DBRS Downgrades Two Classes of Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP28

DBRS has today downgraded the ratings for two classes of Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP28 as follows:

-- Class M from C (sf) to D (sf)
-- Class N from C (sf) to D (sf)

As a loss has been realized for Classes M and N certificates, the Interest in Arrears designation has been removed.

The previously outstanding interest due was repaid to Classes J, K, and L as part of the June 2013 remittance, and as such, the Interest in Arrears designation has been removed for those three classes.

These rating actions reflect the most recent liquidations out of the pool for Prospectus ID #78 (Evergreen Plaza), #80 (Holiday Inn Express Wilkesboro), and #178 (50 Dwight Place), which were liquidated with the June 2013 remittance report for a cumulative loss of $10 million to the trust.

Prospectus ID #78 (Evergreen Plaza) was secured by an unanchored retail property located in Everett, Washington. Property performance started to decline in 2008 after several tenants vacated the property. The loan was transferred to the special servicer in August 2011 for payment default and was auctioned for sale in March 2013. The realized loss attributed to this loan was $5.1 million as of the June 2013 remittance report, which resulted in a loss severity of 81% at the time of liquidation.

Prospectus ID #80 (Holiday Inn Express Wilkesboro) was secured by a 100-key limited service hotel located in the rural city of Wilkesboro, North Carolina. The loan transferred to the special servicer in December 2011 for imminent default, following a steady decline in property performance. A bid was accepted in a March 2013 auction and was closed mid-year. The loan was liquidated at a loss of $4.1 million as of the June 2013 remittance, which resulted in a loss severity of 70% at the time of liquidation.

Prospectus ID #178 (50 Dwight Place) was secured by an industrial property located in Fairfield Borough, New Jersey. Property performance started to decline when the sole tenant vacated the property in June 2011 and subsequently, the loan transferred to the special servicer in August 2011 for payment default. After a sequence of legal proceedings, the property was sold in May 2013. The loan was liquidated at a loss of $833,579 as of the June 2013 remittance, which resulted in a loss severity of 44% at the time of liquidation.

As of the June 2013 remittance report, there have been ten loans liquidated, with cumulative losses of $28.5 million. There are four loans remaining in special servicing, with a total balance of $31.6 million, representing 2.1% 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.