The largest loan from BACM 2002-PB2 became 30 days delinquent according to the most recent servicer data and the most recent appraised value points to the possibility of a big loss to the deal.
According to a Treppwire report, the $72.1 million Regency Square loan makes up 10.7 percent of the collateral pool for the BACM deal. The loan slid into the 30 day delinquent bucket according to June servicer data.
The property behind the loan is a 465,000 square foot mall in Richmond, VA. The property was built in 1975. The mall has seen steadily declining results. In 2009, the property posted a DSCR of 0.75x. In 2010, that number had fallen to 0.62.
According to Treppwire, the bigger concern to CMBS investors is the latest appraised value. In 2001, the property was appraised for $132.5 million. A few months ago, a new value of $40 million was assigned to the mall. According to tha calculation, bondholders in the BACM deal could be looking at a loss of $35 million or more after expenses.
A loss of that magnitude would wipe out five tranches and part of a sixth, said the report.