Multifamily Performance to Rank Worst in Trepp Data
The multifamily sector looks poised to post the worst performance of any major commercial property type this month, according to commercial mortgage-backed securities (CMBS) and commercial mortgage information provider Trepp. While multifamily loans continue to perform poorly, delinquency levels in office and hotel properties are likely to come in "sharply" higher in September, Trepp said Tuesday ahead of Thursday's final release of delinquency data. Credit-rating agency Realpoint, however, on Tuesday noted multifamily properties came in second a month earlier in terms of delinquencies, accounting for just under 1% of the CMBS universe in August. Multifamily properties were second only to retail delinquencies, which accounted for about 1.1% of the CMBS universe. On its own, however, the multifamily sector looked worse, with 4.8% of the total multifamily outstanding balance delinquent in August. The total delinquent unpaid balance for CMBS rose to $28.16bn in August from $25.68bn in July, Realpoint said. It marks a 592% increase from the previous-year period and nearly erases July's $2.97bn recovery from a June '09 12-month high. Of the $811.4bn of unpaid principal balance for all CMBS pools under review by Realpoint, 3.47% was delinquent in August, up from 3.1% in July but slightly below June's high of 3.5%. Write to Diana Golobay.