DBRS Confirms Class A-1 of Wrightwood Capital Real Estate CDO 2005-1

DBRS Limited (DBRS) has today confirmed the rating of the Commercial Mortgage Pass-Through Certificates, Series 2005-C1, Class A-1 (Class A-1) of Wrightwood Capital Real Estate CDO 2005-1 Ltd. and Wrightwood Capital Real Estate CDO 2005-1 LLC (collectively, Wrightwood Capital Real Estate CDO 2005-1) at BBB (low) (sf). The trend is Stable. The initial rating was issued on April 30, 2014, at the request of an investor and coincides with today’s confirmation by DBRS of the Commercial Mortgage Pass-Through Certificates, Series 2005-1, Class A-R (Class A-R), as the classes share the same loss profile within the transaction’s waterfall.

Wrightwood Capital Real Estate CDO 2005-1 is a static cash transaction (reinvestment period ended in August 2010) originally backed by a portfolio of 24 whole loans or a pari passu senior participation of a whole loan. As of the February 2016 remittance, 16 loans remain in the transaction with an aggregate note balance, including preferred shares, of $282.7 million compared with $650 million at issuance. The current undrawn balance of Class A-R is $54.4 million.

Since the DBRS rating was issued, nine loans have successfully repaid from the trust, including the Mountainside Village Apartments loan (Prospectus ID#9), which repaid following the February 2016 remittance. Eight loans, representing 37.2% of the current pool balance, are scheduled to mature by November 2016, with the borrowers for three of these loans seeking short-term extensions. Two loans are currently in special servicing for maturity default and represent 16.1% of the current pool balance, including the largest loan in the pool, Cherry Creek (Prospectus ID#3). The loan is currently 78.0% occupied, and the borrower is working to recapitalize the asset. The remaining loan in special servicing, Milan Business Center (Prospectus ID#23), is 45.0% occupied, with all excess cash flow being trapped to a suspense account. The servicer has addressed outstanding deferred maintenance issues, with a target date in May 2016 to bring the asset to market. These loans were modeled with an elevated probability of default to reflect their status in special servicing.

Notes:
All figures are in U.S. dollars unless otherwise noted.

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.

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

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (December 2015), which can be found on our website under Methodologies.