### NYC Leads in Multifamily Conduit CMBS Distress
As New York City took the lead in 2024 CMBS conduit issuance for multifamily properties, it is also at the forefront of rising multifamily conduit delinquencies, according to a report from Kroll Bond Rating Agency (KBRA).
The overall KBRA distress rate for apartment-backed conduit loans—encompassing loans that are delinquent or currently in special servicing—stood at 8.5% at the end of 2024. NYC multifamily properties accounted for 43% of the total multifamily distressed balance, with a distress rate of 14.4% at year-end. This marks a significant surge from the city’s 7% distress rate at the close of 2023.
According to KBRA, the distress rate within NYC’s multifamily sector varied sharply based on property age. Older properties, particularly those built before 1974 and including a high proportion of rent-stabilized buildings, recorded a distress rate of 25.1% by balance. In contrast, newer properties constructed after 2000 had a substantially lower distress rate of 2.9%. Among the five boroughs, Manhattan experienced the highest distress rate at 29.8%, followed by Queens at 7.5% and Brooklyn at 3.2%.
