Magazine article Mortgage Banking

CMBS Delinquency Rate Rises for First Time in Seven Months

Magazine article Mortgage Banking

CMBS Delinquency Rate Rises for First Time in Seven Months

Article excerpt

The commercial mortgage-backed security delinquency rate rose for the first time since last summer, according to Fitch Ratings, New York. Late-pays climbed to 8.43 percent from 8.3 percent a month earlier.

"Prior to March, overall delinquencies had declined every month after hitting a high-water mark of 9.0t percent in July of last year," said Fitch's U.S. (-MRS Market Trends report.

The continued underperformance of the $36o million loan on the Solana mixed-use property in Westlake, Texas--now officially classified as 6o days delinquent--largely drove the increase.

"Solana is now the third-largest loan in Fitch's. delinquency index, behind New York's Stuyvesant Town and Bank of America Plaza in Atlanta," said Mary MacNeill, managing director with Fitch.

Office loan delinquencies continued their "steady upward trajectory," MacNeill said, increasing 31 basis points to 7.99 percent. She said the pace and magnitude of rising office delinquencies will intensify in the coming months.

Late-pays on industrial CMBS also rose 37 basis points to 10.91 percent, pushing the property type into the second-highest delinquency slot behind multifamily's 12.61 percent. The retail delinquency rate increased 8 basis points to 7. …

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