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

DBRS Limited (DBRS) downgraded the rating of the following class of Commercial Mortgage Pass-Through Certificates, Series 2004-PWR5 issued by Bear Stearns Commercial Mortgage Securities Trust 2004-PWR5 (the Trust):

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

In addition to the downgrade, DBRS has removed the Interest in Arrears designation on Class N.

The rating downgrade is the result of the most recent realized losses to the Trust, which occurred after the Pottsburg Plaza (Prospectus ID#69) was liquidated at a loss of $1.92 million with the June 2017 remittance. The Pottsburg Plaza loan was secured by a 35,905-square foot Class C neighbourhood retail centre located in Jacksonville, Florida, built in 1953. The loan transferred to special servicing in May 2014 for maturity default, and the property was foreclosed in August 2015. The last property valuation obtained by the servicer, dated June 2016, valued the property at $2.75 million, down from $3.75 million in July 2015 and from $6.24 million at issuance. The servicer reported proceeds of $1.4 million with the property’s sale, with a loss severity of 57.5%. The loss wiped the remaining balance of Class P and reduced the principal balance of Class N by 18.0%.

As of the August 2017 remittance, there are no loans remaining in special servicing and two loans on the servicer’s watchlist with a cumulative outstanding principal balance of $0.7 million.

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 principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies.

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 rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.