Trepp CMBS Delinquency June 2015

After May’s Big Drop in CMBS Delinquencies, Rate Rises Slightly in June, Says Trepp

by Jeff Shaw

NEW YORK — The U.S. CMBS loan delinquency rate across the five major property types rose by five basis points in June, reports New York-based research firm Trepp LLC. Still, the delinquency rate is 60 basis points lower than it was a year ago.

The rate of CMBS loans at least 30 days delinquent inched up to 5.45 percent in June from 5.40 percent in May. By comparison, the delinquency rate registered 6.05 percent in June 2014.

The cause for the rise in the delinquency rate in June was $1.4 billion in newly delinquent loans, fueled by several that are each nearly $100 million, according to Trepp research analyst Sean Barrie.

The newly delinquent loans include $97.9 million for 390 Park Ave. in New York City and two identical $99.75 million loans for the NGP Rubicon GSA Pool, which covers industrial and office buildings in multiple markets.

The $1.4 billion in new delinquencies was partially balanced by $1.1 billion in previously delinquent CMBS loans that were paid off either at par or with a loss, says Barrie.

By property type, the multifamily and retail sectors each saw an increase of 11 basis points in the delinquency rate — to 8.73 percent and 5.54 percent, respectively.

The other three sectors — industrial, lodging and office — experienced falling delinquency rates. The industrial sector’s decrease was the largest, dropping 38 basis points to 7.12 percent. The lodging and office sectors saw more modest decreases of five basis points and three basis points, respectively.

As of June 2015, there was a total of $28.5 billion in delinquent U.S. CMBS loans, according to Trepp.

— Jeff Shaw

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