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| Joe McBride |
(New
York, NY, July 30, 2014) –Trepp, LLC, the leading provider of information,
analytics, and technology to the CMBS, commercial real estate, and banking
markets, released its July 2014 US CMBS Delinquency Report today (available at www.trepp.com/knowledge/research).
Having achieved double-digit improvements in the monthly US
CMBS delinquency rate for over a year, the contraction in the rate slowed
significantly in July. During the course of the month, the delinquency rate for
US commercial real estate loans in CMBS dropped just one basis point, to 6.04%.
Loan resolutions, which have ranged from $900 million to $2
billion (excluding the CWCapital sales) this year, totaled only $600 million in
July. With fewer distressed loans removed from the delinquent loan pool, newly
delinquent loans pushed the monthly total back up. Trepp currently counts $32.1
billion in CMBS loan delinquent, which is down from June’s total.
“After so many months of steady declines in the delinquency
rate, the slowdown in distressed loan liquidations and an uptick in newly
delinquent loans put the brakes on the improvement in July,” said Joe
McBride, research analyst at Trepp. “Whether the monthly decrease in loan
liquidations is an outlier or a true shift to slower workout activity from
special servicers remains to be seen but we expect the rate to continue
downward.”
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“Seriously delinquent” loans, which are counted as those 60+
days delinquent, in foreclosure, REO, or non-performing balloons, have also
been on a steady decline. Again, this improvement stalled in July, as the rate
decreased by only four basis points on this basis.
When broken out by major property type, lodging loans
surpassed retail as the best performer. The delinquency rate for lodging loans
fell to 5.19% in July and retail increased to 5.53%. While all five property
types have fallen into the single digits for their respective delinquency rates,
multifamily loans remain the worst performing property type, with a rate of
9.24%.
For a complete copy of the company’s news release, please
contact:
Joe McBride, Research Analyst
Trepp LLC
212-754-1010
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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