Practical Tips for CMBS Borrowers. Yes, special servicers have wiggle room.
Texas Real Estate Business, May 2012
By Ann Hambly, founder and co-CEO of 1st Service Solutions
Did you know that your specific special servicer and controlling class representative (“CCR”) assigned to your pool is what matters most when you are seeking a restructure of your CMBS loan? That was never clearer to me than in a recent restructure we worked on with an owner of a retail property in Las Vegas that had suffered as a result of the local and national economy.
At the height of the CMBS market in 2007, the value of his property was well over $20 million, and, like many other owners, he got a new CMBS loan that year for $17 million. His anchor tenant vacated the center in 2010 and cash flow was not even close to the amount required to keep the loan current.