Standard & Poor's said Monday that it has lowered its ratings on seven classes of commercial mortgage-backed securities in a Bear Stearns trust, including one that features a troubled retail project in Otsego.
S&P noted that a $3.6 million loan for Marketplace West Phase I is now with a special servicer. The loan for the 31,481-square-foot property in Wright County was transferred after a payment default. S&P said it "anticipates a significant loss upon the eventual disposition of this loan."
NOTE: Earlier post included photo of a different phase of the project. Corrected photo appears below.
S&P said its ratings actions on Bear Stearns Commercial Mortgage Securities Trust 2004-PWR6 reflects its analysis of collateral, the deal structure and the liquidity available to the trust.
Wright County has experienced some of the highest number of home foreclosures, so it's no surprise that retail projects built in anticipation of new residents are struggling.