The delinquency rate for commercial real estate (CRE) loans in California during the third quarter remained unchanged from the previous quarter, at 0.38%, according to new data released by the California Mortgage Bankers Association (CMBA).
According to the CMBA, 99.62% of the state's commercial real estate loans surveyed were either current or only one payment behind, and only 40 loans, totaling $202.7 million, were two or more payments past due. Furthermore, eight of the 16 mortgage banking firms included reported zero delinquencies.
Of the 40 delinquent loans identified by the CMBA, the largest three are a $21.3 million land loan in Fresno County, a $20.5 million office building loan in Los Angeles County and a land loan with a balance of $19.5 million in San Diego County.Â Additionally, 13 loans ($38.2 million) were secured by multifamily properties, four loans ($38.2 million) were secured by office buildings, and four loans ($12.4 million) were secured by industrial properties.Â
Also reported delinquent were three retail property loans ($7.2 million), two hospitality loans ($23.8 million) and 14 loans ($82.9 million) secured by 'other' properties, mostly bare land.
‘Non-commercial mortgage-backed securities commercial and multifamily properties in California continue to show a remarkable consistency in an extremely challenging economic environment,’ says Peter Ulrich, CMBA's CRE consultant.