Hotel Auctions

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

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:

FREE TRIAL

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)

FREE TRIAL

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)

FREE TRIAL

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)

FREE TRIAL

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

FREE TRIAL

October 2021 Delinquency Report

CRED iQ

October 4, 2021

The overall delinquency rate declined for the 15th consecutive month since its peak in June 2020, continuing a trend of recovery from the spike in distressed assets caused by the pandemic. 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 5.30%. CRED iQ’s special servicing rate, equal to the percentage of CMBS loans that have transferred to special servicing, was equal to 7.57%. Aggregating these two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate (DQ + SS%) equals 7.81% of CMBS loans that are specially serviced, delinquent, or a combination of both.

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

By property type, lodging and retail had the highest individual delinquency rates. Delinquency for each property type declined compared to the prior month and each has exhibited an overall downward trend over the trailing twelve months. The lodging delinquency rate has made the most dramatic recovery over the past year, declining from just under 20% in October 2020 to approximately 11% in September 2021.

Despite a clear signal of improvement in the lodging sector, this property type showed the most volatility when evaluating performance across markets. Lodging accounted for 75% of the biggest month-over-month changes when broken out by market, as exhibited in the table above.

CRED iQ monitors market performance for nearly 400 MSAs across the United States covering over $900 billion in outstanding CRE debt. Minneapolis, Louisville, New Orleans, Cleveland, and Milwaukee continue to be the MSAs with the highest rate of distressed properties, which is consistent with the prior month. This month, Sacramento overtook Allentown as the MSA with the lowest distressed rate among the Top 50. The majority of MSAs saw improvements with overall declines in the percentage of distressed properties. Only 8 of the Top 50 MSAs exhibited additional distress compared to the prior month. The Salt Lake City market had the greatest improvement with nearly a 30% decrease in the percentage of distressed properties. The improvement was largely driven by South Towne Center, a 1.1 million-sf regional mall that returned from special servicing to the master servicer after a loan modification.

For the full CRED DQ report, download here:

The-CRED-DQ-Report-2021-10-1 Download

MSA – Property Type	DQ or SS (millions)	DQ/SS (%)	Monthly Change
Allentown-Bethlehem-Easton, PA-NJ MSA	$19.4	0.6%	0.01%
Hotel	$0.0	0.0%	0.00%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$19.4	5.1%	0.00%
Self Storage	$0.0	0.0%	0.00%
Atlanta-Sandy Springs-Marietta, GA MSA	$745.8	3.2%	0.04%
Hotel	$247.4	13.0%	0.03%
Industrial	$0.0	0.0%	0.00%
Multifamily	$4.7	0.0%	0.00%
Office	$34.0	1.4%	0.21%
Other	$0.0	0.0%	0.00%
Retail	$459.7	17.0%	-0.10%
Self Storage	$0.0	0.0%	0.00%
Austin-Round Rock, TX MSA	$528.6	5.7%	-0.24%
Hotel	$419.1	45.1%	0.42%
Industrial	$0.0	0.0%	0.00%
Multifamily	$1.5	0.0%	-0.55%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$105.5	15.7%	0.13%
Self Storage	$2.6	2.2%	0.13%
Baltimore-Towson, MD MSA	$416.6	4.3%	-0.34%
Hotel	$128.5	28.7%	0.89%
Industrial	$0.0	0.0%	0.00%
Multifamily	$8.8	0.1%	0.04%
Office	$22.9	3.6%	0.01%
Other	$0.0	0.0%	0.00%
Retail	$256.4	24.3%	-2.25%
Self Storage	$0.0	0.0%	0.00%
Birmingham-Hoover, AL MSA	$46.7	1.7%	-0.11%
Hotel	$22.6	22.4%	0.99%
Industrial	$0.0	0.0%	0.00%
Multifamily	$1.1	0.1%	0.10%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$22.9	3.2%	0.00%
Self Storage	$0.0	0.0%	0.00%
Boston-Cambridge-Quincy, MA-NH MSA	$384.8	2.2%	0.14%
Hotel	$127.0	16.7%	2.39%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$257.8	13.2%	0.20%
Self Storage	$0.0	0.0%	0.00%
Bridgeport-Stamford-Norwalk, CT MSA	$189.9	4.9%	-0.77%
Hotel	$63.6	51.4%	-0.34%
Industrial	$17.8	13.7%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$63.2	5.3%	-2.64%
Other	$23.6	5.8%	0.00%
Retail	$21.7	6.9%	0.82%
Self Storage	$0.0	0.0%	0.00%
Charlotte-Gastonia-Concord, NC-SC MSA	$243.4	3.1%	-1.24%
Hotel	$118.7	10.5%	-0.08%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$21.3	2.4%	-0.02%
Other	$85.0	24.2%	-1.64%
Retail	$18.4	1.7%	-6.21%
Self Storage	$0.0	0.0%	0.00%
Chicago-Naperville-Joliet, IL-IN-WI MSA	$1,998.5	7.4%	-0.33%
Hotel	$1,121.0	45.1%	-7.54%
Industrial	$0.0	0.0%	0.00%
Multifamily	$124.0	1.3%	-0.13%
Office	$393.0	5.6%	0.20%
Other	$101.2	5.1%	-0.82%
Retail	$259.3	7.7%	-1.36%
Self Storage	$0.0	0.0%	0.00%
Cincinnati-Middletown, OH-KY-IN MSA	$304.4	8.0%	-0.59%
Hotel	$141.0	46.3%	-0.03%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	-0.10%
Office	$11.5	2.2%	-0.12%
Other	$15.7	5.0%	-0.01%
Retail	$135.2	19.5%	-1.33%
Self Storage	$1.0	1.7%	0.09%
Cleveland-Elyria-Mentor, OH MSA	$503.6	12.4%	-1.95%
Hotel	$129.7	57.0%	-2.04%
Industrial	$0.0	0.0%	0.00%
Multifamily	$4.3	0.3%	0.27%
Office	$105.2	12.9%	0.27%
Other	$178.0	41.4%	1.10%
Retail	$86.4	11.4%	-9.24%
Self Storage	$0.0	0.0%	0.00%
Columbus, OH MSA	$251.9	4.3%	0.06%
Hotel	$84.4	26.8%	0.05%
Industrial	$11.9	2.8%	-0.02%
Multifamily	$4.3	0.1%	0.00%
Office	$12.5	2.8%	0.42%
Other	$0.0	0.0%	0.00%
Retail	$127.8	15.1%	0.05%
Self Storage	$11.0	18.9%	1.03%
Dallas-Fort Worth-Arlington, TX MSA	$926.2	2.7%	-0.34%
Hotel	$437.6	12.2%	-0.12%
Industrial	$1.7	0.1%	0.00%
Multifamily	$47.7	0.2%	0.00%
Office	$166.3	4.7%	-0.89%
Other	$23.8	1.1%	-0.26%
Retail	$237.1	9.5%	-2.37%
Self Storage	$11.9	2.4%	0.14%
Denver-Aurora, CO MSA	$312.3	1.9%	-0.11%
Hotel	$43.3	5.2%	0.20%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$194.6	9.4%	0.10%
Other	$7.0	1.4%	0.17%
Retail	$64.1	4.2%	-1.54%
Self Storage	$3.3	2.0%	0.19%
Detroit-Warren-Livonia, MI MSA	$522.0	5.9%	-0.87%
Hotel	$308.5	42.6%	0.98%
Industrial	$45.9	8.5%	-0.06%
Multifamily	$38.8	1.1%	-0.12%
Office	$0.0	0.0%	-0.40%
Other	$22.4	3.5%	0.10%
Retail	$106.4	6.5%	-3.61%
Self Storage	$0.0	0.0%	0.00%
Hartford-West Hartford-East Hartford, CT MSA	$211.9	8.6%	-0.03%
Hotel	$89.1	62.7%	2.15%
Industrial	$0.0	0.0%	0.00%
Multifamily	$3.8	0.3%	0.00%
Office	$87.6	22.2%	0.02%
Other	$1.2	0.6%	0.00%
Retail	$30.3	12.8%	0.25%
Self Storage	$0.0	0.0%	0.00%
Houston-Sugar Land-Baytown, TX MSA	$1,427.1	5.2%	-0.16%
Hotel	$693.4	59.2%	-0.41%
Industrial	$4.2	0.6%	-1.01%
Multifamily	$67.6	0.5%	-0.09%
Office	$541.0	13.7%	0.22%
Other	$1.5	0.0%	-0.84%
Retail	$89.4	2.4%	-0.21%
Self Storage	$29.9	6.3%	0.54%
Indianapolis-Carmel, IN MSA	$389.2	7.8%	-0.17%
Hotel	$163.1	25.9%	-0.69%
Industrial	$0.0	0.0%	0.00%
Multifamily	$98.2	4.2%	-0.33%
Office	$75.9	12.7%	2.11%
Other	$9.8	4.5%	-0.13%
Retail	$38.1	7.1%	0.06%
Self Storage	$4.1	5.3%	0.11%
Jacksonville, FL MSA	$67.6	1.3%	-0.02%
Hotel	$38.6	9.2%	0.33%
Industrial	$0.0	0.0%	0.00%
Multifamily	$20.0	0.6%	-0.01%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$9.0	2.1%	0.00%
Self Storage	$0.0	0.0%	0.00%
Kansas City, MO-KS MSA	$150.4	3.2%	-0.33%
Hotel	$85.0	27.0%	-4.14%
Industrial	$0.0	0.0%	0.00%
Multifamily	$7.6	0.3%	-0.01%
Office	$0.0	0.0%	0.00%
Other	$2.8	1.0%	-0.26%
Retail	$53.3	8.3%	0.14%
Self Storage	$1.7	0.8%	0.05%
Las Vegas-Paradise, NV MSA	$393.4	2.0%	0.01%
Hotel	$18.3	0.3%	0.00%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$10.2	1.7%	0.02%
Other	$0.0	0.0%	0.00%
Retail	$362.0	7.6%	0.02%
Self Storage	$2.8	1.4%	0.09%
Los Angeles-Long Beach-Santa Ana, CA MSA	$1,943.5	4.0%	-0.10%
Hotel	$665.9	16.5%	0.64%
Industrial	$0.0	0.0%	-0.18%
Multifamily	$124.5	0.6%	-0.05%
Office	$389.3	3.3%	0.19%
Other	$170.6	5.6%	-0.91%
Retail	$589.7	8.8%	-0.62%
Self Storage	$3.5	0.4%	0.00%
Louisville/Jefferson County, KY-IN MSA	$631.7	20.2%	-0.19%
Hotel	$242.9	56.1%	1.93%
Industrial	$0.0	0.0%	0.00%
Multifamily	$3.8	0.3%	-0.01%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$385.0	59.1%	0.05%
Self Storage	$0.0	0.0%	0.00%
Memphis, TN-AR-MS MSA	$156.7	6.5%	0.00%
Hotel	$56.3	29.0%	1.53%
Industrial	$0.0	0.0%	0.00%
Multifamily	$17.8	1.7%	-0.01%
Office	$0.0	0.0%	0.00%
Other	$18.4	33.6%	-0.18%
Retail	$62.6	15.4%	0.03%
Self Storage	$1.7	1.1%	0.06%
Miami-Fort Lauderdale-Pompano Beach, FL MSA	$682.4	3.2%	-0.70%
Hotel	$375.5	8.5%	0.25%
Industrial	$0.0	0.0%	0.00%
Multifamily	$6.7	0.1%	0.01%
Office	$21.6	1.1%	0.01%
Other	$8.7	0.6%	0.01%
Retail	$269.9	5.7%	-3.18%
Self Storage	$0.0	0.0%	0.00%
Milwaukee-Waukesha-West Allis, WI MSA	$254.9	10.4%	-0.02%
Hotel	$35.7	23.1%	-0.01%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$66.3	11.8%	0.19%
Other	$0.0	0.0%	0.00%
Retail	$153.0	30.5%	0.00%
Self Storage	$0.0	0.0%	0.00%
Minneapolis-St. Paul-Bloomington, MN-WI MSA	$1,934.7	23.5%	0.12%
Hotel	$332.3	53.8%	1.24%
Industrial	$4.1	1.5%	-0.03%
Multifamily	$0.0	0.0%	0.00%
Office	$155.0	7.7%	0.31%
Other	$11.7	2.8%	-0.14%
Retail	$1,431.8	71.1%	0.52%
Self Storage	$0.0	0.0%	0.00%
Nashville-Davidson-Murfreesboro-Franklin, TN MSA	$222.0	3.5%	-2.17%
Hotel	$212.5	15.8%	-9.00%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$9.5	1.2%	-0.33%
Self Storage	$0.0	0.0%	0.00%
New Orleans-Metairie-Kenner, LA MSA	$432.7	13.2%	-1.17%
Hotel	$396.6	37.4%	-3.07%
Industrial	$0.0	0.0%	0.00%
Multifamily	$13.4	1.7%	0.00%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$22.8	3.1%	0.21%
Self Storage	$0.0	0.0%	0.00%
New York-Northern New Jersey-Long Island, NY-NJ-PA MSA	$6,558.7	5.6%	-0.06%
Hotel	$1,718.2	46.4%	-3.41%
Industrial	$7.5	0.4%	0.00%
Multifamily	$580.7	1.8%	0.19%
Office	$792.9	1.9%	0.17%
Other	$1,541.6	7.4%	-0.44%
Retail	$1,917.8	13.9%	0.13%
Self Storage	$0.0	0.0%	0.00%
Orlando-Kissimmee, FL MSA	$445.5	3.9%	-0.20%
Hotel	$169.8	6.0%	-0.49%
Industrial	$0.0	0.0%	0.00%
Multifamily	$25.4	0.4%	0.00%
Office	$47.1	9.6%	0.01%
Other	$0.0	0.0%	0.00%
Retail	$203.2	23.6%	3.08%
Self Storage	$0.0	0.0%	0.00%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA	$934.1	5.1%	-0.25%
Hotel	$340.3	36.6%	-4.31%
Industrial	$0.0	0.0%	0.00%
Multifamily	$117.4	1.3%	-0.02%
Office	$57.6	1.5%	0.23%
Other	$57.1	4.2%	-1.44%
Retail	$361.6	14.3%	0.06%
Self Storage	$0.0	0.0%	0.00%
Phoenix-Mesa-Scottsdale, AZ MSA	$428.3	2.4%	-0.62%
Hotel	$57.6	3.6%	-1.27%
Industrial	$10.2	1.9%	0.04%
Multifamily	$0.0	0.0%	0.00%
Office	$23.8	1.1%	-0.02%
Other	$180.5	24.1%	0.02%
Retail	$156.3	7.2%	-0.26%
Self Storage	$0.0	0.0%	0.00%
Pittsburgh, PA MSA	$196.0	4.2%	-0.03%
Hotel	$123.6	45.8%	2.91%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$15.4	1.7%	0.00%
Other	$8.1	2.1%	0.02%
Retail	$48.9	7.1%	-0.17%
Self Storage	$0.0	0.0%	0.00%
Portland-Vancouver-Beaverton, OR-WA MSA	$514.7	7.9%	-0.31%
Hotel	$502.9	62.7%	3.51%
Industrial	$0.0	0.0%	0.00%
Multifamily	$10.2	0.2%	-0.01%
Office	$1.6	0.5%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$0.0	0.0%	0.00%
Self Storage	$0.0	0.0%	0.00%
Raleigh-Cary, NC MSA	$135.1	3.3%	0.02%
Hotel	$86.6	21.1%	1.92%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$12.7	4.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$35.8	9.1%	0.95%
Self Storage	$0.0	0.0%	0.00%
Richmond, VA MSA	$141.7	4.1%	-0.09%
Hotel	$50.6	17.8%	0.00%
Industrial	$6.9	4.8%	-0.01%
Multifamily	$0.0	0.0%	0.00%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$84.3	15.3%	0.00%
Self Storage	$0.0	0.0%	0.00%
Riverside-San Bernardino-Ontario, CA MSA	$331.1	3.5%	-0.66%
Hotel	$84.8	18.4%	1.27%
Industrial	$0.0	0.0%	0.00%
Multifamily	$2.4	0.1%	0.00%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$243.9	11.1%	-2.76%
Self Storage	$0.0	0.0%	0.00%
Sacramento-Arden-Arcade-Roseville, CA MSA	$31.0	0.6%	-0.01%
Hotel	$6.3	1.7%	0.00%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$11.0	1.9%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$13.7	1.8%	-0.05%
Self Storage	$0.0	0.0%	0.00%
Salt Lake City, UT MSA	$32.3	0.9%	-4.16%
Hotel	$32.3	10.7%	-4.56%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$0.0	0.0%	-29.87%
Self Storage	$0.0	0.0%	0.00%
San Antonio, TX MSA	$193.3	3.0%	-0.13%
Hotel	$26.2	7.8%	0.07%
Industrial	$0.0	0.0%	0.00%
Multifamily	$13.1	0.3%	0.12%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	-0.24%
Retail	$152.5	17.3%	-1.47%
Self Storage	$1.5	0.9%	0.07%
San Diego-Carlsbad-San Marcos, CA MSA	$217.2	2.0%	-0.19%
Hotel	$79.5	3.9%	0.17%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	-0.19%
Office	$0.0	0.0%	0.00%
Other	$20.8	3.4%	0.06%
Retail	$117.0	10.0%	-0.26%
Self Storage	$0.0	0.0%	0.00%
San Francisco-Oakland-Fremont, CA MSA	$332.3	1.5%	-0.02%
Hotel	$212.0	9.1%	0.16%
Industrial	$0.0	0.0%	0.00%
Multifamily	$23.1	0.3%	0.00%
Office	$18.9	0.2%	-0.01%
Other	$30.6	1.7%	0.01%
Retail	$47.8	3.6%	0.00%
Self Storage	$0.0	0.0%	0.00%
San Jose-Sunnyvale-Santa Clara, CA MSA	$137.1	1.0%	-0.27%
Hotel	$122.3	6.1%	-1.59%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$14.7	0.2%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$0.0	0.0%	0.00%
Self Storage	$0.0	0.0%	0.00%
Seattle-Tacoma-Bellevue, WA MSA	$201.9	1.2%	-0.26%
Hotel	$195.1	15.5%	-2.47%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$6.8	0.4%	0.00%
Self Storage	$0.0	0.0%	0.00%
St. Louis, MO-IL MSA	$422.6	9.7%	0.06%
Hotel	$58.6	20.6%	-0.01%
Industrial	$0.0	0.0%	0.00%
Multifamily	$23.3	1.4%	-0.01%
Office	$107.0	19.1%	-0.06%
Other	$24.7	4.9%	0.01%
Retail	$209.0	20.5%	0.37%
Self Storage	$0.0	0.0%	0.00%
Tampa-St. Petersburg-Clearwater, FL	$385.8	4.2%	0.23%
Hotel	$74.9	6.5%	0.18%
Industrial	$0.0	0.0%	0.00%
Multifamily	$34.7	0.6%	0.01%
Office	$20.3	3.4%	-0.65%
Other	$0.0	0.0%	0.00%
Retail	$256.0	27.4%	8.65%
Self Storage	$0.0	0.0%	0.00%
Tucson, AZ MSA	$265.2	9.2%	1.73%
Hotel	$1.4	0.5%	0.00%
Industrial	$0.0	0.0%	0.00%
Multifamily	$0.0	0.0%	0.00%
Office	$0.0	0.0%	0.00%
Other	$0.0	0.0%	0.00%
Retail	$263.8	39.5%	20.83%
Self Storage	$0.0	0.0%	0.00%
Virginia Beach-Norfolk-Newport News, VA-NC MSA	$155.6	3.6%	-2.17%
Hotel	$24.6	5.3%	0.04%
Industrial	$21.2	13.1%	0.01%
Multifamily	$0.0	0.0%	0.00%
Office	$12.4	3.0%	-0.02%
Other	$0.0	0.0%	0.00%
Retail	$97.3	11.9%	-8.71%
Self Storage	$0.0	0.0%	-9.91%
Washington-Arlington-Alexandria, DC-VA-MD-WV MSA	$787.0	2.8%	-0.75%
Hotel	$59.1	5.3%	-0.01%
Industrial	$0.0	0.0%	0.00%
Multifamily	$1.3	0.0%	0.00%
Office	$309.1	4.5%	-3.42%
Other	$249.7	12.3%	-0.16%
Retail	$167.9	5.4%	0.02%
Self Storage	$0.0	0.0%	0.00%
Grand Total	$29,139.0	4.4%	-0.28%

Specially Serviced Loans

CRED iQ

September 28, 2021

This week, CRED iQ calculated real-time valuations for 5 distressed properties that have transferred to special servicing within the past 3 months, including a regional mall located in Lancaster, PA and 2 mixed-used properties located in Lower Manhattan. One of the highlighted properties, a medical condo located in the Upper East Side of Manhattan, transferred to special servicing only 8 months after origination and may have raised some eyebrows in the process.

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.

Park City Center

1.4 million sf, Regional Mall, Lancaster, PA 17601

This $115.5 million loan failed to pay off at maturity on September 9, 2021 and transferred to special servicing. The borrower, Brookfield Property Partners, requested an extension, and KeyBank, as special servicer, is reviewing the request. The loan maturity was previously extended through a November 2020 modification agreement that required Brookfield to curtail $13.5 million in principal. Despite the maturity default, an additional $6.0 million in principal was curtailed in September, which could be related to a second extension. Overall, the loan has de-levered by approximately 14% from its original balance of $135.0 million. Unfortunately, the decline in value of the collateral property since origination may have been steeper than the principal paydowns to date.

The loan is secured by Park City Center, a regional mall located in Lancaster, PA that is anchored by JCPenney, Boscov’s, Kohl’s, and Round1 Entertainment – although Boscov’s owns its land and improvements. These tenants may serve as traditional anchors but much of the foot traffic is derived from the Apple Store, which had plans at loan origination to expand its space into an updated store concept. The presence of the Apple Store is one of the few positives for the asset, which was hit hard by the pandemic and co-tenancy clauses from previous closures of Sears and The Bon-Ton. Since loan origination, the following tenants have vacated or no longer have a presence at Park City Center: Williams-Sonoma, TGI Friday’s, Justice, GNC, Christopher & Banks, Finish Line, The Walking Company, Motherhood Maternity, and Clarks. Net cash flow at the property declined approximately 37% from TTM June 2019 through year-end 2020, which corresponded to a significant decline in value for the property. A June 2019 appraisal for the property indicated an LTV of 53%; however, CRED iQ’s Base-Case valuation implies a more conservative LTV closer to 70% even after reductions in principal over the past 2 years. With Brookfield actively looking for refinancing, leverage levels and the potential contribution of additional equity could be key factors for getting a deal done for mortgage originators and other lenders. 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	Park City Center
Address	^{142 Park City Center Lancaster, PA 17601}
Outstanding Balance	$115,500,000
Interest Rate	4.11%
Maturity Date	9/9/2021
Most Recent Appraisal	$254,400,000
Most Recent Appraisal Date	6/27/2019

428 Broadway

53,418 sf, Mixed-Used (Office/Retail), New York, NY 10013

This $60.0 million loan transferred to special servicing on September 2, 2021 due to delinquency. This distressed loan is yet another product of the fallout from the struggles of WeWork, which served as a primary tenant. WeWork had leased 77% of the collateral property’s GLA at origination, but a lease termination was approved by the lender. The lease termination fee may have been in excess of $3.0 million, according to servicer data. Multiple workouts are being evaluated including foreclosure or a note sale.

The floating-rate loan was originated in March 2020 by LoanCore Capital as bridge financing to allow the borrower to recapitalize the collateral property, which is a mixed-use office building with ground floor retail located in the SoHo submarket of Manhattan. The loan sponsor, Jacob Chetrit, had planned to lease the ground-floor and below-grade retail space, which totaled 12,203 sf and was vacant at origination. However, the retail space remains vacant with a tough leasing environment for high-street retail in Manhattan. The departure of WeWork now leaves the entire building 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.

Property Name	428 Broadway
Address	^{428 Broadway New York, NY 10013}
Outstanding Balance	$60,000,000
Interest Rate	4.90%
Maturity Date	4/9/2023
Most Recent Appraisal	$95,000,000
Most Recent Appraisal Date	2/6/2018

Shops At Mauna Lani

78,301 sf, Retail, Waimea, HI 96743

This $19.6 million loan transferred to special servicing on July 23, 2021 and is a potential refinance opportunity. The loan failed to pay off at maturity in April 2021 and the borrower, Arciterra, requested an extension that was approved. However, the loan originator, Money360, Inc., was concurrently working on a refinance solution. Both extension and refinancing alternatives are being evaluated.

The loan is secured by a leasehold interest in a retail property located in Waimea, HI on the Big Island. The property serves as a captive retail destination for travelers staying at the Mauna Lani resort and features primarily restaurant and apparel tenants. Although Hawaii tourism levels continue to improve from pandemic lockdown lows in 2020, the property has hasn’t improved occupancy greater than 83%. Occupancy was approximately 91% at loan origination. Further complicating matters, annual ground rent for the property is in excess of $800,000.

Using CRED iQ’s newly launched COMPS software, our team identified King’s Shops as a highly relevant comparable property. Similar to the Shops At Mauna Lani, King’s Shops is a captive retail development that serves guests of the Waikoloa Beach Marriott Resort & Spa. The King’s Shops recently went into receivership following its own struggles with the disruption of Hawaiian tourism caused by the pandemic. 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	Shops At Mauna Lani
Address	^{68-1330 Mauna Lani Drive Waimea, HI 96743}
Outstanding Balance	$19,625,000
Interest Rate	8.00%
Maturity Date	4/1/2021
Most Recent Appraisal	$30,950,000
Most Recent Appraisal Date	3/1/2019

394 Broadway

32,285 sf, Mixed-Use (Retail/Office), New York, NY 10013

This $18.65 million loan transferred to special servicing on July 9, 2021 for the purpose of inking a loan modification. The collateral property had been adversely impacted by the pandemic and occupancy has declined since loan origination in March 2019. The loan modification was negotiated with LNR Securities Holdings as special servicer and will likely be designed to provide relief and give the borrower an opportunity to address the property’s vacancy.

The collateral property is a 32,285-sf mixed-used building located in the Tribeca submarket of Manhattan. With a high volume of vacancies up and down Broadway, the ground-floor retail portion of the building may take relatively longer to lease compared to any vacant office space. The property was 67% occupied at the time of its transfer to special servicing. 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	394 Broadway
Address	^{394 Broadway New York, NY 10013}
Outstanding Balance	$18,650,000
Interest Rate	5.41%
Maturity Date	4/1/2029
Most Recent Appraisal	$29,500,000
Most Recent Appraisal Date	1/14/2019

1049 5^th Avenue

7,751 sf, Office, New York, NY 10028

This $4.5 million loan transferred to specially servicing on August 24, 2021, just 9 months after origination. Special servicer commentary indicated a receiver was appointed for the collateral property. It is worth noting that the borrower sponsor, Jean-Francois Simon, was subject to ongoing litigation at the time of loan origination in December 2020. The loan is secured by a 7,751-sf medical office condominium unit located in the Upper East Side of Manhattan. The office condominium is on the ground floor and is part of a larger residential building with 67 units and 2 other office units. The property is leased to Fifth Avenue Surgery Center, Inc. through December 2025. 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	1049 5th Avenue
Address	^{1049 5th Avenue New York, NY 10028}
Outstanding Balance	$4,500,000
Interest Rate	4.32%
Maturity Date	1/1/2031
Most Recent Appraisal	$10,800,000
Most Recent Appraisal Date	8/24/2020

FREE TRIAL

Recent Commercial Mortgage Originations

CRED iQ

September 21, 2021

This week, CRED iQ reviewed the commercial real estate lending landscape and highlighted 5 properties that have secured financing within the past month. 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 the originators’ LTVs, similar to last month’s WAR Report on the lending landscape. 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.

Parkway Irvine

209,831 sf, Flex Industrial, Irvine, CA 92618

A $37.0 million loan was originated by Société Générale Financial Corporation (SocGen) on August 30, 2021 to refinance existing debt of $16.7 million and return approximately $19.6 million in equity to the loan sponsor, Paul Queyrel – president of TriQuest Development Company. The loan was structured with a 10-year term and requires interest-only payments at a rate of 3.13%. The loan will be locked out from prepayment for 2 years, and after lockout will require a yield maintenance charge for prepayment prior to its open period. CRED iQ’s most relevant comp is the $15.0 million Newport Court loan, which was originated in January 2021 and has an interest rate of 2.97%. Newport Court is secured by a 212,283-sf industrial property that is also located in Irvine, CA.

The Parkway Irvine loan is secured by fee interest in a 209,831-sf industrial property that was developed in 1989 and features 12 buildings set across 14 acres located in Irvine, CA. Most of the buildings operate as single-story flex buildings and approximately 34% of the GLA is primarily used as office space. The property was 88% occupied as of August 16, 2021 and no individual tenants account for greater than 4% of the GLA. With such a granular rent roll, lease rollover management will be relevant in 2023 and 2024 when leases accounting for a combined 52% of the GLA are scheduled to expire. A July 23, 2021 appraisal valued the property at $62.4 million, equal to $279/sf, which implied an LTV of 59.30% and a capitalization rate of 5.47% based on the originator’s underwritten NCF. For the full valuation report and loan-level details, click here.

Subject Property
Name	Parkway Irvine
Address	15375 Barranca Parkway Irvine, CA 92618
Type	Industrial
Subtype	Flex
Building Size	209,831 sf
Year Built	1989
Submarket	Irvine Spectrum
County	Orange
MSA	Los Angeles-Long Beach-Santa Ana, CA
Origination Date	08/30/2021
Loan Amount	$37,000,000
Interest Rate	3.13%
Valuation
Appraisal Value	$62,400,000
Appraisal Date	07/23/2021
Appraisal LTV	59.30%
MyQ Concluded Value	$60,440,000

15-17 Park Avenue

97 units, Multifamily, New York, NY 10016

A $31.0 million loan was originated by SocGen on August 16, 2021 to refinance existing debt on a 97-unit high-rise multifamily building located on the edge of the Murray Hill submarket of Manhattan, NY. The 10-year interest-only loan has an interest rate of 3.34%. 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 borrower sponsor for the loan is Scott Goldstein. CRED iQ’s highest scoring comp is the $14.8 million 234-236 East 24^th Street loan, which was originated in March 2020 and has an interest rate of 3.10%. The comparable loan is secured by a 36-unit multifamily property located slightly south of the subject, closer to Kips Bay.

The 15-17 Park Avenue mortgage loan is secured by fee interest in a 16-story multifamily property that contains 85 units that lease at market rate and 11 units that are rent stabilized. One unit is reserved for the superintendent and the property features an additional 2,810 sf of commercial space. Average asking rent for Q1 2021 was $3,802 per unit, which represented a 5% decline compared to 2020 and a 21% decline compared to 2019. The rent declines exemplify the downward pressure on rents caused by the pandemic. The property typically operated with about 98% occupancy pre-COVID but occupancy declined to 93%/94% for much of 2020 and 2021. Occupancy was listed as 100% as of July 20, 2021, including all residential and commercial units. The property was appraised for $50.1 million as of July 8, 2021, equal to $516,500/unit, which implied an LTV of 61.90% and a capitalization rate of 4.27% based on the originator’s underwritten NCF. For the full valuation report and loan-level details, click here.

Subject Property
Name	15-17 Park Ave
Address	15-17 Park Avenue New York, NY 10016
Type	Multifamily
Subtype	High Rise
Building Size	97 units
Year Built	1924
Submarket	Murray Hill
County	New York
MSA	New York-Northern New Jersey-Long Island, NY-NJ-PA
Origination Date	08/16/2021
Loan Amount	$31,000,000
Interest Rate	3.34%
Valuation
Appraisal Value	$50,100,000
Appraisal Date	07/08/2021
Appraisal LTV	61.90%
MyQ Concluded Value	$44,590,000

Murrieta Spectrum

172,357 sf, Mixed-Use (Retail/Office), Murrieta, CA 92562

A $23.0 million loan was originated by UBS on August 27, 2021 to refinance existing debt on a 172,357-sf retail property located in Murrieta, CA, just north of Temecula. The loan has a 10-year term and requires amortizing debt service payments based on a 30-year schedule with an interest rate 3.73%. The loan is locked out from prepayment for 1 year, and after lockout will require a yield maintenance charge for prepayment prior to its open period. CRED iQ’s most relevant comp is the $16.2 million Bel Villaggio loan, which was originated in February 2020 and has an interest rate of 3.57%. Bel Villaggio is located in nearby Temecula and has similar size and use as Murrieta Spectrum, although with a much more granular rent roll.

Although property information provided for Murrieta Spectrum lists the property type as mixed-use, the collateral for the loan is primarily designed and operated as a retail center. The largest tenants are Ashley Furniture and Savers Thrift Store, which are both retail tenants and account for a combined 45% of the GLA. The third-largest tenant, STG International, accounts for another 15% of the GLA, but the tenant will not take occupancy until October. Prior to the lease signing with STG International, which will bring occupancy to 95%, the property had operated at approximately 80% occupancy for several years. The property was appraised for $45.25 million as of April 22, 2021, equal to $263/sf, which implied an LTV of 50.90% and a capitalization rate of 5.80% based on the originator’s underwritten NCF. For the full valuation report and loan-level details, click here.

Subject Property
Name	Murrieta Spectrum
Address	25125 Madison Avenue Murrieta, CA 92562
Type	Retail
Subtype	Community Center
Building Size	172,357 sf
Year Built	2005
Submarket	Temecula
County	Riverside
MSA	Riverside-San Bernardino-Ontario, CA
Origination Date	08/27/2021
Loan Amount	$23,000,000
Interest Rate	3.73%
Valuation
Appraisal Value	$45,250,000
Appraisal Date	04/22/2021
Appraisal LTV	50.90%
MyQ Concluded Value	$37,310,000

Nanogate North America (Techniplas)

266,180 sf, Industrial, Mansfield, OH 44903

This $9.5 million loan was originated by UBS on August 20, 2021 to fund the sale-leaseback acquisition of a manufacturing facility located in Mansfield, OH. The property was acquired by MAG Capital Partners LLC and will be solely leased to its previous owner, Nanogate North America, a component manufacturing firm. The tenant was acquired by Techniplas, which is also an engineering and manufacturing company, and the property serves as the company’s only US location. The 10-year loan has an interest rate of 4.20% and requires amortizing debt service payments based on a 30-year schedule. The loan will be locked out from prepayment for 2 years, and after lockout defeasance will be permitted through the remainder of the loan term. Due to the collateral property’s location in a tertiary market, many of the loan’s comps had relatively low scores. However, two notable loans secured by single-tenant industrial properties within 50 miles of the subject included Revere Plastics, which was originated in March 2019 and has an interest rate of 4.41%, and 9040 Smith’s Mill Road, which was originated in March 2020 and has an interest rate of 3.70%.

The Techniplas manufacturing facility comprises 3 buildings set across a 23-acre parcel. The tenant signed a 20-year lease at the property that is scheduled to expire 10 years beyond loan maturity. The property was appraised for $15.25 million, equal to $57/sf, as of June 17, 2021, which implied an LTV of 62.30% and a capitalization rate of 6.33% based on the originator’s underwritten NCF. For the full valuation report and loan-level details, click here.

Subject Property
Name	Nanogate North America
Address	150 East Longview Avenue Mansfield, OH 44903
Type	Industrial
Subtype	Manufacturing
Building Size	266,180 sf
Year Built	1947
Submarket	Mansfield
County	Richland
MSA	Mansfield, OH
Origination Date	08/20/2021
Loan Amount	$9,500,000
Interest Rate	4.20%
Valuation
Appraisal Value	$15,250,000
Appraisal Date	06/17/2021
Appraisal LTV	62.30%
MyQ Concluded Value	$14,750,000

Westgate Shopping Center

47,331 sf, Retail, San Antonio, TX 78216

RPD Catalyst, LLC secured a $7.2 million loan from LMF Commercial (formerly Rialto Mortgage Finance) on August 27, 2021, to refinance existing debt on a 47,331-sf neighborhood center located in San Antonio, TX. The 10-year loan has an interest rate of 4.06% and requires amortizing debt service payments based on a 30-year schedule. One of the highest scoring comps for this loan is University Square Shopping Center, which secures a loan that was originated in May 2019 and carries an interest rate of 4.35%.

Westgate Shopping Center is anchored by Guitar Center, which accounts for 71% of the property’s GLA. The anchor tenant has been severely impacted by the pandemic and recently emerged from bankruptcy in December 2020. Guitar Center’s lease expires in November 2026, which is about halfway through the loan term. The ongoing financial health of Guitar Center as well as a favorable renewal outcome at lease expiration will be the primary credit drivers for this loan. Positive news regarding Guitar Center broke in recent days after a Debtwire report indicated the company filed with the SEC to register for an IPO. The property was 100% occupied at origination and had an appraisal value of $10.4 million, equal to $219/sf, as of July 15, 2021. The appraisal implied an LTV of 69.20% and a capitalization rate of 6.80% based on the originator’s underwritten net cash flow. For the full valuation report and loan-level details, click here.

Subject Property
Name	Westgate Shopping Center
Address	7311 San Pedro Avenue San Antonio, TX 78216
Type	Retail
Subtype	Community Center
Building Size	47,331 sf
Year Built	1965
Submarket	Airport
County	Bexar
MSA	San Antonio, TX
Origination Date	08/07/2021
Loan Amount	$7,200,000
Interest Rate	4.06%
Valuation
Appraisal Value	$10,400,000
Appraisal Date	07/15/2021
Appraisal LTV	69.20%
MyQ Concluded Value	$9,700,000

FREE TRIAL

Distressed Ginnie Mae Properties

CRED iQ

September 14, 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 seniors housing and workforce housing. Mortgage originators, distressed investors, and commercial brokers are able to search CRED iQ’s database of approximately 15,000 Ginnie Mae loans totaling $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 90 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 loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

Lucas Place Lofts

130 units, Multifamily, Kansas City, MO 64105

GNMA 2015-36178M2A8

This $18.4 million loan, which is 90 days delinquent, is secured by a 130-unit multifamily loft conversion property located in Kansas City’s Garment District. The high-rise apartments were redeveloped from commercial use in 2010 and converted to loft-style units. The loan was issued through HUD’s 221(d)(4) program to facilitate the construction and rehabilitation of multifamily properties for moderate-income families, elderly, and the handicapped. The property also operates under a Chapter 353 Tax Abatement until 2023, which is an incentive for the redevelopment of blighted areas. The tax abatement was facilitated through the Missouri Department of Economic Development. Love Funding originated the loan in October 2012 and maturity is scheduled for March 2054. After the expiration of the tax abatement, property taxes for the property have potential to increase as much as 10 times the current burden. 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.

Menorah Campus Inc.

328 units, Seniors Housing, Getzville, NY 14068

GNMA 2010-3620ANWH9

This $17.4 million loan is over 120 days delinquent and is secured by a 328-unit residential care facility located about 10 miles northeast of Buffalo, NY, in close proximity to the University at Buffalo campus. The mortgage is a Section 232 loan, which facilitates the construction of assisted living facilities under the FHA’s mortgage insurance program. The loan was originated in 1991 by Berkadia Commercial Mortgage and carries a 40-year term.

The delinquency may be related to a pending sale of the property that has been held up due to pending approval by state regulators. Elderwood Administrative Services agreed to acquire the entire Weinberg Campus, which included the collateral property, in late 2017. However, the closing of the sale transaction has been delayed for several years. Prior to the announcement of the acquisition, the Menorah Campus reportedly suffered from increases in expense growth and fewer reimbursements. The property generated about $5.1 million in revenue but still had an operating loss of over $1.0 million. The sales agreement called for the entire Weinberg Campus, which includes Menorah Campus among other properties, to be acquired for $47.0 million. 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.

Oasis at 56^th

124 units, Multifamily, Indianapolis, IN 46254

GNMA 2021-3617BWEF8

This $17.0 million loan is 90 days delinquent and is secured by a 124-unit assisted living facility located in suburban Indianapolis. The mortgage loan was originated in November 2017 by Walker & Dunlop and has a 40-year term. Similar to the Menorah Campus, detailed above, the Oasis at 56^th property was financed through the FHA’s Section 232 program to aid in the development of assisted living facilities. The property was developed from the ground up for a cost of approximately $27.0 million and opened June 2019. Operations are managed by Gardant Management Solutions. 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.

Chatham Manufacturing Company (Mill 800 Apartments)

166 units, Multifamily, Winston-Salem, NC 27101

This $16.3 million loan, which is over 120 days delinquent, is secured by a 166-unit multifamily conversion located in Winston-Salem, NC. The property was formerly a manufacturing facility that produced a wide range of products from textiles to military equipment. The property, which now operates as Mill 800 Apartments, is the first phase of a mixed-use project that is planned to include additional office and retail space. Similar to Lucas Place Lofts, detailed above, the Mill 800 Apartments loan was issued through HUD’s 221(d)(4) program to aid development of blighted areas. The property was originally acquired in 2012. The 40-year Ginnie Mae loan was originated in 2014 and the apartments completed construction in 2016. 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.

Saucon Valley Manor Senior Living

207 units, Seniors Housing, Hellertown, PA 18055

GNMA 2012-36177YHY5

This $16.3 million loan is 90 days delinquent and is secured by a 207-unit senior living facility located about 10 miles east of Allentown, PA. The facility is part of a 5-property regional network of senior living facilities and offers multiple levels of care, including assisted living, independent living, memory care, and personal care. The property is about 147,782 sf and sits on a 2.6-acre parcel. The loan was issued through HUD’s 223(f) program and carries a 35-year term. M&T Realty Capital Corporation originated the mortgage in December 2012 and maturity is scheduled in January 2048. 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.

FREE TRIAL

1...323334...37 Page 33 of 37

CRED iQ Blog

Hotel Auctions

Non-Performing Matured Loans

Recent Commercial Mortgage Originations

CRED iQ is Hiring!

Lease Expirations

Vacant Properties

October 2021 Delinquency Report

Specially Serviced Loans

Recent Commercial Mortgage Originations

Distressed Ginnie Mae Properties