Rankings & Awards
NEW YORK (Standard & Poor's) Nov. 1, 2007--Standard & Poor's Ratings Services today affirmed its ABOVE AVERAGE rankings on TriMont Real Estate Advisors Inc. (TriMont) as a construction loan servicer and a commercial mortgage special servicer for the U.S. market. Concurrently, we assigned our ABOVE AVERAGE ranking to TriMont as a construction loan special servicer in the U.S. The
outlook for all rankings is stable.
The complexities of construction loan administration and related special servicing require specialized skills apart from those for handling amortizing and other permanent commercial real estate loan structures. Standard & Poor's believes that TriMont, which has served as loan administrator and asset manager on construction loans for a number of years, fully demonstrates these specialized skills. The company possesses the appropriate staffing, procedures, and reporting capabilities necessary for effectively servicing construction loans and also for resolving related default situations on behalf of third-party investment vehicles.
Standard & Poor's also recognizes TriMont's successful track record and diligent processes as a commercial mortgage special servicer for public sector and non-CMBS distressed portfolios. TriMont has added experienced staff commensurate with its new asset management portfolio assignments, and it continues to post solid recovery results as well. While TriMont maintains a CMBS presence as a named special servicer on eight transactions, it hasn't yet had the opportunity to work on any troubled CMBS loans.
As a construction loan servicer and as a special servicer for commercial mortgage assets, whether permanent or construction in nature, TriMont demonstrates the following attributes:
As of June 2007, TriMont had 270 total employees, with the majority of staff based in its Atlanta headquarters. TriMont's special servicing and related asset management work centers on third-party investment funds. In addition to servicing sponsored funds for Lehman Bros. Global Real Estate Group, which remains its core client, TriMont is now the asset manager for other clients covering five other large real estate funds. The company also provides asset management services, particularly REO disposition, to Fannie Mae. The company's construction servicing portfolio has grown rapidly since 2004. In particular, in 2006, TriMont was appointed construction loan servicer for a securitization (CDO) of single-family home development sites issued through Barclays Capital Real Estate Inc. The company's public finance team also serves as the bondholders' representative on a $4 billion construction portfolio of military housing. Also in 2006, TriMont became the servicer on five projects in two separate condo securitization deals and on the New York City Plaza Hotel condo conversion senior loan in CSFB 2006 TFL2.
As of June 30, 2007, TriMont had a $28.526 billion commercial real estate portfolio under management consisting of 1,324 loan, equity, and REO assets. The portfolio included $12.294 billion of serviced construction investments (both loans and equities) consisting of 483 projects. The active special servicing portfolio encompassed 147 loans and 53 REO assets totaling $1.958 billion in unpaid principal balances. The company also was the named special servicer on eight rated CMBS deals consisting of 100 loans with an unpaid balance of $4.1 billion.
The complexities of construction loan administration and related special servicing require specialized skills apart from those for handling amortizing and other permanent commercial real estate loan structures. Standard & Poor's believes that TriMont, which has served as loan administrator and asset manager on construction loans for a number of years, fully demonstrates these specialized skills. The company possesses the appropriate staffing, procedures, and reporting capabilities necessary for effectively servicing construction loans and also for resolving related default situations on behalf of third-party investment vehicles.
Standard & Poor's also recognizes TriMont's successful track record and diligent processes as a commercial mortgage special servicer for public sector and non-CMBS distressed portfolios. TriMont has added experienced staff commensurate with its new asset management portfolio assignments, and it continues to post solid recovery results as well. While TriMont maintains a CMBS presence as a named special servicer on eight transactions, it hasn't yet had the opportunity to work on any troubled CMBS loans.
As a construction loan servicer and as a special servicer for commercial mortgage assets, whether permanent or construction in nature, TriMont demonstrates the following attributes:
- Suitable and experienced staffing depth, along with an effective organizational structure;
- Particular construction loan servicing experience with single-family home site and condominium developments, plus experience with other commercial project types, including office and lodging;
- Geographic diversity across more than 30 states, with concentrations in New York and California;
- Properly detailed procedures denoting proactive practices that signify the company's expertise with construction loan administration and risk management, real estate asset management and dispositions, and troubled loan workouts;
- An ongoing, independent internal audit program that includes an annual SAS 70 audit, which is a rigorous audit process that few servicers elect;
- A formalized employee training function with a soundly designed curriculum that includes a specific focus on construction servicing issues;
- The ability to perform customized client reporting, including the capability to produce CMSA reports within CMBS; and
- A steadily improving technology environment to promote centralized data management and reporting for construction loan servicing and related asset management.
As of June 2007, TriMont had 270 total employees, with the majority of staff based in its Atlanta headquarters. TriMont's special servicing and related asset management work centers on third-party investment funds. In addition to servicing sponsored funds for Lehman Bros. Global Real Estate Group, which remains its core client, TriMont is now the asset manager for other clients covering five other large real estate funds. The company also provides asset management services, particularly REO disposition, to Fannie Mae. The company's construction servicing portfolio has grown rapidly since 2004. In particular, in 2006, TriMont was appointed construction loan servicer for a securitization (CDO) of single-family home development sites issued through Barclays Capital Real Estate Inc. The company's public finance team also serves as the bondholders' representative on a $4 billion construction portfolio of military housing. Also in 2006, TriMont became the servicer on five projects in two separate condo securitization deals and on the New York City Plaza Hotel condo conversion senior loan in CSFB 2006 TFL2.
Outlook
The outlook for all rankings is stable. The outlook reflects TriMont's ongoing technology initiatives for construction loan administration, efforts to enhance the organizational structure and staffing expertise, and related process improvements to realize higher levels of efficiency while adhering to proactive construction risk management practices. The outlook further reflects Standard & Poor's expectation that TriMont will maintain proficiency while gaining further experience servicing construction loans for an increasingly diverse and substantially larger investor client pool during the coming 12-month period, including potential participation in more securitized structures. Standard & Poor's expects TriMont to continue to serve as a competent special servicer for its investor clients. The company also should remain acceptably positioned to manage any transfers of assets for which it is the named CMBS special servicer.As of June 30, 2007, TriMont had a $28.526 billion commercial real estate portfolio under management consisting of 1,324 loan, equity, and REO assets. The portfolio included $12.294 billion of serviced construction investments (both loans and equities) consisting of 483 projects. The active special servicing portfolio encompassed 147 loans and 53 REO assets totaling $1.958 billion in unpaid principal balances. The company also was the named special servicer on eight rated CMBS deals consisting of 100 loans with an unpaid balance of $4.1 billion.
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