DBRS Downgrades One Class of Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP28

DBRS has today downgraded one class of the Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP28, as follows:

-- Class O from C (sf) to D (sf)

As a loss has been realized for the Class O certificates, the Interest in Arrears designation has been removed for that class.

As the outstanding interest due was repaid for Classes H, J and K as part of the January 2013 remittance, the Interest in Arrears designation has also been removed for those three classes.

These rating actions reflect the most recent liquidation out of the pool, Prospectus ID #108 (Union Walk), which was liquidated with the January 2013 remittance at a loss of $2.1 million to the trust. That loan was secured by an unanchored retail property located in the Denver suburb of Lakewood, Colorado. The loan transferred to the special servicer in July 2011 for imminent default, following a precipitous decline in the property’s performance that began in 2009. The August 2011 appraisal valued the property at $2.95 million and, according to the January 2013 remittance report, the gross proceeds at disposition amounted to $3.44 million, with net proceeds of $2.89 million. The resulting loss severity as of the January 2013 remittance report was 47.7%.

As of the January 2013 remittance report, there have been seven loans liquidated, with cumulative losses of $18.53 million. There are seven loans remaining in special servicing, with a total balance of $45.86 million representing 2.9% of the outstanding pool balance.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction including details on the largest loans in the pool, the loans in special servicing and the loans on the servicer’s watchlist. The January 2013 Monthly Surveillance Report for this transaction will publish shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

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 and CMBS North American CMBS Surveillance Methodology, which can be found on our website under Methodologies.