DBRS Downgrades One Class of Morgan Stanley Capital I Trust, Series 2007-TOP25

DBRS has today downgraded Commercial Mortgage Pass-Through Certificates, Series 2007-TOP25 Class E of Morgan Stanley Capital I Trust, Series 2007-TOP25 to D (sf) from C (sf). The downgrade follows the $10.1 million of realized trust loss attributed to the liquidation of one loan in the August 2014 remittance period. DBRS has also discontinued Class A-AB as it has been repaid and removed the Interest In Arrears designation from Class D as the interest has been repaid.

Providian Bancorp Office/Data Center (Prospectus ID#15) was secured by an office property in Arlington, Texas, which was previously 100% occupied by JP Morgan Chase (Chase). Chase vacated the property in August 2013 upon lease expiration and the loan was transferred to special servicing in November 2013. According to the servicer, no funds were trapped in the event of Chase’s lease expiration, and the borrower requested a discounted payoff (DPO). The loan was disposed from the trust in August 2014 via a DPO, which resulted in a $10.1 million realized loss to the trust. The realized trust loss wiped the remaining balance of Class F, already rated D (sf) by DBRS, and reduced the principal balance of Class E by 69.8%. In conjunction with the downgrade, DBRS has also removed the Interest in Arrears designation from Class E, as it has now defaulted.

There are nine loans currently in special servicing, the largest of which is Romeoville Towne Center (Prospectus ID#16, 1.6% of the current pool balance). This loan is secured by an anchored retail property located in the southern suburbs of Chicago, Illinois. The center was previously anchored by a Dominick’s grocery store, which has since vacated following Safeway’s closure of all Dominick’s stores in the Chicago market in December 2013. Safeway’s lease on the space expires in 2019; however, neither the borrower, nor Safeway, have released details of any future plans for the space.

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 August 2014 Monthly Surveillance Report for this transaction will be published 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.

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

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

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.