Multifamily CMBS loans see $2.3B in losses in nearly two years

Nearly 800 multifamily loans tied to commercial mortgage-backed securities experienced losses totaling nearly $2.3 billion the last 22 months, according to Trepp. Overall, the impacted CMBS multifamily loans had a loan balance of $5.4 billion and a loss severity rate of 42.53% for the time period, Trepp said. The commercial real estate data analytics firm said CMBS loans tied to the lodging and hotel sector fared somewhat worse, with 239 loans in that segment experiencing losses of $1.1 billion for a loss severity rate of 47.8% for the 22-month period. Meanwhile, CMBS tied to retail properties had 940 loans with losses totaling $2.9 billion and a 47% loss severity rate for the same 22-month period. Office and industrial properties fared slightly better, recording loan loss severity rates of 36.79% and 38.47%, respectively. Trepp noted that 2008 vintage loans performed the worst, recording a 56.27% loss severity rate on 38 loans and a total loss of $234 million. Write to Kerri Panchuk.

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