Government building gives CMBS 2.0 its first delinquency
The restructured CMBS 2.0 market, which includes all commercial securitization deals completed after the recession, experienced its first delinquency this past month. The delinquency is tied to a $5.2 million loan on the U.S. Geological Survey Regional headquarters in Austin, Texas, which is now at least 30 days past due. The loan is securitized in the JPMCC 2010-C2 platform. Despite the last payment being made more than two months ago on Feb. 1, analysts at the Royal Bank of Scotland expect the delinquency to be cured without any losses. The 36,047 square-foot property has one government tenant and a 68% loan-to-value ratio. Royal Bank of Scotland wrote, "there have been legal issues with pulling the payments due to the single tenant being a government tenant. The Treasury Department is working to resolve these issues." Another mortgage securitized within JPMCC 2010-C2 — a $14.3 million loan on the Ivyridge Shopping Center in Philadelphia — is currently listed on the servicer watch list. The loan was placed on the watch list after an A&P in the shopping center filed for bankruptcy. The largest tenant in the center is now Super Fresh. The return of the CMBS market, or CMBS 2.0, began in late 2009 with three single-borrower transactions. Write to Kerri Panchuk.