Fitch downgrades three COMM 2012-CCRE2 classes
Fitch Ratings downgraded three classes of COMM 2012-CCRE2, citing its exposure to two regional malls in Chicago and Albany, NY
The downward revisions relate to the performance of notes secured by Chicago Ridge Mall and Crossgates Mall, Albany, NY, which represent a combined exposure of 13.7% of the pool.
Fitch said it ran a repayment scenario assuming the two regional malls were the last remaining loans in the pool. Despite relatively stable performance for the majority of the pool since the previous rating action, Fitch said it was concerned about the pool’s high exposure to the two loans.
Chicago Ridge Mall is the largest contributor to losses, 7.8%. Star-West JV LLC sponsored the loan. Collateral occupancy had improved to 80% in September 2021 from 70.2% in December 2020. Larger tenants include a non-collateral anchor from Kohl’s, Dick’s Sporting Goods, Bed Bath & Beyond, AMC, H&M, Michael’s and Aldi, Fitch said. .
Fitch noted that sales for online tenants with less than 10,000 square feet of retail space, excluding food court and restaurant tenants, fell to $387 per square foot for the period. twelve months (TTM) until September 2020, compared to $492 psf for the September 2019 TTM.
The loan on the Crossgates Mall in Albany was the second largest contributor to pool losses, at 5.9%, Fitch said. The loan had been transferred to the special service in April 2020, for imminent default. Pyramid Group, the loan sponsor, was granted a six-month forbearance in May 2020 and returned to service master in June 2021, in the form of a remedied mortgage. Repayments were scheduled to resume in January 2021. Further relief was provided through the extension of the maturity and deferred debt service repayment was postponed until the extended maturity date, the agency said. rating.
JCPenney, Regal Cinemas/IMAX, Dick’s Sporting Goods and Burlington Coat Factory are among the largest collateral tenants, Fitch.