Mission Peak ruffles feathers with stealthy NY hotel swoop

摘要

Mission peak capital has pulled off what big-name distressed debt shops have been itching to do since the financial crisis - snap up a soured loan on a high-profile property at a discount from a CMBS trust. The Kansas City-based boutique firm bought the debt on New York City's landmark Bryant Park Hotel - a US$85m loan, bundled into a 2007 JP Morgan securitisation, that defaulted. But the shock is that it paid just US$65m for the loan, using the so-called "fair value purchase option", a person familiar with the matter said. That was significantly below the property's last value assessment of US$71m published by special servicer Key Bank as recently as February. Mission Peak used its right as the controlling class investor to buy a defaulted loan out of the trust before anyone else - a provision that has been scrapped since the financial crisis but exists in many legacy CMBS deals.