Fitch Affirms CTIMCO's Commercial Loan Level Special Servicer Rating
Fitch Affirms CTIMCO's Commercial Loan Level Special Servicer Rating
(The following statement was released by the rating agency)Fitch Ratings-New York-17 March 2021:
Fitch ratings has affirmed CT Investment Management Co., LLC's (CTIMCO) loan level special servicer rating at 'CLLSS2'.
CT Investment Management Co., LLC
------CMBS Loan Level Special Servicer; CMBS Loan Level Special Servicer; Affirmed; CLLSS2
Key Rating Drivers
The affirmation of the loan level special servicer rating reflects CTIMCO's strong experience resolving complex loans, experienced management and asset management team, effective technology environment supported by The Blackstone Group (Blackstone), and sufficient controls consisting of mainly manager oversight and a special servicing committee. The rating also reflects the financial support provided by Blackstone. CTIMCO is a wholly-owned subsidiary of Blackstone Holdings I L.P., a subsidiary of Blackstone.
Fitch's servicer rating reflects the employees, technology, financial condition and controls that are part of the Blackstone Real Estate Debt Strategies group (BREDS). CTIMCO is the sole special servicing entity for the larger BREDS platform.
CTIMCO has been resolving commercial real estate loans for approximately 21 years and has acted as a CMBS special servicer for over 17 years, with a concentration on restructuring large loans in CMBS transactions. The group is located in New York City, with a 13-person staff performing asset management functions.
CTIMCO currently does not have any dedicated employees and all staffing resources are shared from the broader Blackstone enterprise who are allocated to special servicing functions as needed. Asset managers split their time between performing loan management and workouts as necessary. There was no turnover in the last 12 months. The group is led by two senior managers who collectively average 22 years of experience in the CRE industry and 14 years with BREDS and its predecessor company. Given the small size of the group, four middle managers function as asset managers, resulting in a knowledgeable group that averages 26 years of experience resolving large loans across multiple property types and diverse locations both in the U.S. and internationally.
The named special servicing portfolio consists of 109 balance sheet U.S. loans totaling approximately $13.8 billion and 71 CMBS loans totaling $3.2 billion in three collateralized loan obligation (CLO) transactions as of YE 2020. The total named special servicing portfolio grew 33% by loan count and 26% by balance from the prior year, reflecting continued debt originations and investments offsetting loan repayments. Growth in the named special servicing portfolio was driven by the addition of two new CLO transactions in 2020 as well as non-CMBS originations from the publicly traded REIT, Blackstone Mortgage Trust (BXMT). BXMT focuses on senior lending positions, typically first mortgages, which continues to limit the number defaulted loans.
As of year-end 2020, CTIMCO was the named special servicer for three transactions comprising 71 securitized loans totaling $3.2 billion. The securitized portfolio consists entirely of CLO transactions issued by BXMT. The company resolved it's only securitized and active specially serviced loan through a note sale in 2020. As of the same date, CTIMCO was named special servicer for 109 non-securitized loans totaling $13.8 billion. The non-securitized servicing portfolio is made up of whole loans and mezzanine debt on behalf of Blackstone affiliates, some of which may be subordinate to CMBS first mortgages.
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