Loans

HOUSTON —Some 4,353 CMBS loans originated for Texas properties that carry an outstanding balance of $33.8 billion have been exposed due to the effects of Hurricane Harvey, according to the latest update from New York-based Trepp LLC. Of that total, nearly 1,100 loans come from government agency deals that have a combined outstanding balance of $12.9 billion. For loans where the property subtype is available, the majority of those government agency loans originated are for low-rise garden apartments, which would make them more likely to incur flood damage than high-rise properties, says Trepp. Among non-agency CMBS loans, retail properties account for the biggest exposure with an outstanding balance of just under $5 billion, or 32.9 percent of the non-agency total. That is followed by multifamily (25.6 percent) and office properties (20.6 percent). Of those retail loans, there are 48 notes with a combined balance of $210 million for which the largest tenant makes up more than 25 percent of the collateral space and has a lease that ends within the next 24 months. A tenant with a lease expiring in the near-term may not find it worthwhile to stick it out for a property that has suffered severe damage, according to Trepp. In the office sector of …