The second-largest loan securitized in CSFB 2004-C5 was scheduled to mature in November 2011 and was refinanced by TIAA-CREF last month, according to Barclays Capital.
New York City records show that the $68 million loan for 275 Madison Avenue was refinanced on September 15 . The new loan was originated for $97.5mn.
According to Barclays the current loan securitized in CSFB 2004-C5 as a result is expected be reported as paid off in full in the October remittance report and the A2 tranche off this deal to be paid off in full. In addition to the first lien, deal documents also report a $10mn mezz loan at closing whose current status is unknown.
"The loan is on watchlist due to its pending maturity date and is expected to be removed from it after the payoff," explained analysts.
The refinancing is credit positive for the deal and also gives industry players a reassuring signal that despite the worsening lending environment, better assets are still able to secure financing and will not create additional maturity defaults.
"This event also reiterates our point that insurance companies are expected to remain more active in CRE loan origination for high-quality assets," said Barclays.