Source: Trepp / #Finiance #Markets
NEW YORK, NY - Trepp, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its October 2015 US CMBS Delinquency Infographic.
The Trepp CMBS Delinquency Rate fell five basis points in October, which marks the ninth month of improvement in the past year. The delinquency rate for US commercial real estate loans in CMBS is now 5.23%, down 52 basis points year-to-date. In October, $1.4 billion in CMBS loans became newly delinquent. About $400 million in loans were cured last month, while loans that were previously delinquent but paid off either at par or with a loss totaled almost $1.2 billion. Total delinquencies fell to $27 billion month-over-month.
The next big move for the delinquency rate, which could come as early as November, will occur as a result of the forthcoming resolution of the $3 billion Stuyvesant Town/ Peter Cooper Village loan. The loan defaulted in 2009 and was later foreclosed upon, but the deal by Blackstone to purchase the properties for $5.3 billion will resolve the existing debt.
“The removal of StuyTown from the list of distressed assets alone should lead to a 60-basis-point drop in the delinquency rate,” said Manus Clancy, Senior Managing Director at Trepp. “The rate for multifamily loans, which currently exceeds 8%, could jump from the worst-performing property sector to the best-performing when the loan is paid off.”
Delinquencies for all but one of the five major property sectors declined in October. Lodging and office loans posted the largest month-over-month rate improvement, falling 11 basis points to 3.17 and 5.70%, respectively. The only sector to worsen in October was industrial, as delinquencies jumped 10 basis points to 6.28%.