Fitch Ratings reported a 6% increase in U.S. commercial mortgage-backed securities (CMBS) loans entering special servicing this past month in its latest edition of ‘What's in Special Servicing.’
While Fitch Ratings' latest U.S. CMBS loan delinquency index remained unchanged from July to August, this past month's increase in specially serviced loans brings the total percentage within the agency's rated CMBS portfolio to 14%.
The largest new addition is the $375 million One Park Avenue loan, which is secured by a 924,501 square-foot office property in New York, NY. The loan transferred to special servicing on Aug. 12 due to imminent default following the announced vacancy of the second-largest tenant.
Performing specially serviced loans continue to outweigh nonperforming loans 59% to 41%, with the trend likely to persist through the remainder of the year, according to Fitch. More borrowers will seek loan modifications due to the recently enacted U.S. Treasury regulations that allow servicers increased flexibility to modify performing loans, the agency adds.
SOURCE: Fitch Ratings