Member News

New Jersey Office/Industrial Portfolio Sent to Special Servicing

According to an email from Fitch on Tuesday, the $80.3 million Atlantic Development Portfolio loan has been sent to special servicing. The note makes up 4.15% of the collateral behind JPMCC 2005-LDP5.

Servicer comments indicate that the loan is backed by eight properties spread across Warren and Somerset, New Jersey, but one of the properties may have been released. The original five offices and three industrial properties totaled 902,237 square feet but servicer notes indicate that the portfolio is now just under 800,000 square feet. All but one of the properties were built before 1990.

According to the latest servicer watchlist notes, occupancy is 73%, down from 97% at securitization. The last financials were from early 2014 when DSCR was 0.86x.

The loan is current and is due to mature in December 2015. In 2011 the note was modified when it was set to begin amortizing. A modification was granted, making the note interest-only for life. It appears that this took place around the time that the one property was released.

Amazingly, the LDP5 deal’s original first loss class is still outstanding. (If this were a survivor pool, you’d be pretty pleased with this pick.) However, the deal has $60 million in appraisal reductions that will have to be resolved.

Compliments of Trepp, LLC – A member of the EACCNY.