In January, the volume of CMBS loan losses increased significantly. According to Trepp data, there were 14 loans resolved for a total loss of $167.0 million and an average loss severity of 67.63%, totaling $246.9 million in loan losses.
This marks a significant increase from December’s numbers, where only $71.8 million in losses were reported by Trepp. In fact, this is the highest monthly total since September last year.
However, while the overall disposed loan balance decreased to $204.4 million in January from the previous month’s figure of $2528.million,the average loss severity slightly increased from 62/38% to 62/65%.
Despite this decrease in disposed loans compared to the previous moving average period,the average loss and severity remained higher than before.In April last year,the highest monthly recorded was at its peak with an alarming rate at81/47%.The lowest record was noted back then on July with just51/.3%.
Pictured: The Kitsap Mall located Silverdale,Wa which has been identified as one among other largest CMBS loans that had incurred severe financial setbacks resulting into huge loses during January.
In January, there was a notable rise in CMBS loan losses as reported by Trepp data – with a total of 14 resolved loans amounting to$167millioninlossesandanaverage lossof67%. This represents an increase comparedtoDecemberwhenonly$71millionwasreportedaslosses.Treppdataalsoindicatedthatthiswasthelargestmonthlyloanlosstotal since September last year.
Furthermore,inJanuarythe12-monthmovingaveragemonthlydisposedbalancewentdownfrom$252millioninDecembertojustover$204million.The12-monthmovingaveragelosseverityincreasedslightlyfrom62%t
