An increase in delinquency on securitized commercial mortgages in July was erased last month. The rate on hotel loans has fallen each of the past four months by an aggregate of more than 180 basis points. But securitized apartment loans have become a growing problem
Commercial real estate loans held in commercial mortgage-backed securities conduit-fusion transactions had a 60-day delinquency rate of 9.01 percent in August. That worked out to $54.0 billion in past-due loans.
The performance data was based on Moody’s Investors Service’s Delinquency Tracker.
Late payments fell from 9.24 percent in July, when the rate rose 22 BPS. The dollar volume of delinquent CRE loans in July was $55.6 billion.
Between July and August, $4.1 billion in delinquent CMBS loans were cured, while $2.6 billion become newly delinquent.
The delinquency rate, however, remains higher than August 2010, when CMBS delinquency was 8.10 percent.
Moody’s said that specially serviced loans fell 7 BPS to 12.23 percent last month.
The improvement in August was driven by securitized hotel loans, which fell 44 BPS from the previous month to 14.56 percent. During the past four months, the hotel rate has tumbled a total of 182 BPS.
Delinquency on CMBS loans secured by retail properties declined 29 BPS from July to 7.08 percent, and office delinquency was down 23 BPS to 7.36 percent.
The rate on multifamily loans, which became the worst-performing category in July, continued to deteriorate last month — rising 8 BPS to 15.21 percent.
An even bigger increase was recorded for defaults on industrial real estate loans, which shot up 43 BPS to 11.20 percent.
The New York-based ratings agency reported that Los Angeles and Washington, D.C., were the strongest performing markets among the 10-biggest — with rates at less than half of the 9.01 percent national rate.
On the other end of the spectrum were Las Vegas and Riverside, Calif., where rates were double the national average.
The amount of outstanding CMBS loans slipped to $599.5 billion, “the first time that the CMBS universe has been less than $600 billion since February 2007.”
