CMBS Performance Slides Again: Trepp

The rate of 30-plus-day delinquency in commercial mortgage-backed securities (CMBS)reached a new record high of 6.49% in January, according to commercial real estate data provider Trepp. The 42 basis point-jump tops the previous record-high of 6.07% in December. News of the next record CMBS delinquency follows an announcement from the Mortgage Bankers Association (MBA) that 13% of commercial mortgages will mature and come due this year, possibly pressuring performance further if refinancing or other financing alternatives are not secured. Multifamily properties backing CMBS are now 9.71% delinquent – 44 bps higher than December. Hotel delinquencies soared 145 bps in January to 15.3%. The hike in hotel delinquency comes after the Extended Stay Hotel default pushed commercial mortgage-backed securities (CMBS) delinquencies up 85 bps in November. Retail property backing CMBS is now 5.69% delinquent and industrial properties are 4.54% delinquent, Trepp said. Office property retains the lowest rate of any major property type at 3.9% delinquent. Serious delinquencies – a status of of 60 or more days delinquent, in foreclosure or real-estate owned (REO) proceedings or non-performing balloons – is at 5.67% of all CMBS. Trepp indicated strong CMBS performance at the beginning of January was offset by heavy selling at the close of the month. The delinquency of the Stuyvesant Town/Peter Cooper Village debt, which was not included in January’s data, would have added 40 bps to the delinquency rate and would have pushed the multifamily category to 13% delinquent. Tishman Speyer Properties and BlackRock Realty recently said they would transfer ownership of the property back to creditors to avoid foreclosure after missing a scheduled repayment to senior lenders on a bond used to finance debt from the joint purchase. As HousingWire previously reported, credit-rating agency Realpoint projected the delinquency rate on the overall unpaid balance of CMBS may grow as much as 31-58% by mid-2010, factoring in the potential default of the Stuy Town loan. Write to Diana Golobay.

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