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Exhibit A

Dallas-Fort Worth
Exhibit A
Little Creek Apartments in Cedar Hill
Yes, special-servicer projects is a theme today: Here's another example of one moving, the 66-unit Little Creek Apartments in Cedar Hill for Midland Loan Services. The Cantrell Co.'s Todd Franks tells us the property was stable enough to qualify for agency financing through Fannie Mae, and the buyer—an undisclosed individual investor from Washington—received a 65% LTV at 5.31% interest and 30-year amortization for a 10-year term. Todd calls Little Creek a Class B asset in a Class B location. It was the second receivership transaction Todd and Sam Pettigrew have completed for Midland Loan Services.
Todd Franks and Sam Pettigrew
Little Creek was a unique opportunity because normally properties taken into receivership are distressed with significant deferred maintenance and low occupancy, Todd says, but Little Creek had virtually no such issues and has been 90% occupied this year. The asset was simply over-leveraged, he adds. “Though the majority of the properties we are selling are REO, we have seen a handful of receivership deals." Todd doesn't expect a trend toward lenders utilizing the receivership technique because it's relatively easy for a lender to get an asset through foreclosure in Texas. Receivership is used more often in states like Ohio where the  foreclosure process takes significantly longer and the lender needs to get control of the asset before the operations and physical structure deteriorate further.
Brentwood Apartments
We mentioned Brentwood Apartments earlier (one of the Cushman transactions) and show it here to illustrate a foreclosed multifamily property. Todd tells us that there are currently  753 multifamily properties secured by CMBS in the DFW MSA. The ratio of distressed properties reflects a current default rate of almost 12% in the multifamily CMBS market, he said, making it a 1.86% reduction since the last Cantrell report done April 1, when the default rate was nearly 14%,  with 108 multifamily properties out of 782 in default.