Member News, Uncategorized

Long Island Office Loan Receives Appraisal Reduction Increase

According to January remittance data, the $43.8 million One Old Country Road loan recently received an appraisal reduction increase from $23.3 million to $43.3 million. Comprising 25.37% of BACM 2005-6, the note is scheduled to mature next month.

One Old Country Road is backed by a 320,408 square-foot suburban office in Carle Place, NY which was foreclosed on July 2011. The loan was transferred to special servicing in November 2010 for imminent default after the borrower was 60+ days late on payment. Based on notes from the special servicer, the borrower previously considered an A/B structure loan modification and is currently under negotiation for other possible alternatives in lieu of foreclosure.

Financial statements for the first nine months of 2015 listed the office’s DSCR and occupancy at -0.21x and 90%, although commentary places occupancy at 74% as of October. 1-800 Flowers.com, Inc., Leeds Morelli & Brown PC, and Red Visions are the building’s main tenants, combining for over 24% of the space. At the moment, over 53% of the building’s tenants hold leases that will expire within the next two years.

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