Property Type: Multi-Family
Property Size: 360-units
Balance at the time of Assumption: $9,232,200
Debt Service Coverage Ratio: 1.24
Consideration & Solution:
The loan was the special servicer (LNR) due to a previous default by the seller. Through workout negotiations by Hart, the loan was brought current but remained at the special servicer. As required by the Pooling and Servicing Agreement, (which governs CMBS loan servicing) once a loan is transferred to the special servicer, then brought current, the special servicer must monitor the loan until the loan remains current for three consecutive months, then it can be transferred back to the master servicer for servicing.
The sale of the property occurred prior to the expiration of the three month period; and all underwriting, communications, and negotiations were handled by the special servicer and negotiated by Hart.
RESULTS Hart was engaged by the purchaser via recommendation from the seller. Both the seller and purchaser worked collectively with Hart, which enhanced the assumption process for all parties involved. With all communications handled through Hart, final approval from the special servicer and the controlling class was received in 73 business days from the date of submission.