The 5 Largest CMBS Loans in San Diego
You may not believe it, but there are still buildings in San Diego that have been packaged into CMBS loan pools. That's right, those instruments that were the prime (or is that subprime) culprit for the Great Recession. Not that all CMBS loans are bad. In fact, many experts say they are an ideal tool to spread risk out to many investors. We reached out to Trepp, which tracks commercial real estate tied up in CMBS pools, for the five largest loans outstanding currently in San Diego:
The 679-room historic hotel earned a $285M loan in March 2013. While not in special servicing, it's on a watch list with Trepp for its pending maturity in 2015. According to documents, the hotel reaped more than $52M for FY 2014.
The mammoth 561,400 SF open-air shopping center that's home to such retailers as Nike, Tommy Hilfiger, GAP and Old Navy got a loan totaling $180M (with a current balance of some $176M) back in May of 2006, when it was then known as The Shops at Las Americas. According to documents, C-III Asset Management has that loan in special service, but Simon Property Group—which purchased the center in 2007 in a JV with Stoltz Real Estate Partners and Pacific Coast Capital and changed the name—is current on its payments. The loan matures in June of 2016, according to Trepp. The center earned some $16M in the first nine months of 2014, according to Trepp.
This 315k SF tower, formerly known as Pacifica Tower (a.k.a. The Plaza), secured a more than $166M interest-only loan with a balloon on March of 2007, fresh from its reno. Owners have been current on their payments as of January, but Trepp has Wells Fargo Tower on a watch list since its loan matures in October 2017. The 18-story tower is 97% leased with such tenants as Wells Fargo Bank, CBRE and DLA Piper US. And in FY 2013, the tower generated $6.5M in income, according to Trepp docs. “Concessions are limited as the building is leading the market place,” Trepp officials state in docs as well.
The 736-unit Irvine Co property secured a $154M loan (current balance is $152.9M) in September with Prudential (and Fannie Mae as the master servicer). Payments are current on the loan, which matures in 2019.
Owners of Carmel Pacific Ridge Apartments (that would be Carmel) secured an interest-only loan for $130.5M with Wells Fargo in July. Carmel is current on its payments for the 533-unit property built in 2012, and its loan matures in August of 2021, according to Trepp.
