Loss-severity rate on conduit loans more than 60% on 1998 vintage
The loss-severity rate on 1998 vintage commercial mortgage-backed securities loans outpaced other vintage classes of CMBS, with the 1998 class recording $289 million in realized losses on an initial loan balance of $474 million, Trepp said Friday.
The CMBS analytics firm released its January loss-liquidation report for fixed-rate, U.S. conduit loans Friday.
The report puts the vintage 1998 CMBS class at a loss-severity rate of 60.94%, making it the segment with the highest distressed loan level. It is followed by the 2008 vintage class of 46 loans, which have a loan balance of $480 million and realized losses of $263.7 million, creating a loss-severity rate of 54.93%.
The class of fixed-rate conduit CMBS loans with the lowest loss-severity rate is the vintage 2000 class with a loan balance of $1.6 billion and realized losses of $479.3 million.
Retail CMBS loans have a loss-severity rate of 48.47% and a loan balance of $7.7 billion on 1,122 loans and realized losses of $3.7 billion.
Office properties maintained a loss severity rate of 37.52%, while multifamily and industrial loans had loss severity rates of 42.15% and 41.04%, respectively.
The special servicer with the highest loss-severity rate on CMBS loans is C-III Asset Management with its loss rate hitting 52.16% on 597 loans with a balance of $4.1 billion and losses of $2.1 billion.
Midland ranked second with a loss-severity rate of 51.22% on 209 loans with a balance of $1.6 billion and losses exceeding $820 million.
Meanwhile, Berkadia had a loss-severity rate of 32.08%, Trepp said, while CWCapital Asset Management and LNR Partners maintained loss severity rates of 46.49% and 41%, respectively.