Asset Details:
Property Type: Unanchored Retail
Property Size: 45,795 square feet
Origination: 2007
Maturity: 2017
Current Loan Balance: $8,799,918
Occupancy: 93%
Debt Service Coverage Ratio: .94
Loan Status: Maturity Default
Problem: The loan was transferred to special servicing due to a maturity default while take-out financing was being secured. Anticipating a closing to occur shortly after maturity, the Sponsor requested the payoff statement, only to find the special servicer assessed an exorbitant fee designated as “Noteholder Costs” for holding the note in special servicing for 30 days.
Result: c Hart had the knowledge, experience, and understanding of CMBS loan documents, as well as the Pooling and Servicing Agreement governing the loan, to make a valid argument as to why these costs were unjustified. Additionally, Hart’s business model allows for continuous interaction with Special Servicers allowing it to experience first-hand the changes in Special Servicing requirements in this evolving market. These changes are driven in large part by the large wave of loan maturities for vintage loans, as well as the loss in servicing rights within the securitization, and the rapid decline in the ability to fund asset expenses.