Mall mess spurs CMBX, CDS shorts; Home Depot-Homestead borrower files for bankruptcy; BACM 2006-6 loans draw bid of 22 - Debtwire

Mall mess spurs CMBX, CDS shorts; Home Depot-Homestead borrower files for bankruptcy; BACM 2006-6 loans draw bid of 22

27 October 2017 - 12:00 am

With the critical holiday season fast approaching, some fixed-income investors are hedging against the risky mall sector, seizing on opportunities in the CMBX and in credit default swaps to bet against retail. Investors are betting against the sector by taking short positions on the CMBX 6 and 7 junior tranches, buying CDS protection on retailer and mall REIT bonds, and outright shorting those companies’ stocks (see story).

 

The owner of a Florida property that backs the USD 13.2m Home Depot-Homestead loan in JPMCC 2007-LD12 has filed for Chapter 11 bankruptcy protection to stay a foreclosure. Borrower Julian Depot Miami, the Flushing, New York-based Florida LLC that filed for bankruptcy, said the property is vacant because Home Depot has not rebuilt a retail section as required under its ground lease. The building was demolished after a 2013 fire (see story).

 

Special servicer CWCapital received a final combined bid of about USD 4.4m, or 22 cents on the dollar, on two CMBS loans totaling USD 19.9m from BACM 2006-6. The USD 15.2m Marketplace College Ave. loan fetched a final bid of USD 1.3m, and the USD 4.7m Tire Centers – Statesville, NC loan was bid at about USD 3.1m (see story).

 

Special servicer LNR Partners is offering the USD 96.6m PPG Portfolio loan, secured by seven medical office properties in Colorado, Arizona and Indiana, with bids due in December. The loan is in maturity default and makes up 64.4% of MSC 2006-HQ10 (see story).

 

Simon Property Group expects to reopen the Colorado Mills mall that backs USD 136m in debt held by WFRBS 2014-C25 and WFCM 2014-LC18 by “the holidays,” but two Puerto Rico properties hit by Hurricane Maria will still likely be shuttered at year-end (see story).

 

Multiple buyers paid USD 366.79m, or about 39% of book value, for a USD 932m portfolio of performing and non-performing loans formerly held by the failed First NBC Bank of New Orleans, Louisiana. DebtX handled the auctions. The transactions comprised 14 pools consisting of performing and non-performing commercial and residential real estate loans, and commercial loans (see story).

 

Blackstone Mortgage Trust closed on USD 1.1bn of loans in 3Q17, boosting originations to USD 3.6bn for the first nine months of 2017, up 33% from the same period a year earlier. The REIT reaped the benefits of an expansion in California and a bridge lending partnership with Walker & Dunlop (see story).

 

Investment manager Clarion Partners has refinanced its 58-acre Los Angeles industrial project called The Brickyard with a USD 105m loan from Societe Generale. The loan has a spread of Libor+ 135bps (see story).

 

The USD 355.7m A-4 AAAs of the USD 1.1bn BANK 2017-BNK8 priced at S+ 76bps, 2bps tight of guidance and the lowest level for benchmark seniors since July 2014 (see story). The benchmark seniors of the USD 743m UBSCM 2017-C5, were also being talked relatively tight (see story).

Banks led by JPMorgan are getting ready to bring Caesars Palace Las Vegas Trust 2017-VICI to market. The fixed-rate deal will securitize a USD 1.55bn mortgage on Caesars Palace Las Vegas, a luxury hotel and casino property on the Las Vegas Strip (see story).

 

Goldman Sachs and Deutsche Bank are marketing the USD 705m Worldwide Plaza Trust 2017-WWP, a single-asset/single-borrower CMBS on New York’s Worldwide Plaza. The Midtown West office and retail complex currently backs the USD 710m COMM 2013-WWP. Meanwhile, Credit Suisse is prepping CSMC 2017-CALI (see stories, 27 October and 24 October).