The expected foreclosure filing of the Peter Cooper Village and Stuyvesant Town (Stuy Town) loan helped drive U.S. commercial mortgage-backed security (CMBS) delinquencies 85 basis points (bps) higher to 7.14% in March, according to the latest index results from Fitch Ratings. Stuy Town alone contributed 61 bps.
Of all of the multifamily-backed loans that Fitch rates, over 13% are now delinquent (compared to 8.97% in February), bested only by hotel-backed loans with a delinquency rate of 17.2%.
‘Both Extended Stay America and Stuy Town are driving the soaring delinquency rates for hotel and multifamily properties,’ explains Fitch Managing Director Mary MacNeill.
If both loans were excluded from the index, hotel and multifamily loans would still lead the delinquencies at 12.38% and 9.3%, respectively.
‘Recent notable transfers to special servicing are indicating a future increase in office delinquencies,’ MacNeill adds.
SOURCE: Fitch Ratings