DBRS Downgrades One Class of Bear Stearns Commercial Mortgage Securities Trust 2004-PWR5

DBRS Inc. (DBRS) has today downgraded Class P in Bear Stearns Commercial Mortgage Securities Trust 2004-PWR5 from C (sf) to D (sf).

The downgrade follows the liquidation of North Orchard Plaza loan (Prospectus ID#77) from the trust with the January 2015 remittance. The loan was previously secured by an unanchored retail property consisting of two outlot buildings and comprising 14,507 sf. The loan transferred to special servicing in April 2014 due to imminent monetary default and was originally scheduled to mature on July 1, 2014, with no history of payment default prior to the transfer. A June 2014 appraisal valued the property at $1.5 million, down from $4.8 million at issuance. The liquidation of this loan incurred a realized trust loss of $2.6 million, which wiped the remaining balance to the unrated, first loss piece and reduced the principal balance to Class P by 65.5%. As of the January 2015 remittance, three loans remain in special servicing, with a cumulative outstanding principal balance of $9.6 million.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction. The January 2015 Monthly CMBS 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.

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 (January 2015), which can be found on our website under Methodologies.