The 347-room Phoenix Airport Marriott, whose $63.8 million CMBS loan was transferred to special servicing last April, has been appraised at a value of $29.4 million. According to Barclays Capital, which highlighted the latest appraisal in a recent research note, the loan also became delinquent this month. The property originally was appraised at a value of $94.7 million.
The hotel, at 1101 North 44th St., near Phoenix’s Sky Harbor Airport and the campus of Arizona State University, was constructed in 1999. It is owned by Columbia Sussex of Crestview Hills, Ky., which until this month had kept the loan current, even though the property wasn’t generating sufficient cash flow.
Last year, for instance, the property generated $3.6 million of cash flow. That was 30 percent less than the amount required to fully service its loan, which was securitized through Banc of America
Commercial Mortgage Trust, 2006-3.
Barclays noted that the new, lower appraised value will lead to an appraisal reduction of about $35 million, which could increase interest shortfalls by $184,000. The deal’s A-J class, originally rated AAA by Standard & Poor’s and Fitch, would see an increase in shortfalls.
This month, the class was shorted $108,448 of interest. In addition, Barclays said that if the hotel was liquidated at near its appraised value, the deal’s class B, with a balance of $36.9 million and the most junior remaining in the deal, could be wiped out entirely and the A-J class could see a loss. The team added that the shortfalls, if they occur at that level, would be short-lived.
No comments:
Post a Comment