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

DBRS Limited (DBRS) has today downgraded the rating on the following class of Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP28 as follows:

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

In conjunction with the rating action above, DBRS has removed the Interest in Arrears designation from Class G. DBRS has also discontinued the ratings on Classes A-AB and X-2, which were both paid in full following the prepayment of the 445 East Lake Street loan (Prospectus ID#48).

The rating downgrade is the result of the most recent realized loss to the trust, which occurred after the 315 Elmora Avenue loan (Prospectus ID#123) was liquidated from the trust at a loss of approximately $2.2 million with the October 2015 remittance. The loan was formerly secured by a 21,595 square foot mixed-use property located in Elizabeth, New Jersey. The loan transferred to special servicing in September 2014 because of imminent payment default after the largest tenant, Diagnostic Radiology Consultants (38% of the net rentable area), went out of business and vacated the property. At issuance, the property was valued at $5.8 million and the most recent appraisal from September 2011 valued the property at $1.6 million. According to the October 2015 remittance report, the property was sold for approximately $1.8 million, resulting in a realized loss to the trust of $2.2 million and a loss severity of 62.2%. The realized trust loss eliminated the remaining balance of Class H and reduced the principal of Class G by 8.0%. To date, 15 loans have been liquidated from trust, resulting in cumulative realized losses of $52.2 million.

As of the October 2015 remittance, 169 loans currently remain in the pool of the original count of 209. These loans reported a YE2014 weighted-average (WA) debt service coverage ratio of 1.54 times and a WA debt yield of 10.69%. The transaction benefits from five fully defeased loans, which collectively represent 4.6% of the current pool balance. There are currently three loans in special servicing and 45 loans on the servicer’s watchlist, representing 2.0% and 17.8% of the current pool balance, respectively.

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 October 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 related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are CMBS North American Surveillance (January 2015) and North American CMBS Rating Methodology (June 2015), which can be found on our website under Methodologies.