– by Ann Hambly
So…you have a good relationship with your special servicer and you have closed a few other deals with them. In fact, you even buy properties from the special servicer on occasion. You should be in a good position to negotiate a resolution on your own CMBS loan. Right?
Many owners mistakenly think that!
The bottom line is that the special servicer is not the decision maker. The Controlling Class Certificate Representative (“CCR”) is.
And the CCR is looking at other factors besides your property when it is making the decision. Factors like the amount of loss it will take to wipe out its bond position, whether it wants to own the asset or not (and it has the right to buy a defaulted loan out of a pool for something called “Fair Market Value Purchase Option”) to name a few. Without incorporating these factors into your restructure proposal, you are essentially ‘shooting in the dark’.