According to a recent report by Trepp, significant changes in credit were seen in newly delinquent loans, cured loans and modified loans during July. The rise of large-scale loans played a major role in these shifts. For instance, the office CMBS delinquency rate increased by 54 basis points last month to reach 8.09%. This was largely due to one loan – the $670 million securitization on Midtown Manhattan’s 230 Park Ave – which accounted for about one-third of new delinquencies in this sector.
In addition, several large multifamily loans also became delinquent or reverted back to being nonperforming during July as reported by Trepp. One example is the $221 million MFP portfolio that initially became nonperforming last November but then returned to performing status in April before flipping back again last month. As a result of these changes, multifamily delinquencies rose by 27 basis points and reached 2.63% at the end of July.
However, there were some positive developments as well with regards to CMBS deals backed by lodging properties and retail properties according to Trepp’s report for Connect CRE . In June , for instance ,the $124 .2-million Gansevoort Park Avenue loan secured against a Manhattan hotel property was sent over to special servicer due an imminent monetary default but then turned around and matured without any issues or delays just one month later – effectively taking it out from under consideration when calculating overall CMBS deal performance rates across all sectors combined (including hotels). This helped drive down hotel-related defaults significantly with only six percent remaining behind schedule compared against previous months’ figures while retail-related defaults also decreased slightly dropping down another twenty-eight bps ending up at just above six percent total share among all other types included within this category alone making up nearly half (49%)of total number currently listed within our database system.
