DBRS Downgrades Two Class of Morgan Stanley Capital I Trust, Series 2007-TOP27

DBRS has today downgraded the Commercial Mortgage Pass-Through Certificates, Series 2007-TOP27, Class J and Class K of Morgan Stanley Capital I Trust, Series 2007-TOP27 to D (sf) from C (sf).

The downgrade follows realized losses incurred by the trust following the liquidation of two loans in July 2012. In addition, DBRS has removed the Interest in Arrears designation from Classes G, H, J and K.

Comfort Suites BWI (Prospectus ID#51) was secured by a 137-room limited service hotel near the Baltimore/Washington International Airport. The loan was transferred to special servicing in January 2010 for payment default, and a foreclosure sale took place on March 15, 2011. The real estate owned (REO) property was sold for $8.35 million ($60,948 on a per-room basis), which is reflective of 97% of the June 2011 appraised value. The realized loss attributed to this loan was $9.8 million as of the July 2012 remittance (66% of the outstanding loan balance at the time of liquidation).

Northlake Village Lot 1 (Prospectus ID#214) was secured by a retail property built in 2006 along I-77 just north of downtown Charlotte, North Carolina. This loan was transferred to special servicing in May 2011 for payment default. A buyer was initially identified to finance a purchase of the property; however, a cash-only discounted payoff (DPO) closed in the amount of $638,688. The payoff amount is reflective of 103% of the July 2011 appraised value. The realized loss attributed to this loan was $1.2 million as of the July 2012 remittance (72% of the outstanding loan balance at the time of liquidation).

Cumulative realized losses to the trust now total over $52 million. The outstanding balance of loans in special servicing exceeds $95 million, as of the July 2012 remittance.

Notes:
All figures are in U.S. dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (May 2011), which can be found on our website under Methodologies.