DECEMBER 17, 2010
J.P. Morgan was the dominant player in the reviving commercial MBS market
7 SCORECARD FOR CMBS SPREADS
2 Lenders Eye GGP Mall Near Miami
3 RXR Seeks Loan for NY Office Deal
3 FDIC Delays, Rejiggers Loan Auction
4 REIT-Bond Market Shutting Down
4 ZAIS Eyes Special-Servicing Rights
6 Fund Shop Nears $500 Million Goal
6 Securitization Consultant to Spin Off
7 Spreads Widen on CMBS Offering
8 S&P Trots Out CMBS Analytics Tool
8 BBVA Shops Sour Loan on Condos
10 INITIAL PRICINGS
THE GRAPEVINE
Billy Hurst joined Citigroup’s commercial
MBS group on Monday to set up a Dallas
outpost, the New York operation’s first
satellite office. He will produce loans
throughout the Southwest, reporting to
Ben Milde, head of Citi’s conduit-lending
team. Hurst is a seasoned originator who
worked most recently at Alliant Capital
and before that at Countrywide and J.P.
Morgan.
Jones Lang LaSalle has hired Chris
Casey as a managing director in Orange
County, Calif. Casey started Dec. 13,
reporting to Jones Lang’s heads of real
estate investment banking: Thomas Fish,
Michael Melody and Thomas Melody.
Casey will arrange debt and equity for all
property types in the West. He previously
ran a Los Angeles brokerage firm called
Trillium Realty. By the end of 2011, Jones
Lang’s Orange County office, in Irvine,
plans to add about 20 staffers, including
See GRAPEVINE on Back Page
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JP Morgan Tops Lender, Bookrunner Rankings
this year.
The bank contributed $3.1 billion of loans to U.S. securitizations, almost double
the amount of the next-biggest player, Deutsche Bank, according to preliminary
data compiled by Commercial Mortgage Alert.
J.P. Morgan also topped the ranking of bookrunners on U.S. deals, leading $4.3
billion of transactions, or 37% of the total volume. (Final league tables will be pub-
lished in the next issue, on Jan. 7).
U.S. issuance amounted to $11.6 billion. While that paled in comparison to
the go-go years of 2005-2007, when annual volume ranged from $166.5 billion to
$228.6 billion, it was up fourfold from 2009.
That represents progress from the deep freeze that enveloped the market during
the credit crunch. More than a dozen securitization shops either resumed or started
See RANKINGS on Page 9
Barclays Eyes Conduit Redux, Recruiting Pro
Barclays is the latest lender thinking about getting back into the conduit busi-
ness.
The bank’s real estate executives are actively exploring the idea and have started
interviewing potential candidates to oversee a revived loan platform, according to
market players.
The move comes at the same time a similar effort is under way at Credit Suisse.
As reported last week, Credit Suisse has allocated $1 billion of capital for a re-
vived commercial MBS lending program and is recruiting an executive to oversee
it. Barclays is not as far along, as its senior management hasn’t yet signed off on
proceeding.
Credit Suisse and Barclays each have already approached multiple market vet-
erans about the jobs. According to industry pros, those who have been contacted
about one or both positions include Robert Brennan, Rochelle Dobbs, Leo Huang and
See BARCLAYS on Page 11
REIT Seeks $700 Million Loan on NY Trophy
Boston Properties has quietly begun shopping for a $700 million loan on the
trophy office building at 601 Lexington Avenue in Midtown Manhattan.
The Boston REIT, led by developer and publisher Mort Zuckerman, will use most
of the proceeds to retire a decade-old debt
package on the 1.6 million-square-foot build- The next issue of Commercial
ing. But it will still be able to take more than Mortgage Alert will be published
$200 million of cash out of the property, for- Jan. 7. Happy holidays!
merly known as Citigroup Center.
The existing debt matures in May. The
buzz is that the REIT is unlikely to hire a broker to line up a loan and will instead
conduct discussions directly with lenders. Market players said the REIT has already
held a few preliminary conversations with balance-sheet lenders over the past sev-
eral weeks. Securitization shops are likely to chase the assignment as well. But they
See TROPHY on Page 11
December 17, 2010 Commercial Mortgage ALERT 2

upscale, mixed-use development completed in 2002. Two of

Lenders Eye GGP Mall Near Miami
A General Growth Properties partnership is shopping for a $185
million long-term mortgage on a top mall in suburban Miami.
The group would use the proceeds to pay off an existing loan
of about the same size on the open-air property, called Village of
Merrick Park, in Coral Gables, Fla. That loan matures in August.
General Growth and its partners are having preliminary
discussions with both balance-sheet lenders and securitization
shops about a fixed-rate loan.
The luxury property, which encompasses 709,000 square
feet of retail space and 110,000 sf of office space, is part of an
the mall’s anchors, Nordstrom and Neiman Marcus, own their
own space, which isn’t part of the collateral of the existing loan.
Overall, the loan is backed by 379,000 sf of retail space and the
110,000 sf of office space.
The other retail anchors are an Equinox gym and home fur-
nishing store Artefacto. The in-line tenants include Tiffany &
Co., Gucci and Jimmy Choo. The average annual household in-
come in the mall’s vicinity was $74,000 last year.
Goldman Sachs wrote the existing loan in 2006. The original
balance was $195 million, consisting of a $170 million A-note
and a $25 million B-note. Goldman securitized the A-note via
a $4.2 billion pooled offering (GS
Mortgage Securities Trust, 2006-
GG8). That note’s balance has paid

NOTHING FINANCED
down by almost $10 million. The
current balance of the B-note was

NOTHING
unclear.
Commercial MBS lenders have
won the last two loan assignments

GAINED
from General Growth partnerships.
Morgan Stanley agreed to provide a
$235 million loan on the 1.1 million-
sf Christiana Mall in Newark, Del.,
and UBS was given the mandate for
a $235 million loan on the 1.2 mil-
lion-sf Kenwood Towne Center in
Cincinnati.
The buzz is that securitization
shops are facing less competition
from portfolio lenders for General
Growth loans because some insur-
ance companies have hard feelings
about loan workouts during the
Chicago REIT’s bankruptcy. General
Growth obtained generous loan ex-
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December 17, 2010 Commercial Mortgage
RXR Seeks Loan for NY Office Deal
Fund manager RXR Realty is looking for a low-leverage loan
of up to $200 million to finance its pending acquisition of the
office building at 1330 Avenue of the Americas in Midtown
Manhattan.
The Uniondale, N.Y., shop last month agreed to buy the
534,000-square-foot property for $400 million, or $749/sf,
from a Canadian lender.
RXR, which isn’t using a broker, is moving on a tight time-
line. It wants to line up a loan in time for the acquisition’s clos-
ing, scheduled by yearend. The low leverage could speed up the
process. But if it doesn’t have the loan in place by the deadline,
RXR is evidently prepared to pay cash and continue negotiating
a mortgage.
The company has been approaching banks, conduit shops
and insurance companies, according to market players. It is
open to a loan with either a fixed or floating rate, and a term of
5-10 years.
The 40-story building, between West 53rd and West 54th
Streets, is being sold by a unit of Montreal pension fund Caisse
de Depot et Placement du Quebec, which seized it after Mack-
lowe Properties of New York defaulted on mezzanine debt.
Macklowe bought the property from Deka Immobilien  in
December 2006, near the top of the market, for $498 million
and plowed in another $100 million for closing costs, a
renovation and other expenses. The all-in cost amounted to an
eye-popping $1,120/sf.
Deutsche Bank provided $500 million of debt, broken into a
$240 million securitized senior mortgage and $260 million of
mezzanine debt. The junior debt was carved into four tranches,
the senior piece of which was originally held by Cadim, a unit
of Caisse de Depot. Cadim subsequently transferred the invest-
ment to Otera Capital, another Caisse de Depot unit.
The occupancy rate fell to 66% from 90% during the market
downturn. Macklowe defaulted on the mezzanine debt in Janu-
ary 2009. Otera foreclosed this year, effectively converting its
mezzanine debt into equity and wiping out Macklowe and the
other mezzanine lenders in the process. Otera then hired CB
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ALERT 3
Richard Ellis to sell the building, which is currently about 70%
leased.
In May, RXR, which is led by former Reckson Associates
chief executive Scott Rechler, bought a 49% interest in the
748,000-sf property at 340 Madison Avenue in Manhattan from
hedge fund operator D.E. Shaw. The recapitalization valued the
building at $570 million. New York fund shop Broadway Part-
ners owns the remaining 51% stake. 
FDIC Delays, Rejiggers Loan Auction
In the wake of lukewarm interest, the FDIC has delayed an
$823 million loan auction in order to make it more investor-
friendly.
The offering is the latest in a series of so-called “structured
sales” by the agency, under which a private-sector investor buys
a minority stake in a portfolio of distressed mortgages, works
out the assets and splits any profits with the FDIC.
Investors originally were given until mid-November to make
offers. The portfolio was divided into two pools, and investors
could bid on either or both. But when the response was tepid,
the FDIC pulled back the offering, amended the terms and set
a new deadline of Jan. 11.
Investors can now bid on a stake of up to 50%, versus the
previous choices of 20% or 40%. The agency also increased the
asset-management fee by 25 bp, to 75 bp.
The FDIC also eliminated a sliding scale that reduced the
winning bidder’s share of the net cashflow as profits climbed.
Investors bristled at the sliding scale because, in the words of
one fund manager, “the better job you did, the less you got paid
of the incremental dollar. We all hated that.”
The portfolio being shopped contains 1,500 loans assumed
from about a dozen failed banks. The loans are divided based
on whether they are tied to commercial or residential real estate.
One pool has $505 million of commercial mortgages, and the
other has $318 million of residential loans. The loans are catego-
rized as acquisition, development or construction loans, but land
loans make up about three-quarters of each pool, by balance.
The collateral is concentrated in Florida (37.6% of the total
portfolio balance), Michigan (21.2%) and Utah (9.1%). Loans
that account for almost three-quarters of the balance are at
least four months past due. Less than one-quarter of the loans
are performing.
A joint venture between Cushman & Wakefield of New York
and UniCorp Services of Dallas is marketing the portfolio. The
duo recently brokered the sale of a stake in a $300 million port-
folio for the FDIC.
The FDIC recently offered minority stakes in three other
portfolios via Milestone Advisors of New York. Fund manager
Hudson Realty Capital acquired a 40% stake in a $102 million
portfolio for 18 cents on the dollar. That valued the portfolio at
$18.4 million. The FDIC will supply debt financing, reducing
the cash outlay of New York-based Hudson. Stakes in the two
other portfolios, with a combined balance of about $400 mil-
lion, are being sold to unidentified investors. 
December 17, 2010 Commercial Mortgage
REIT-Bond Market Shutting Down
It looks like the issuance market for REIT bonds has closed
for the year.
The recent jump in U.S. Treasury rates has prompted com-
panies that were thinking about floating deals to wait and see
whether the trend reverses next month. The yield on 10-year
Treasurys has risen by some 60 bp since last week, to about
3.5%.
“The mindset seems to be that people will wait until after
New Year’s,” said one investment banker. “There was a rumor
that another bond offering was coming, but then it apparently
got pulled back. I think that’s it.”
What had been heavy issuance for most of the year largely
dried up last month, after the Federal Reserve’s announcement
that it would undertake a second round of “quantitative easing”
touched off a rate spike. Since then, only one offering of REIT
paper has been completed: a $400 million issue that Healthcare
Realty priced on Dec. 8.
The year-to-date tally of REIT-bond issuance stands at $17.3
billion — the second-highest annual total since the record
$18.5 billion of volume in 2006. The most-prolific issuer by far
has been Simon Property, which floated a combined $3.2 billion
of bonds in January and August.
Meanwhile, trading in the secondary market slowed con-
siderably this week. The average spread on top-tier paper was
holding steady, after tightening by up to 10 bp last week. The
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ALERT 4
average spread on 10-year bonds from nine REITs, with an av-
erage rating of triple-B-plus, stood at 186 bp a week ago, ac-
cording to Wells Fargo. 
ZAIS Eyes Special-Servicing Rights
ZAIS Servicing Asset Management is making a push into spe-
cial servicing.
S&P and DBRS have both endorsed the shop as qualified to
act as a special servicer for commercial MBS loans. The Dallas
firm is also in talks to secure Fitch’s imprimatur, which could
come in the first quarter.
ZAIS, formed in July, is a subsidiary of ZAIS Group, a high-
yield investment shop in Red Bank, N.J. The parent manages
structured-finance investments for institutional investors and
wealthy individuals, often via hedge funds. It made the push
into loan servicing to take advantage of the continuing distress
of CMBS loans and other mortgages.
The subsidiary, which calls itself Z-SAM, is aiming to pursue
assignments selectively. The goal is to be named as the special
servicer of $10 billion of loans within 12 months and doubling
that portfolio the following year.
“We are not looking to compete with or be another LNR or
CWCapital,” said Mike Wurst, chief executive of the nascent ser-
vicing platform, referring to the two biggest special servicers.
“We are organized as a SWAT team.”
The operation is aiming to have its individual asset manag-
ers oversee an average of 10 loans, versus the industry average
of 17, as cited in an August report by Fitch.
It is also pursuing assignments as primary or sub-servicer of
performing loans — both securitized mortgages and portfolio
loans held by banks, credit unions, fund operators and insur-
ance companies.
Wurst has hired several executives as principals in the
past six months, including Don Kalescky, who previously ran
his own servicing shop; Tom McDaniel, a former principal of
Stonehill-PRM Realty of Dallas; and Todd Moore, who previously
worked at advisory shop 1st Service Solutions of Dallas. The
firm also added Mike Hirsbrunner as a principal and controller.
He also had a previous stint at Stonehill-PRM.
Wurst reports to John Jardine, a managing director of ZAIS
Group. 
Commercial Mortgage Alert on iPad
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Commercial Mortgage Alert on your Apple iPad each
week? It’s easy: When the newsletter arrives in your
iPad’s Mail app every Wednesday, click on the attached
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If you’re not already receiving Commercial Mortgage
Alert on your iPad, contact JoAnn Tassie at 201-659-1700
or jtassie@hspnews.com.
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The top names in NYC commercial real estate rely on us to close even the most complicated

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Or call 201-659-1700. You can also complete the Order Form on the last page of this newsletter7” x 9” and
Commercial
fax it toMortgage Alert
201-659-4141.
December 17, 2010 Commercial Mortgage
Fund Shop Nears $500 Million Goal
An investment shop is most of the way toward its $500 mil-
lion equity goal for a fund that makes opportunistic invest-
ments in commercial and residential MBS, as well as whole
loans.
Fir Tree Partners has already closed on more than $400 mil-
lion of commitments and is telling investors that it expects to
reach its overall goal by midyear.
The vehicle, Fir Tree Real Estate Opportunity Fund 2, is the
second in a series by the New York company, which primarily
operates hedge funds.
The predecessor, Fir Tree Mortgage Opportunity Fund,
completed raising roughly $400 million of equity in 2008 and
is almost fully invested. The vast majority of its capital was de-
ployed into residential real estate debt.
By contrast, market players said, up to 50% of the new ve-
hicle’s capital will be plowed into commercial real estate, where
Fir Tree is seeing a greater number of attractive opportunities.
There are no restrictions on the use of leverage, but debt was
employed sparingly in the first vehicle.
The targeted return couldn’t be learned. However, given Fir
Tree’s hedge fund background, it’s likely the firm will shoot for
at least 20%. The company declined to comment.
Fir Tree, which doesn’t use a placement agent, began talking
with investors about the vehicle earlier this year. It’s unknown
INNOVATIVE CAPITAL SOLUTIONS
NBS Real Estate Capital is actively deploying
preferred equity, j.v. equity and mezzanine
debt.
Sample Situations: Property and/or loan acquisition,
gap at refinancing, harvest trapped equity, delever-
age as part of extension/workout.
Minimum Investment: $2 million
Property Type: Multifamily, industrial, office and retail
Geographic: Western U.S. – west coast and mountain states
Term: 3 to 8 years
Process: Discretionary capital ensures reliability and speed. Closings
typically take less than 30 days.
Maximum Leverage: 85%
INTEGRITY · FLEXIBILITY · INGENUITY
For more information, contact:
Justin Dennett
503.952.0794
jdennett@nbsrecapital.com
David Tindall
503.952.0790
dtindall@nbsrecapital.com
www.nbsrecapital.com
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Or call 201-659-1700. You can also complete the Order Form on the last page of this newsletter and fax it to 201-659-4141.
ALERT 6
when the initial equity close was held.
The two real estate funds are Fir Tree’s first commingled,
closed-end vehicles. Overall, the company has some $5 billion
of assets under management.
Fir Tree was founded in 1994 by principal Jeffrey Tannen-
baum, who formerly worked at Kohlberg & Co. Managing part-
ner Andrew Fredman and managing director Clinton Biondo
work on the real estate funds. 
Securitization Consultant to Spin Off
WhiteRock Group is regaining its independence, a year after
the structured-finance consulting and recruiting shop became
part of a much-bigger company.
WhiteRock, which was formed in 2004 by former UBS sales
executive Gustavo Dolfino, was acquired in January by Accretive
Solutions of Melville, N.Y.
Accretive, which has more than 1,000 employees, special-
izes in recruiting and consulting work that mostly pertains to
financial reporting, accounting, regulatory compliance and
computer systems. Patrick Persons, Accretive’s former chief
executive, saw the addition of WhiteRock as an opportunity
to raise his company’s profile among investment banks and
money managers in the structured-finance business. But he
was subsequently replaced by Daniel Weinfurter, who prefers to
focus on Accretive’s core business.
As a result, WhiteRock will be spun off on Jan. 5. Dolfino,
who had stayed on at Accretive as a senior managing director,
will resume his previous role as president of New York-based
WhiteRock.
Dolfino plans to bring along the five managing directors
who have continued to work for him following the Accretive
takeover. They include Amit Matta, who will be a partner in the
new WhiteRock. The others are Paul Boocock, Paul Gravelle,
Andrew McCarthy and Louis Sill.
WhiteRock’s first order of business will be to rebuild its
staff. The firm hopes to re-hire about 24 employees in New
York, London and Hong Kong that it was forced to let go upon
joining Accretive. Many have continued to work for Dolfino as
contract consultants since then.
Meanwhile, WhiteRock also wants to hire about 25 staffers
to handle executive-search assignments and help expand the
firm into other lines of business. “They don’t need to have re-
cruiting experience,” Dolfino said. “We’re looking for industry
professionals.”
Plans call for offering investment-banking and advisory ser-
vices to fixed-income clients soon. WhiteRock also intends to
acquire a licensed broker-dealer, a move that would enable it to
trade commercial MBS and other structured products. 
Drill down deep into our market statistics. Go to The Marketplace
section of CMAlert.com and click on “CMBS Market Statistics,”
which lets you see the data points behind all the charts that
Commercial Mortgage Alert publishes each week. It’s free.
December 17, 2010 Commercial Mortgage ALERT 7

exceeding 200 bp.

Spreads Widen on CMBS Offering
Goldman Sachs and Citigroup ran into some unexpected dif-
ficulty while placing the triple-A paper from their latest joint
offering of commercial MBS.
The $876.5 million offering’s two senior classes wound up pric-
ing yesterday at spreads that were 5-10 bp wider than price talk.
A $347 million class with a 4.9-year average life went out the
door at 130 bp over swaps, up from price talk of 120-125 bp. A
$376.1 million class of 9.8-year paper went for 140 bp, up from
130-135 bp (see Initial Pricings on Page 11).
Goldman and Citi found stronger demand for the three
investment-grade classes with lower ratings, all with 10-year
terms. The double-A bonds printed at 195 bp, down from price
talk of 210-220 bp, and the single-As priced at 265 bp, down
from 280-290 bp. The triple-B-minus class priced at the low
end of talk, at 380 bp.
On the 9.8-year class rated triple-A, Goldman and Citi tried
to push the pricing to a new level. The previous low spread for
comparable tranches from new issues this year was 135 bp (see
table below). But the dealers apparently hit a resistance point.
As of Wednesday morning, only about half of all the triple-A
paper had been placed, forcing Goldman and Citi to offer juic-
ier yields, investors said.
Timing evidently was also partly to blame for the soft de-
mand, because the deal came to market as many buysiders were
already on the sidelines, wrapping up their books for the year.
The trading of seasoned bonds with relatively tight spreads
was also soft this week. “They’ve been stuck in the mud lately,”
said one trader. “People want the stuff with higher spreads.” He
noted that activity centered around senior bonds with spreads
For example, the going rate for 10-year super-seniors from a
2005 transaction (Bank of America Commercial Mortgage Trust,
2005-6) was 140-150 bp over swaps at mid-week. While that was
slightly tighter than a week earlier, similar bonds from the bench-
mark GG-10 deal (GS Mortgage Securities Trust, 2007-GG10)
were trading at 255 bp — down about 25 bp over the same period.
Meanwhile, investors noticed an increase over the past week
or so in the volume of bid lists containing bonds experiencing
interest shortfalls or poised to get hit soon. The most notewor-
thy offerings came from the triple-A portions of several securi-
tizations collateralized in part by a $2.7 billion loan to Beacon
Capital on office properties in Seattle and Washington, D.C.
Special servicer C-III Asset Management modified the fixed-
rate mortgage on Dec. 3, granting a five-year extension and
cutting the interest rate to 3%, from 5.8%. The loan, one of the
largest ever to be securitized, was funneled into the collateral
pools of six CMBS transactions in 2007.
Market players said the modification will lead to big jumps
in interest shortfalls in those deals, possibly reaching up to the
A-J classes on two (Morgan Stanley Capital I Trust, 2007-HQ12
and 2007-IQ14). Such paper from IQ-14 was changing hands
at about 68 cents on the dollar on Tuesday, down about 3 cents
from before S&P publicized the loan modification on Dec. 9.
The modification gives Beacon more latitude to sell collat-
eral properties and prepay debt, which in turn will likely lead
to early paydowns on some of the corresponding super-senior
CMBS. That could trigger losses for bondholders who bought
the paper at above-par prices, which has been common this
year. So a higher-than-usual volume of that paper came up for
sale this week as well, traders said. 

Scorecard for CMBS Spreads on New Issues

Spreads to swaps

Multi-borrower
Size Pricing Subordination (%) AAA AAA
Deal ($Mil.) Date Ratings AAA BBB- (5 yr) (10 yr) AA A BBB-
RBS, 2010-MB1 $309.7 4/9/10 M/R 22.25 0.00 +90 +190 +290 +425
J.P. Morgan, 2010-C1 716.3 6/11/10 M/F 15.00 4.75 +140 +165 +250
GS Mortgage, 2010-C1 788.5 8/4/10 M/D 18.50 6.00 +125 +135 +190 +265 +400
J.P. Morgan, 2010-C2 1,101.3 10/5/10 S/F 18.25 5.00 +130 +150 +250 +320 +415
COMM, 2010-C1 856.6 10/20/10 M/F 17.38 5.88 +130 +140 +240 +310 +425
Wells Fargo, 2010-C1 735.9 10/28/10 M/F 17.75 5.88 +120 +135 +220 +290 +400
GS Mortgage, 2010-C2 876.5 12/16/10 M/F 17.50 5.75 +130 +140 +195 +265 +380

Single-borrower
Size Pricing Subordination (%) AAA AAA
Deal ($Mil.) Date Ratings AAA BBB- (5 yr) (10 yr) AA A BBB-
DDR, 2009-DDR1 $400.0 11/16/09 M/S/F 19.13 +140
BofA, 2009-FDG 460.0 12/3/09 S/F 23.91 0.00 +400 +450
J.P. Morgan, 2009-IWST 500.0 12/10/09 S/R 22.20 0.00 +150 +205 +360 +420
OBP, 2010-OBP 650.0 6/25/10 S/F/R 0.00 +150
Vornado, 2010-VNO 660.0 8/10/10 S/F 23.59 0.00 +110 +120 +195 +250 +360
J.P. Morgan, 2010-CNTR 484.6 9/1/10 M/S/R 29.40 0.00 +135 +165 +250 +300 +415
Extended Stay, 2010-ESH 2,000.0 11/3/10 M/S/D 40.00 +165 +285 +350
Americold, 2010-ART 600.0 12/9/10 S/F/R 34.17 0.00 +160 +170 +280 +360 +425

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December 17, 2010 Commercial Mortgage
S&P Trots Out CMBS Analytics Tool
S&P has started rolling out a free analytics platform that
projects losses on fixed-rate commercial MBS transactions
under various economic scenarios.
The rating agency unveiled its first “CMBS recovery ana-
lytic” report to issuers and investors on Wednesday, cover-
ing more than 100 deals. The goal is to have projections on
all S&P-rated multi-borrower deals — about 350 — avail-
able by the end of March and to cover the deals it doesn’t
rate by midyear.
Starting early next year, reports on projected losses will
be posted for free on one of the agency’s web sites, sfrecov-
eries.com. The reports will be updated periodically.
The research initiative is being overseen by Howard Es-
aki, who was hired in June to build a structured-finance
research group at S&P. It is separate from S&P’s ratings of
CMBS, which hinge on the likelihood of default.
The initial report is tied to CMBS transactions included
in Markit’s CMBX index because they serve as benchmarks
for buysiders and because it was possible to get them into
the program by yearend, said Zack Wolf, a director on Esaki’s
team. “When we spoke to investors, we told them we would
try to finalize the framework by yearend,” he said.
Perhaps most importantly, this week’s rollout sheds light
NOTICE OF PUBLIC SALE OF COLLATERAL
Please take notice that 100% of the limited liability
company interests in Turnberry/Centra Sub, LLC, a Delaware
limited liability company (“T/C Sub”), will be offered for sale at a
public auction by Richard B. Maltz, Auctioneer, DCA# 1240836,
DQGVROGWRWKHKLJKHVWTXDOL¿HGELGGHURQ-DQXDU\DW
 SP (DVWHUQ 7LPH DW WKH ODZ RI¿FHV RI 6NDGGHQ$USV
Slate, Meagher & Flom LLP, located at Four Times Square,
New York, New York 10036. The principal asset of T/C Sub
is a mixed-use property located generally on approximately 99
acres of real property bounded by Las Vegas Boulevard South
RQWKHHDVW,QWHUVWDWHRQWKHZHVW(DVW6XQVHW5RDGRQWKH
QRUWKDQG,QWHUVWDWHRQWKHVRXWKLQ&ODUN&RXQW\1HYDGD
commonly known as Town Square.
This sale is held to enforce the rights of the secured party
under that certain Mezzanine Pledge and Security Agreement
executed by Turnberry/Centra Quad, LLC, as pledgor, dated
2FWREHUDVDPHQGHGRUPRGL¿HG7KHVHFXUHGSDU-
ty reserves the right to reject any or all bids and terminate or
adjourn the sale to another time as the secured party may
desire, by announcement at the place and on the date of sale,
and any subsequent adjournment thereof, without further
publication.
Interested parties who would like additional information
UHJDUGLQJ WKH FROODWHUDO WKH UHTXLUHPHQWV WR EH D ³TXDOL¿HG
bidder” or the terms of the sale should visit the website
[www.eastdilsecured.com/notices/TownSquare.htm] or contact
ALERT 8
on how S&P is combining historical commercial-mortgage
performance with projected real estate values based on a
macroeconomic outlook.
It also shows the five economic scenarios that S&P is us-
ing as a basis for calculating projected CMBS losses, up from
two that the agency proposed in August when it put out a
request for comment from industry pros. After establishing
a median loss-projection, or baseline, for a particular CMBS
issue, the analytics program also provides estimated losses
based on economic scenarios that are labeled as “bearish,”
“very bearish,” “bullish,” or “very bullish.”
S&P’s initial report predicts the highest losses will be
among bonds from CMBX.4, which references paper issued
at the peak of CMBS issuance in the first half of 2007, just
before the credit markets collapsed. At that point loan-un-
derwriting standards were at their lowest.
The model projects that the loss rate on those bonds will
range from 13.9% to 29.4%, with a median expectation of
15.6%. Its median loss-projection for bonds tracked by oth-
er series of the CMBX index range from 6.8% to 13.3%.
The analytics model incorporates macroeconomic data
supplied by David Wyss, S&P’s chief economist. It also uses
metropolitan statistical data, mostly compiled by CB Richard
Ellis, to help evaluate securitized commercial mortgages,
said James Manzi, a senior director in Esaki’s group. The
goal of the research initiative is to raise S&P’s profile among
investors in the CMBS marketplace. 
BBVA Shops Sour Loan on Condos
BBVA Compass Bank is marketing a nonperforming $17.9
million construction loan on the unsold units at a condo-
minium building in Athens, Ga., about 70 miles east of At-
lanta.
The borrower, a local investment group, completed the
property in 2007, but has sold only 13 of the 85 units. The
remaining 72 units were appraised last year at $10.4 million.
Twenty-five of those units have been rented under one-year
leases.
The nine-story building, called Georgia Traditions, is at
755 East Broad Street, two blocks from the University of
Georgia campus.
The floating-rate loan, which BBVA originated in 2006,
had a two-year term and a one-year extension option. Mar-
keting materials described the loan as nonperforming, but
provided no further details. Colliers International is market-
ing the note for the Birmingham, Ala., bank.
The unsold condos have 1-3 bedrooms and range in size
from 572 to 1,350 square feet. There are seven penthouse
units on the top floor, five of which are unsold. Rents ranged
from $700 to $2,200 last year.
The unsold units total 59,000 sf. Comparable sales in
$GDP6SLHVRI(DVWGLO6HFXUHG//&DWRUDW Athens last year averaged $393/sf, indicating a potential
:HVWWK6WUHHWQG)ORRU1HZ<RUN1HZ<RUN value of some $23 million, according to the marketing ma-
terials. 

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December 17, 2010 Commercial Mortgage ALERT 9

some hints of life in the U.S., activity remained virtually non-

Rankings ... From Page 1 existent elsewhere. Non-U.S. volume fell for the fourth year in a
originating commercial mortgages over the past year or so, and row, sinking to just $2.8 billion, down from $4.6 billion in 2009.
a pipeline of transactions is starting to form. As previously re- After peaking at $96.1 billion in 2006, issuance fell to $85.5 bil-
ported, eight deals totaling $13 billion are already in the queue lion in 2007 and has not exceeded $7 billion annually since.
for the first quarter. With non-U.S. issuance still in the dumper, the Top 5 global
To be sure, the league tables don’t carry the same luster as bookrunners mirrored the U.S. ranking.
they did when activity was booming. But they are a good indi- The biggest increase in volume this year was recorded in
cation of which shops have gotten out of the gate the fastest as agency CMBS, which rose almost threefold, to $25.6 billion.
the CMBS market tries to get back on its feet. Activity in the CDO/resecuritization sector climbed more
The loan-contributor ranking tracks the “principal” busi- modestly, to $7 billion from $4.1 billion — due entirely to
ness of lenders in the CMBS market — that is, the degree to CMBS repackagings. 
which firms put their own capital at
risk by amassing loans for securitiza-
tion. It counts collateral loans origi-
nated with the intent of securitiza-
tion and warehoused in advance of
an actual CMBS deal.
When the market was hot, the vast
majority of CMBS transactions in the
U.S. were backed by loans originated in
advance of securitization. That set up
the potential for hefty gains, but also
left lenders exposed to the risk that in-
terest rates, spreads or credit conditions
would move against them. In 2007,
the last year of significant issuance, a
whopping 97% of the collateral loans,
strength
by balance, were funded in advance of
securitization, with only 3% funded
with the proceeds of bond sales.
and stability
This year, $3.8 billion, or roughly In times of uncertainty.
one-third, of the commercial mort-
gages backing U.S. deals were funded Our Special Servicing and Asset Management clients rely on us for:
when bond sales closed — a sign that • Innovative workout strategies
CMBS shops were treading carefully, • Depth and experience
wary of warehousing loans. • Maximum recovery
The remaining $7.9 billion of • Exceptional service
mortgages were originated in ad-
vance of securitization. J.P. Morgan’s KeyBank Real Estate Capital® is one of the most highly rated and regarded
$3.1 billion of loans accounted for Special Servicers in the business. Our experienced professionals
respond quickly to identify issues, gain control of collateral and execute
40% of the total. Also relatively active
near-term disposition at market trade to deliver faster results. In fact,
were Deutsche ($1.6 billion), Gold- we have one of the industry’s highest recovery percentages. Through it
man Sachs ($1.1 billion), Citigroup all, our dedication to ethical business practices helps to ensure valued
($518.2 million) and Ladder Capital relationships and reputations remain intact.
Finance ($329.8 million).
J.P. Morgan also outstripped its ri- call Dan Olsen at 214-414-2564 or Clark Rogers at 816-460-2136
vals in the U.S. bookrunner ranking.
Its $4.3 billion of activity was twice as
high as that of runner-up Deutsche,
which led $2.15 billion of transac-
tions. Rounding out the Top 5 were
Goldman ($1.4 billion), Citi ($1.1 Banking products are offered by KeyBank National Association. KeyBank is Member FDIC.
Securities products and services such as investment banking and capital raising are offered by KeyBanc Capital
billion) and Bank of America ($926.1 Markets, Inc. Member NYSE/FINRA/SIPC.
million). Credit products subject to credit approval.
While issuance finally showed ©2010 KeyCorp. ADL1554

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December 17, 2010 Commercial Mortgage ALERT 10

INITIAL PRICINGS

GS Mortgage Securities Trust, 2010-C2

Pricing date: Dec. 16 Property types: Retail (38.8%), office (33.8%), hotel (8.6%), mixed-use (7.1%), multi-
family (4.6%), industrial (4.1%), ground-leased land (1.7%), mobile-home park (1%)
Closing date: Dec. 28 and self-storage (0.3%).
Amount: $876.5 million Concentrations: Pennsylvania (20.3%), Ohio (13.6%), New York (11.8%) and California
(11.3%).
Goldman Sachs, Loan contributors: Goldman (59.5%) and Citi (40.5%).
Seller/borrower:
Citigroup Largest loans: An $88 million loan to Jack Resnick & Sons, Ruben Cos. and United
Federation of Teachers on the 400,000-sf office building at 52 Broadway in New York;
Goldman Sachs, the $64.8 million senior portion of a $75 million loan to Mordechai Korf on One Cleve-
Lead managers:
Citigroup land Center and Penton Media Building, two office buildings encompassing 1.1 million
sf in Cleveland; a $61.9 million loan to Forest City Enterprises on Station Square, a
CastleOak Securities, 670,000-sf office and retail complex in Pittsburgh; the $48.5 million senior portion of a
Co-managers: RBS, $57.8 million loan to Michael Young, Peter Soens and Jeffrey Seligsohn on the
Wells Fargo 617,000-sf office building at 123 South Broad Street in Philadelphia; a $43 million loan
to Cole Credit Property Trust 3 on Whittwood Town Center, a 686,000-sf retail center in
Master servicer: Wells Fargo Whittier, Calif.; a $31.5 million loan to Cole Credit Property Trust 3 on 20 retail proper-
Special servicer: Midland Loan Services ties, encompassing 555,000 sf, in 13 states; a $30 million loan to Cole Credit Property
Trust 3 on 15 retail properties, encompassing 332,000 sf, in 10 states; the $29.4 mil-
Trustee: U.S. Bank lion senior portion of a $34.9 million loan to Joseph Jaeger Jr. and D. Randolphe
Waesche on the 331-room New Orleans Marriott Convention Center; a $28.2 million
Certificate administrator: Wells Fargo
loan to American Realty Capital on two distribution centers, encompassing 1.2 million
Operating Advisor: Pacific Life sf, in Ohio and California; and a $28 million loan to Pettinaro Enterprises Holdings on
the 245,000-sf Fox Run Shopping Center in Bear, Del.
Offering type: Rule 144A B-Piece buyer: BlackRock Financial.
Notes: Goldman and Citi teamed up to securitize mortgages that they had originated.
See article on Page 7.
CMA code: 20100090.

Amount Rating Rating Subord. Coupon Dollar Yield Maturity Avg. Life Spread
Class ($Mil.) (Moody's) (Fitch) (%) (%) Price (%) (Date) (Years) (bp) Note Type
A-1 347.000 Aaa AAA 17.50 3.849 100.997 3.629 12/10/43 4.87 S+130 Fixed
A-2 376.072 Aaa AAA 17.50 5.162 100.994 5.070 12/10/43 9.84 S+140 Fixed
B 26.293 Aa2 AA 14.50 5.231 97.665 5.637 12/10/43 9.95 S+195 Fixed
C 29.580 A2 A 11.13 5.231 92.684 6.337 12/10/43 9.95 S+265 Fixed
D 47.110 Baa3 BBB- 5.75 5.231 85.171 7.487 12/10/43 9.95 S+380 Fixed
E 12.051 Ba2 BB 4.38 12/10/43 9.95 Fixed
F 9.860 B2 B 3.25 12/10/43 9.95 Fixed
G 28.485 NR NR 0.00 12/10/43 9.95 Fixed
X-A(IO) 723.072* Aaa AAA 12/10/43 Fixed
X-B(IO) 153.379* Aaa NR 12/10/43 Fixed
*Notional amount

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December 17, 2010 Commercial Mortgage
Trophy ... From Page 1
face stiff competition from insurers and foreign banks, which
have been aggressively prowling for loans on trophy Manhattan
buildings.
At the top of the list of candidates is Bank of China, which
last year decided to significantly expand its origination of com-
mercial mortgages in the U.S. The bank, backed by the govern-
ment of China, has since bid aggressively to land several large
loans, including an $800 million mortgage on the 1.8 million-sf
skyscraper at 245 Park Avenue — one of Manhattan’s top office
buildings.
The building at 601 Lexington Avenue is virtually fully oc-
cupied. In October, Boston Properties signed British law firm
Freshfields Bruckhaus to a 108,000-sf lease.
Boston Properties lined up a $525 million loan on 601
Lexington Avenue in 2001 from Deutsche Bank. The package
contained $395 million of senior debt that was securitized via
two transactions, and $130 million of mezzanine debt that
was divided into two tranches. The debt package has a current
balance of roughly $450 million. The blended coupon is 7.2%.
That’s above prevailing rates, so Boston Properties should be
able to lower its borrowing rate.
The 59-story tower, which dropped the Citigroup Center
name in 2008, stretches from East 53rd Street to East 54th
Street, between Lexington Avenue and Third Avenue. The col-
lateral for the existing loan includes most of the space in an
adjacent six-story building with office and retail space. 
Barclays ... From Page 1
Randy Reiff. Brennan, the former CMBS chief of Credit Suisse,
is now at Guggenheim Capital. Dobbs was formerly head of the
CMBS group at Bank of America. Huang had stints at Goldman
Sachs and Starwood Property. And Reiff, who is running the
Decision-Makers
Scour This Space
Do you sell products or services to professionals in
real estate finance and the CMBS market?
You can take dead aim at your target market by
advertising in Commercial Mortgage Alert, which is
devoured each week by the highest-spending
decision makers in the business.
For more information, contact Mary Romano at 201-
234-3968 or mromano@hspnews.com. Or go to
CMAlert.com and click on “Advertise.”
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ALERT 11
debt platform at Macquarie’s credit trading division, formerly
was in charge of the CMBS groups at Bear Stearns and J.P. Mor-
gan.
Before the market crash, Barclays was a mid-level player in
the CMBS lending market. In 2006 and 2007, it contributed
$5.8 billion of commercial mortgages to securitizations. Like
every other operator, the bank shut its conduit program when
the market imploded. But it maintained a CMBS trading opera-
tion and continued to pursue large financing assignments for
its major clients.
The London-based bank recently had some success on the
large-loan front, winning a piece of a mandate to arrange a $1.5
billion CMBS mortgage on a portfolio of skilled-nursing and
assisted-living facilities owned by Genesis Healthcare, a Ken-
nett Square, Pa., company owned by fund shop JER Partners
of McLean, Va., and Formation Capital of Alpharetta, Ga. That,
coupled with the ongoing resurrection of the CMBS market,
is prompting a review of whether to revive the bank’s conduit
program. A formal decision is still months away, market play-
ers said. A bank spokesman declined to comment.
If Barclays hires a lending pro, that executive would work
alongside Haejin Baek, who heads real estate capital markets,
and investment banking pros Steven Hash and P. Sheridan
Schechner. Hash is global head of real estate investment bank-
ing, and Schechner is the U.S. real estate investment banking
chief. 
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December 17, 2010 Commercial Mortgage
RECENT CMBS RATING CHANGES
Moody’s S&P
Current Current
Balance Orig. Old New
Class ($Mil.) Rating Rating Rating
CWCapital COBALT, 5R A-1 $420.8 Aaa Ba1 Caa3
A-2 746.6 Aaa Ca C
B 85.8 Aa1 Ca C
C 141.6 Aa2 Ca C
D 98.7 Aa3 Ca C
E 128.7 A1 Ca C
F 60.1 A2 Ca C
G 94.4 A3 Ca C
N-Star REL CDO Ltd., 6 A-1 174.8 Aaa Aaa A1
A-R 52.0 Aaa Aaa A1
A-2 27.2 Aaa Aaa Baa3
B 21.8 Aa2 Aa2 Ba2
C 11.8 A1 A1 B1
D 10.0 A3 A3 B3
E 10.1 Baa1 Baa1 Caa1
F 7.7 Baa2 Baa2 Caa2
G 9.9 Baa3 Baa3 Caa3
H 6.1 Ba2 Ba2 Caa3
J 18.0 Ba3 Ba3 Caa3
K 14.0 B2 B2 Caa3
Resource Real Estate A-1 129.4 Aaa Aaa Aa1
Funding CDO, 2006-1 B 6.9 Aa2 A3 Ba2
C 20.7 A1 Baa2 B3
D 15.5 A3 Baa3 Caa1
E 20.7 Baa1 BA1 Caa2
F 19.8 Baa2 Ba2 Caa2
G 17.3 Baa3 B1 Caa3
J 14.7 Ba2 Caa1 Caa3
Resource Real Estate A-2 57.5 Aaa Aaa Aa3
Funding CDO, 2007-1 B 22.5 Aa1 Aa1 Baa3
C 7.0 Aa2 Aa3 Ba2
D 26.8 Aa3 A3 B2
E 11.9 A1 Baa2 Caa1
F 11.9 A2 Baa3 Caa1
G 11.3 A3 Ba1 Caa2
H 11.3 Baa1 Ba2 Caa2
J 11.3 Baa2 Ba3 Caa3
K 10.0 Baa3 B2 Caa3
L 18.8 Ba2 Caa1 Caa3
M 28.8 B2 Caa2 Caa3
Sorin Real Estate A-1 215.8 Aaa A2 Baa2
CDO Ltd., 4 A-2 18.9 Aaa Baa3 Caa1
A-3 6.1 Aaa Ba1 Caa2
B 11.4 Aa2 Ba1 Caa3
C 28.2 A1 B1 Ca
D 10.3 A3 B3 C
E 9.4 Baa1 B3 C
F 12.6 Baa3 Caa2 C
G 17.6 Ba2 Ca C
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ALERT 12
Dec. 13 - Dec. 15
Balance Orig. Old New
Class ($Mil.) Rating Rating Rating
ARCap Resecuritization A-2 250.8 AAA BBB+ BB-
Inc., 2004-RR3 B 40.9 AA BBB- B-
C 31.4 A BB CCC+
D 6.8 A- BB- CCC
E 16.4 BBB+ B CCC-
F 13.6 BBB B- CCC-
G 13.0 BBB- CCC+ CCC-
H 18.4 BB+ CCC CCC-
ARCap Resecuritization A-D 68.0 AAA BBB- B+
Inc., 2006-RR7 A 47.1 AAA BBB- B+
B 94.0 AA CCC CCC-
C 52.8 A+ CCC- D
D 21.1 A CCC- D
E 22.1 A- CCC- D
F 34.5 BBB+ CCC- D
G 28.8 BBB CCC- D
H 40.3 BBB- CCC- D
J 56.6 BB+ CCC- D
K 14.4 BB CCC- D
L 14.4 BB- CCC- D
Citigroup Commercial G 14.4 BBB BB- B-
Mortgage, 2005-C3 H 12.6 BBB- B+ CCC-
J 5.4 BB+ B D
K 7.2 BB B- D
L 5.4 BB- CCC D
M 5.4 B+ CCC- D
COMM, 2001-J2-OM OM-2 3.4 BBB- AA- A
OM-3 3.2 BB+ BBB+ BBB
GMAC Commercial E 18.9 BBB- AA AAA
Mortgage, 1998-C2 F 88.6 BB+ BBB B
GMAC Commercial G 10.7 BBB A+ A
Mortgage, 2002-C1 H 8.9 BBB- A BBB-
J 14.2 BB+ BBB+ B
K 12.4 BB BB+ CCC
L 5.3 BB- B+ CCC-
M 5.3 B+ CCC+ D
N 8.0 B CCC- D
O 3.6 B- CCC- D
Kimberlite CDO Ltd., 1 B 40.1 AA CCC D
C 46.6 A+ CCC- CC
D 10.3 A CCC- CC
LB-UBS, 2003-C8 S 3.5 B- B- CCC-
December 17, 2010 Commercial Mortgage
RECENT CMBS RATING CHANGES
S&P
Current Current
Balance Orig. Old New
Class ($Mil.) Rating Rating Rating
LB-UBS Commercial B 12.5 AA+ AA+ AA
Mortgage, 2004-C1 C 12.5 AA AA AA-
D 16.0 AA- AA- A+
E 21.4 A+ A+ A-
F 12.5 A A BBB+
G 24.9 A- A- BBB
H 19.6 BBB+ BBB+ BB
J 14.2 BBB BBB B
K 16.0 BBB- BBB- CCC
L 7.1 BB+ BB+ CCC-
M 5.3 BB BB CCC-
N 3.6 BB- BB- CCC-
P 7.1 B+ B+ CCC-
Q 3.6 B B D
S 1.8 B- B- D
Morgan Stanley Capital B 31.4 AA AA AA+
I Trust, 2003-TOP11 C 32.9 A A A+
L 3.0 B B- CCC+
M 3.0 B- CCC+ CCC
Morgan Stanley Capital H 12.0 BBB B CCC+
I Trust, 2004-HQ4 J 15.4 BBB- B- D
K 5.1 BB+ CCC+ D
L 5.1 BB CCC D
M 5.1 BB- CCC- D
N 1.7 B+ CCC- D
O 3.4 B CCC- D
P 3.4 B- CCC- D
Morgan Stanley Capital D 27.3 AA- B CCC
I Trust, 2006-IQ12 E 13.7 A+ B- D
F 23.9 A B- D
G 23.9 A- CCC D
H 27.3 BBB+ CCC- D
J 27.3 BBB CCC- D
Morgan Stanley Capital C 22.0 AA- B CCC+
I Trust, 2007-HQ12 D 24.5 A B CCC-
E 14.7 A- B CCC-
F 24.5 BBB+ B- D
G 22.0 BBB B- D
H 22.0 BBB- B- D
J 14.7 BB+ B- D
K 4.9 BB CCC+ D
L 7.3 BB- CCC+ D
M 4.9 B+ CCC+ D
N 4.9 B CCC D
O 4.9 B- CCC D
P 4.9 CCC+ CCC D
Q 4.9 CCC CCC D
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ALERT 13
Dec. 13 - Dec. 15
Balance Orig. Old New
Class ($Mil.) Rating Rating Rating
Wachovia Bank Comm. F 19.5 BBB+ B CCC-
Mortgage, 2006-C26 G 21.6 BBB B- D
H 19.5 BBB- CCC+ D
J 4.3 BB+ CCC- D
K 6.5 BB CCC- D
L 4.3 BB- CCC- D
M 4.3 B+ CCC- D
Fitch
Current
Balance Orig. Old New
Class ($Mil.) Rating Rating Rating
Capital Trust RE CDO A 174.8 AAA BB CCC
Ltd., 2005-1 B 36.3 AA B CC
C 21.1 A CC C
D 14.4 BBB CC C
Hartford Mezzanine H 21.3 BBB- B CCC
Investors I, 2007-1 J 23.8 BB B CCC
K 38.8 B CCC CC
J.P. Morgan Chase B 78.8 AA BBB BBB-
Comm., 2006-LDP7 C 44.3 AA- BBB- BB
E 39.4 A BB B
F 39.4 A- BB B
G 49.2 BBB+ B CCC
H 39.4 BBB B- CCC
J 44.3 BBB- B- CC
K 14.8 BB+ B- C
L 14.8 BB B- C
M 19.7 BB- B- C
Nomura CRE CDO A-1A 463.2 AAA BB CCC
Ltd., 2007-2 A-1R 75.0 AAA BB CCC
A-2 60.7 AAA B CCC
December 17, 2010 Commercial Mortgage ALERT 14

RECENT CMBS RATING CHANGES Dec. 13 - Dec. 15

DBRS
Current Current
Balance Orig. Old New
Class ($Mil.) Rating Rating Rating
Bear Stearns Comm. A-J 182.5 AAA A BBB (H)
Mtge., 2007-PWR18 A-JA 33.6 AAA A BBB (H)
B 25.0 AA (H) A (L) BBB
C 25.0 AA A (L) BBB (L)
D 18.8 AA (L) BBB BB (H)
E 25.0 A (H) BBB BB
F 18.8 A BBB (L) B (H)
G 25.0 A (L) BB B (L)
H 21.9 BBB (H) B (H) CCC
J 18.8 BBB B CCC
K 25.0 BBB (L) B (L) C
L 9.4 BB (H) CCC C
M 9.4 BB CCC C
N 9.4 BB (L) CCC C
O 6.3 B (H) CCC C
P 3.1 B CCC C
Q 3.1 B (L) CCC C
Join The Celebration!
RELA 20TH ANNIVERSARY NEW YEAR’S
NETWORKING CELEBRATION
Wednesday, January 12, 2011
6:00 pm – 9:00 pm
Cipriani
110 E. 42nd Street
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Scotch Tasting. Open Bar.
Dinner & Hors D’oeuvres.
Members - $165
Non-Members - $200
To register, please email
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This Event Is Open to All.
Balance Orig. Old New
Class ($Mil.) Rating Rating Rating
Bear Stearns Comm. A-J 160.6 AAA AAA BBB (H)
Mtge., 2007-TOP26 B 42.1 AA AA BB
C 18.4 AA (L) AA (L) B
D 29.0 A A CCC
E 15.8 A (L) BBB (H) CCC
F 18.4 BBB (H) BBB (L) CCC
G 18.4 BBB BB C
H 18.4 BBB (L) B (H) C
J 2.6 BB (H) B C
K 2.6 BB B (L) C
L 5.3 BB (L) CCC C
M 2.6 B (H) CCC C
N 5.3 B CCC C
O 2.6 B (L) CCC C
Morgan Stanley Capital A-J 110.8 AAA AAA BBB
I Trust, 2007-TOP25 B 27.2 AA AA B
C 11.7 AA (L) AA (L) B
D 25.3 A A CCC
E 11.7 A (L) A (L) CCC
F 13.6 BBB (H) BBB CCC
G 13.6 BBB BB (H) C
H 11.7 BBB (L) BB (L) C
J 3.9 BB (H) B C
K 3.9 BB CCC C
L 5.8 BB (L) C C
M 3.9 B (H) C C
N 1.9 B C C
O 3.9 B (L) C C
Morgan Stanley Capital A-J 190.6 AAA AAA A
I Trust, 2007-TOP27 B 54.5 AA AA BBB
C 30.6 AA (L) AA (L) BB (H)
D 30.6 A A B (H)
E 23.8 A (L) A (L) B
F 23.8 BBB (H) BBB (H) CCC
G 30.6 BBB BB (H) CCC
H 23.8 BBB (L) B (H) C
J 3.4 BB (H) B C
K 3.4 BB CCC C
L 6.8 BB (L) CCC C
M 6.8 B (H) CCC C
N 6.8 B CCC C
O 3.4 B (L) CCC C
Multi Security Asset J 22.2 BB (H) BB (H) BB
Trust, 2005-RR4 K 13.0 BB BB B
L 7.4 BB (L) BB (L) CCC
M 9.3 B (H) B (H) CCC
N 9.3 B B CCC
O 5.6 B (L) B (L) C

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December 17, 2010
xxx Commercial Mortgage ALERT 15
1

MARKET MONITOR
CMBS SPREADS
10YR, AAA SPREAD OVER SWAPS CMBS SPREADS OVER SWAPS
600
6,000

500 5,000

400 4,000

3,000
300
2,000
Current
200
1,000 6 months ago

100 0
Source: Trepp AAA AA A BBB BBB-
0
12/09 1/10 2/10 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 Spread (bp)
Fixed Rate Avg. Week 52-wk
(Conduit) Life 12/15 Earlier Avg.
WORLDWIDE CMBS AAA
5.0
10.0
S+154
S+220
S+157
S+231
+183
+356
AA 10.0 S+2,253 S+2,258 +2,573
MONTHLY ISSUANCE ($Bil.) A 10.0 S+2,751 S+2,756 +3,127
6 BBB 10.0 T+3,993 T+4,000 +4,477
5 Dollar Price
YTD YTD
Category 2010 2009 2009 Week 52-wk
4 Markit CMBX 05-1 12/15 Earlier Avg.
US Total 11.6 2.0 2.7
3
AAA 95.5 95.0 88.9
Non-US (Central bank facility) 1.7 18.6 18.6
AA 61.2 60.2 41.2
2 Non-US (Other) 2.8 4.6 4.6
A 48.4 48.0 33.3
1 Non-US Total 4.5 23.2 23.2 BBB 20.1 20.1 19.1
TOTAL 16.1 25.2 25.9 BB 5.0 5.0 5.0
0
O N D J F M A M J J A S O N D Sources: Trepp, Markit

LOAN SPREADS CMBS TOTAL RETURNS

ASKING SPREADS OVER TREASURYS ASKING OFFICE SPREADS CMBS INDEX
10-year loans with 50-59% LTV 400
Total Return (%)
Month Avg. Month Year Since
12/10 Earlier 300 As of 12/15 Life to Date to Date 1/1/97
Office 210 221 Inv.-grade 4.3 -1.0 19.4 147.5
200
Retail 194 209 AAA 3.7 -1.1 13.6 145.3
AA 5.0 -1.0 27.3 47.9
Multi-family 180 195 100
A 5.7 -1.1 31.5 31.7
Industrial 190 206 BBB 5.6 -0.1 50.6 28.0
0
Source: Trepp J J A S O N D Source: Barclays

REIT BOND ISSUANCE

UNSECURED NOTES, MTNs, ($Bil.) MONTHLY ISSUANCE ($Bil.) SPREADS
18 3
Rating Amount Spread CDS
12/10 Maturity (M/S) ($Mil.) (bp) (bp)
15 2010 Kimco 10/19 Baa1/BBB+ 300 T+180 145
12 2 Simon Property 3/21 A3/A- 900 T+120 108

9 Equity Residential 7/20 Baa1/BBB+ 600 T+150 105

Prologis 3/20 Baa2/BBB- 561 T+277 196
6 1
2009 AvalonBay 1/21 Baa1/BBB+ 250 T+135 85
3 Duke Realty 3/20 Baa2/BBB- 250 T+230 178

0 0
Boston Properties 5/21 Baa2/A- 850 T+155 112
J F M A M J J A S O N D O N D J F M A M J J A S O N D Health Care Property 1/18 Baa3/BBB 600 T+215 134
Regency Centers 4/21 Baa2/BBB 250 T+210

Data points for all charts can be found in The Marketplace section of CMAlert.com Liquid REIT Average Baa2/BBB+ 507 T+186 133
Source: Wells Fargo

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December 17, 2010 Commercial Mortgage ALERT 16

THE GRAPEVINE
... From Page 1
brokers, property managers and
support staff.
Cantor Fitzgerald hired attorney Jill
Weinstein at the end of November.
Weinstein is working in the real estate
finance area as a director and assistant
general counsel. She reports to Stephen
Merkel and John Jones. Weinstein’s
focus includes mortgage origination
and all aspects of the securitization
process. She was previously at CBRE
Investors, working in Ethan Penner’s
group.
Kasra Sanandaji joined real estate
investment firm Lightstone Group as a
vice president on Dec. 1. As part of the
firm’s acquisition team, he will analyze
potential investments in distressed
properties in New York, New Jersey
and Connecticut. He will also look to
buy debt secured by such properties.
Sanandaji reports to executive vice
president Arvind Bajaj, who runs the
investment group for New York-based
Lightstone. Sanandaji previously
held similar roles at investment firms
Waterman Interests, Stellar Management
and J.P. Morgan Asset Management.
Former Lehman Brothers staffer
Edmund Moy also started work at Cantor
Fitzgerald in New York late last month,
as a director and senior underwriter.
Moy, who reports to credit co-head Don
Haber, will take on origination duties as
the group evolves. He was at Lehman
for 11 years before the Wall Street firm
collapsed in 2008. He then did advisory
work on loan sales and distressed-bank
portfolios.
Broker-dealer FIG Partners has added
another staffer to the fixed-income
group it launched in March. Sean
McGlynn, who specializes in commercial
real estate debt, joined the Atlanta
firm as a vice president on Dec. 1. He
reports to senior vice presidents Ricardo
Diaz and Brian Zwerner, who run the
group. The five-member team oversees
trading of CMBS and other securities
for regional and community banks.
McGlynn was hired to evaluate bonds
and their underlying loans for advisory
clients. He previously worked as a
consultant for private equity shops and
hedge funds.
Rusty Fleming rejoined Atlanta law
firm Morris Manning last month as an
associate in the commercial-lending
practice. He is focusing on mortgage
origination, including senior loans for
securitization and subordinate debt.
Fleming worked for Morris Manning
from 2007 to 2008 and then ran an
independent practice. His return to
the firm reflects “the resurgence of the
CMBS market,” Fleming said.
Former CapitalSource staffer Claire
Harvey joined lender Walker & Dunlop
this week as vice president of investor
relations. She reports to executive vice
president Deborah Wilson. Harvey,
who is in the firm’s Bethesda, Md.,
headquarters, will serve as liaison to the
investment community, a post that took
on new importance after the company
conducted its initial public offering this
week.

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