Delinquencies on all commercial mortgage-backed securities loans, including multifamily mortgages, fell for the fourth-consecutive month in September, according to Fitch Ratings.
Multifamily loans posted a delinquency rate of 9.95%, down from 10.18% in August, reflecting a minor turnaround in the segment.
Total CMBS late-pays dropped two-basis points in September, falling from 8.39% in August to 8.37% last month.
Mary MacNeill, a managing director at Fitch, noted that several big loans were paid off in September. But she added, “[A] closer look reveals that they were paid off only after refinancing delays.”
“For instance, the $275 million CalWest Industrial Portfolio matured in June, though the payoff did not take place until Aug. 30,” she explained. “Delays also took place with the $232 million Westin New York at Times Square, which matured in March but was not paid off until this past month.”
Industrial and office delinquency rates rose to 9.03% and 8.83%, respectively.
Meanwhile, hotel delinquencies fell from 10.82% to 10.24% in September as retail properties recorded a higher delinquency rate of 7.48%, up from 7.43%.