According to September remittance data, the $25.7 million 1604 Broadway note was written off in full this month. The loan made up 0.86% of GECMC 2007-C1, which has now taken 8% in cumulative bond loss.
The loan was backed by a 29,875 square-foot retail property located in the theater district of Times Square. The note was initially transferred to special servicing in November 2009 after losing its top tenant, Spotlight Times Square, to bankruptcy. The loan defaulted a month later and failed to refinance when it matured in April 2012.
Originally appraised for $36 million in 2007, a 2012 appraisal pegged the property at $9.7 million. The servicer also reported an appraisal reduction amount of $26.6 million in 2012, larger than the current loan balance. One last valuation done in 2014 brought the property value up to $14 million.
GECMC 2007-C1 now carries 7.6% in delinquent collateral and losses reach the originally A rated F tranche and shortfalls reach the A-J class.
Compliments of Trepp, LLC – A Member of the EACCNY.