**Delinquency Rate Among KBRA-Rated CMBS Rises to 7.9% in August**
Kroll Bond Rating Agency (KBRA) reported that the delinquency rate for KBRA-rated U.S. private label CMBS increased to 7.9% in August, up from 7.5% in July. Despite the rise in delinquencies, the total distress rate—which includes delinquent loans and current but specially serviced loans—remained steady at 10.6%.
A notable contributor to August’s increase in the multifamily delinquency rate was the Park West Village loan. The $254 million loan, which spans across six KBRA-rated conduits (including $66.5 million in rake certificates in the BBCMS 2022-C17 deal), became delinquent. As a result, the conduit multifamily delinquency rate jumped by 178 basis points to 7.2%.
In total, $1.6 billion in CMBS loans were newly added to the distress rate in August. Of that amount, $556.2 million—or 33.8%—involved loans facing imminent or actual maturity default. The multifamily sector saw the highest volume of newly distressed loans, accounting for 40.8% ($672.3 million), followed by the office sector at 35.7% ($588.5 million), and retail at 9.4% ($154.5 million).
The office segment recorded the highest delinquency rate overall, rising by 140 basis points to reach 13.2%.
Pictured: 1211 Avenue of the Americas in Midtown Manhattan. KBRA reported that a $1-billion CMBS loan associated with the property was categorized as a nonperforming balloon in August.
