Member News

TREPP: Trading Alert: StuyTown and Peter Cooper Village Sold

According to a Wall Street Journal article and a Barclays note, the long saga of StuyTown and Peter Cooper Village is coming to an end. Blackstone and a partner have apparently finalized a deal to purchase the property for $5.3 billion. The payoff could come as early as the November remittance.

Based on the sale price, Barclays is projecting no bond loss, a repayment of all ASERs, advances, and fees, as well as a $172 million prepayment fee. On top of that, there could be $642 million left over to pay back previous losses based on REO gain-on-sale provisions.

Current exposure is as follows:

More to follow on the cashflow and average life effects as we learn more.

One Month After Drop in Value, NY Office Loan Hit with $73.6 Million Loss

In CMBS, rarely do you see events play out as quickly as they did over the last five weeks for the $163.8 million Jericho Plaza (I & II) loan. It was only last month that the servicer report revealed the sharply reduced value of the collateral. Originally appraised for $234 million in 2007, the value of the Long Island property was reduced to $100 million in September. This month, the loan was resolved with a $73.6 million loss. (At no time was the loan not carrying an appraisal reduction.)

Prior to this month’s resolution, the note made up 9.5% of the collateral behind CSMC 2007-C5. The loss wiped out classes B and C entirely along with about 16% of the balances of the AJ and A-1-AJ classes.

Also somewhat singed, you might say, were bondholders at the top of the stack. The $90 million (give or take) recovery came well in advance of the note’s May 2017 recovery and nothing in the data or special servicer notes indicated a resolution was near.

According to special servicing commentary, the Jericho Plaza loan was initially transferred to special servicing in October of 2014 after DSCR declined from 1.33x at securitization to 0.82x last year. Since then, occupancy has dipped to 68%. NY Community Bank and Travelers Indemnity, two of the building’s main tenants, had leases expiring late 2014 and April 2015. The borrower was delinquent in its past three loan payments and had requested a loan modification.

Compliments of Trepp, LLC