In January, Trepp reported a total of $834.0 million in CMBS loans resolved at a loss, resulting in $382.3 million in losses with an average severity rate of 45.84%. This marked an increase from December 2023 when losses totaled $132.9 million, although the severity rate was higher that month.
The disposed balance for the past 12 months rose to $247.6 million in January compared to December’s amount of $193.4 million, while the average loss severity over this period decreased slightly from 54.20% to 52/66%.
The largest loan resolved at a loss during this time was the Veritas Multifamily Portfolio Pool loan worth $447/6-million and backed by over sixty multifamily properties located primarily in San Francisco area with construction dates ranging from early-1900s to as late as1976.
Overall, Trepp has recorded nearly three billion dollars’ worth of CMBS loans being resolved at a loss within the last twelve months alone resulting in total losses reaching up to one point fifty-six billion dollars.
