CMBS Office Bet Gone Wrong Deals Lord Abbett $60 Million Blow

Lord Abbett & Co. was dealt a more than $60 million blow on a commercial mortgage-backed security tied to an office campus in suburban Kansas City, after the underlying loan was sold at a steep discount.

The money manager owned the vast majority of the $233 million CMBS, which was backed by the mortgage on the Aspiria office campus, formerly the headquarters of telecom giant Sprint Corp. The riskiest portion of the securitization, with a face value of more than $65 million, was wiped out earlier this month after the loan’s sale left just $164 million to distribute ...