The Credit Story

Trading Alert: California CMBX 8 Retail Loan Modified 

The $20.6 million The Showcase at Indio loan - which we've written about a few times before - was modified with the December remittance data. The Trepp model was updated last week to reflect the new terms.

The note represents 1.90% of COMM 2014-UBS4, which is part of CMBX 8.

The subject property is a 333,510-square-foot, open-air retail center at 42225 and 42425 Jackson Street in Indio, CA. The loan has been with the special servicer since 2017 as a result of Target - a shadow anchor to the collateral - closing its store.

According to special servicer comments, 12 tenants have co-tenancy clauses tied to Target. The Target closing was said to have been the result of a Walmart entering the market.

The new terms extend the maturity date from 2024 to 2029 and give the borrower some rate relief. As a footnote, the December remittance appears to have miscalculated interest payments to the WAC and IO bonds as a result of the rate relief. We've pointed this out to the trustee and are awaiting a revised remittance report.

For the first nine months of 2019, DSCR (NCF) was 0.63x when occupancy was 67%.

Marshall's, which is a collateral tenant with 17.7% of the space, has announced it will be vacating this year.

Source: www.trepp.com/treppwire