Fitch Downgrades Hundreds of Millions of Wachovia Commercial Mortgage Paper – Outlook; Negative / Ratings Watch; Negative

Ratings agency Fitch has downgraded Wachovia Commercial Mortgage Trust Series 2007 WHALE 8 and changed their outlook to (mostly) negative.


Fitch is quite worried about some big hospitality loans in the trust including a massive LXR Hospitality loan that is secured by more than 4700 rooms, many in economically troubled FL, CA and AZ. LXR is the biggest loan in the pool and, obviously a huge concern to Fitch. Last year occupancy at properties that secure the loan was less than 68% and it looks to drop further. Still, all things considered, the LXR loan has done OK so far…but it comes due May 9th. Will they exercise one of their extension options? Will they refi? Will they seek a modification? We shall soon see.


Details on the downgrades and outlook changes can be found at



MasterPlan Capital offers privately funded as-well-as institutionally funded commercial mortgage loans against all types of commercial real estate. Loans from $1MM and up for purchase and refinance. Use our simple, 1 page commercial mortgage request form to apply online.



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