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CMBS Distress Rate Rises 32 BPs in August
Kroll Bond Rating Agency said the delinquency rate among KBRA-rated U.S. CMBS in August declined marginally to 4.98%, down 11 basis points from July. However, the CMBS distress rate–the total delinquent and specially serviced loan rate–increased 32 bps to 8.36%.
In August, CMBS loans totaling $1.7 billion were newly added to the distress rate, of which 64.6% was due to imminent or actual maturity default. The office sector experienced the highest volume of newly distressed loans (54.5%, $928.8 million), followed by multifamily at 29.4% ($500.7 million) and retail at 11.9% ($203 million).
Although on a dollar basis office was far and away the leading sector for new CMBS distress this month, KBRA said multifamily saw the largest distress rate increase: 100 bps after declining 110 bps in July. The increase included the addition of 20 Broad St. ($220 million in the $1.6-billion Hamlet 2020-CRE1) as a newly specially serviced loan, as well as six loans totaling $141.8 million that were delinquent in June and brought current in July, but which subsequently transferred to special servicing.
Pictured: 20 Broad St. in Manhattan’s Financial District. Photo courtesy of ATTCK.
- ◦Financing
