Friday, May 15, 2009

The Top 5 Largest Delinquent Loans

The following loans are the largest loans in Fitch’s loan delinquency index. The index consists of loans 60 days or more delinquent in addition to those characterized as nonperforming matured loans, in foreclosure, or REO.

Resorts Atlantic City, CSMC 2007-TFL2

The $175 million loan is secured by a 942-room hotel and casino in Atlantic City, NJ. The loan transferred to special servicing in December 2008 due to monetary default. The property has exhibited declining performance since issuance as a result of the overall negative performance of the gaming industry. The special servicer and sponsor continue to discuss workout options.

Macon Mall/Burlington Mall, Wachovia 2005-C20

The $136.7 million loan is secured by two cross-collateralized regional malls in Macon, GA, and Burlington, NC. The Macon Mall is a 1.4 million-square-foot two-level enclosed super regional mall and the Burlington Mall is a 419,194-square-foot one-level enclosed mall. The borrower, Lightstone, indicated it could no longer continue to fund the debt service shortfall. It also agreed to the appointment of a receiver with the ability to sell the properties. The special servicer appointed a receiver to manage the properties and has initiated foreclosure.

Bethany Portfolio, MLMT 2007-C1

The $130.5 million loan is secured by a portfolio of 11 multifamily properties comprising 2,904 units across Georgia, North Carolina and Virginia. The sponsor of the loan at issuance was The Bethany Group. The loan transferred to special servicing in February 2009 due to payment default. The borrower abandoned the properties in early March. The special servicer appointed a receiver, which is in the process of stabilizing the assets and assessing their financial condition.

The Promenade Shops at Dos Lagos, JPMCC 2008-C2

The $125.2 million loan is secured by a 34,847-square-foot lifestyle/entertainment retail center in Corona, CA, built in 2006-2007. The center is the central portion of a master-planned community that has not been completed due to the residential market decline. Many tenants have asked for rent reductions and many also have lease provisions allowing them vacate the property should occupancy fall below a threshold. These thresholds are likely to be triggered in the next year.

Senior Living Properties Portfolio, GMAC 1998-C1

The $112.2 million loan is secured by a portfolio of health care facilities and has been in special servicing since October 2001. Senior Living Properties experienced extensive operating losses beginning in 2000 due to lower revenues as a result of changes in Medicare and Medicaid reimbursements and filed a voluntary Chapter 11 bankruptcy in May 2002. 48 properties in Texas remain as Senior Living Properties management works to improve operations and consolidate locations. The special servicer recently extended the maturity date of the loan again until Feb. 1, 2010.

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