Commercial, multifamily originations stall as owners hold off on major moves
The increase in the overall distress rate was largely attributed to CMBS loans totaling $2.2 billion becoming distressed. Over two thirds of that, or $1.5 billion, stemmed from imminent or actual maturity defaults.
The office sector accounted for the highest volume of newly distressed CMBS loans at 35.6% or $784.5 million, followed by mixed-use at 27.9% ($615.3 million) and retail at 23.3% ($513.5 million).
On the retail side, KBRA noted the $380 million loan on Bronx Terminal Market failed to pay off at maturity in May, while the $254.9 million loan on Providence Place Mall was transferred to special servicing due to imminent maturity default.
Read next: Record number of professionals earn MBA’s commercial servicer designation
The spike in distress for the mixed-use segment was “largely due to the transfer of the Bloomberg headquarters in 731 Lexington Avenue ($500 million in DBCG 2017-BBG), which had its ratings placed on Watch Developing earlier this month,” according to the report.
Despite the uptick in overall delinquency and distress, KBRA said the office sector got “a slight reprieve” from recent increases after the One Market Plaza loan modification.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
Please enable JavaScript to view the comments powered by Disqus.