000
Interest Rate	3.84%
Maturity Date	1/6/2025
Most Recent Appraisal	$605,000,000 ($1,002/sf)
Most Recent Appraisal Date	12/1/2014

CRED iQ Base-Case Value	$403,700,000 ($668/sf)

Rockville Corporate Center

220,539 sf, Office, Rockville, MD 20850

AARP is vacating approximately 76,000 sf of space at lease expiration on November 30, 2021 at the Rockville Corporate Center. The property, a two-building suburban office complex located in Rockville, MD, secures a $32.6 million mortgage loan that is scheduled to mature on May 6, 2022. AARP accounts for approximately 34% of the property’s GLA and was the primary tenant at 15 West Gude Drive. A large vacancy just 5 months prior to maturity could adversely impact the loan’s refinancing prospects. The property’s second building, located at 45 West Gude Drive, is fully leased to Montgomery County Public Schools through December 2031. CRED iQ estimates occupancy of 66% for the office complex following the departure of AARP. For the full valuation report and loan-level details, click here.

WFCM 2012-LC5 - Rockville Corporate Center - Lease Expirations

Property Name	Rockville Corporate Center
Address	^{15 West Gude Drive Rockville, MD 20850}
Outstanding Balance	$32,567,459
Interest Rate	5.02%
Maturity Date	5/6/2022
Most Recent Appraisal	$55,000,000 ($249/sf)
Most Recent Appraisal Date	2/21/2012

CRED iQ Base-Case Value	$45,180,000 ($205/sf)

Goodlett Farms Business Campus

364,926 sf, Office, Cordova, TN 38016

Regions Bank has a 108,731-sf lease expiration on December 31, 2021 at a suburban office complex located about 15 miles outside of Memphis, TN. Regions Bank is the largest tenant at the property and accounts for 30% of the GLA. The property, which consists of three buildings, secures a $25.2 million mortgage loan that has been on the servicer’s watchlist since December 2020. Regions Bank appears to be vacating the property at lease expiration. The space is being marketed as available and Colliers has the listing. Occupancy at the property declined to 72% during 2020 and the loss of Regions Bank would reduce occupancy even further to 42%. With loan maturity less than 4 months away, lease rollover issues at this property will likely need to be resolved before the borrower can secure refinancing. For the full valuation report and loan-level details, click here.

CGCMT 2017-P7 - Goodlett Farms Business Center - Lease Expirations

Property Name	Goodlett Farms Business Campus
Address	^{7130 Goodlett Farms Parkway Cordova, TN 38016}
Outstanding Balance	$25,200,000
Interest Rate	4.48%
Maturity Date	2/2/2022
Most Recent Appraisal	$42,750,000 ($117/sf)
Most Recent Appraisal Date	12/14/2016

CRED iQ Base-Case Value	$23,470,000 ($64/sf)

Hall Office G4

117,452 sf, Office, Frisco, TX 75034

A 117,452-sf office building located in Hall Office Park in Frisco, TX is working through lease rollover issues. The property secures an $18.1 million mortgage loan that has been on the servicer’s watchlist since November 2020. The property’s largest tenant, Randstad Professional US, had a lease that expired in August 2021. The staffing agency occupied 40,991 sf of the building, equal to 35% of the GLA. Randstad’s original lease expired in April 2021, but the tenant negotiated a 4-month extension. The extension may have been used to buy time to facilitate a move to another building because Randstad signed a 31,884-sf lease at an office building in Plano, TX located 3 miles away in June 2021.

Schlumberger is the property’s second-largest tenant with a 39,190-sf lease, accounting for 33% of the GLA. Schlumberger’s lease expires on February 28, 2022. Commentary from the servicer’s watchlist indicates the tenant may reduce its footprint at lease expiration. A downsizing for full departure would create added distress to a building that was 80% occupied as of April 2021. Approximately 49% of the GLA is being marketed as available for lease. CRED iQ estimates that occupancy could decline to about 12%, accounting for departures of Randstad and Schlumberger. For the full valuation report and loan-level details, click here.

BANK 2017-BNK6 - Hall Office G4 - Lease Expirations

Property Name	Hall Office G4
Address	^{3011 Internet Boulevard Frisco, TX 75034}
Outstanding Balance	$18,034,477
Interest Rate	4.60%
Maturity Date	7/11/2027
Most Recent Appraisal	$25,800,000 ($220/sf)
Most Recent Appraisal Date	4/25/2017

CRED iQ Base-Case Value	$19,000,000 ($162/sf)

12650 Ingenuity Drive

124,500 sf, Office, Orlando, FL 32816

Kaplan University is vacating this 124,500-sf office building in Orlando, FL, which secures a $16.5 million mortgage loan. Kaplan, formerly a for-profit college, was the property’s sole tenant. The loan was added to the servicer’s watchlist in August 2021 and updated commentary indicates a 78,500-sf portion of the property may already be backfilled pending negotiations. The remaining vacant space is being marketed as available and CBRE has the listing. Assuming the 78,500-sf leasing deal comes to fruition, then occupancy at the property would be approximately 63%. The loan is scheduled to mature in December 2024 and has been current throughout its term. For the full valuation report and loan-level details, click here.

COMM 2014-CR21 - 12650 Ingenuity Drive - Lease Expirations

Property Name	12650 Ingenuity Drive
Address	^{12650 Ingenuity Drive Orlando, FL 32816}
Outstanding Balance	$16,528,216
Interest Rate	4.44%
Maturity Date	12/6/2024
Most Recent Appraisal	$26,600,000 ($214/sf)
Most Recent Appraisal Date	10/14/2014

CRED iQ Base-Case Value	$17,940,000 ($144/sf)

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Vacant Properties

CRED iQ

October 6, 2021

This week, CRED iQ calculated real-time valuations for 5 properties that are either vacant or dark, including two hotels that have been closed due to the pandemic and two vacant office buildings in the San Jose, CA MSA. Vacant or non-operational properties are opportunities for off-market transactions. In cases of distress, new ownership has the ability to infuse capital into a project and vacant suites are always on the radar of leasing brokers. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Empire Hotel & Retail

423 keys, Hotel, New York, NY 10023

The Empire Hotel, located in the Lincoln Square submarket of Manhattan, closed in March 2020 due to the pandemic and has been out of operation throughout 2021. The hotel, as well as 61,223 sf in retail space, secures a $169.3 million loan that transferred to special servicing in May 2021. The loan was modified shortly after the onset of the pandemic in May 2020 to allow the borrower to fund debt service payments with reserves. The modification proved to be insufficient in keeping the loan current and the borrower appears to be requesting for additional relief.

Multiple sources point to January 2022 as possible timeframe for reopening for the hotel, which operates independently. Despite zero incoming revenue from the hotel portion of property, the retail spaces have been operational on a limited basis throughout the pandemic, apart from the 16,000-sf rooftop lounge. Retail occupancy includes ground-floor retail tenants Duane Reade (12,557 sf) and Starbucks (2,676 sf). Still, the pandemic wasn’t the initial cause of distress for loan, which had a below breakeven DSCR of 0.78 during 2019 due to increases in operational leverage. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Property Name	Empire Hotel
Address	^{44 West 63rd Street New York, NY 10023}
Outstanding Balance	$169,267,019
Interest Rate	4.57%
Maturity Date	1/6/2023
Most Recent Appraisal	$393,000,000
Most Recent Appraisal Date	11/20/2012

Empire Hotel & Retail - GSMS 2013-GC10 - CGCMT 2013-GC11

427 Broadway

34,498 sf, Mixed-Use (Office/Retail), New York, NY 10013

Last week’s WAR Report took us to the corner of Broadway and Howard Street in the SoHo submarket of Manhattan to evaluate the vacant 428 Broadway. We don’t have to look any further than across the street for another vacant property with 427 Broadway. The property is part of a 2-building portfolio that secures a $76.5 million mortgage loan. The debt stack also includes an $11.5 million mezzanine loan that was held by Jefferies LoanCore at origination. The second property that is part of the portfolio is 459 Broadway. The loan shares the same sponsor, Jacob Chetrit, as 428 Broadway. The loan transferred to special servicing in June 2021 and Rialto, as special servicer, is discussing potential workouts with the borrower.

427 Broadway is a five-story building that contains ground-floor and below-grade retail space in addition to four floors of office space. The vacant retail space was formerly occupied by American Apparel (8,498 sf), which vacated in July 2017. The vacant office space was formerly occupied by Night Agency (6,500 sf) and Psyop Media Company (19,500 sf). Psyop Media Company vacated ahead of its April 2025 lease expiration and is obligated to pay a termination fee of approximately $4.0 million. As mentioned last week, the high-street retail leasing environment in Manhattan remains extremely challenging, especially with a concentration of vacancies in the SoHo submarket. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Property Name	427 Broadway
Address	^{427 Broadway New York, NY 10013}
Outstanding Balance	$38,250,000 (allocated loan amount)
Interest Rate	4.95%
Maturity Date	1/6/2025
Most Recent Appraisal	$55,000,000
Most Recent Appraisal Date	9/29/2014

427 Broadway - SoHo Portfolio - COMM 2015-DC1

Hotel on Rivington

107 keys, Hotel, New York, NY 10002

Hotel on Rivington was vacant until about two weeks ago when the boutique Lower East Side hotel re-opened. The property had previously been closed since March 2020. Hotel on Rivington secures a $36.3 million loan that matures in March 2026. Despite the property having 0% occupancy for nearly 18 months, the loan has been current in payment. Servicer commentary also indicates a new owner may have assumed the mortgage loan with plans to invest additional capital into the hotel. The property was nearly sold for $65.0 million in November 2018 to the Kushner Companies but the deal ultimately fell through. The 20-story hotel contains 107 keys and is located in the Lower East Side on Manhattan, NY. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Property Name	Hotel on Rivington
Address	^{107 Rivington Street New York, NY 10002}
Outstanding Balance	$36,252,394
Interest Rate	4.96%
Maturity Date	3/6/2026
Most Recent Appraisal	$66,000,000
Most Recent Appraisal Date	11/30/2015

Broadcom Building

200,000 sf, Office, San Jose, CA 95134

This 200,000-sf vacant office building is located in San Jose, CA and secures a $34.8 million mortgage loan. The property was formerly occupied by Broadcom as a single tenant; however, Broadcom vacated in May 2018, ahead of its May 2020 lease expiration. Broadcom paid a $2.5 million termination fee. In total, borrower has reserved about $4.5 million for leasing costs for the property, which is actively being marketed. Colliers has the listing and is marketing the property as a headquarters with flexibility as R&D or lab space and campus-like amenities such as an outdoor amphitheater and tennis courts. The loan has been current in payment; however, it has been over 2 years without positive cash flow at the property. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Property Name	Broadcom Building
Address	^{3151 Zanker Road San Jose, CA 95134}
Outstanding Balance	$34,791,678
Interest Rate	4.10%
Maturity Date	1/11/2025
Most Recent Appraisal	$55,000,000
Most Recent Appraisal Date	11/5/2014

Tintri Mountain View

67,000 sf, Office, Mountain View, CA 94043

This 67,000-sf vacant office building is located in Mountain View, CA and secures a $21.6 million mortgage loan. The property was formerly occupied by tech firm Tintri as a single tenant through October 2018 when the company vacated. The vacant building was acquired by a joint venture between BioScience Properties Inc. and Harrison Street Real Estate Capital LCC for $40.75 million in February 2021 with a plan to reposition the building for life science use. CBRE has the listing and is marketing the space for flex, R&D, and life science use. The mortgage loan been current in payment despite 0% occupancy and negative net cash flow over the past few years. For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Property Name	Tintri Mountain View
Address	^{303 Ravendale Drive Mountain View, CA 94043}
Outstanding Balance	$21,647,495
Interest Rate	4.39%
Maturity Date	8/5/2024
Most Recent Appraisal	$32,700,000
Most Recent Appraisal Date	5/14/2014

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