Cash Loan Commercials

Fitch downgrades pool of loans led by Metrotech Center building

Fitch Ratings has downgraded one class of $ 6.6 million of commercial real estate loans led by 10 Metrotech Center, an office building of seven floors belonging to Forest City Ratner in Brooklyn.

Fitch has lowered a class of COMM Mortgage Trust 2005-FL-10, saying 42 percent of the pool would default due to a decline of 10 percent of all cash flows over the last to date.

The 359,000 square foot property located at 625 Fulton Street in Brooklyn, is facing a lease expiring at the Internal Revenue Service, which occupies nearly 88 percent of the building. The loan is 7.4 percent of the balance of the pool.

The lease expires in February 2012, when the General Services Administration announced its intention to extend the lease for the IRS for at least six months. The loan is currently in special service and was classified as in distress since the early 2010.

The Human Resources Administration holds another 8.5 percent of the building, and has a lease expiring in 2013.

The largest "ready for concern" that is not in the special service is Hudson Pool West Valley / West Seneca loans, secured by two shopping centers in Kingston and powerful Seneca, NY, representing 7.8 percent of the entire pool balance. The loan matures in September, and no information was immediately available on the refinancing.

The largest loan is supported by the Palisades Center, is an interest-free loan that supported 2 million square feet of a 2,300,000 square foot mall in West Nyack, NY The loan has already been transferred to the service of the stage in January 2010 because of what Fitch calls a final maturity of imminent default, but has since been returned to service master. The loan was extended until February 2012, and a "cash sweep" has been set up to repay the principal balance of each quarter.

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