Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlink According to Kroll’s analysis, about half of all appraisal reductions effectuated in the past two years seem to have been “automatic,” meaning that an updated appraisal was not received within the specified 30-60 day timeframe, so that an ARA value equal to a quarter of the loan’s unpaid principal balance was applied by default.A historical analysis found that appraisal reductions were a good predictor of eventual losses. Of 59 loans disposed between 2014 and 2019 that had non-automatic ARAs, 44 ended up with realized losses that were larger than their initial reduction amounts.Still, “[w]hile a historical perspective may give some guidance, in these uncertain times, past results may not predict future losses,” the analysts note.Contact Kevin Sun TagscmbsCommercial Real Estatedistressed debtTRD Insights 229 West 43rd Street in New York and Two Westlake Park in Texas. New York and Texas are the states with the largest exposure to loans with appraisal reductions. (Photos via iStock; Google Maps; JLL)As delinquency rates for commercial mortgage-backed securities settle into a new normal after early pandemic chaos, other market metrics give an indication of more struggles to come.One such data point is appraisal reduction amounts, which come into play when a CMBS loan encounters a triggering event such as serious delinquency or insolvency. The calculation of a loan’s ARA is determined not only by the appraised value of a property, but also by factors such as the unpaid loan principal balance and reserve funds.There were 111 outstanding CMBS loans with ARAs at the end of 2019, but by November 2020, that figure had ballooned to 409, according to a new report from Kroll Bond Rating Agency.“Based on the prevailing economic environment, the lag effect of commercial real estate performance to the general economy, and since 90 percent of delinquent and specially serviced loans do not have ARAs, we anticipate the absolute dollar volume of ARAs will continue to rise through 2021,” Kroll analysts wrote.ADVERTISEMENTThe largest outstanding appraisal reduction is on a Kushner Companies property: a 250,000-square-foot retail condo at 229 West 43rd Street in Times Square, which has been under financial stress since before the pandemic and saw its value slashed from $470 million to $92.5 million in August.Retail in general has been one of the hardest hit sectors, with 156 outstanding loans saddled with appraisal reductions totaling $1.7 billion. As the table below shows, the lodging sector has a larger number of loans facing reductions, although its total reduction amount is significantly less.Appraisal reductions can impact CMBS bondholders in a number of ways, per Kroll. They lead to reductions in the amount of principal and interest payments that servicers are required to advance, resulting in shortfalls for subordinate certificate holders. This can also cause control of the CMBS transaction to shift to a more senior class.After New York, Texas is the state with the largest exposure to loans with appraisal reductions, according to the report. The reductions there are dominated by a pair of office buildings in Houston’s Energy Corridor, which have suffered from downsizing in the oil industry and new supply in the area. Two Westlake Park has seen its appraised value fall from $124 million to $24 million, while Three Westlake Park has gone from $121 million to $38 million, according to Trepp.Read moreAppraisal cuts Kushner Companies’ Times Square retail value 80%Here’s what 2021 has in store for the CMBS marketA tale of two markets: Some CMBS players see huge losses, others opportunity Share via Shortlink Message* Email Address* Full Name*
Indianapolis, In. — Indiana will be facing unprecedented cold temperatures in the coming days, which means there is a considerably higher risk for disaster in the next 72 hours than we typically face. The Red Cross is preparing to mobilize as needed, working closely with community partners and local officials.Throughout Indiana, local governments are preparing to stand up warming centers, which are intended to provide a temporary place for those who are housing insecure to get out of the harsh conditions. The Red Cross is supporting those efforts by loaning resources and supplies, and has already loaned over 200 cots to government partners. The Red Cross has also pre-positioned shelter trailers and supplies at key locations throughout Indiana, such as near interstates, to be ready for weather-related emergencies. Additionally, the intense cold creates a risk of widespread power outages; the Red Cross has contacted shelter partners to confirm availability and ensure teams are ready to act if a shelter is needed.“A winter storm is headed to this region and we have safety tips everyone can follow to stay safe,” said Duchess Adjei, Regional Communication Director at the American Red Cross, Indiana Region. “Whether trying to keep your home warm or having to be outside in the cold, you can follow these steps to get through the storm.”HEAT YOUR HOME SAFELYIt’s that time of year when many people resort to space heaters and other sources to keep their homes warm. Home heating is the second leading cause of fires in this country. To reduce the risk of heating related fires, the Red Cross recommends these steps (More home fire safety information available here):All heaters need space. Keep children, pets and things that can burn (paper, matches, bedding, furniture, clothing, carpets, and rugs) at least three feet away from heating equipment.If you must use a space heater, place it on a level, hard and nonflammable surface (such as ceramic tile floor), not on rugs, carpets or near bedding or drapes. Plug power cords directly into outlets – never into an extension cord.Never leave a fire in the fireplace unattended, and use a glass or metal fire screen to keep fire and embers in the fireplace.Never use a cooking range or oven to heat your home.Turn off portable space heaters every time you leave the room or go to sleep.STAY SAFE DURING WINTER WEATHERWear layers of clothing, a hat, mittens and waterproof, insulated boots.Be careful when tackling strenuous taskslike shoveling snow in cold temperatures.Check on your neighbors, especially elderly people living alone, people with disabilities and children.Bring pets indoors. If they can’t come inside, make sure they have enough shelter to keep them warm and that they can get to unfrozen water.Watch for hypothermia and frostbite. Hypothermia symptoms include confusion, dizziness, exhaustion and severe shivering. Frostbite symptoms include numbness, flushed gray, white, blue or yellow skin discoloration, numbness, or waxy feeling skin.WINTER TRAVEL SAFETYStay off the road if possible during severe weather. If you must drive in winter weather, follow these tips:Make sure everyone has their seat belts on and give your full attention to the road.Don’t follow other vehicles too closely. Sudden stops are difficult on snowy roadways.Don’t use cruise control when driving in winter weather.Don’t pass snow plows.Ramps, bridges and overpasses freeze before roadways.DOWNLOAD APPS: People can download the Red Cross Emergency App for instant access to weather alerts for their area and where loved ones live. Expert medical guidance and a hospital locator are included in the First Aid App in case travelers encounter any mishaps. Both apps are available to download for free by clicking here.
May 12, 2020 Share This StoryFacebookTwitteremailPrintLinkedinReddit The Latest on the effects of the coronavirus outbreak on sports around the world:___The Danish soccer league will resume on May 28 with games in empty stadiums. ___The Diamond League event in London is the latest track meet to be canceled because of the coronavirus pandemic.The meet had been scheduled for July 4-5 at the Olympic Stadium.British Athletics says “the decision has been made in light of the ongoing global pandemic.”___ ___More AP sports: https://apnews.com/apf-sports and https://twitter.com/AP_Sports,Tampa Bay Lightning advance to face Dallas Stars in Stanley Cup finals, beating New York Islanders 2-1 in OT in Game 6 Associated Press World Cup winner Giuseppe Bergomi says he had COVID-19.The former Italy defender says that for 20-25 days beginning in early March his back was in so much pain that he couldn’t sit down.He adds in an Instagram chat that he felt constantly weak.The 56-year-old Bergomi says he has recovered.Bergomi played for Inter Milan and is now an analyst for soccer matches on Italy’s Sky TV. He helped Italy to the 1982 World Cup title. The league has been suspended since March 9 because of the coronavirus outbreak.The first game will be between AGF and Randers to complete the 24th round. The 25th round will start on May 29.All games in the 26th and final round will be held on June 7. The playoffs will follow with the season scheduled to end on July 29.The league says games will take place at various times during the daytime and evening “so that as many matches as possible are made available to football fans” while stadiums are closed.FC Midtjylland leads FC Copenhagen by 12 points at the top of the standings. ___The qualifying tournament for the 2021 Women’s Cricket World Cup has been postponed because of the coronavirus pandemic.Bangladesh, Ireland, the Netherlands, Pakistan, Papua New Guinea, Sri Lanka, Thailand, the United States, the West Indies and Zimbabwe were to play in the tournament in Sri Lanka from July 3-19 and three were to qualify.The International Cricket Council has not set new dates.The Women’s World Cup is in New Zealand in February and March. The Latest: Danish soccer league to resume on May 28
Tre Jones. And-1. 1st Lead. 💪 #MarchMadness | #Sweet16 pic.twitter.com/QFmLvv3TdH— NCAA March Madness (@marchmadness) March 30, 201910:09 p.m.: No messing around from Zion tonight as he scores while being fouled. He has nine points on 4-of-5 shooting as the Hokies and Blue Devils are tied. Oh, and he did this…Zion got UP for the rejection! 😱 #MarchMadness | @DukeMbb pic.twitter.com/73w96FdKZi— NCAA March Madness (@marchmadness) March 30, 201910:00 p.m.: Tre Jones was just 1-of-10 from 3 entering today in the tournament. He just knocked down two in a row. Virginia Tech lead 19-17 with 11:16 to play in the first half.9:55 p.m.: Virginia Tech is on fire early, hitting three of its first five from 3. Hokies lead 15-11. For the second straight game, almighty Duke barely hung as an opponent’s would-be buzzer-beater rolled off the rim.The 1-seed Blue Devils survived a tight 75-73 challenge from 4-seed Virginia Tech without an injured Cam Reddish when Ahmed Hill missed an open shot on an almost-inbound alley-oop play to end the game. Duke’s Tre Jones bounced back from an awful 5-of-15 shooting performance against Central Florida in the second round to finish with 22 points and five 3s in Friday’s Sweet 16 victory. MORE: Watch college basketball live with fuboTV (7-day trial)Without Reddish, the remaining trio of Blue Devil freshmen put together a fantastic game, combining for 63 of Duke’s 75 points. RJ Barrett had a career-high 11 assists, Zion Williamson led all scorers with 23 points, and Jones’ 22 were a career-high.Virginia Tech led by four at halftime, but a 7-0 Duke run quickly erased the lead. Justin Robinson, who missed the Hokies’ victory over Duke in the regular season, scored 14 points, while Kerry Blackshear led Hokie scorers with 18.Duke will play No. 2 Michigan State in the Elite Eight following the Spartans’ 80-63 victory over No. 3 LSU on Friday.Check out the scores and highlights that made Duke’s latest flirtation with disaster all the more exciting.UNC vs. Auburn: Live score, highlight12:01 a.m.: Virginia Tech draws up the perfect play, but for the second game in a row, Duke barely survives with the ball hanging on the rim. Blue Devils win 75-73.DUKE HANGS ON AGAIN! 😱 #MarchMadness | #Sweet16 pic.twitter.com/2mz1EROJ4U— NCAA March Madness (@marchmadness) March 30, 201911:59 p.m.: Hokies miss a 3, but ball goes out on Duke with 1.1 seconds left.11:55 p.m.: Virginia Tech has the ball, down two, with 6.0 seconds left.This is March.— Jon Rothstein (@JonRothstein) March 30, 201911:53 p.m.: Justin Robinson hits a pair of free throws to trim the Duke lead to just two points. 29.6 seconds remain.11:50 p.m.: Duke’s Bolden goes to the line up by four with 1:21 to go.11:42 p.m.: Tre Jones is feeling it tonight. His fifth 3 gives him a career-high 22 points as Duke leads by six.11:37 p.m.: Another big Zion blocks that Tre Jones turns into two. Hokies call a timeout.What a sequence from @DukeMBB ! 🔥Blue Devils up, 66-61! #MarchMadness | #Sweet16 pic.twitter.com/NVOQPQoLOr— NCAA March Madness (@marchmadness) March 30, 201911:35 p.m.: Blackshear makes a bucket and the foul to cut Duke’s lead to three with just over six minutes remaining. Blackshear leads Virginia Tech with 13 points.11:26 p.m.: Justin Robinson finally ends an over four minute scoring drought for the Hokies. Duke leads by five with 8:25 to go.11:20 p.m.: A huge alley-opp from Jones to Williamson puts Duke up 58-52 with 10:23 to play.ZION. SHOWTIME. #MarchMadness | #Sweet16 pic.twitter.com/6TBXnsToiM— NCAA March Madness (@marchmadness) March 30, 201911:11 p.m.: An RJ Barrett and-1 puts the Blue Devils ahead by one with 13:55 to play. Barrett is one assist short of a double-double.That’s TOUGH, RJ! 😤 #MarchMadness | #Sweet16 pic.twitter.com/epc56SeDQw— NCAA March Madness (@marchmadness) March 30, 201911:03 p.m.: Zion puts Duke ahead. Virginia Tech is 0-of-6 to start the half.Zion puts @DukeMBB back in front! 💪 #MarchMadness | #Sweet16 pic.twitter.com/S2NcuDC9HZ— NCAA March Madness (@marchmadness) March 30, 201911:00 p.m.: The second half is underway, and Barrett starts things quickly with a layup.10:58 p.m.: Coach K confirmed at half Cam Reddish will not play in the second half due to a leg injury.10:36 p.m.: Tech’s half-court heave at the buzzer rims out, but the Hokies hold a 38-34 lead at the half. Ahmed Hill leads all scorers with 13 points. Williamson has 11 points and a pair of blocks.Hokies are taking it to top-seeded Duke! 🔥 #MarchMadness pic.twitter.com/1t1iCh7Nst— NCAA March Madness (@marchmadness) March 30, 201910:30 p.m.: The Hokies convert a steal into a breakaway layup, and then RJ Barrett is called for his second foul of the half on the next possession. Virginia Tech by five.10:20 p.m.: Justin Robinson missed the game earlier this season, but he’s out here tonight hitting a 3 to give Virginia Tech back the lead.10:16 p.m.: Jones makes a nice move and lay-up as Duke has its first lead of the night with 5:49 in the first.