By Brian Louis and Sarah Mulholland
Debt on Willis Tower, formerly the tallest U.S. building, was put in special servicing after the borrower requested a loan modification, Fitch Ratings Inc. said.
“The borrower anticipates significant capital costs going forward in order to secure additional new leases,” the rating company said in a report yesterday, citing commentary from the servicer. The Willis Tower debt, which was packaged and bundled into commercial mortgage-backed securities, was transferred to special servicing because of “imminent monetary default,” Fitch said.
The building has almost $499 million of senior debt that was sliced up and packaged into four commercial-mortgage bond deals, according to Barclays Plc. The total loan balance is $774 million, according to Fitch. The property was appraised at $1.22 billion in May 2013, Barclays analysts led by Keerthi Raghavan said in a report today….