CMBS Loan Resolutions Pick Up

Special servicers of commercial real estate loans worked out a record number of troubled loans in August, according to this week's U.S. CMBS Market Trends newsletter from Fitch Ratings. According to Fitch, the loan resolutions helped cushion the effect of $3.1 billion of new delinquencies.

The U.S. commercial mortgage-backed securities (CMBS) loan delinquency rate rose 23 basis points to 8.48% in August. More than $2 billion of CMBS loans were resolved or liquidated last month.

Three Fitch-rated loans in excess of $100 million became newly delinquent last month because of performance issues. The loans include a $825.4 million loan for Innkeepers Portfolio, which secures 45 hotel properties; a $140 million loan for a Hyatt Regency in Bethesda, Md., and a $129.5 million loan for a Pennsylvania apartment complex.

In addition to those loans, two large loans – a $141.1 million loan and a $160 million loan – defaulted at their respective maturity dates last month and are now classified as nonperforming matured.

Of the $3.1 billion in new delinquencies in August, $1.1 billion is tied to hotel-backed loans, edging the hotel-specific delinquency rate to 20.8%.

SOURCE: Fitch Ratings


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