World Market Center CEO denies report of loan default

Fitch Ratings reported today that the World Market Center in Las Vegas has defaulted on a $217.4 million loan, contributing to a 7.4 percent rise in special servicing of delinquent commercial mortgage-backed securities.

World Market Center President and CEO Bob Maricich denied the report late today.

"We are absolutely not in default," Maricich said. "That's totally inaccurate. The way Fitch reported it is not accurate."

The World Market Center is part of a loan pool with a special servicer, and Maricich said it's possible that a member of that pool is late on a loan.

The loan was transferred to special servicing because of the borrowers’ inability to fund operating shortfalls at the 1.1 million-square-foot furniture showroom.

After a 54 basis point increase in Fitch’s CMBS Loan Delinquency Index to 3.86, the balance of special service loans in Fitch-rated transactions increased to $35 billion in September from $32.6 billion in August.

The World Market Center was developed at a cost of about $1 billion on about 54 acres on Grand Central Parkway in downtown Las Vegas, with three major buildings opening in phases from 2005 to 2008. The last building was constructed at a cost of $550 million.