U.S. commercial mortgage-backed security (CMBS) loans are transferring to special servicing in larger batches and with increasing speed, according to Fitch Ratings.
In January, 248 loans totaling $4.27 billion moved into special servicing. This figure is over four times the balance that transferred in January 2009. The size of specially serviced loans has increased 2.4 times from 2009 to $17.2 million, with five loans greater than $100 million.
‘More loans will approach final maturity without available extensions or a refinancing commitment,’ says Mary MacNeill, managing director. "Available liquidity remains limited, which is making refinancing large loans more difficult, even when they are performing."
Fitch breaks down the distribution of property types in special servicing, as follows:
- 275 hotels ($11 billion);
- 872 multifamily properties ($9.8 billion);
- 509 office properties ($7.5 billion); and
- 842 retail properties ($15 billion).
SOURCE: Fitch Ratings