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| Joe McBride |
NEW YORK, NY -Trepp, LLC, the leading provider
of information, analytics and technology to the CMBS, commercial real estate,
and banking markets, released its October 2013 US CMBS Delinquency Report today
(available at http://www.trepp.com/knowledge/research).
For the
first time since early 2010, the Trepp CMBS delinquency rate fell below the 8%
level. October’s decrease marks the fifth consecutive month of rate
improvement.
The rate dropped 16 basis points over the course
of the month, bringing the 30+ day delinquency rate for US commercial real
estate loans in CMBS to 7.98%. The percentage of loans seriously delinquent is
now 7.69%
“The government may have shut down this month,
but special servicers took no time off,” said Joe McBride, a Research
Analyst at Trepp. “Almost $1 billion in CMBS loans were disposed with losses in
October, as servicers continue to work through troubled loans, especially in
the retail sector. Much of the improvement in the retail delinquency rate comes
from this ‘cleaning out’ of the distressed pipeline.”
 |
| Manus Clancy |
While
2013 is almost over, Trepp expects to see more improvement in the rate before
year-end. CWCapital’s impending sale of more than $2.5 billion of distressed
assets could result in a 50-basis-point decrease, assuming the sales close
prior to the December remittance cycle.
“In
addition to the distressed assets that were recently identified for sale, a
large number of note sales are also expected from the servicer,” said Manus
Clancy, Senior Managing Director of Trepp.
“As CW stated that it is looking
to sell these before year-end, this could result in the removal of a number of
loans from the delinquent category over the next 60 days.”
For a complete copy of the company’s news release, please contact:
Eric
R. Gerard
Senior
Vice President
Great
Ink Communications
27
Union Square West, Suite 205
New
York, NY 10001
(212)
741-2977
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