In January, Trepp reported a total of $834.0 million in CMBS loans resolved at a loss, resulting in $382.3 million in losses and an average loss severity of 45.84%. This marks an increase from December 2023 when losses totaled $132.9 million, although the severity was higher that month.
The disposed balance for the past 12 months rose to $247.6 million in January compared to December’s figure of $193.4 million, while the average loss severity for this period decreased slightly from 54% to 52%.
The largest loan resolved at a loss during this time was the Veritas Multifamily Portfolio Pool loan worth $447.6-million which is secured by over sixty multifamily properties located primarily in San Francisco with construction dates ranging from as early as late-1800s to mid-1900s.
Over the last year alone, approximately three billion dollars’ worth of CMBS loans have been resolved at a loss with total losses amounting up to one point five six billion dollars according to Trepp’s data analysis.
