William Gauger & Associates Blog

The Wyndham Drake Hotel is scheduled to close next month after an
opportunistic investor gained control of the 160-room property, which
has lost its luster in recent years but was once one of the suburbs'
best-known hotels.

Source: Crains Chicago

(Chicago Crain’s) — CME Group Inc. is seeking $15 million in city aid to
help pay for a major renovation of the Chicago Board of Trade Building,
which became the exchange’s headquarters after its 2007 buyout of the
Board of Trade. The CME has promised to create 900 jobs over the next 10
years, in ...
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Prince William County is to get more than $4 million in federal funding
to stimulate development and buy homes in foreclosure.

The county will get more than $2.8 million in U.S. Housing and Urban
Development funds to fuel development and produce affordable housing.

The county will also get $1.5 million to purchase and rehabilitate
foreclosed homes, Gov. Timothy M. Kaine (D) said Monday.

The $1.5 million in Neighborhood Stabilization Program grants is being
authorized under the Housing and Economic Recovery Act of 2008 and
administered by the Virginia Department of Housing and Community
Development. Prince William was one of nine localities to benefit from
$9.4 million awarded to Virginia on Monday.

The funds will be used to buy about 85 foreclosed homes at discounted
prices in 24 neighborhoods across Virginia, a news release from the
governor's office says. The homes will be rehabilitated and available
for sale to low- and middle-income families.

*Source: The Washington Post: More on the Topic
*

NEW YORK CITY-With 432 commercial real estate loans totaling
approximately $5.2 billion added to the tally, Fitch Ratings' CMBS
"loans of concern"--those that are in special service or whose
performance is declining--increased by 7% between June 1 and July 31,
the agency reported Thursday. Deteriorating property performance and
increasing CMBS defaults were the key drivers, according to Fitch.

A significant new entry to the list is the $227.9-million Resorts
International Casino Portfolio loan, secured by a three-hotel/gaming
portfolio in Atlantic City and Robinsonville and Tunica, MS. Fitch says
it transferred to special servicing on July 23 after the borrower failed
to make the July payment, citing significant declines in cash flow at
the properties, although the loan is performing.

"Properties directly tied to consumer spending, such as hotels, are the
first to exhibit signs of performance declines," says Adam Fox, Fitch
senior director, in a release.

As of July 31, Fitch had designated 5,993 loans totaling $80.7 billion,
or 17% of its US CMBS portfolio, as loans of concern. About 12% of
Fitch's loans of concern were originated in 2006 and 2007.
Seven-hundred-and-thirty-six of these loans have outstanding balances of
greater than $20 million, while 146 have balances greater than $100
million.

Fitch's currently rated CMBS portfolio encompasses 464 transactions with
an unpaid principal balance of $472.1 billion. As of July 31, the
agency's loan delinquency index for loans 60 days delinquent, in
foreclosure or REO was 3.04% on the basis of 1,857 such loans
representing $14.3 billion in UPB.

The ratings agency expects the LDI to reach 5% by year's end, as an
increasing number of loans roll over from 30 days' past due to 60 days.
Along with the usual suspects-stressed fundamentals due to economic
factors such as low consumer spending-Fitch also cites loans with low
debt service coverage that are close to depleting their reserves.

*Source: GlobeSt.com*