Trading Alert: NYC Hotel Modified, Backs 2007 Deal
Barclays reported late on Thursday that the $46.6 million Crowne Plaza – LaGuardia loan has been modified. (Kudos to the Barclays research team for unearthing the bankruptcy court documents that contained the details.) The 358 room hotel located near LaGuardia airport was built in 1986 and renovated in 2005.
The loan was originally slated to mature in March 2017, but the date has been pushed out to November 2023. The loan was also originally locked out until late 2016, but is now permitted to prepay at any time. The borrower was granted rate and amortization relief. The original rate of 7.02% has been pared to 1% for now. The rate will step up in 1% increments and cap out at 4.625%. The loan will be interest only in 2017 when it resumes making principal payments.
Note that all of the changes above have been added to the Trepp model. However, there’s more. The loan balance has been upped to $57 million, split between an A note and a Hope note. It is unclear at this point how the Hope note will be treated. The Trepp model continues to represent this as a $46.6 million asset.
The $46.6 million loan makes up 1.4% of JPMCC 2007-CB18.
Report: Discount Retailer Loehmann’s Could Be Heading Back to Bankruptcy
According to a report in Wednesday’s New York Post, discount retailer Loehmann’s could be headed back to bankruptcy. If so, that would be the third bankruptcy for the firm in the last 15 years. In 2010, Loehmann’s filed for Chapter 11 bankruptcy with a plan to reorganize and reduce its debt load. When the retailer first filed for bankruptcy in 1999 it ended up closing 25 stores according to the article. The firm was founded in 1921.
The news had us update our CMBS webpage for exposure to the firm which can be seen here: Loehmann’s Exposure. The firm has a modest footprint in CMBS: seven loans with an aggregate balance of about $211 million. (Note: The portfolio loan for VNO 2010-VNO was left off the list. There is exposure to Loehmann’s in one of the 40 properties backing the loan. We did not think it was material enough to include.)
There have been some new entrants to the list since the last time Loehmann’s was in the news. One is the $9.7 million Hewlett Shopping Center loan that makes up 1.1% of the collateral behind GSMS 2013-GC10. Loehmann’s is the top tenant in the 32,000 square-foot Long Island retail strip, with 52% of the space. It is possible that in some of the cases Loehmann’s owns its own parcel, so the Loehmann’s property may not be part of the collateral for the deal’s listed.
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